Ch 9 Flashcards
Complexity of Products
A product is more than its physical characteristics or basic service function
-> Core customer value = basic problem solving benefits
Actual Product / associated services
Actual Product
brand name, packaging, quality level, features/design
Associated Services
financing, product warranty, product support
Types of products
Specialty Products/Services
Shopping Products/Services
Convenience Products/Services
Unsought Products/Services
Specialty Products/Services
Specialty goods/services are products or services toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers
Shopping Products/Services
Shopping goods/services are products or services for which consumers will spend a fair amount of time comparing alternatives
Convenience Products/Services
Convenience goods/services are products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase
Frequently purchased commodity items, usually bought with very little thought
Unsought Products/Services
Unsought products/services are products consumers either do not normally think of buying or do not know about.
These products require lots of marketing effort and various forms of promotion.
Product mix
the complete set of all products offered by the firm
reflects the breadth and depth of a company’s product lines
Product lines
groups of associated items, such as those that consumers use together or think of as part of a group of similar products
Change Product Mix Breadth and Depth
Firms may change their product mix breadth by either adding to or deleting from product lines or by increasing or decreasing product line depth.
Increase Breadth
Firms often add new product lines to capture new or evolving markets, increase sales, and compete in new venues
Decrease Breadth
Sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities.
Increase Depth
Firms may add new products within a line to address changing consumer preferences or preempt competitors while boosting sales.
Decrease Depth
First often making pruning decisions regularly to eliminate unprofitable items and refocus their marketing efforts on more profitable items.
Branding
A brand can use: name, logos, symbols, characters, slogans, jingles and even distinctive packages
A company lives or dies based on brand awareness. Consumers can’t buy products that they don’t know exist.
What Makes a Brand?
Brand Element
Brand name
URLs (uniform resource locatores) or domain names
Logos and Symbols
Characters
Slogans
Jingles
Brand Element
brand description
Brand name
The spoken component of branding,
URLs (uniform resource locatores) or domain names
The location of pages on the Internet, which often substitutes for the firm’s name, such as Toyota
Logos and Symbols
Logos are visual branding elements that stand for corporate names or trademarks. Symbols are logos without words.
Characters
Brand symbols that could be human, animal, or animated
Slogans
Short phrases used to describe the brand or persuade consumers about some characteristics of the brand
Jingles
Audio messages about the brand that are composed of words or distinctive music
Brand Equity
brand awareness, perceived value, brand associations, and brand loyalty
brand awareness
measures how many consumers in a market are familiar with the brand and what it stands for, and have an opinion about that brand
Perceived Value
the relationship between a product or service’s benefits and its costs
Brand Associations
reflect the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality
Brand Loyalty
occurs when a consumer buys the same brand’s product or service again and again over time
Branding Ownership Strategies
Manufacturer brands/national brands
private-label/store brands,
and generic brands
manufacturer brands
retain more control over their marketing strategy, are able to choose the appropriate market segments and positioning for the brand, and can build the brand and thereby create their own brand equity
private-label brands
the costs of branding and marketing their own products are prohibitive, whereas other firms manufacture both their own brand and merchandise for other brands or retailers
Generic products
Consumers question the quality and origin of the products, and retailers have found better profit potential and the ability to build brand equity with manufacturer and store brands
Brand Name strategies
family brand or individual brand
Family Brands
A firm can use its corporate name to brand similar product lines and products
- individual brands benefit from the overall awareness associated with the family name
Individual Brands
Individual brands allow a company to compete within one category, offering a variety of products to different target markets
If one brand experiences problems other products with unique brand names are protected from any negative association with the failed brand
Brand Extension
the use of the same brand name for new products being introduced to the same or new markets
spend less in developing brand awareness, perceptions will carry over
Cobranding
the practice of marketing two or more brands together, on the same package or promotion
- enhances consumers’ perceptions of product quality
Brand Licensing
a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and or characters in exchange for a negotiated fee
