1. CHAPTER 10 Product Concepts Designed by Eric Brengle B-books, Ltd. Prepared by Amit Shah Frostburg State University Marketing Lamb, Hair, McDaniel 10

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

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

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

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

7. REVIEW LEARNING OUTCOME LO I Define the term product Product Good Service Idea

8. Types of Consumer Products Classify consumer products LO 2

9. 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

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

11. Types of Consumer Products LO 2 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

12. REVIEW LEARNING OUTCOME LO 2 Consumer Products

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

14. 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.

15. Campbell’s Product Lines and Mix LO 3

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

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

20. Types of Product Modifications LO 3 Quality Modification Functional Modification Style Modification

21. Planned Obsolescence LO 3 Planned Obsolescence The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.

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

23. Product Line Extension LO 3 Product Line Extension Adding additional products to an existing product line in order to compete more broadly in the industry.

25. REVIEW LEARNING OUTCOME Product item , product line , and product mix LO 3

26. Branding Describe marketing uses of branding LO 4

27. Brand LO 4 Brand A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.

28. 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 one-third of the product is sold outside its home country

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

30. Top Ten Global Brands LO 4 SOURCE: Reprinted from the August 6, 2007 issue of ‘BusinessWeek’ by special permission, Copyright 2007 by The McGraw-Hill Companies, Inc.

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

32. Generic Brand LO 4 A no-frills, no-brand-name, low-cost product that is simply identified by its product category. Generic Product

33. Manufacturers’ Brands Versus Private Brands LO 4 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.

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

37. Cobranding LO 4 Ingredient Branding Cooperative Branding Complementary Branding Types of Cobranding

39. REVIEW LEARNING OUTCOME Marketing Uses of Branding LO 4

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

41. Functions of Packaging LO 5 Contain and Protect Promote Facilitate Storage, Use, and Convenience Facilitate Recycling

43. 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.

44. REVIEW LEARNING OUTCOME Packaging and Labeling LO 5

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

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

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

48. REVIEW LEARNING OUTCOME Global Issues in Branding and Packaging LO 6 Branding Choices: 1 name Modify or adapt 1 name Different names in different markets Packaging Considerations: Labeling Aesthetics Climate

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

50. 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)

51. REVIEW LEARNING OUTCOME Product Warranties LO 7 Express warranty = written guarantee Implied warranty = unwritten guarantee