Objectives:: Product Mix

Chapter 9: Product
Concepts
Objectives:
• Define the term product.
2. Classify consumer products.
3. Define the terms product item, product line, and

product mix.
4. Describe marketing uses of branding.
5. Describe marketing uses of packaging and labeling.
6. Discuss global issues in branding and packaging.
7. Describe how and why product warranties are important

marketing tools.
Chapter 9 Marketing 7e Lamb Hair McDaniel 1
©2004 South-Western/Thomson Learning
1 Product
Everything, both favorable and

unfavorable, that
a person receives
in an exchange.

1 What Is a Product?
Product is the Product

“heart” of
Marketing Mix
Price Promotion
Place (Distribution)
2 Product Classifications
A
A product
product used
used toto manufacture
manufacture otherother
Business
Business goods
goods or
or services,
services, to
to facilitate
facilitate an
an
Product
Product organization’s
organization’s operations,
operations, or or to
to resell
resell
to
to other
other consumers.
consumers.
Consumer
Consumer Product
Product bought
bought to
to satisfy
satisfy an
an
Product
Product individual’s
individual’s personal
personal wants
wants

2
Types of Consumer
Products
PRODUCTS
PRODUCTS
Consumer
Consumer Business
Business
Products
Products Products
Products
Convenience
Convenience Shopping
Shopping Specialty
Specialty Unsought
Unsought
Products
Products Products
Products Products
Products Products
Products

Types of Consumer
2 Kenmore
Products
Convenience
Convenience AArelatively
relativelyinexpensive
inexpensiveitem
itemthat
that
Product merits
meritslittle
littleshopping
shoppingeffort.
effort.
Product
Shopping AAproduct
productthat
thatrequires
requirescomparison
comparison
Shopping shopping,
shopping,because
becauseititis
isusually
usuallymore
more
Product
Product expensive
expensiveand
andfound
foundininfewer
fewerstores.
stores.
Specialty AAparticular
particularitem
itemthat
thatconsumers
consumers
Specialty search
searchextensively
extensivelyfor
forand
andare
are
Product
Product reluctant
reluctantto
toaccept
acceptsubstitutes.
substitutes.
Unsought AAproduct
productunknown
unknowntotothe
thepotential
potential
Unsought buyer
buyeror
oraaknown
knownproduct
productthat
thatthe
the
Product
Product buyer
buyerdoes
doesnot
notactively
activelyseek.
seek.
3
Product Items, Lines, and
On
Mixes
OnLine
Line
http://www.marriott.com
http://www.marriott.com A
A specific
specific version
version of
of aa product
product
that
that can
can be
be designated
designated as as aa
Product
Product Item
Item distinct
distinct offering
offering among
among anan
organization’s
organization’s products.
products.
A
A group
group of
of closely-related
closely-related
Product
Product Line
Line product
product items.
items.
All
All products
products that
that an
an
Product
Product Mix
Mix organization
organization sells.
sells.

3
Gillette’s Product Lines
and Mix
Width of the product mix
Depth of the product lines
Blades and Writing

razors Toiletries instruments Lighters
Mach 3 Series Paper Mate Cricket

Sensor Adorn Flair S.T. Dupont
Trac II Toni
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus

3 Benefits of Product Lines
Advertising
Advertising Economies
Economies
Package
Package Uniformity
Uniformity
Standardized
Standardized
Components
Components
Efficient
Efficient Sales
Sales and
and
Distribution
Distribution
Equivalent
Equivalent Quality
Quality
3 Product Mix Width
The number of product lines an

organization offers.
● Diversifies risk
● Capitalizes on established
reputations

3 Product Line Depth
The number of product items

in a product line.
● Attracts buyers with different
preferences
● Increases sales/profits by further
market segmentation
● Capitalizes on economies of scale
● Evens out seasonal sales patterns

3 Adjustments
On
OnLine
Line
http://www.unilever.com
http://www.unilever.com
Adjustments
Adjustments toto
Product
ProductItems,
Items,
Lines,
Lines, and
andMixes
Mixes
Product
Product Line
Line
Product
Product Extension
Extension or
or
Modification
Modification Contraction
Contraction
Product
Product
Repositioning
Repositioning

3
Types of Product
Modifications
Quality
Quality
Modification
Modification
Functional
Functional
Modification
Modification
Style
Style
Modification
Modification
3 Planned Obsolescence
The practice of modifying

products so those that
have already been sold
become obsolete before they
actually need replacement.

