Chapter 10 – Product & DesignProduct- everything, both favorable and not favorable that a person receives in an exchange-Tangible good, service, idea-starting point of the marketing mix (Price, Product, Promotion, Place)Types of Products-business product: a product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers-consumer product: a brought bought to satisfy an individual’s personal needs or wantsTypes of Consumer Products-convenience product: a relatively inexpensive item that merits little shopping effort-shopping product: a product that requires comparison shopping, because it is usually more expensive and found in fewer stores-specialty product: a particular item for which consumers search extensively and are reluctant to accept substitutes-unsought product: a product known to the potential buyer or a known product that the buyer does not actively seekProduct Lines, Items, Mixes-product item: a specific version of a product that can be designated as a distinct offering among an organization’s products-product line: a group of closely related product items-benefits: advertising economies; package uniformity; standardized components; efficientsales and distribution; equivalent quality-product mix: all products that an organization sellsAdjustments1. Product modification:-quality modification-functional modification-style modification2. Product repositioning-why? Changing demographics; declining sales; changes in social environment3. Product line extension or contraction:-adding additional products to and existing product line in order to compete more broadlyin an industry-Symptoms of overextension: some products have low sales or cannibalize sales of other items; resources are disproportionally allocated to slow-moving products; items have become more obsolete because of new product lines-planned obsolescence: the practice of modifying so those that have already been sold become obsolete before they actually need replacementBranding-brand name: the part of the 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 a company and brand names-global brand: a brand where at least 20% of the product is sold outside its home country-benefits: -product identification-repeat sales-new product salesBranding Strategies-manufacturer’s brand: the brand name of a manufacturer-individual brand, family brand, combination-advantages: heavy consumer ad’s, attract new customers, enhance dealer’s prestige, rapid delivery carry less inventory, customers can switch brands but stay loyal to dealer-private brand: a brand name owned by a wholesaler or retailer- aka private label or store brand-individual, family, combination-advantages: earn higher profits on own brands, less pressure to mark down price, manufacturer can become a direct competitor or drop brand/seller; ties customer to wholesaler or retailer; wholesaler and retailers have no control over the intensity of distribution on manufacturer’s brands-captive: a brand manufactured by a 3rd party for exclusive retailer, w/o evidence of a retailer’s affiliation-advantage: no evidence of stores affiliation, sold exclusively at the chain, can ask price similar to manufacturer’s brandsIndividual brands vs. Family brands-individual: using different brand names for different products-family: marketing several different products under the same brand nameCobranding-types:-ingredient brand-cooperative branding-complimentary brandingTrademark-exclusive right to use a brand-many parts of a brand and associated symbols qualify for trademark protection-trademark right comes from use rather than registration-mark has to be continuously protected-rights continue for as long as the mark is used-trademark law applies to the online world -www.uspto.gov  place u go to look for patents & trademarksPackaging-functions: -contain and protect-promote-facilitate storage, use, and convenience-facilitate recycling-innovations:-packaging tends to be the same size and shape easy customer comparison, innovationsfor ease can be a competitive advantageLabeling-persuasive: focuses on promotion theme; consumer information is secondary-informational: helps make proper selection; lowers cognitive dissonance; includes use/care-universal product codes (UPC’s): a series of thick and thin vertical lines (bar codes), readable bycomputerized optical scanners, that represent numbers used to track productsGlobal Issues-global options for branding: 1. One brand name everywhere2. Adaptations and modifications3. Different brand names in different markets-global considerations for packaging:1. Labeling2. Aesthetics3. Climate considerationsProduct Warranties-warranty: a confirmation of the quality or performance of a good or service-express warranty: a written guarantee-implied warranty: an unwritten guarantee that the good or service is fit for the purpose for whichit was sold