Marketing Chapter 10 Notes

Marketing Chapter 10 Notes - Chapter 10 Product Branding...

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Chapter 10: Product, Branding, and Packaging Decisions I. Intro a. Nike, facing lower sales after the running shoe fad of the 80s died down, made an endorsement deal with Michael Jordan that went contrary to the typical belief that a company shouldn’t invest too much in one athlete. They made Air Jordans named after Michael Jordan. The bright red Jordans cost Michael Jordan a $5000 fee for being out of uniform every time he played a game. b. A product is anything that is of value to a consumer and can be offered through a voluntary marketing exchange II. Product Assortment and Product Line Decisions a. Product mix Product line Product categories Brands b. The complete set of all products offered by a firm is called the product assortment or product mix i. The product assortment typically consists of various product lines , which are groups of associated items such as items that consumers use together or think of as a part of a group of similar products (oral care) 1. Within each product line, there are product categories , an assortment of items that the customer sees as reasonable substitutes for one another or are used under similar circumstances (toothpaste, toothbrushes) a. Each category may use the same or different brands , names, terms, designs, symbols, or another other feature that identify one seller’s goods from others b. Within the product category are stock keeping units (SKU) which are the smallest unit available for inventory control. (Luminous, Colgate total, Colgate fresh confidence, etc.) ii. A firm’s product line breadth (variety) represents the number of product lines offered by the firm iii. Product line depth is the number of categories within a product line c. Change Product Mix Breadth i. Increase mix breadth 1. Firms often add new product lines to capture new or evolving markets, increase sales, and compete in new venues ii. Decrease mix breadth 1. Sometimes it’s necessary to delete product lines to address changing market conditions or meet internal strategic priorities. d. Change Product Line Depth i. Increase line depth 1. Firms may add categories to address changing consumer preferences or preempt competitors while boosting sales ii. Decrease depth 1. It may also be necessary to delete categories to realign resources e. Change in Category Depth i. Increase in category depth
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1. Firms may also add SKUs, or stock keeping units, to expand their offering and meet consumer demand ii. Decrease in category depth 1. Often firms remove SKUs to address a change in consumer preference f. Change in Product Line Consistency i. Consistency may be increased or decreased by adding or removing product lines that are relevant or inconsistent to existing product lines.
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