Chapter 11- Products
Chapter 11- Products MBUS303
Popular in Marketing in the Global Economy
Popular in Marketing
This 4 page Class Notes was uploaded by Aimee Castillon on Saturday May 7, 2016. The Class Notes belongs to MBUS303 at George Mason University taught by Dr. Joiner in Spring 2016. Since its upload, it has received 11 views. For similar materials see Marketing in the Global Economy in Marketing at George Mason University.
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Date Created: 05/07/16
Organization name Student name Marketing student email address MBUS 303 • Spring 2016 Heading: 3/22/16 Notes: Chapter 11 Product The Marketing Mix (4 Ps): Product Product “anything of value that can be offered through a voluntary marketing exchange” Goods Services Places Ideas Organizations People Types of consumer products are classified by the way they are used and purchased Specialty consumers show such a strong preference that they will expend considerable effort to search (i.e. wedding gowns, luxury cars, antiques) Shopping consumers will spend a fair amount of time comparing alternatives (i.e. shoes, appliances, cellphones) Convenience consumers are only willing to spend minimum effort to evaluate prior to purchase (i.e. soft drinks, shampoo, candy) Unsought consumers either don’t normally think of buying or do not know about (i.e. fire extinguishers, life insurance, smart lightbulbs) Core customer value Complexity of products diagram: Marketers convert core value into an actual product Core customer value Actual product Brand name features/design Quality level Packaging Associated services (augmented product) Nonphysical elements Supplement the value of the product (i.e. financing, customer support, warranties, installation/setup, etc.) Product decisions i nclude decisions the company’s portfolio of products as well as the individual product(s) Product mix/product assortment the complete set of all products offered by the firm Specific terms are used to describe the makeup of the product assortment of a firm See Kellogg’s Product mix Product lines groups of associated items, such as table in PPT items that consumers use together or think of as part of a group of similar product categories (firm defined) (product) stock keeping units (SKUs) smallest unit of accounting for products within product lines I.e. represents each individual configuration of a product (i.e. 16 oz. diet Coke; one liter diet Coke; 16 oz. caffeine free diet Coke) Product mix (PM) and product line decisions PM Breath number of product lines Product strategies to change PM Breadth Increase breadth I.e. True Religion Brand Jeans now are a lifestyle brand with apparel, accessories, swimwear, and fragrances product lines Decrease breadth I.e. due to competitive changes, TCBY is now focusing only on yogurt PM Depth number of products within a product line Product strategies to change PM Depth Increase depth I.e. BandAid now has over 40 products to heal cuts Decrease depth I.e. McCormick spices eliminates dozens of products each year Product depth number of SKUs for a product (i.e. PopTarts) The same types of decisions can be used for services Brands “A name (and symbols, designs…) that identifies the product and its source and distinguishes it from competing products” Way for firms to differentiate its products from those of its competitors Branding A brand can use name, logo symbols, characters, slogans, jingles, URLs, and even distinctive packages Value of branding for the customer and the marketer Strong brands: Facilitate purchasing Establish loyalty Protect from competition Reduce marketing costs Are assets Mergers and acquisitions Impact market value are good indicators of Brand equity the value, or worth, of a brand in the marketplace brand equity Financial perspective brands are intangible assets I.e. Consumeroriented perspective Four components of brand equity Brand awareness = familiarity with brand, what it stands for, have opinion about it Perceived value benefits vs. cost Brand loyalty Brand associations The extent to which consumers have strong, favorable, unique associations with a brand in memory Branding strategies Branding ownership Manufacturer brands (national brands) i.e. Apple, Kellogg’s, Breyers, Tide, Tylenol retailer/store brands (privatelabel brands) Premium, generic, and exclusive cobranded I.e. Kirkland Signature (Costco), Safeway, Publix, Nature’s Promise (Giant), CareOne (Giant), Guaranteed Value (Giant), CVS Cobranding example: Target Naming brands and lines Corporate or family brand (i.e. The Gap; GE) Corporate and product line brands (i.e. Kellogg’s Frosted Flakes; Apple iPad) Individual brands (i.e. Mr. Clean; Swiffer; Crest (Proctor & Gamble); FritoLay Leveraging the brand Brand extension using an existing brand name on a new product category I.e. Healthy Choice; Ralph Lauren paint Line extension introduction of a new product in existing product category (i.e. Skippy) Brand leveraging risks Brand dilution (i.e. McDonald’s Pizza= fail, Lifesaver fruit sodas = fail, Bounty napkins= success) How to use this effectively Evaluate the fit between the product class of the core brand and the extension Evaluate consumer perceptions of the attributes of the core brand and seek out extensions with similar attributes Refrain from extending the brand to too many products Consider if the brand extension is distanced enough from the core brand Cobranding I.e. Edy’s Nestle Butterfinger ice cream; Dunkin’ Donuts & Baskin Robbins; Crocs decorated with Disney Princesses Brand licensing a contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee (i.e. Sunkist) Packaging Multiple roles as part of the product Protection, distribution (transportation & display) Big roles in communicating to the consumer (can promote an image and position; delivers important information) Can add value...some packages are so distinct that it helps make the brand successful (i.e. Godiva; Tabasco; Tiffany & Co.; Pringles; Altoids) Types Primary package the packaging the consumer uses (i.e. Log Cabin; Monster) Secondary package the packaging that contains the primary package or product (i.e. wrappers, boxes, etc.) (i.e. Apple, Adidas, Leggs pantyhose eggshell containers) What other packaging do consumers find useful (i.e. Chips Ahoy!; Preen’s batterypowered lid; toilet bowl cleaners) Additional packaging decisions Content is determined by regulations as well as marketing I.e. ingredient list and nutrition facts are required for food products I.e. health risks (i.e. Monster)
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