Lamb, Hair, McDaniel
CHAPTER 10
Chapter 1
Copyright ©2012 by Cengage Learning Inc. All rights reserved
11
© Felipe Dupouy/Stone/Getty Images
Product Concepts
Learning Objectives
1
2
Define the term product
Know the various ways of classifying
consumer and business products
3
Understand the terms product item,
product line, and product mix
4
Describe marketing uses of branding
2
Learning Objectives
5
Discuss qualities of a good brand name
and various branding strategies
6
Describe marketing uses of packaging and
labeling
3
The Product is the Starting Point of the
Marketing Mix
Product
Price
Promotion
Place (Distribution)
4
1
Learning Objective 1: Define the term
“product.”
5
Knowledge Check
Which of the following items could be
considered a product in a marketing plan?
1. restaurant meal
2. car oil change
3. political candidate
4. new play on Broadway
5. musical concert
6. vacation resort
6
What Is a Product?
Product
A product is a:

Tangible Good

Service

Idea
that is designed to satisfy the
needs of the target market and
is received in exchange for
money or some other unit of
value
7
1
Learning Objective 2: Know the various
ways of classifying consumer and
business products.
8
Types of Products
9
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 purchased by the end
consumer who uses it for personal or
household use.
2
Knowledge Check
How would you classify these products?
Business or Consumer?
1. Copy Machine
2. Patagonia Parka
3. Commercial Clothes Dryer
4. Cat/Dog Food
5. High-Definition LCD TV
6. Mature Pine Tree
7. Printer Cartridge
Types of
Consumer Products
Convenience
Product
Shopping
Product
11
Increase market share among
A relatively
inexpensive
item that merits
existing
customers
little shopping effort.
A product
thatnew
requires
comparison
Attract
customers
to
shopping,
because
it is usually more
existing
products
expensive and found in fewer stores.
Specialty
Product
A particular
item
forproducts
which consumers
Create
new
for
Marketextensively
search
and are reluctant to
Diversification
present markets
Development
accept substitutes.
Unsought
Product
A product unknown to the potential
Introduce
new products
buyer or
a known product
that the buyer
into
new markets
does not
actively
seek.
2
Knowledge Check
How would you classify these product? Convenience,
shopping, specialty or unsought?
1. Household furniture
2. Candy bar
3. Raffle tickets
4. Blender
5. Boze speakers to finish existing sound system
6. Luggage
7. Louis Vuitton wedding dress
8. Funeral insurance
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Classification of consumer goods
Review Question
Janet will only purchase Crate and Barrel products
for her home. The products are expensive, but Janet
feels they have the highest quality and will last a
very long time. These products represent _____ products.
a. heterogeneous shopping
b. specialty
c. homogeneous shopping
d. convenience
e. exclusive
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Learning Objective 3: Understand the
terms, product item, product line and
product mix.
15
Product Items,
Lines, and Mixes
16
Product Item
A specific version of a product
that can be designated as a
distinct offering among an
organization’s products.
Product Line
A group of closely-related
product items.
Product Mix
All products that an
organization sells.
3
Coca-Cola’s Product Lines
and Product Mix
17
Little Remedies
Product Line
Review Question
Along with its Mac computer line, Apple
markets its iPhone, iPad, Apple Watch and
AppleTV product lines. This is an abbreviated
listing of the company’s:
a.
Customer mix
b.
Product mix
c.
Product line
d.
Line depth
e.
Product modification
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Adjustments
Adjustments to
Product Items,
Lines, and Mixes
Product Line
Extension
20
Product Line
Contraction
3
Example of Extensions
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© 2013 by Cengage Learning Inc. All Rights Reserved.
Learning Objective 4: Describe
marketing uses of branding.
22
Brand
A name, term, symbol or design, or some
combination of these used to identify a seller’s
product and set it apart from competitors’
products.
23
4
24
Branding Terms
Brand Name:
•Toyota Prius
•Jif
•Diet Coke
•iPhone
•Friskies
Brand Mark
Trade name:
•Toyota Motor Co.
•Proctor and Gamble
•Coca-Cola Company
•Apple Corp.
•Ralston Purina Co.
•Brand name - That part of a brand that can be spoken, including letters,
words, and numbers.
•Trade name - A commercial, legal name under which a company does
business.
•Brand mark - The elements of a brand that cannot be spoken
Review Question
The well-known Nike “swoosh” is an example
of a:
a. quality mark.
b. product line.
c. brand name.
d. brand mark.
e. manufacturer’s brand.
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Brand Equity
Brand Equity - The added value a company or
brand name gives to a product beyond the
functional benefits it provides.
 Provides a competitive advantage due to loyalty to
the brand
 Allows a price premium to be charged
Learning Objective 5: Discuss
characteristics of a good brand name and
various branding strategies.
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Characteristics of Good
Brand Names
• Should suggest the product’s benefits or
uses
• Should be distinctive, memorable, and
positive
• Should be simple, easy to pronounce
• Should fit the company or product image
• Should have no legal or regulatory
restrictions
Patent and Trademark TESS link.
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Portfolio 3 Activity
Come up with a brand name for a frozen
dinner that features country cooking and
man-sized helpings. The meal contains
either country-fried steak, fried chicken, or
pork barbecue. Each meal contains two
vegetables, such as baked squash, fried
sweet potato, butter beans or fried apples.
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Branding Strategies
Brand
Manufacturer’s
Brand
Individual
Brand
31
Family
Brand
No Brand
Private Brand
Combination
Individual
Brand
Family
Brand
Combination
4
Generic Strategy
32
Generic
A no brand product.
Example
Paxil (branded product)
Paroxetine (generic product)
4
Manufacturer versus
Private Brands
33
Manufacturers’
Brand
The brand name of a
manufacturer.
Private
Brand
A brand name owned by a
wholesaler or a retailer. Also
known as a private label or
store brand.
4
Advantages of
Manufacturers’ Brands
 Heavy advertising of manufacturer
brands
 Attracts new customers
 Builds prestige of the retailer
34
4
Advantages of
Private Brands
 Earn higher profit margins
 Ties customer to the retailer
 Retailers have more control over the
marketing of their own brands
35
4
Individual Brands Versus
Family Brands
Individual
Brand
Family
Brand
36
Company uses different
brand names for different
products.
Company markets several
different products under the
same brand name.
4
Advantages of
Individual Branding
• Provides a distinct identity for each
product. Companies use individual
brands when their products vary
greatly in use or performance.
• Gives companies an opportunity to
dominate a product category.
37
4
Advantages of
Family Branding
 Family branding reduces promotion
costs
 Favorable experience with a family
branded product leads to brand equity
and loyalty
 Allows for line and brand extensions
38
4
Review Question
Since all of the siding products sold by Hardie
are sold under the James Hardie brand name,
it is clear that the company uses a _____
strategy.
a. family branding
b. private branding
c. business branding
d. co-branding
e. repositioning
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Trademarks
A brand which is the exclusive right of the
company and is registered with the U.S. Patent
and Trademark Office.
40

