MKT 304 Chapter 8 Key Concepts
Product Planning
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Product
Quality
Service
Product assortment
Product line
Individual product
Consumer products
Business products
Derived demand
Convenience products
Staples
Impulse products
Emergency products
Shopping products
Homogeneous shopping products
Heterogeneous shopping
products
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Specialty Products
Unsought Products
Installations
Capital item
Accessories
Raw materials
Expense item
Farm products
Natural products
Components
Supplies
Professional services
Branding
MKT 304 Chapter 8 Key Concepts
Product Planning (continued)
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Brand name
Trademark
Service mark
Brand equity
Lanham Act
Family brand
Licensed brand
Individual brands
Generic products
Manufacturer brands
Dealer brands
Private brands
Battle of the brands
Packaging
Universal Product Code (UPC)
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Federal Fair Packaging and
Labeling Act
Unit-pricing
Warranty
Magnuson-Moss Act
The Marketing Mix (The Four P’s)
Product
Place
C
Price
Promotion
Exhibit 8-1
The Product Area Involves Many Strategy Decisions
Product Lines & Assortments
• Product Line
– A set of individual products that are
closely related
– Example: Horizon Organic Foods
• Product Assortment
– All the product lines and individual
products that a company sells
Consumer Product Classes
Staples
Convenience Products
Impulse Products
Emergency Products
Shopping Products
Homogenous
Shopping Products
Heterogenous
Shopping Products
Specialty Products
Unsought Products
New Unsought
Products
Regular Unsought
Products
Business Product Classes – How They Are Defined
Accessories
Installations
Raw Materials
Business
Product
Classes
Professional
Services
MRO Supplies
Component
Parts &
Materials
Branding Builds Brand Equity
Short
Short &
& Simple
Simple
Easy
Easy to
to Spell
Spell &
& Read
Read
Easy
Easy to
to Recognize
Recognize &
& Remember
Remember
Easy to Pronounce
Can
Can Pronounce in Only One Way
Can Pronounce in All Languages
Suggests Product Benefits
Meets Packaging/Labeling Needs
No Undesirable Imagery
Always Timely
Adapts to Any Advertising Medium
Legally Available for Use
Protecting Brand Names & Trademarks
Lanham Act
You Must Protect
Your Own
Counterfeiting is Accepted
In Some Cultures
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What Kind of Brand to Use?
Licensed
Brand
Family Brand
Brand
Choices
Individual
Brand
Generic Brand
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Who Should Do the Branding?
Manufacturer
Brands
Dealer Brands
• Also called
national brands
• Also called
private brands
or store brands
Battle
of the
Brands
• Created/owned
by producers
• Develop demand
across many
markets
• Created/owned
by middlemen
• Create higher
margins for
dealers
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Strategic Importance of Packaging
Packaging Can
Enhance the
Product
Packaging Sends
a Message
UPC Codes
Speed Handling
Packaging Can
Lower
Distribution Costs
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What Is Socially Responsible Packaging?
Laws Reduce Confusion & Clutter
Ethical Issues Remain
Unit Pricing May Help
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Warranty Policies Are a Part of Policy Planning
Promises in
Writing
MagnusonMoss Act
Support May
Be Costly
May Improve
improve
Marketing Mix
Service
Guarantees
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin