Chapter 9
Product Concepts
What’s a Product?
 Good
 Service
 Idea
Experience
Credence
Product is the starting point of
Marketing Mix
Product
Promotion
Price
Place
(Distribution)
Product-Service Continuum
Soap
Auto with
repair
services
Restaur Airline tripDoctor’s
with
ant
snacks exam
The Product-Service Continuum
Product is a bundle of benefits
3. Augmented Product
Installation
Additional services &
benefits (unexpected)
Packaging
Delivery
& credit
Brand
name
Core
good or
service
Warranty
2. Actual Product
Style
Design
1. Core product
What the consumer is
really buying
Aftersale
service
Types of Products
Consumer, Business
 Consumer products
 Determined by how consumers behave when
buying an item.
 1. Convenience
 2. Shopping
 3. Specialty
 4. Unsought
Consumer Products
 Convenience –frequently purchased
Grocery products
Staples
Emergency items
 MM:
 Margins:
Consumer Products
 Shopping (less frequent)
Homogeneous vs. Heterogeneous
MM:
Margins:
Consumer Products
 Specialty – special purchase effort
 Principle of scarcity / uniqueness
MM:
Margins:
Consumer Products
 Unsought
MM:
Margins:
Product Line
& Product Mix
 Product Item
 Product Line
 Product Mix
 Width
 Depth
Product mix is also known as product assortment
Item
Product Line
LAMPS:
•Table
•Ceiling
•Track
•Desk
Benefits of Product Lines
Advertising Economies
Package Uniformity
Standardized
Components
Efficient Sales and
Distribution
Equivalent Quality
Product Mix
Product
Line 1
LAMPS:
•Table
•Ceiling
•Track
•Desk
Product
Line 2
TABLES:
•Kitchen
•Dining Room
•End
•Coffee
•Outdoor
•Conference
•Computer
Product
Line 3
CHAIRS:
•Dining Room
•Living Room
•Bed Room
•Outdoor
•Desk
Product Depth
Product
Line 1
LAMPS:
•Table
•Ceiling
•Track
•Desk
Product
Line 2
TABLES:
•Kitchen
•Dining Room
•End
•Coffee
•Outdoor
•Conference
•Computer
Product
Line 3
CHAIRS:
•Dining Room
•Living Room
•Bed Room
•Outdoor
•Desk
Attracts buyers with different preferences; market
segmentation
Product Width
Product
Line 1
LAMPS:
•Table
•Ceiling
•Track
•Desk
Product
Line 2
TABLES:
•Kitchen
•Dining Room
•End
•Coffee
•Outdoor
•Conference
•Computer
Product
Line 3
CHAIRS:
•Dining Room
•Living Room
•Bed Room
•Outdoor
•Desk
 Diversifies risk; Capitalizes on established
reputations
Campbell’s Product Lines and Mix
Adjustments to Product Lines, Items
and Mixes
Adjustments
Product
Modification
Product
Repositioning
Product Line
Extension or
Contraction
Planned Obsolescence
The practice of modifying products
so those that have already been sold
become obsolete before they
actually need replacement.
Product Line Extension
Adding additional products to an
existing product line in order to
compete more broadly in the
industry.
LINE EXTENSIONS
What images do these brand
names evoke?
Mercedes – Benz:
Harley Davidson:
Apple:
PC jr.:
Smart & Final:
Listerine:
Marlboro:
Calvin Klein:
Name the major brands:
Oatmeal:
Dog food:
Beer:
Running Shoes:
Tuna:
Bananas:
Lobsters:
Peaches:
Brand
 Name, term, sign, symbol, design, or some combination that
identifies the products of a firm.
 Brand name - part of a brand that can be spoken
(examples of brands with no names?)
WHAT AM I?
 Brand mark - symbolic
Branding Terms
WHAT AM I?
 Trademark – legal designation of the exclusive use
of brand
 Trade Name – Commercial, legal name
Value of Branding
 To Buyers
 Quality assurance
 Rewards / Risks
 To Sellers
 Loyalty
 Price premiums
 Resistance to competition
Brand Equity
 The value of the brand name!
Types of Brands
 Manufacturer Brands
 Private OR Retailer OR Store OR Reseller Brands
 Generic Brands
Battle of the Brands
“Genericide”










Aspirin
Cellophane
Corn flakes
Granola
Kerosene
Linoleum
Raisin bran
Shredded wheat
Thermos
Zipper
Individual Brands Versus Family
Brands
Individual
Brand
Family
Brand
Using different brand
names for different
products from the same
company
Marketing several
different
products under the same
brand name.
Cobranding
Ingredient
Branding
Types of
Cobranding
Cooperative
Branding
Complementary
Branding
BRAND EXTENSIONS
Packaging
 Packaging Functions
 Protect and Maintain
Functional Form
 Offer
Convenience
 Marketing
UPC
Labeling
Persuasive
 Focuses on
promotional
theme
 Helps make
proper
selections
 Consumer
information
is secondary
 Lowers
cognitive
dissonance
Informational
Product Warranties
Warranty
A confirmation of the quality or
performance of a good or service.
Express
Warranty
A written guarantee.
Implied
Warranty
An unwritten guarantee