Chapter 8 Flashcards
A product can be
- a tangible product (car)
- a service (dry cleaning)
- an idea (“don’t drink and drive”)
- a person (e.g. actor, musician)
- a place, city or country (e.g. Garden Route)
- a combination of the above.
Product Levels
Core benefit
Basic product
Expected product
Augmented product
Potential product
Product Classification
Durability:
Non- durable
durable
Usage:
Consumer Products
Business Products
Types of consumer Products
Consumer:
-Convenience- staple, Impulse, emergency
-Shopping
-Speciality
-Unsought Products
Product items, lines and mixes
Product item= specific version of a product
Product line= group of closely related items
Product mix= all the products of the firm
Length of product line= number of variants in product line
Width of product mix= number of product lines in product mix
Product items, lines and mixes: Benefits
- Advertising economies
- Package uniformity
- Standardised components
- Efficient sales and distribution
- Equivalent quality
- Diversified risk.
Product items, lines and mixes: Modification
- quality modification
- functional modification
- style modification (small changes to make the product different but still recognisable)
Product items, lines and mixes: Extension
- upward stretch (Target higher income market)
- downward stretch (Target lower income market)
- two-way stretch (Targeting both high and low)
Product items, lines and mixes: Contraction
Symptoms of overextension:
1. Some products do not contribute to profits, or cannibalise sales of other items
2. Manufacturing/marketing resources disproportionately allocated to slow-moving products
3. Obsolete items because of new product entries
Benefits of contraction:
1. Resources focused on important products
2. Managers don’t waste resources trying to improve sales of poorly performing products
3. New products have a greater chance of success
Benefits of Branding
- Product identification
- Repeat sales (loyalty)
- Enhancing new-product sales
Effective Brand names
- Easy to pronounce, recognise and remember
- Short
- Distinctive, unique
- Describes the product/product use/product benefits
- Positive connotation
- Reinforces desired product image
- Legally protectable (locally and internationally)
High Brand Equity
- high awareness
- perceived quality
- brand loyalty
Brand Key( important)
- Competitive Advantage
- Target
- Insight
- Benefits
- Values, beliefs
- Reason for belief
- Discriminator
Major branding decisions
- manufacturer’s brand (national brand) = defines the brand’s owner
- private brand = a brand name owned by a wholesaler or retailer
- individual brand = use different brand names for different products
- family brand = firm markets several different products under the same brand name.
