10 5 Week 7 Chapter 6 Creating Offerings What is a product Anything of value Through voluntary marketing exchange Goods services ideas experiences Levels of products services Core customer value Actual product Augmented product associated services Product mix product line decisions Product assortment product mix All products Product lines Groups of similar products items Product mix breadth product line breadth Number of product lines Product line depth Cannibalize sales Number of products within a product line Product competition within company Brand elements Brand name domain names logos symbols characters slogans jingles distinctive packages Value of branding Facilitates purchasing establishes loyalty protects from competitions reduces marketing costs impacts on market value Assets Lanham act primary statutory foundation of United States trademark law at the federal level Brand equity assets and liabilities associated with a brand impacts product s value Brand awareness Perceived value Number of consumers who know brand and their opinion Brands bene t vs costs Brand associations Links between brand and attributes Brand loyalty Buy same product repeatedly Net promoter score Recommend brand to others Brand ownership Manufacturer brands national brands Private label retail store brands Naming brands and product lines Corporate family brands Individual brands Choosing a name Premium generic copycat exclusive limited amount of product only at speci c retailer Brand s role product lines short or long term insulting Week 8 10 10 Chapter 6 Creating Offerings Brand Line Extensions Advantages Brand dilution Cost effectiveness image transfer complementary products People are confused about the product consumers question the purpose and reason for the product Co branding Licensing Enhances perceptions of quality Prelude to acquisition strategy Names symbols logos characters Licensor allows a licensee to use their brand Rebranding Brand Repositioning Change brand s focus Target new markets realign core emphasis Packaging Designing and producing the container or wrapper for a product Developing a good package Reinforce the brand message Protect contents Ensure product safety Make sure it s safe to use shelf life spoilage child safety Environmental concerns how to dispose Cost reduction Primary package Secondary packaging Tertiary package Innovations Ring pull cans snack n seal cold activation clear packaging sustainable aluminum beverage cans child resistant senior friendly Product labeling Information Legal requirements Ingredients where it was made directions for use safety precautions Chapter 14 Customer Satisfaction Loyalty and Empowerment Customer satisfaction Difference between expectations and perceived performance Satisfaction occurs when a form meets or beats expectations Seek to avoid post purchase cognitive dissonance buyer s remorse Loyalty dimensions Behavioral loyalty Buy product regularly Habitual purchases Attitudinal loyalty Degree of brand preference Cause related marketing Loyalty Management Advantages of loyal customers Loyalty programs Reward frequent purchases Positive effects Less expensive to maintain pay a premium try new products from that brand WOM Word of mouth overlook brand problems Good performance by a company responsiveness by a company shared identity among Longevity effect Blocker effect ignoring what opposing companies are doing Spreader effect spreads to other products Accelerator effect rewards compound on one another Criteria for successful loyalty programs participants Clear bene ts community development Ethics Law and Customer empowerment Selling under the guise SUG fake reviews about a product Privacy laws Privacy statements Warranties expressed and implied Week 8 10 12 Chapter 7 developing and managing offerings New product development Innovation ideas that turn into new products offerings Risky but is necessary 90 97 of new products fail manage risks diverse portfolio of products New to the world products pioneers breakthrough rst movers only 10 and costly Diffusion of innovation How innovation spreads throughout a market innovators smallest percentage rst with new product enjoy taking risks highly knowledgeable have means that allow them to do this early adopters second smallest less risk tolerant wait for reviews to purchase considered opinion leaders WOM determine size of overall market early majority typically largest same to very close percentage with late majority few products are pro table until EM adoption tipping point avoiding risk wait for bugs to be tested late majority last group to buy new products represents market saturation all possible parties have invested laggards don t buy new products dislike change depend on traditional products until no longer offered New product development Idea generation internal r d r d consortia licensing brainstorming outsourcing customer input competitors products reverse engineering Idea screening evaluated by asking questions added value Market need Fit Associated services Price Projected sales Production timeline process and nancial feasibility concept testing develop concept statements technology form etc present to potential obtain reactions via research Feature speci cations narrow products features quality function development QFD focus on customer link desires and characteristics actual offering designed manufacturing process considered speci cations are written prototype is devoted initial product design Development Testing alpha testing employees beta testing potential consumers Product launch entire market or rolling launch Evaluation of results expensive coordinate marketing mix timing critical combination of satisfaction of nancial requirements customer acceptance satisfaction of technical requirements Product life cycle stages that products move through in a market tool for strategic planning everything prior to step 6 launching a product Introduction stage Growth stage innovators slow sales growth stage is nonexistent product gains acceptance early adopters and early majority demand and sales increase competitors emerge but some will drop out consider different versions options colors styles Maturity stage late majority sales peak and start to decline market saturated defend against competitors compete for market share battle on price pro ts fall consider marketing strategy repositioning market development and product development Decline stage laggards sales decline serving niche