MARKETING WEEK 8 ch 10 11 .docx - CHAPTER 10: PRODUCT...

CHAPTER 10: PRODUCT CONCEPTS
10-1 WHAT IS A PRODUCT?
● Starting point in creating the marketing mix
● Defined as anything, both favourable and unfavourable, received by a person in an
exchange for possession, consumption, attention, or short term use
● Tangible object, a service, an idea, a person, a celebrity, a place, or a combination
● Tangible good> packaging, style, colour, options, size
● service> seller’s image, manufacturer’s reputation, how others view the product
● Augmented reality: “the overlaying of physical environments with digital content and
images to provide users and enhanced experience of reality”
○ Should be used in real world environments
10-2 TYPES OF CONSUMER PRODUCTS
● Classified as business or consumer products, distinguished by their intended use
● BUSINESS PRODUCT: a product used to manufacture other goods or services, to
facilitate an organization’s operations, or to resell to other customers
● CONSUMER PRODUCT: a product brought to satisfy an individual’s personal wants
● Product classifications cause products to be marketed differently
10-2a CONVENIENCE PRODUCTS
● Relatively inexpensive item that merits little shopping effort
● Require wide distribution for easy accessibility
● Impulse products like candy are placed near cash registers
10-2b SHOPPING PRODUCTS
● Usually more expensive than a convenience product and is found in fewer stores
● Consumers usually compare brands, practicality, price etc
● Homogeneous: shopping products that are basically similar in their functions and
features, lowest price option usually sought out
● Heterogeneous: shopping products that are essentially different in their features, quality,
and performance (furniture, clothing, housing, universities)
10-2c SPECIALTY PRODUCTS
● Item with unique characteristics, i.e bose speakers, rolls royce, specialized medical care
● Aren't necessarily expensive
● Selective advertising used to main exclusive image (limited to geographic region etc)
10-2s UNSOUGHT PRODUCTS
● Product unknown to buyer
● Insurance, burial plots
● Companies approach customers through direct mail etc
10-3 PRODUCT ITEMS, LINES, AND MIXES
● Product item: a specific version of a product that can be designated as a distinct offering
among an organization’s products (campbell's cream of chicken soup)
● Product line: a group of closely related products
● Product mix: includes all the products an organization sells
○ Each product may require a different marketing strategy, but product lines and

product mixes may share marketing components
○ Product mix width: number of product lines an organization offers
○ Product line length: the number of product items in a product line
○ Product line depth: number of types and sizes offered for each product in the line
● Firms increase width to diversify risk, widen product mix to capitalize on established
reputations
● Length and depth of product lines are increased to attract buyers with different
preferences, increase sales, capitalize on economies of scale, to even out seasonal
sales
10-3a ADJUSTMENTS TO PRODUCT ITEMS, LINES, AND MIXES
● Product modification: changing one or more of a product's characteristics
● Changes are made in response to new technical or product developments or to respond
to changes in the environment
● Modifying products, repositioning products, or extending or contracting product lines
● QUALITY MODIFICATION: a change in the products dependability or durability