3 Repositioning
Why
Whyreposition
reposition
established
establishedbrands?
brands?
Changes
Changes in
in
Changing
Changing Social
Social
Demographics
Demographics Environment
Environment
Declining
Declining Sales
Sales

3 Product Line Extension
Chrysler
Adding additional products to

an existing product line in
order to compete more
broadly in the industry.

3 Product Line Contraction
Symptoms
Symptoms ofof
Product
Product Line
Line
Overextension
Overextension
● Some products have low sales or cannibalize
sales of other items
● Resources are disproportionately allocated to
slow-moving products
● Items have become obsolete because of new
product entries

4 Brand
A name, term, symbol,

design, or combination
thereof that identifies a
seller’s products and
differentiates them from
competitors’ products.

4 Branding
Brand
Brand That
That part
part of
of aa brand
brand that
that can
can be
be spoken,
spoken,
Name
Name including
including letters,
letters, words,
words, and
and numbers.
numbers.
Brand
Brand The
The elements
elements of
of aa brand
brand that
that
Mark
Mark cannot
cannot be
be spoken.
spoken.
Brand
Brand The
The value
value of
of company
company and
and brand
brand names.
names.
Equity
Equity

4 Benefits of Branding
On
OnLine
Line
http://www.tide.com
http://www.tide.com
Product
Product New
New Product
Product
Repeat
Repeat Sales
Sales
Identification
Identification Sales
Sales

4 An Effective Brand Name
● Is easy to pronounce
● Is easy to recognize and remember
● Is short, distinctive, and unique
● Describes the product, use, and benefits
● Has a positive connotation
● Reinforces the product image
● Is legally protectable

4
The World’s Most Valuable
Brands

4 Branding Strategies
Brand
Brand No
No Brand
Brand
Manufacturer’s
Manufacturer’s Private
Private Brand
Brand
Brand
Brand
Individual
Individual Family
Family Combi-
Combi- Individual
Individual Family
Family Combi-
Combi-
Brand
Brand Brand
Brand nation
nation Brand
Brand Brand
Brand nation
nation

4 Generic Brand
A no-frills, no-brand-name,
low-cost product that is simply
identified by its product
category.

Manufacturers’ Brands
4 Versus
Private Brands
Manufacturers’
Manufacturers’ The
The brand
brand name
name of
of aa
Brand
Brand manufacturer.
manufacturer.
A
A brand
brand name
name owned
owned by by aa
Private
Private wholesaler
wholesaler or
or aa retailer.
retailer. Also
Also
Brand
Brand known
known as
as aa private
private label
label or
or store
store
brand.
brand.

4
Advantages of
Manufacturers’ Brands
● Develop customer loyalty

● Attract new customers
● Enhance prestige
● Offer rapid delivery, can carry less inventory
● Ensure dealer loyalty

4
Advantages of Private
Brands
● Earn higher profits

● Less pressure to mark down prices
● Manufacturer may drop a brand or become a
direct competitor to dealers
● Ties customer to wholesaler or retailer
● No control over distribution of manufacturers’
brands

4
Individual Brands Versus
Family Brands
Individual
Individual Using
Using different
different brand
brand names
names for
for
Brand
Brand different
different products.
products.
Marketing
Marketing several
several different
different
Family
Family products
products under
under the
the same
same
Brand
Brand brand
brand name.
name.

4 Cobranding AOL
Types
Typesof
of Cobranding
Cobranding
Ingredient
Ingredient Complementary
Complementary
Branding
Branding Branding
Branding
Cooperative
Cooperative
Branding
Branding
On
OnLine
Line On
OnLine
Line
http://www.kelloggs.com
http://www.kelloggs.com http://www.postcereal.com
http://www.postcereal.com
http://www.disney.com
http://www.disney.com http://www.quakeroats.com
http://www.quakeroats.com

4 Trademarks
A Trademark is the
exclusive right to
use a brand
● Many parts of a brand and associated

symbols qualify for trademark protection
● The mark has to be continuously

protected
● Rights continue for as long as it is used

5 Packaging
Contain
Contain and
and Protect
Protect
Promote
Promote
Functions
Functions
of
of
Facilitate
Facilitate Storage,
Storage, Use,
Use, Packaging
Packaging
and
and Convenience
Convenience
Facilitate
Facilitate Recycling
Recycling

5 Labeling
On
OnLine
Line
http://www.fda.gov
http://www.fda.gov
Persuasive
Persuasive Informational
Informational
● Focuses on ● Helps make proper

promotional selections
theme
● Lowers cognitive
● Information is dissonance
secondary
● Includes use/care
5 Universal Product Codes
A series of thick and thin

vertical lines (bar codes),
readable by computerized
optical scanners, that
represent numbers used
to track products.

