MARK 3321 1st Edition Lecture 10Outline of Last 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 BrandsOutline of Current Lecture I. Individual Brands vs Family BrandsII. Functions of PackagingIII. LabelingIV. UPCsV. Product WarrantiesVI. Categories of New ProductsVII. New Product Development ProcessVIII. Categories of AdoptersIX. Product CharacteristicsX. 4 Stages of Product Life CycleXI. Importance of ServicesXII. How Services differ from GoodsXIII. Components of Service QualityXIV. Service StrategyXV. Relationship Marketing in ServicesCurrent LectureCH 10 – Product Concepts (continued)- Individual brands vs Family Brandso Individual brand Using different brand names for different products- Ex: Proctor and Gamble (have 20+ brands)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.o Family brand Marketing several different products under the same brand name- Ex: Sony, Toyota, etc.- Co-brandingo Types of co-branding Ingredient branding- When one product is being sold on the marketplace, and another component is part of it- Ex: Computers (Dell and Intel), food products Cooperative branding- Two brands getting together for promotions Complementary branding- Two products are suggested to be used together- Ex: Coke and liquor, etc.- Functions of Packagingo Contain and protecto Promoteo Facilitate storage, use, and convenienceo Facilitate recycling- Labelingo Persuasive labeling Focuses on promotional theme or logo with consumer information being secondaryo Informational labeling Designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase- Universal Product Codeso UPCs A series of thick and thin vertical lines (bar codes) readable by computerized optical scanners, that represent numbers used to track products- Product Warrantieso Warranty A confirmation of the quality or performance of a good or serviceo Express warranty A written guaranteeo Implied warranty An unwritten guarantee that the good or service is fit for the purpose for which it was sold (UCC, uniform commercial code) CH 11 – Developing and Managing Products- Categories of New Productso New-to-the-world Create a market that never existed before- Smartphones, o New product lines Introduce a product that your company has never sold beforeo Product line additions A new type of the product Ex: a new plasma TVo Improvements/revisions- New Product Development Processo 1. New product strategy Links the new product development process with the objectives of the marketing department, the business unit, and the corporationo 2. Idea generation Sources of new-product ideas- Customers, employees, distributors- Competitors, R & D, consultants, other expertso 3. Idea screening Screening- The first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason Concept tests- Often used at the screening stage- These tests evaluate a new-product idea, usually before any prototype has been createdo 4. Business analysis Considerations in this stage- Demand- Cost- Sales- Profitabilityo 5. Development Creation of prototype Sketch marketing strategy- Packaging, branding, labeling- Promotion, price, and distribution strategy Manufacturing feasibility Simultaneous product development- A new team-oriented approach to new-product development where all relevant functional areas and outside suppliers participate in the development process- Ex: new electric car, we develop the car and get another company to develop batteries for the caro 6. Test marketing The limited introduction of a product and a marketing program to determine thereactions of potential customers in a market situation Alternatives to test marketing- Single-source research using supermarket scanner data- Simulated (lab) market testing- Online test marketingo 7. Commercialization Production Inventory buildup Distribution shipments Sales training Trade announcements Customer advertisingo New Product- Categories of Adopterso Innovators First 2.5% to adopt the new product More well-off and tend to buy the newest and latest stuffo Early adopters Next 13.5% Opinion leaders usually come from this category Do some research before purchasingo Early majority Next 34%o Late majority Next 34%o Laggards Final 16% Resistant to change, hold off until they have to buy the product- Product characteristics and the Rate of Adoptiono Complexity The more complex the product, the slower its diffusiono Compatibility Incompatible products diffuse slowero Relative advantage The degree to which a product is perceived as superior to existing substituteso Observability The degree to which the benefits or other results of using the products can be observed by others and communicated to target customerso Trial-ability How easily can I buy it and consume it- Four stages of Product Life Cycleo Introductory stageo Growth stageo Maturity stageo Decline stageCH 12 – Services and Nonprofit Organization Marketing- The Importance of Serviceso Services are the result of applying human or mechanical efforts to people or objects Cannot be physically possessedo Services industries account for: Over 2/3 of US GDP 4 out of every 5 US jobs- Global Issues in Services Marketingo US is the world’s largest exporter of services Ex: UTA sending professors to teach in China, could be consulting, etc.- Goods and/or Services are the Product- How services differ from goodso Intangible No physical object makes it hard to communicate benefitso Inseparable Production and consumption are simultaneous, meaning the consumer takes part ino Heterogeneous Services depend on their employees for quality, which makes consistency difficult to achieveo Perishable Services cannot be saved, and it is challenging to synchronize supply and demand- Components of Service Qualityo Reliability The ability to perform the service right the first time Customers consider this the most important indicator