Product Concepts Product everything both favorable and unfavorable that a person receives in an exchange tangible goods services ideas Types o Consumer products Convenience inexpensive item that merits little shopping effort Shopping requires comparison shopping usually more expensive and harder to find Specialty consumers search extensively and reluctant to accept substitutes Unsought unknown to potential buyers or not a product that customers seek o Business products Product item specific version of a product that can be designated as a distinct offering among an organization s products Product line group of closely related product items Benefits standardized components package uniformity advertising economies efficient sales and distribution o Width number of product lines an organization offers o Depth number of product items in a product line Product mix all products that an organization sells Planned obsolescence the practice of modifying products so those that have already been sold become obsolete before they actually need replacement ADJUSTMENTS Product modification changing one or more of a product s characteristics Quality modification functional modification style modifications Product repositioning changing demographics declining sales changes in social environment Product line extension adding additional products to an existing product line in order to compete more broadly in the industry Symptoms of overextension o Some products have low sales or cannibalize sales of o Resources are disproportionally allocated to slow o Items have become obsolete because of new product other items moving products entries Branding Brand name that part of a brand that can be spoken including letters words and numbers Brand mark the elements of a brand that cannot be spoken Brand equity the value of company and brand names Global brand a brand where at least a third of the earnings come from outside its home country Branding strategies Manufacturer s brand the brand name of a manufacturer Advantages heavy ads attracts new customers rapid delivery Private brand a brand name owned by a wholesaler or a retailer Also known as a private label or store brand Advantages earn high profits on own brand less pressure to mark down prices ties customer to wholesalers Captive a brand manufactured by a third party for exclusive retailer without evidence of a that retailer s affiliation Advantages no evidence of store s affiliation sold exclusively at the chain Characteristics of a good brand name Short easy to spell and read easy to remember easy to pronounce can pronounce in all languages suggests product benefits always timely legally available Individual brand using different brand names for different products Family brand marketing several different products under the same brand name Trademarks the exclusive right to use a brand Many parts of the brand are associated symbols Trademark comes from use rather than registration Rights continue for as long as the mark is used Global issues in branding one brand everywhere adaptations and modifications different brand names in different markets
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