Product Concepts
Chapter 9
Prepared by
Deborah Baker
Texas Christian University
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
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Learning Objectives
1. Define the term product.
2. Classify consumer products.
3. Define the terms product item, product line,
and product mix.
4. Describe marketing uses of branding.
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
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Learning Objectives (continued)
5. Describe marketing uses of packaging
and labeling.
6. Discuss global issues in branding
and packaging.
7. Describe how and why product warranties
are important marketing tools.
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1
Learning Objective
On Line
http://www.coleman.com
Define the term
product.
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1
Product
Everything, both favorable
and unfavorable, that
a person receives
in an exchange.
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What Is a Product?
Product is the
“heart” of
Marketing Mix
Product
Promotion
Price
Place (Distribution)
Chapter 9 Marketing 7e Lamb Hair McDaniel
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Learning Objective
Classify
consumer products.
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Product Classifications
Business
Product
A product used to manufacture other
goods or services, to facilitate an
organization’s operations, or to resell
to other consumers.
Consumer
Product
Product bought to satisfy an
individual’s personal wants
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Types of Consumer Products
PRODUCTS
Consumer
Products
Convenience
Products
Shopping
Products
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Business
Products
Specialty
Products
Unsought
Products
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Types of Consumer Products
Convenience
Product
A relatively inexpensive item that
merits little shopping effort.
Shopping
Product
A product that requires comparison
shopping, because it is usually more
expensive and found in fewer stores.
Specialty
Product
A particular item that consumers
search extensively for and are
reluctant to accept substitutes.
Unsought
Product
A product unknown to the potential
buyer or a known product that the
buyer does not actively seek.
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Learning Objective
Define the terms
product item,
product line,
and product mix.
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Product Items, Lines, and Mixes
On Line
http://www.marriott.com
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.
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Depth of the product lines
Gillette’s Product Lines and Mix
Width of the product mix
Blades and
razors
Toiletries
Mach 3
Sensor
Trac II
Atra
Swivel
Double-Edge
Lady Gillette
Super Speed
Twin Injector
Techmatic
Series
Adorn
Toni
Right Guard
Silkience
Soft and Dri
Foamy
Dry Look
Dry Idea
Brush Plus
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Writing
instruments
Lighters
Paper Mate
Flair
Cricket
S.T. Dupont
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Benefits of Product Lines
Advertising Economies
Package Uniformity
Standardized
Components
Efficient Sales and
Distribution
Equivalent Quality
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Product Mix Width
The number of product
lines an organization offers.

Diversifies risk

Capitalizes on
established reputations
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Product Line Depth
The number of product
items in a product line.
 Attracts buyers with different
preferences
 Increases sales/profits by further
market segmentation
 Capitalizes on economies of scale
 Evens out seasonal sales patterns
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Adjustments
On Line
http://www.unilever.com
Adjustments to
Product Items,
Lines, and Mixes
Product Line
Extension or
Contraction
Product
Modification
Product
Repositioning
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Types of Product Modifications
Quality
Modification
Functional
Modification
Style
Modification
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Planned Obsolescence
The practice of modifying
products so those that
have already been sold
become obsolete before
they actually need
replacement.
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Repositioning
Why reposition
established brands?
Changes in
Social
Environment
Changing
Demographics
Declining Sales
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Product Line Extension
Adding additional products
to an existing product line
in order to compete more
broadly in the industry.
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Product Line Contraction
Symptoms of
Product Line
Overextension
 Some products have low sales or
cannibalize sales of other items
 Resources are disproportionately allocated
to slow-moving products
 Items have become obsolete because of
new product entries
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Learning Objective
Describe marketing
uses of branding.
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Brand
A name, term, symbol,
design, or combination
thereof that identifies a
seller’s products and
differentiates them from
competitors’ products.
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Branding
Brand
Name
That part of a brand that can be spoken,
including letters, words, and numbers.
Brand
Mark
The elements of a brand that
cannot be spoken.
Brand
Equity
The value of company and brand names.
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Benefits of Branding
On Line
http://www.tide.com
Product
Identification
Repeat Sales
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New Product
Sales
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An Effective Brand Name
 Is easy to pronounce
 Is easy to recognize and remember
 Is short, distinctive, and unique
 Describes the product, use, and benefits
 Has a positive connotation
 Reinforces the product image
 Is legally protectable
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The World’s Most Valuable Brands
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Branding Strategies
Brand
Manufacturer’s
Brand
Individual
Brand
Family
Brand
No Brand
Private Brand
Combination
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Individual
Brand
Family
Brand
Combination
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Generic Brand
A no-frills, no-brand-name,
low-cost product that is
simply identified by its
product category.
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Manufacturers’ Brands Versus
Private Brands
4
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.
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Advantages of
Manufacturers’ Brands
4
 Develop customer loyalty
 Attract new customers
 Enhance prestige
 Offer rapid delivery, can carry less
inventory
 Ensure dealer loyalty
Chapter 9 Marketing 7e Lamb Hair McDaniel
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Advantages of
Private Brands
4

Earn higher profits

Less pressure to mark down prices

Manufacturer may drop a brand or
become a direct competitor to dealers

Ties customer to wholesaler or retailer

No control over distribution of
manufacturers’ brands
Chapter 9 Marketing 7e Lamb Hair McDaniel
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Individual Brands Versus
Family Brands
4
Individual
Brand
Using different brand names for
different products.
Family
Brand
Marketing several different
products under the same
brand name.
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Cobranding
Types of Cobranding
Ingredient
Branding
Complementary
Branding
Cooperative
Branding
On Line
http://www.kelloggs.com
http://www.disney.com
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
On Line
http://www.postcereal.com
http://www.quakeroats.com
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Trademarks
A Trademark is the
exclusive right to
use a brand
 Many parts of a brand and associated
symbols qualify for trademark protection
 The mark has to be continuously
protected
 Rights continue for as long as it is used
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5
Learning Objective
Describe marketing
uses of packaging
and labeling.
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
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5
Packaging
Contain and Protect
Promote
Facilitate Storage, Use,
and Convenience
Functions
of
Packaging
Facilitate Recycling
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Labeling
On Line
http://www.fda.gov
Persuasive
 Focuses on
promotional
theme
 Information is
secondary
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Informational
 Helps make proper
selections
 Lowers cognitive
dissonance
 Includes use/care
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Universal Product Codes
A series of thick and thin
vertical lines (bar codes),
readable by computerized
optical scanners, that
represent numbers used
to track products.
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6
Learning Objective
Discuss global
issues in branding
and packaging.
Chapter 9 Marketing 7e Lamb Hair McDaniel
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Global Issues in Branding
One Brand Name
Everywhere
Global Options
for Branding
Adaptations &
Modifications
Different Brand
Names for
Different Markets
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Global Issues in Packaging
Labeling
Global
Considerations
for Packaging
Aesthetics
Climate
Considerations
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©2004 South-Western/Thomson Learning
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7
Learning Objective
Describe how and
why product
warranties are
important marketing
tools.
Chapter 9 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
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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 that the
good or service is fit for the purpose
for which it was sold. (UCC)
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Product Warranties
On Line
http://www.landsend.com
http://www.llbean.com
Express
Warranty
Written Guarantee
Implied
Warranty
Unwritten Guarantee
Warranties
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