Chapter 8

Product Concepts

Marketing Management Ch-08 Product Concepts

Product-Introduction   

The customer never buys a product buy only a bundle of satisfaction Product represents anticipated and even unanticipated solutions to customer¶s problems The product idea encompasses many attributes of a physical good or service, installation, requirements and instructions
Marketing Management

Ch-08 Product Concepts

Product Definition  

A product may be defined as everything, both favorable and unfavorable, that one receives in an exchange A product is anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need

Marketing Management Ch-08 Product Concepts

Product Level Marketing Management Ch-08 Product Concepts .

Product Level  1. 2. 4. Five Levels Core benefit Generic product Expected product Augmented product Potential product Marketing Management Ch-08 Product Concepts . 3. 5.

Product Level  Core benefit  Is the essential use-benefit. problem solving service that the buyer primarily buys when purchasing a product Is the basic version of the product Is the set of attributes and conditions that the seller adds to distinguish the offer from competitors Marketing Management  Generic Product   Expected Product  Ch-08 Product Concepts .

Product Level  Augmented Product  Is additional services and benefits that the seller adds to distinguish the offer from competitors Is the set of possible new features and services that might eventually be added to the offer  Potential Product  Marketing Management Ch-08 Product Concepts .

Product Classification   Consumer Products Business Products Marketing Management Ch-08 Product Concepts .

or to resell to other customers    Derived Demand Inelastic industry demand Tax treatments differ Marketing Management Ch-08 Product Concepts . to facilitate and organization¶s operations.Business Products  Is used to manufacturer other goods or services.

Business Product Classes        Installations Raw materials Professional services Accessories MRO supplies Raw materials Component parts and materials Marketing Management Ch-08 Product Concepts .

Differences between goods and services      Customers do not obtain ownership or services Service product are intangible performances Customers often actively involved in production process Other people may form part of product experience More variability in operational inputs and outputs Marketing Management Ch-08 Product Concepts .

Differences between goods and services    Often difficult for customers to evaluate Absence of inventories after production Time factor is more important Marketing Management Ch-08 Product Concepts .

Consumer Product Classes  Convenience Products    Staples Impulse products Emergency products Homogeneous Heterogeneous  Shopping product   Marketing Management Ch-08 Product Concepts .

Consumer Product Classes   Specialty product Unsought products   New unsought products Regular unsought products Marketing Management Ch-08 Product Concepts .

the wider the product assortment Tata motor offers several lines of cars and trucks: Indica. Indigo. S210 etc Marketing Management Ch-08 Product Concepts . The more dissimilar the product lines and individual products are. Sumo.Product Mix   Is the set of all product lines and individual products that a firm sells.

Product Line    Is a set of individual products that are closely related The may be related because they may be related because they are produced or operate in similar way. retail outlets used. customer group targeted. Product lines can be organized by product function. and price range Marketing Management Ch-08 Product Concepts .

An individual product is a particular product within a product line Marketing Management Ch-08 Product Concepts .Product Item   Is a specific version of a product that can be designated as a distinct offering among and organizations products.

2. 5. 3. Advertising economy Package uniformity Standardization of components Efficient sales and distribution management Easy evaluation of quality by customers Marketing Management Ch-08 Product Concepts . 4.Benefits of Product Line 1.

Product Width   Refers to the number of product lines that and organization offers Firms increase product mix width to   Spread risk across multiple lines Capitalize on established reputations Marketing Management Ch-08 Product Concepts .

Product Line Depth   Is the number of product lines in a product line Firms increase product line depth to     Attract buyers Economies of scale Sales and proffers Even out seasonal sales patterns Marketing Management Ch-08 Product Concepts .

Product modifications  Involves changing one or more of a product¶s characteristics    Quality modification Functional modification Style modification Marketing Management Ch-08 Product Concepts .

packaging.Repositioning   Involves changing customer¶s perceptions of a product An entire line may be repositioned with a new name. and advertising to revitalize sales Marketing Management Ch-08 Product Concepts .

Product Line Extension  Is the practice of adding products to an existing product line in order to complete more broadly in the industry The danger of line extension is cannibalization of other product in the same line  Marketing Management Ch-08 Product Concepts .

Product Line Contraction   May be undertaken if the line is overextended Symptoms of overextension include    Low sales Slow moving products Obsolescence Marketing Management Ch-08 Product Concepts .

symbol. or design to identify a product. term.Branding  Brand  Is a name . tem.  Branding  Marketing Management Ch-08 Product Concepts . symbol . sign. design or combination thereof that identifies a seller¶s products and differentiates them from competitor's products Means the use of a name.

Branding  Brand Name  Is that part of the brand that can be spoken. Dettol. including letters. words. symbols. and numbers  E.g. Ujala. or marks that are legally registered for use by a single company Is a trademark that refers to a service offering Marketing Management  Service mark  Ch-08 Product Concepts . Ayush  Trademark  Include only those words.

Branding Objectives       Identification Repeat sales Easy introduction of new product Widespread availability Economies of scale Better pricing Marketing Management Ch-08 Product Concepts .

5 Levels of brand familiarity      Brand rejection Brand non recognition Brand recognition Brand preference Brand insistence Marketing Management Ch-08 Product Concepts .

Right Brand name can help       Short & simple Easy to spell and read Easy to recognize Can pronounce in only one way Always timely Legally available for use Marketing Management Ch-08 Product Concepts .

Manufacturer Brands    Also called national brands Created owned by products Develop demand across many markets Marketing Management Ch-08 Product Concepts .

Dealer Brands    Also called private brands or store brands Created by middlemen Create higher margins for dealers Marketing Management Ch-08 Product Concepts .

Brand Choices     Family brand Licensed brand Generic brand Individual brand Marketing Management Ch-08 Product Concepts .

family brands     Individual branding is the practice of using a different brand name for each product Individual brands are used when products differ greatly in use or in performance.Individual brands vs. Nestle brands include Milo. quality. Maggi A company that markets several different products under the same brand name is using brand family Marketing Management Ch-08 Product Concepts .g. or targeted segment E.

Co-branding     Placing two or more brand name on a product or its package Ingredient branding identifies the brand of a part that makes up the product Cooperative branding is where two brand receives equal treatment Complementary branding is where products are advertised or marketed together to suggest usage Marketing Management Ch-08 Product Concepts .

Packaging      Is a container for protecting and promoting a product Packaging can enhance the product Packaging sends a message Packaging may lower distribution cost UPC codes speed handling Marketing Management Ch-08 Product Concepts .

Product Quality and Customer Needs  Product Quality   Means a product¶s ability to satisfy a customer¶s need or requirements. It may be absolute or relative  Customer have different satisfaction of customers fulfillment of needs needs and depend on Marketing Management Ch-08 Product Concepts .

sign.Summary     The customer never buys a product buy only a bundle of satisfaction Product can be classified as consumer product and business product There are 5 product levels Brand  Is a name . symbol . tem. design or combination thereof that identifies a seller¶s products and differentiates them from competitor's products Marketing Management Ch-08 Product Concepts .

1. Private label Co-branding is placing two or more brand name on a product or its package Packaging enhances product value and protects product Product Quality  Means a product¶s ability to satisfy a customer¶s need or requirements Marketing Management Ch-08 Product Concepts .Summary     Two types of brands. National brand 2.