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product

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anything that is of value to a consumer and con be offered through a voluntary marketing exchange (ex: soft drinks, hotels, theme parks, ideas, organizations, people, or communities)

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complexity of products

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-more to products than physical characteristic or service product made up of core customer value at the center with the actual product and associated services aroumd it

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Core customer value

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the basic problem solving benefits that consumers are seeking (ex: trek offers bikes for green transportation (cruiser) and for speed and excitement (road, mountain, hybrid bikes)) -When developing or changing a product, marketers start with the core customer value to determine what their potential customers are seeking, then make the actual product and associated services to fit around it.

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actual product

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the physical attributes of a product including the brand name, features/design, quality level, and packaging (ex: trek madon 6 series is positioned at "the most exquisitely engineered bike ever made" that includes high features and can be chosen from 3 different fits) -The level of importance of brand name, features/design, quality level, and packaging depends on the product

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Augmented product/associated services:

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the nonphysical attributes of the product including product warranties, financing, product support, and after-sale services -The amount of associated services varied with the product (ex: a package of M&Ms may only include a customer complaint line vs. trek that has a guarantee for the lifetime of the original owner)

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Consumer products

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products and services used by people for their own personal use -further defined by the way they are used and how they are purchased (specialty products/services, shopping products/services, Convenience products/services, Unsought products/services)

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specialty products/services

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products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers (ex: luxury cars, legal or medical professionals, or designer apparel)

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Shopping products/services

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those for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances (ex: when people need new sneakers, they often go store to store, trying shoes on, comparing alternatives, and talking to sales people)

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Convenience products/services

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those for which the consumer is not willing to spend any effort to evaluate prior to purchase (ex: common beverages, bread, or soap)

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Unsought products/services

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products or services consumers either do not normally think of buying or do not know about (ex: new-to-the-world products, like GPS once were, are first introduced)

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Product mix

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the complete set of all products offered by a firm consists of various product lines, -breadth -depth

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product lines

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groups of associated items, such as those that consumers use together or think as part of a group of similar products (ex: Kellogg's product lines include ready-to-eat cereal, toaster pastries and wholesome portable snacks, cookies and crackers, and natural/organic and frozen items)

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Breadth

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number of product lines offered by a firm; also known as variety (ex: Kellogg's has 4 product lines)

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Increase breadth

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Firms often add new product lines to capture new or evolving markets to increase sales (ex: a firm adds a whole new line of jam products to complement their bread line)

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Decrease breadth

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Sometimes it is necessary to delete an entire product line to address changing conditions or meet internal strategic priorities (ex: a firm drops their line of bread to focus on their dairy line)

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Depth

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the number of categories within a product line (ex: within Kellogg's breakfast snack product line, there's nutria-grain, special k, kashi bars, and pop-tarts)

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increase depth

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Firms might add items to address changing consumer preferences or to preempt competitors while boosting sales (ex: BOA added echecking accounts to appeal to online users)

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Decrease depth

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Sometimes it's necessary to delete products within a product line to realign the firm's resources (ex: P&G released tide basics, but then deleted it because the cheaper and less effective version might hurt the brand's name)

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Branding (factoids)

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-A company lives or dies based on brand awareness -Branding provides a way for a firm to differentiate its product offerings from those of its competitors (ex: both Snapple and Tropicana make and sell fruit drinks, but consumers might choose one over the other because of the associations that the brands evoke) - Companies use brand elements that consumers can easily recognize and remember (ex: brand names, logos, symbols, characters, slogans, jingles, and packaging)

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Value of branding for the customer

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-Brands facilitate purchases: -Brands establish loyalty: -Brands protect from competition and price competition -Brands are assets

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Brands facilitate purchases

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Brands are often recognized by consumers and because they signify a certain quality level and contain familiar attributes, can help consumers make quick decisions (ex: differentiating Coke from Pepsi)

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Brands establish loyalty

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Over time with continue use, consumers learn to trust certain brands (ex: amazon has a loyal following because its reputation for service)

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Brands protect from competition and price competition

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Strong brands are more established and have a more loyal customer based (ex: Lacoste is perceived to be of superior quality and evoke a certain status, so they can command a premium price without similar brands threatening them)

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Brands are assets

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Brands are assets that can legally be protected through trademarks a copyrights and thus constitute a unique form of ownership (ex: footsyroll is completely different from tootisie roll, but it was similar enough that the candy company filed a law suit against the shoe company

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Brands impact market value

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The value of the brand, just one of many assets, refers to the earning potential of the brand over the next 12 months --- end of value to cusomer

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Brand equity

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the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service includes -brand awareness -perceived value -brand associations -brand loyalty

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Brand awareness

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measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers -Certain brands gain predominance in a particular product market over time that they become synonymous with the product itself (ex: Kleenex tissue, Clorox bleach, Band-aid bandages)

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Perceived value

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the relationship between a product's or service's benefits and its cost (ex: target doesn't always have the highest quality or most fashion forward clothes, but not everyone needs to look like they came off the runway and retailers hire designers to create lines for their stores)

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Brand associations

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the mental links that consumer make between a brand and its key product attributes; can involve logo, slogan, or famous personality -Often result from a firm's advertising and promotional efforts (ex: state farm's "like a good neighbor, state farm is there")

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Brand loyalty

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occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category -Brand loyal customers are an important source of value for firms

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increasing brand loyalty

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-Many firms award consumer with loyalty or CRM programs (ex: reward points) -The marketing cost of reaching loyal customers are lower -Loyal customers tend to praise the virtue of their favorite products to others -High level of brand loyalty insulates the firm from competition

