Notes 2 - Product o What is a product something the...

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Product o What is a product – something the consumer needs and wants, tangible or intangible, everything the consumer gets in exchange (core product and augmented product) o What is the costumer buying – bundle of benefits, solution to a problem Classifying consumer products o Convenience products – inexpensive, wide distribution, little effort from the consumer (most groceries) o Shopping products – requires some comparison shopping, more expensive, in fewer locations, consumers put forth moderate effort (casual clothes, electronics) o Specialty products – consumer will search extensively, will not take a substitute, let people know where they are (Rolls-Royce) o Unsought products – consumers do not actively seek to buy, may need the product, aggressive marketing (insurance) Product line and mix o Product line – group of closely related products o Product mix – all of the products that the organization sells o Width and depth – 1. number of product lines; 2. number of items in each line Adjusting lines and mixes o Product modification – change the existing product with a change in one or more characteristics o Repositioning – changing people’s perceptions about a particular product o Product line extension – add additional products to the line Branding o Brand – symbol, what they market, name, term, character (all together identify the seller and sets them apart) o Brand equity – value of the brand, estimated in dollar value and treated as an asset o Brand loyalty – repeated preference for a particular brand (80/20 rule) o Benefits of branding – consumer does not have to question quality, one good experience assumes future ones, evoke a feeling, easier to shop, easier to differentiate o Manufacturers brand – brand name of the producer/manufacturer o Private brands – retailer brand, good for value oriented consumers o Individual vs. family brands Individual – diverse consumers, diverse marketing strategy, recognizable Family – easier for the consumer to evaluate, hard to break into the market, homogenous consumer o Co-branding – 2 or more brands bundled together in some manner, way to increase presence Other branding issues o Trademarks – exclusive use for 10 years, can reapply, registered
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o Genuine product names – brand name is used to represent the product category, lose the ability to product the name Packaging and labeling add value o Packaging as communication – at the point of sale o Packaging for protection, storage, and convenience – fridge pack, pop top, upside down ketchup o Packaging and environmental concerns – waste generated New products o Important to sustain growth and replace worn out products o Categories of new product New to the world – real innovations, rare Improvements/revisions to existing products – common, new and improved Repositioned – existing product, new market
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This note was uploaded on 04/18/2008 for the course HONS 1301 taught by Professor Jamesbrink during the Fall '05 term at Texas Tech.

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Notes 2 - Product o What is a product something the...

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