Ch9 Review

Components of a product Core customer value - Service or Benefit Actual Product - Packaging, brand name, design, quality levels, etc. Augmented Product - warranties, after-sales service, etc >>Types of Product Specialty Shopping Convenience Unsought >>Marketing considerations (Convenience) Marketing Considerations of _____________. Buying behaviour associated with the product - Frequently Purchased - Little Planning & Effort - Low Involvement Price - Low Price Place - Widespread distribution - Convenient locations/stores Promotion - Mass Promotions Examples - Toothpaste, Soap, Soda, etc >>Marketing considerations (Shopping) Marketing Considerations of _____________. Buying behaviour associated with the product - Less frequently purchased (vs Convenience Product) - Much planning, effort and comparison
Price - Higher price than CP Place - Selective distributions in fewer outlets Promotion - Advertising followed by personal selling Examples - Basic Appliances, clothing, etc. >>Marketing considerations (Specialty) Marketing Considerations of _____________. Buying behaviour associated with the product - Occasionally purchased - Strong preference - Special effort - Little comparison of brands - Price insensitive Price - High price Place - Exclusive distribution Promotion - Very targeted promotions Examples - Luxury goods >>Marketing considerations (Unsought) Marketing Considerations of _____________. Buying behaviour associated with the product - Low product awareness & knowledge - even negative interest Price - Varies
Place - Varies Promotion - Aggressive advertising & personal selling Examples - Funeral services >>Product (Portfolio) Mix All the types of products a company makes or sells (Product Mix) >>Product mix is consists of: Various Product Lines (groups of associated items) - Function in a similar manner - Sold to the same customer groups - Marketed through the same types of outlets Ex. oral care, personal car (Product Mix) >>Product mix reflects the: Product lines breath (Horizontal - Product lines) and depth (Vertical - Categories) - Product mix breadth is the number of product lines offered - Product line depth is the number of product categories in a product line (Product Mix) >>Different Product line relate decisions: - Increase product line breadth => Capture new untapped consumption areas - Decrease product line breadth => Reduce additional investments (distribution channels, promotions, etc.) - Increase product line depth => Leverage brand name to provide a total solution to the problem (i.e., needs-wants) area => Provide consumption variety - Decrease product line depth - Happens rarely but can happen => Underperforming products can be eliminated but often re-introduced
(3 Levels of Product Decisions - Product Mix) >>Branding A name, term, sign, symbol, design or combination that identifies the products of a firm while differentiating it from the competition (Brand) >>Advantages of Brand to consumers Brands help consumers Identifies the preferred product from clutter => Reduces search-related costs for consumers Assures consistency in quality and performance for newer products from a company => Reduces risk from experimentation Symbolic device => Expressing self, identity, etc. (Brand) >>Advantages of Brand to companies Brands help companies Helps build/enhance relationships Legal protection for unique features Serve different segments using different brands. E.g., P&G Availing of a price premium => Consumers are willing to pay more for brands of their choice (e.g., Consumers are willing to pay 50% more for a Coke than for a Pepsi) Bargaining power with channel members, employees and investors (Brand) >>Characteristics of a brand Brand equity Brand ownership Brand naming
(Brand) >>Brand equity Sum of - Brand awareness - Brand loyalty - Perceived value - Brand associations - Brand assets (Brand - Characteristics of a brand) >>Brand Ownership - Manufacturer owned - Retailer owned (aka private brand) - Generic (No brand) (Brand - Characteristics of a brand) >>Brand naming - Family Brand - Individual Brand (Brand - Characteristics of a brand) >>Choosing a Brand Name - Suggestive of positioning - Easy to say and recall - Register-able - Relevant to other markets (Brand - Characteristics of a brand - Brand naming) >>Branding Strategies Brand extensions Co-branding Brand Licensing (Branding Strategies) >>Brand extensions Using an existing brand names to sell new products to the same or different markets (Branding Strategies)
>>Advantages of brand extensions: - End up spending less in promoting a new product - Brand perceptions will carry over - Increases sales of complementary products (Branding Strategies - Brand Extensions) >>Co-branding Coming together of two brands in creating a new product offering (Branding Strategies) >>How does co-branding benefit brands? Increased brand visibility Enhanced brand reputation and credibility Access to new markets Cost savings Opportunities for innovation >>How do you decide which brands to collaborate with? Brand compatibility Brand reputation Shared values Marketing objectives Resources Legal and financial considerations >>Brand licensing Contractual agreement between firms in which one firm legally allows another firm to use its branding (name, logo, etc.) for some form of compensation (licensing fee, royalty, etc.) >>
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