1. Lamb, Hair, McDaniel CHAPTER 10 Product Concepts 2010-2011

2. LO 1 Define the term product LO 2 Classify consumer products LO 3 Define the terms product item, product line, and product mix LO 4 Describe marketing uses of branding Learning Outcomes

3. LO 5 Describe marketing uses of packaging and labeling LO 6 Discuss global issues in branding and packaging LO 7 Describe how and why product warranties are important marketing tools Learning Outcomes

4. What Is a Product? Define the term product LO 1

6. What Is a Product? Product is the starting point of Marketing Mix LO 1 Promotion Place (Distribution) Price Product

7. Types of Consumer Products Classify consumer products LO 2

8. Types of Products LO 2 Business Product Consumer Product A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other consumers. A product bought to satisfy an individual’s personal needs or wants

9. Types of Consumer Products LO 2 Unsought Products Specialty Products Shopping Products Convenience Products Consumer Products Business Products Products

10. Types of Consumer Products LO 2 Market Development Diversification Increase market share among existing customers Attract new customers to existing products Introduce new products into new markets Create new products for present markets Convenience Product Shopping Product Specialty Product Unsought Product A relatively inexpensive item that merits little shopping effort A product that requires comparison shopping, because it is usually more expensive and found in fewer stores A particular item for which consumers search extensively and are reluctant to accept substitutes A product unknown to the potential buyer or a known product that the buyer does not actively seek

11. Product Items, Lines, and Mixes Define the terms product item , product line , and product mix LO 3

12. Product Items, Lines, and Mixes LO 3 Product Item Product Line Product Mix A specific version of a product that can be designated as a distinct offering among an organization’s products. A group of closely-related product items. All products that an organization sells.

13. Campbell’s Product Lines and Mix { } LO 3

14. Benefits of Product Lines LO 3 Equivalent Quality Efficient Sales and Distribution Standardized Components Package Uniformity Advertising Economies

15. Adjustments LO 3 Product Modification Product Repositioning Product Line Extension or Contraction Adjustments to Product Items, Lines, and Mixes

16. Types of Product Modifications Quality Modification Functional Modification Style Modification Planned Obsolescence: The practice of modifying products so those that have already been sold become obsolete before they actually need replacement. LO 3

17. Repositioning LO 3 Changing Demographics Declining Sales Changes in Social Environment Why reposition established brands?

19. Branding Describe marketing uses of branding LO 4

20. Branding LO 4 Brand Name Brand Mark Brand Equity That part of a brand that can be spoken, including letters, words, and numbers The elements of a brand that cannot be spoken The value of company and brand names Global Brand A brand where at least 20 percent of the product is sold outside its home country

21. Benefits of Branding LO 4 Product Identification Repeat Sales New Product Sales

22. Top Ten Global Brands LO 4 1. Coca-Cola U.S. 2. IBM U.S. 3. Microsoft U.S. 4. GE U.S. 5. Nokia Finland 6. McDonald’s U.S. 7. Google U.S. 8. Toyota Japan 9. Intel U.S. 10. Disney U.S. Source: Burt Helm, "Best Global Brands," BusinessWeek September 28, 2009

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

24. Branding Strategies Manufacturers’ Brand Private Brand The brand name of a manufacturer. A brand name owned by a wholesaler or a retailer. Also known as a private label or store brand. Captive A brand manufactured by a third party for exclusive retailer, without evidence of a that retailer’s affiliation LO 4

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

29. Cobranding LO 4 Ingredient Branding Cooperative Branding Complementary Branding Types of Cobranding http://www.bose.com Online

31. Marketing Uses of Branding LO 4

32. Packaging Describe marketing uses of packaging and labeling LO 5

33. Functions of Packaging LO 5 Contain and Protect Promote Facilitate Storage, Use, and Convenience Facilitate Recycling http://www.levesquedesign.com/ http://www.design4packaging.com Online

37. Universal Product Codes LO 5 Universal Product Codes (UPCs) A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.

38. Global Issues in Branding and Packaging Discuss global issues in branding and packaging LO 6

39. Global Issues in Branding LO 6 Adaptations & Modifications Global Options for Branding One Brand Name Everywhere Different Brand Names in Different Markets

40. Global Issues in Packaging LO 6 Aesthetics Global Considerations for Packaging Climate Considerations Labeling

42. Product Warranties Describe how and why product warranties are important marketing tools LO 7

43. Product Warranties LO 7 Warranty Express Warranty Implied Warranty A confirmation of the quality or performance of a good or service. A written guarantee. An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC)