products are complex
DESCRIPTION
Products are Complex. Augmentations. Product Issues. Product Lines Groups of associated items, such as those that consumers use together or think of as part of a group of similar products. Product Category An assortment of items that the customer sees as reasonable substitutes for one another - PowerPoint PPT PresentationTRANSCRIPT
Products are Complex
pom8 1
Augmentations
Product LinesGroups of associated items, such as those that consumers use
together or think of as part of a group of similar products
Product CategoryAn assortment of items that the customer sees as reasonable
substitutes for one another
Product FormsDifferent approaches to solving customer problems within a
category
Product AssortmentsThe complete set of all products offered by a firm; also
called the product mix
Product Issues
pom8 2
Types of Products
pom8 3
• Strong customer preference
• Will expend considerable effort
Customers will spend time comparing alternatives
Customer not willing to spend any effort to evaluate prior to the purchase
Products customers do not think of buying or do not know about
pom8 4
• Corporate or family brand– The Gap
• Corporate and product line brands– Kellogg’s Corn
Flakes
• Individual lines– Mr. Clean (Proctor &
Gamble)
Naming Brands and Product Lines
Product Assortment and Product Line Decisions
10-5
pom8 5
Product Assortment and Product Line Decisions
10-6
Category DepthNumber of stock keeping
units (SKUs) within a category
BrandThe name, term, design, symbol, or any other features that identify one seller’s good or service as distinct from those of
other sellerspom8 6
What Makes a Brand?
10-7
pom8 7
Frito-lay: Doritos Branding
Value of Branding for the Customer and the Marketer
10-8
pom8 8
Brand Equity: Brand LoyaltyCombined customer attitudes toward a brand
• Consumers are often less sensitive to price
• Marketing costs are much lower
• Firm insulated from the competition
10-9
pom8 9BW_using_brand_history384K_Stream.wmv
Brand ExtensionThe use of the same brand name for new products being
introduced to the same or new markets
10-10
pom8 10
pom8 11
Co-BrandingMarketing two or more brands together
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Brand DilutionOccurs when a brand extension adversely affects customer
perceptions about the attributes the core brand is believed to hold
Brand RepositioningA strategy in which marketers change a brand’s focus to target new markets
or realign the brand’s core emphasis with changing market preferences
• How is this repositioning?
10-13
pom8 13