Is anything that is of value to a consumer and can be offered through a voluntary marketing exchange
What 3 factors comprise the Complexity of Products
-Core customer value = the basic problem-solving benefit that consumers are seeking -Actual Product = What marketers convert core customer values into -Augmented product - warranty, guarantees
What are Consumer products?
products and services used by people for their personal use
4 Types of products and services
Customer involvement in Specialty Products
Customers will expend considerable effort to search for best suppliers
Customer involvement in Shopping Products
Customers will spend a fair amount of time comparing alternatives
Customer involvement in convenience products
Consumers will spend very little thought or effort in evaluating a purchase -Frequently purchased items
Customers don't think about buying the product or are unaware they exist. -New to the world products are introduced as unsought products
A complete set of all products by a firm is call it's ____
What does product mix do? 2 components
Product mix reflects the breadth and depth of the company's product lines
-Breadth - represents count of # of product lines offered by the firm
-Depth - the number of products within a product line
Think of breadth as ____ and depth as _____
Why would a firm increase depth?
-Firms might add items to address changing consumer preferences -Or to preempts competitors while boosting sales
Why would a firm want to decrease Depth?
Deleting INDIVIDUAL PRODUCTS within product lines can realign the firm's resources
Why would a firm want to decrease Breadth?
PRODUCT LINES To adjust to changing market conditions or meet internal strategic priorities
Why would a firm increase Breadth?
To capture new and evolving markets and increase sales
A company lives and dies based on its ____ awareness
Value branding for the customer (how do brands add value to products for sellers and consumers?)
-Protect from competition and price competition
-Affect Market Value
-They are assets
- Legally protected
The Value of a brand can be defined as the _____ of that brand over the next 2 months
What is Brand Equity?
Set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.
Brand awareness measures:
How many consumers in a market are familiar with the brand and what it stands for to have an opinion about it
Marketers create brand awareness by
repeated exposure of various brand elements
Determined by customers comparing value of offer to close competitors, The _______ is the relationship between its service benefits and it's cost
Brand Associations reflect: And result from:
1. The mental and emotional links that consumers make between a brand and its key product attributes such as logo, color, slogan, etc.. 2. A firms advertising and promotional efforts
Brand loyalty occurs when:
A consumer consistently purchases from only one brand
The 4 Elements of brand loyalty paradise for firms
-CRM to retain brand-loyal customers -Marketing costs are low to get these people in -Positive word of mouth comes naturally from loyal customers -A high level of brand loyalty insulates from competition
What does a Family Brand do for individual brands
Firm's big brand provides brand awareness to individuals products and product lines
A brand extension is when: How does this affect the product mix's breadth
The same brand name in different product lines Breadth increases
How does a Line extension differ from a brand extension?
A line extension remains in the same product line This increases Depth
What are some advantages of brand extension
-Synergy between 2 unrelated products increases overall sales -Firms spend less on brand awareness since the reputation mitigates the need to communicate the image
Brand Dilution occurs when
Brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold
4 Ways to mitigate negative consequences of brand extensions
1. Evaluate fit between product class and core brand. 2. Gain insight about brand-specific associations from customers by seeking similarities about core brand and extension product 3. Refrain from extending brand in to many places 4. Will the brand extension be sufficiently distanced from the core brand?
Brand Re-positioning is strategy in which:
Marketers change the brands focus to target new markets or realign the brand's core emphasis with changing market perspective. Very Risky, Very Costly
Customers seek convenience with primary packaging in which 3 ways?
1. Storage 2. Use 3. Consumption
Secondary Packaging adds customer value in which 3 ways?
By facilitating the convenience of: 1. Carrying 2. Using 3. Storing
Packaging plays which 4 key roles
1. Offers a promotional tool 2. Attracts consumer attention 3. Enables product to stand out from competition 4. Allows same product to appeal to different markets with different sizes
Packaging helps save suppliers costs in what way
If costs go up, altering the packaging and putting less product in each unit could subtly offset their cost increase