MARK 3321 1st Edition Lecture 9Outline of Last Lecture I. Roles in the Buying CenterII. Evaluative Criteria for Business BuyersIII. Buying Situationsa. New buyb. Modified rebuyc. Straight rebuyIV. Marketing ResearchV. Steps in a Marketing Research ProjectVI. Observational ResearchVII. Traditional forms of Survey ResearchVIII. Advantages of Internet SurveysIX. Other Popular Research ApproachesX. Scanned-based ResearchXI. Customer Relationship ManagementXII. Video Case: Nederlander OrganizationXIII. CRM CycleOutline of Current Lecture I. ProductsII. Types of Consumer ProductsIII. Product Items, Lines, and MixesIV. Product ModificationV. BrandVI. Video Case: MethodVII. BrandingVIII. Branding StrategiesIX. Advantages of Manufacturer’s Brands and Private BrandsCurrent LectureCH 10 – Product Concepts- What is a product?o Everything, both favorable and unfavorable, that a person receives in an exchange Tangible goodThese 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 productso Products Consumer products- Convenience productso Like candy, sodas, etc.o Make it easy and appealing to purchase- Shopping productso More expensive than convenience, do more comparison shoppingo Homogenous Very straight-forward decision ruleo Heterogeneous o Ex: computers- Specialty productso Not really have good substitutes in the marketplaceo Go to extensive lengths to acquire the producto Ex: rolex- Unsought productso Product is really new, don’t know much about it or what it doeso Really do not enjoy thinking or purchasing the product (ex: burial plots) Business products- Product items, lines, and mixeso Product item A specific version of a product that can be designated as a distinct offering among an organization’s productso Product line A group of closely-related product itemso Product mix All products that an organization sells- Product modificationo 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- New car modelso Planned obsolescence Making a product knowing it will need to be replaced even when it has still has functionality- Ex: cell phones- Brando A name, term, symbol, design, or combination therefor that identifies a seller’s products and differentiates them from competitor’s products- Video case: Method soapo The position could be that they want to be seen as safer and friendlier, more aesthetic than other cleaners, etc.- Brandingo Brand name The part of a brand that can be spoken, including letters, words, and numberso Brand mark The elements of a brand that cannot be spokeno Brand equity The value of company and brand nameso Global brand A brand where at least one third of the product is sold outside its home country- Branding strategieso Manufacturers’ brand The brand name of a manufacturero Private brand A brand name owned by a wholesaler or a retailer Also known as a private label or store brand- Ex: sam’s clubo Captive A brand manufactured by a third party for exclusive retailer, without evidence ofthat retailer’s affiliation- Advantages of Manufacturer’s Brands (for resellers)o Heavy consumer ads by manufacturers develop strong consumer loyaltieso Well known manufacturers’ brands can: Attract new customers Enhance the reseller’s prestigeo Can carry less inventory due to manufacturers’ rapid deliveryo 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 brando There is less pressure to mark down price due to exclusivityo Brand ties customer to wholesaler or retailero No risk of brand being dropped before desiredo Have control over the intensity of