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Manufacturer brands/national brands

answer

brands owned and managed by the manufacturer (ex: Nike, Coca-Cola, KitchenAid, Sony)

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benefits of Manufacturer brands/national brands

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-The manufacturer develops the merchandise, produces it, and invests in a marketing program -The majority of brands in the US are manufacturer brands -By owning their own brands, manufacturers have *more control over their marketing strategy, can choose their market segments and positioning, and can create their own brand equity*

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Retailer/store/private-label brands

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brands developed and marketed by a retailer and only available from that retailer (ex: Costco's Kirkland brand, Trader Joe's own brand)

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benefits of Retailer/store/private-label brands

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-Retailers can manufacturer their own products or develop the design for their retailer brands and then contract with manufacturers to produce those brands -Store brands now account for almost 20% of purchases in North America

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family brands

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a firm's own corporate name used to brand its product lines and products (ex: Kellogg's Rice Krispies, Kellogg's Special K, etc.) -The individual brands benefit from the overall brand awareness associated with the family name

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Individual brands

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the use of individual brand names for each of a firm's products (ex: Famous Amos cookies, Cheez-Its, etc. aren't under the "Kellogg's" umbrella)

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Brand extension

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the use of the same brand name for new products being introduced to the same or new markets; an increase in the product mix's breadth (ex: Colgate and Crest sell toothpaste, toothbrushes, and other dental hygiene products, even though their original product line was just toothpaste)

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Line extension:

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the use of the same brand name within the same product line and represents an increase in a product's line depth; represents an increase in a product's line depth

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Advantages of brand and line extensions:

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-The brand name is already well established so the firm can spend less in developing consumer brand awareness and brand associations for the new product (ex: Kellogg's sells now sells Eggo Syrup as an extension to their product line of breakfast foods) -If either the original brand or the brand extension has strong consumer acceptance, that perception will carry over to the other product (ex: consumers who have never tried Neutrogena products before trying their Neutrogena Wave power cleaner brand extension might be encouraged to try their core product line of skin care products) -When brand extensions are used for complementary products, a synergy exits between the two products that can increase overall sales (ex: Frito-Lay markets both chips and dip)

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Brand dilution

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occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold (ex: Cheeto Lip Balm, Lifesavers Soda, Colgate Kitchen Entrees)

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Preventing brand dilution

answer

-Marketers should calculate the fit between the product class of the core brand and that of the extension (ex: Starbucks' line of instant coffee, VIA) -Firms should evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension because brand-specific associations are very important for extensions (ex: HP printers are associated with reliability, performance, and value which should carry onto other HP products) -Firms should refrain from extending the brand name to too many product and product categories (ex: Donald Trump was successful with branding property and clothing lines, but not with branding steaks) -Firms should consider whether the brand extension will be distanced from the core brand (ex: Marriott had budget hotels, but do not use their name for their luxury hotels)

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Co-branding

answer

the practice of marketing two or more brands together, on the same package or promotion -Co-branding can enhance consumers' perceptions of product quality by signaling "unobservable" product quality through links between the firm's brand and a well-known quality brand (ex: combining Tack Bell and Pizza Hut together) facts: -Intended to attract diverse market segments and extent hours =Can create risk when the consumers of each brands turn out to be vastly different (ex: Burger King and Haagen Daz) -May also fail when there are disputes or conflicts of interest between the co-brands

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Brand licensing

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a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee (ex: the NBA licenses to produce bobblehead figures of team players) facts: -Common for toys, apparel, accessories, and entertainment products -Is an effective form of attracting visibility for the brand and thereby building brand equity while also generating additional revenue ----However, the licensor risks dilution of its brand equity through overexposure of the brand, especially if the brand name and characters are used inappropriately

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Brand repositioning/rebranding

answer

a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences (ex: P&G's Ivory soap brand promoted the image of purity in white, now comes in colorful packaging to appeal to young moms) facts: -Can improve the brand's fit with its target segment or boost the vitality of old brands -However, firms need to spend unrecoverable amounts of money to make tangible changes to product and packages, as well as intangible changes to the brand's image

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packaging facts

answer

-Attracts the consumers' attention -Enable products to stand out from their competitors -Offers a promotional tools (ex: "new" or "improved" labels) -Allows for the same product to appeal to different markets (ex: convenient stores carry smaller packages for travel vs. Costco selling the same product in bulk)

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Primary packaging

answer

the packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumption

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Secondary packaging

answer

the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product

question

mucho packaging datos read these

answer

-Firms occasionally change their packaging as a subtle way of repositioning the product (ex: Morton Salt umbrella girl has significantly changed since 1914) -Some packaging changes are designed to make the product more ecological (ex: PepsiCo reduced the weight of their water bottles by 20%) -However, sometimes packaging changes can backfire (ex: when Tropicana changed its package to feature a glass of juice instead of the straw in an orange, consumers became outraged) -Retailers and manufacturers use secondary packaging as convenient ways to display and sell products as well as easier shipping, loading, and storing -Packaging can also help suppliers save costs (ex: Skippy peanut butter reduced their jars from 18oz to 16.3oz just by increasing the indent at the bottom of the jar)

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"Wrap rage"

answer

a great frustration with packaging that makes is seem impossible to get to the actual products -Companies are moving away from clamshell packaging to make opening products easier

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Product labeling

answer

-Provides information the consumer needs for their purchase decision -Must abide by laws and regulations o Federal Trade Commission Act of 1914 o Fair Packaging and Labeling Act of 1967 o Nutrition Labeling Act of 1990 -FDA is the primary federal agency that reviews food and package labels

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