Marketing exam 2 Chapter 11 product Product is the basic offer we hope the consumer can t refuse Product Forms goods services ideas places personalities events organizations Product anything that satisfies a need or a want that can be offered in exchange A bundle of benefits Anything can be a product consumers must be willing to purchase it We vote in dollars Total product concept model for analyzing current product Allows to look inside a product 3 Levels Core Benefits basic problem solving benefits that consumers are seeking o Example health care When seeking health care we look for benefits such as Care Caring physical and emotional treatment cure comfort convenience cost control and quality Tangible marketers convert core customer value into an actual product o Size Color package physical characteristics features o What companies will try to copy because it s visible o Reverse Engineering competitor buys a product and takes it apart to copy it the best they can o Product design Function Aesthetics product can do a variety of things appeal to the 5 senses Augmented nonphysical aspects of the product optimizing the combination of Function Value and Aesthetics o Service credit delivery reputation etc o The extras in a product serve as tiebreaker when deciding products o Things you get along with the product such as customization etc Branding anything that identifies differentiates between sellers The product mix reflects the breadth represents a count of the number of product lines offered by a firm Product line depth equals the number of products within the product line the name McDonalds how you are seen Golden Arches aspect of the brand with legal protection Brand Name Brand Mark Trademark Brand character Brandstanding doing on campus not the product Ex Supporting sponsoring etc Taco Bell student section Battle of the brands but store are trying to win over the brand Store brands becoming more popular the way to give a brand personality Ronald mcdonald practice of marketing thats popular on campuses Talk about things that they re battle between stores and manufacturers manufacturers are better known o Example P G vs Walmart 15 of P G s sales are to walmart 3 of walmarts sales are from P G products walmart has more say winning battle this is our stuff Brand Brand equity the value of a brand set of assets or liabilities linked to a brand o Perceived value o Brand associations product attributes such as logo slogan or famous personality the relationship between a product s or service s benefits and its cost the mental links that consumers make between a brand and its key measures how many consumers in the market are familiar with a brandand Brand awareness what it stand for and have an opinion about it Brand can emphasize attributes and benefits but can also connect with our emotions History psychology of brand names want to be recognizable strongest brands tap into our emotions and needs Ads and brand names didn t become important until the industrial revolution 1850 o Overnight factories began producing and selling to ppl in different areas and needed a way to distinguish themselves A strong brand name is much more the result of effective marketing than the cause o Most common oversimplification is the idea that upon getting a strong brand marketing and all the rest is taken care of Brand what people say about you when you re not in the room Can be measured when companies are bought and sold What customers think and believe when they hear your name Key to success repeat customers Brand acts as bond between customer and organization In general brand loyalty for consumer products has decreased significantly in recent years Recession makes people willing to buy more brands Consumers are more price conscious even with favorite brands Types of Brand Names National manufacturers brands household names Also known as manufacturer brands Resellers private label brands brands owned by companies who sell the brands Kroger brand stores don t make product use factories or contract a manufacturer Also known as retailer store brands o Contract manufacturer gets paid to copy products Generic Brands no name brands Licensed brands somebody has a famous name that they are willing to rent out Family brands when all products are sold under one family brand A firm can use its own corporate name to brand all its product lines and products ex Kelloggs Individual brands can use individual brand names for each of its products Co branding the practice of marketing two or more brands together on the same package promotion or store Can enhance customer s perceptions of the product quality Brand Extension the use of the same brand name in a different product line it s an increase of a product mix s breadth Line Extension the use of the same brand name within the same product line and represents an increase in a product line s depth Brand Dilution occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold Types of consumer products almost everything we buy falls into the first 3 categories 1 Convenience Products things we need CVS Kroger etc Place make it as easy as possible consumers don t want to have to search for these 2 Shopping products things we want to compare going to mall to find a dress a Homogenous price based Place close to competitors car dealerships malls because consumers want to compare b Heterogeneous attribute based 3 Specialty products will put in extra effort to get Expensive brand name Place don t need a lot of locations location should be special 4 Unsought products have to aggressively so after customers life insurance medical care etc Packaging plays a key role Attracts the consumers attention and enables products to stand out from their competitors Can offer a promotional tool the one the consumer uses such as the toothpaste tube Consumers seek the wrapper or exterior carton that contains the primary package Used to Primary Package convenience when it comes to this Secondary package learn additional product information New Products have some skepticism Marketing version of free products Degrees of newness New to the world 10 of products nothing like ever before Improvements and revisions 26 partly new can be a judgment call Additions to existing lines 26 adding things new types of detergent New to company 20 when organization brings out their version of a product that other companies have made Cost reductions 11