The law places the burden of policing trademark
infringement on the trademark holders themselves

Brands than fail to protect their trademark risk their brand
name becoming the generic term for the product category.

Failure to "police" a mark by stopping infringing uses can
result in the loss of protection.

The use of a trademark in connection with the sale of a good
constitutes infringement if it is likely to cause consumer
confusion as to the source of those goods.
4
Learning Objective 6: Describe
marketing uses of packaging and labeling
41
Packaging
• The design and production of the
container or wrapper for a product.
42
Portfolio 3 Activity
Packaging Functions
1.Examine the packaging of the product distributed
to your group.
2. Identify the basic functions of the packaging (not
the product). Identify ways in which the packaging
provides benefits to the retailer.
3. Identify ways in which the packaging provides
benefits to the final consumer.
43
Functions of Packaging
Contains and Protects the
Product
Promotes the Brand
Facilitates Storage, Use,
and Convenience
Provides Consumer
Protection
44
5
What Packaging Benefit?
45
What Packaging Benefit?
46
Labeling
• Identifies the product or brand, who
made it, where and when it was made,
how it is to be used, and package
contents and ingredients.
• Can be both informational and
persuasive.
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Labeling
Informational
Persuasive


Focuses on
promoting the
product
Provides data such
as nutritional
information,
product warnings,
etc.
Greenwashing
Attempting to give the impression of environmental
friendliness whether or not it is environmentally friendly.
48
5
Example of Greenwashing
49
50