MARK 3321 1st Edition Lecture 9 Outline of Last Lecture I Roles in the Buying Center II Evaluative Criteria for Business Buyers III Buying Situations a New buy b Modified rebuy c Straight rebuy IV Marketing Research V Steps in a Marketing Research Project VI Observational Research VII Traditional forms of Survey Research VIII Advantages of Internet Surveys IX Other Popular Research Approaches X Scanned based Research XI Customer Relationship Management XII Video Case Nederlander Organization XIII CRM Cycle Outline of Current Lecture I Products II Types of Consumer Products III Product Items Lines and Mixes IV Product Modification V Brand VI Video Case Method VII Branding VIII Branding Strategies IX Advantages of Manufacturer s Brands and Private Brands Current Lecture CH 10 Product Concepts What is a product o Everything both favorable and unfavorable that a person receives in an exchange Tangible good These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Service Idea Types of consumer products o Products Consumer products Convenience products o Like candy sodas etc o Make it easy and appealing to purchase Shopping products o More expensive than convenience do more comparison shopping o Homogenous Very straight forward decision rule o Heterogeneous o Ex computers Specialty products o Not really have good substitutes in the marketplace o Go to extensive lengths to acquire the product o Ex rolex Unsought products o Product is really new don t know much about it or what it does o Really do not enjoy thinking or purchasing the product ex burial plots Business products Product items lines and mixes o Product item o A specific version of a product that can be designated as a distinct offering among an organization s products Product line o Product mix A group of closely related product items All products that an organization sells Product modification o Product modification changes one or more of a product s characteristics Quality modification Improve or enhance performance some way Ex New shape for razor to increase performance Functional modification Changing what the product does for you Ex software update Style modification o Planned obsolescence Making a product knowing it will need to be replaced even when it has still has functionality A name term symbol design or combination therefor that identifies a seller s products and differentiates them from competitor s products Video case Method soap o Ex cell phones Brand o New car models The position could be that they want to be seen as safer and friendlier more aesthetic than other cleaners etc Branding o Brand name o Brand mark o The part of a brand that can be spoken including letters words and numbers The elements of a brand that cannot be spoken Brand equity o Global brand The value of company and brand names A brand where at least one third of the product is sold outside its home country Branding strategies o Manufacturers brand o The brand name of a manufacturer Private brand A brand name owned by a wholesaler or a retailer Also known as a private label or store brand o Captive Ex sam s club A brand manufactured by a third party for exclusive retailer without evidence of that retailer s affiliation Advantages of Manufacturer s Brands for resellers o Heavy consumer ads by manufacturers develop strong consumer loyalties o Well known manufacturers brands can Attract new customers Enhance the reseller s prestige o Can carry less inventory due to manufacturers rapid delivery o If a manufacturer s brand of poor quality is sold the customer may simply switch brands and remain loyal to reseller Advantages of Private Brands for resellers o Reseller can usually earn higher profits on its own brand o There is less pressure to mark down price due to exclusivity o Brand ties customer to wholesaler or retailer o No risk of brand being dropped before desired o Have control over the intensity of distribution