6 Global Issues in Branding
One
One Brand
Brand Name
Name
Everywhere
Everywhere
Global Options
for Branding Adaptations
Adaptations &&
Modifications
Modifications
Different
Different Brand
Brand
Names
Names forfor
Different
Different Markets
Markets
6 Global Issues in Packaging
Labeling
Labeling
Global
Considerations
for Packaging Aesthetics
Aesthetics
Climate
Climate
Considerations
Considerations
7 Product Warranties
AAconfirmation
confirmationof
ofthe
thequality
qualityor
or
Warranty
Warranty performance
performanceofofaagood
goodororservice.
service.
Express
Express AAwritten
Warranty writtenguarantee.
guarantee.
Warranty
An
Anunwritten
unwrittenguarantee
guaranteethatthatthe
the
Implied
Implied good
goodor
orservice
serviceis
isfit
fitfor
forthe
thepurpose
purpose
Warranty
Warranty for
forwhich
whichititwas
wassold.
sold.(UCC)
(UCC)

7 Product Warranties
On
OnLine
Line
http://www.landsend.com
http://www.landsend.com
http://www.llbean.com
http://www.llbean.com
Express
Express Written Guarantee
Warranty
Warranty
Warranties
Warranties
Implied
Implied Unwritten Guarantee
Warranty
Warranty


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Objectives:: Product Mix

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Chapter 9: Product

• Define the term product.

2. Classify consumer products.

3. Define the terms product item, product line, and

4. Describe marketing uses of branding.

5. Describe marketing uses of packaging and labeling.

6. Discuss global issues in branding and packaging.

7. Describe how and why product warranties are important

Everything, both favorable and

Chapter 9 Marketing 7e Lamb Hair McDaniel 2

Product is the Product

Chapter 9 Marketing 7e Lamb Hair McDaniel 4

Chapter 9 Marketing 7e Lamb Hair McDaniel 5

Chapter 9 Marketing 7e Lamb Hair McDaniel 7

Blades and Writing

Mach 3 Series Paper Mate Cricket

Chapter 9 Marketing 7e Lamb Hair McDaniel 8

The number of product lines an

Chapter 9 Marketing 7e Lamb Hair McDaniel 10

The number of product items

Chapter 9 Marketing 7e Lamb Hair McDaniel 11

Chapter 9 Marketing 7e Lamb Hair McDaniel 12

The practice of modifying

Chapter 9 Marketing 7e Lamb Hair McDaniel 14

Chapter 9 Marketing 7e Lamb Hair McDaniel 15

Adding additional products to

Chapter 9 Marketing 7e Lamb Hair McDaniel 16

Chapter 9 Marketing 7e Lamb Hair McDaniel 17

A name, term, symbol,

Chapter 9 Marketing 7e Lamb Hair McDaniel 18

Chapter 9 Marketing 7e Lamb Hair McDaniel 19

Chapter 9 Marketing 7e Lamb Hair McDaniel 20

Chapter 9 Marketing 7e Lamb Hair McDaniel 21

Chapter 9 Marketing 7e Lamb Hair McDaniel 22

Chapter 9 Marketing 7e Lamb Hair McDaniel 23

Chapter 9 Marketing 7e Lamb Hair McDaniel 24

Chapter 9 Marketing 7e Lamb Hair McDaniel 25

● Develop customer loyalty

Chapter 9 Marketing 7e Lamb Hair McDaniel 26

● Earn higher profits

Chapter 9 Marketing 7e Lamb Hair McDaniel 27

Chapter 9 Marketing 7e Lamb Hair McDaniel 28

Chapter 9 Marketing 7e Lamb Hair McDaniel 29

● Many parts of a brand and associated

● The mark has to be continuously

● Rights continue for as long as it is used

Chapter 9 Marketing 7e Lamb Hair McDaniel 30

Chapter 9 Marketing 7e Lamb Hair McDaniel 31

● Focuses on ● Helps make proper

A series of thick and thin

Chapter 9 Marketing 7e Lamb Hair McDaniel 33

Chapter 9 Marketing 7e Lamb Hair McDaniel 36

Chapter 9 Marketing 7e Lamb Hair McDaniel 37

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