Lamb, Hair, McDaniel 2010-2011

CHAPTER 10

Product Concepts

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Define the term

product


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Product 


 

 
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Product is the starting point of Marketing Mix

Product

Price Promotion


Place (Distribution)
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Classify consumer
products

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A product used to manufacture other

‰usiness goods or services, to facilitate an
Product organization¶s operations, or to resell
to other consumers.

Consumer A product bought to satisfy an

Product individual¶s personal needs or wants

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Products

Consumer ‰usiness
Products Products

Convenience Shopping Specialty nsought

Products Products Products Products

 
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Increase market share among
Convenience A relatively
existinginexpensive
customers item that
Product merits little shopping effort

Attract
A product new
that customers
requires to
comparison
Shopping
shopping, because
existing it is usually more
products
Product
expensive and found in fewer stores
A particular itemproducts
Create new for whichfor
Specialty Market
consumers
presentsearch extensively and
markets
Diversification
Product Development
are reluctant to accept substitutes

A product unknown to the potential

nsought
buyerIntroduce new
or a known products
product that the
Product
buyerinto new
does markets
not actively seek

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Define the terms

product item,
product line,
and product mix

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A specific version of a product
that can be designated as a
Product Item distinct offering among an
organization¶s products.

A group of closely-related
Product Line product items.

All products that an

Product Mix organization sells.

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Advertising Economies

Package niformity

Standardized
Components

Efficient Sales and

Distribution

Equivalent Quality

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djustments to
Product Items,
Lines, and Mixes

Product Line
Product Product
Extension or
Modification Repositioning
Contraction

 
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Quality Modification

Functional Modification

Style Modification

Planned Obsolescence: O 

     

    
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reposition
establis ed brands?

Changes in
Changing
Declining Sales Social
Demographics
Environment

 
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Describe marketing
uses of branding

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‰rand That part of a brand that can be spoken,

Name including letters, words, and numbers

‰rand The elements of a brand that

Mark cannot be spoken

‰rand
The value of company and brand names
Equity

Global A brand where at least 20 percent of the

‰rand product is sold outside its home country

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Product
Identification

Repeat Sales

New Product
Sales

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c Coca-Cola 
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 Microsoft 
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[ Nokia #
r McDonald¶s 
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‰rand No ‰rand

Manufacturer¶s
Private ‰rand
‰rand

Individual Family Combi- Individual Family Combi-

‰rand ‰rand nation ‰rand ‰rand nation

 
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Manufacturers¶ The brand name of a
‰rand manufacturer.

A brand name owned by a

Private wholesaler or a retailer. Also
‰rand known as a private label or
store brand.



 


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Individual sing different brand names

‰rand for different products.

Marketing several different

Family
products under the same
‰rand
brand name.

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Ingredient
‰randing

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pes of Cooperative
Cobranding ‰randing

Complementary
‰randing

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Describe marketing
uses of packaging
and labeling

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Contain and Protect

Promote

Facilitate Storage, se,

and Convenience

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Facilitate Recycling http://www.design4packaging.com

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Persuasive Informational

 Focuses on  Helps make proper

promotional selections
theme
 Lowers cognitive
 Consumer dissonance
information is
secondary  Includes use/care

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niversal
 ,
Product Codes
(PCs)
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Describe how
and why product
warranties are
important
marketing tools

  
 
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¦arranty A confirmation of the quality or

performance of a good or service.

Express
A written guarantee.
¦arranty

An unwritten guarantee that the good or

Implied
service is fit for the purpose for which it
¦arranty was sold. (CC)

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