2. The Product Mix
1. How are the elements of the product
mix used to create an effective
marketing campaign?
2. Compare and contrast the different
elements of the product mix and the
role they play in producing a good
product.
3. How are product enhancements used
to satisfy additional customer needs?
3. The Product
• Every product contains both tangible and
intangible parts.
– Tangible – physical features that can be seen
and felt.
– Intangible – nonphysical service features.
4. Product
• Product Mix
– A new product’s final form including
• Brand name
• Various products offered under the brand
• Packaging
5. Product Extension
– Items added to a product to make it more
attractive to the target market.
• Examples:
– Guarantees
– Warranties/Extended Warranties
– Instructional Information/CD’s
– Easy Instructions
– 1-800 Numbers
– Testimonials
6. Product Enhancements
Features added to the basic product that satisfy
additional needs and wants with the same
purchase.
Examples: (Car)
Dual comfort controls
Higher quality interior fabrics
Air Conditioning
Cruise control
Power convertible roof
Stereo system
7. Product Mix
• Product Line
– A group of similar products with slight
variations to satisfy the different needs of
consumers.
• Goal: Achieve the greatest amount of sales
possible by satisfying the needs of a diverse
target market.
• Example: Soft Drinks
8. Product Mix Con’t
• Packaging
– Packaging is important and must be convenient
for consumers to handle.
• Brand Development
– The name, symbol, word, design, or
combination of these elements that identifies a
product, service, or company.
– Represents the company’s reputation of quality,
reliability, and status in the marketplace.
9. Brand
Trademark
The legal protection of words and symbols used by a
company.
Makes it illegal for other companies to use a brand
name.
Licensed Brand
A well-know name and/or symbol established by one
company and sold for use by another company to
promote its products.
Example:
Walt Disney Company
College and professional teams license names and
mascots.
10. Brand Recognition
Non-recognition
Consumers are unable to identify brands.
Rejection
When a customer will not purchase a product due
to the brand.
Recognition
Consumers know the brand but the brand has
little influence on their purchases.
11. Brand Recognition
Preference
Consumers view brands as valuable
Insistence
Occurs when consumers value a brand to the
extent that they reject other brands when the
preferred brand is not readily available.
12. Chapter Review
Which of the following is not a stage of brand
recognitions?
A. Preference
B. Introduction
C. Recognition
D. Rejection
13. Chapter Review
Product extensions include
A. Warranties
B. Testimonials from satisfied customers
C. Instructional CDs
D. All of the above
14. Product Marketing
Strategies
1. Compare and contrast the elements of a
product life cycle and identify the
importance knowing where your product
falls on this timeline.
2. Compare and contrast the different types
of pricing strategies and what step in the
product life cycle they are used within.
3. Compare and contrast different types of
strategies that are used within the decline
stage and identify when they would be
appropriate.
15. Product Life Cycle
Introduction
The product somewhat of a novelty in the
marketplace and only one brand of the new
product is available.
Skimming Price Strategy
Introduces new products at a very high price.
Penetration Price Strategy
Uses low pricing to help capture a large market
share early.
16. Product Life Cycle
Growth
Sales of a product and profits increase.
Target market knows about and regularly purchases
the product.
Maturity
Sales level off or slow down.
Most of the target market has already purchased the
product.
Decline
Sales decrease and may not generate enough
revenue to justify continued marketing of this
product.
17. Other Marketing Ideas
Drop a Product
To cut losses, marketers may choose to drop a
product entirely.
Sell/License
Choose to minimize losses during the decline
stage by selling or licensing the product to
another company.
Discount
The reduction of prices during the decline stage to
sell merchandise faster.
18. More Marketing Ideas
Regionalize
Only sell a product in the region where it is the
most popular and profitable.
Modernize/Alter
Alter or modernize a product to re-ignite interest
within a product.
Recommit
The product’s “duty” is recommitted after different
purposes are found for the product.
19. Positioning
Use by companies to differentiate its products or
services from its competitors products or
services.
