Part 5: The marketing mix - Product
Generic brands
Where a single brand image covers a wide range of different products.
Brand name
A brand name is any word or illustration that clearly distinguishes one seller's goods from another. It can take the form of words, such as Ferrero Rocher, or initials, such as AA. Numbers can be used to create an effective brand name, such as 7-Up.
A compromise between monolithic and discreet branding is ..
A compromise between monolithic and discreet branding is an approach that allows individual brand images, but uses a corporate or family name as a prominent umbrella to endorse the product.
Monolithic approach to branding
A monolithic approach ( نهج متجانس ) to branding uses a family name (usually linked with the corporate name) with a single brand identity for the whole product range. It is a one way of allowing brands to support each other.
Brand asset
A name and/or symbol used to uniquely identify the goods and services of a seller from those of its competitors, with a view to obtaining wealth in excess of that obtainable without a brand.
A formal definition of product
A product is a physical good, service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as so necessary, worthwhile or satisfying that they are prepared to exchange money, patronage or some other unit of value in order to acquire it.
Product line
A product line (خط المنتجات) is a group of products that are closely related to each other. The product mix can be divided into a number of product lines to impose some order to it.
Trade mark
A trade mark is a brand name, symbol or logo, which is registered and protected for the owner's sole use.
Accessory goods
Accessory goods are items that give peripheral (marginal) support to the production process without direct involvement. Such as hand tools, fork-lift trucks, storage bins and any other portable or light equipment. Office equipment is also included, such as PCs, desks, chairs and filing cabinets.
Capital goods
Capital equipment consists of all the buildings and fixed equipment that have to be in place for production to happen.
User-based classifications (B2B goods and services)
Capital goods; سلع إنتاجية؛ سلع رأسمالية Accessory goods; السلع الثانوية او المكملة Raw materials; المواد الاولية Semi-finished goods; سلع شبه نهائية Components and parts; المواد و الاجزاء - القطع Supplies and services; الامدادات والخدمات
Components and parts
Components and parts are finished goods in their own right, which simply have to be incorporated into the assembly of the final product with no further processing. Car manufacturers, for example, buy in headlamp units, alarm systems and microchips as complete components or parts and then fit them to the cars on the assembly line.
Convenience goods
Convenience goods correspond to the routine response buying situation. They are relatively inexpensive, frequent purchases. The buyer puts little effort into the purchasing decision and convenience often takes priority over brand loyalty.
User-based classifications (consumer goods and services)
Convenience goods; السلع الميسرة Shopping goods; سلع التبضع Specialty goods; السلع المتخصصة Unsought goods; السلع المهملة
Additional subtle advantages of branding for the manufacturer in relation to segmentation and competitive positioning strategies is ..
Different brands can be used by one organisation to target different segments. Because the different brands have clearly defined individual characteristics, the consumer does not necessarily link them and thus does not become confused about what the organisation stands for.
Durable products
Durable products last for many uses and over a long period before having to be replaced. For example, domestic electrical goods, cars and capital machinery.
Product-based classification (classifications based on product characteristics)
Durable products; Non-durable products; and Service products
Supplies and services
Finally, there are several categories of minor consumable items (as distinct from the accessory goods discussed above) and services that facilitate production and the smooth running of the organisation without any direct input. Operating supplies are frequently purchased consumable items that do not end up in the finished product. such as, Maintenance and repair services, and Business services such as, management consultancy, accounting and legal advice and advertising agency expertise.
Fixed endorsed approach
Here, there is a rigid relationship between the company name and the brand, with a high degree of consistency between the presentation of different brands (but not as extreme as the Heinz approach). such approach is used by Ford and Kellogg.
The five different scenarios of PLC (Shape)
Innovative product; Imitative product; The fashion product; Product failure; and Revitalisation product.
The five grouping or classification of customers depending on their speed of adoption are ..
Innovators; Early adopters; Early majority; Late majority; and Late adoptors or Laggards
The four main stages of PLC are
Intoduction; Growth; Maturity; and Decline
The importance of Packaging of products includes
It has to communicate product information to help the consumer make a choice; to communicate brand image and positioning and, mostly; and to attract attention at the point of sale and invite the consumer to explore the product further.
Shopping goods
Linked with limited problem solving behaviour, shopping goods represent something more of a risk and an adventure to consumers, who are thus more willing to shop around and plan their purchases and even to enjoy the shopping process.
Types of brands
Manufacturer brands; and Retailer and wholesaler brands
Non-durable products
Non-durable products can only be used once or a few times before they have to be replaced. For example, Food and other fmcg goods, and office consumables such as stationery and computer printer cartridges.
The augmented product
The augmented product represents add-on extras that do not themselves form an intrinsic (basic or substantial) element of the product, but may be used by producers or retailers to increase the product's benefits or attractiveness.
The product family terms are
Product mix; Product line; Product item; Product line length; Product line depth; and Product mix width;
Product positioning
Product positioning means thinking about a product in the context of the competitive space it occupies in its market, defined in terms of attributes that matter to the target market.
There are three main areas for repositioning and prouct improvement, these are
Quality; Design; and Performance
Raw materials
Raw materials arrive more or less in their natural state, having been processed only sufficiently to ensure their safe and economical transport to the factory.
Service products
Services represent intangible products comprising activities, benefits or satisfactions that are not embodied in physical products. For example, financial services, holidays, travel and personal services.
Specialty goods
Speciality goods equate with the consumer's extensive problem-solving situation. The high-risk, expensive, very infrequently purchased products in this category evoke the most rational consumer response that a manufacturer could hope to find.
Defining and selecting an appropriate position for a product involves three stages, these are
Stage 1. Detailed market research needs to be carried out during the first stage in order to establish what attributes are important to any given market segment and their order of preference. Stage 2. Having identified the important attributes, in the second stage further research now shortlists the existing products that offer those attributes. Stage 3. In this stage, it is necessary to find out: (a) what the target market considers to be the ideal level for each of the defined attributes; and (b) how they rate each brand's attributes in relation to the ideal and to each other.
Flexible endorsed approach
Such as that practised by Cadbury's, gives the brand more latitude to express its individuality. The company name may be more or less prominent, depending on how much independence the organisation wants the brand to have.
Brand mark
The brand mark is specifically the element of the visual brand identity that does not consist of words, but of design and symbols. This would include things like McDonald's golden arches, Apple's computer symbol, or Audi's interlocking circles.
Difussion of innovation
The concept of the diffusion of innovation looks at the rate at which innovation spreads across a market as a whole.
The core product
The core product represents the heart of the product, the main reason for its existence and purchase.
Product line depth
The number of different variants of each item within a product line defines its depth. A deep line may be indicative of a differentiated market coverage strategy where a number of different segments are being served with tailored products.
Product life cycle (PLC)
The product lifecycle (PLC) concept reflects the theory that products, like people, live a life. They are born, they grow up, they mature and, eventually, they die.
Product mix
The product mix (مزيج المنتجات) is the total sum of all the products and variants offered by an organisation.
The tangible product
The tangible product is essentially the means by which the marketer puts flesh on the core product, making it a real product that clearly represents and communicates the offer of the core benefit. The tools used to create the product include design specification, product features, quality level, branding and packaging.
Product line length
The total number of items within the product line is the product line length.
Trade name
The trade name is the legal name of an organisation, which may or may not relate directly to the branding of its products.
Brand equity
The value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks and channel relationships.
Product mix width
The width of the product mix is defined by the number of product lines offered. Depending on how broadly or narrowly defined the product lines are, a wide mix might indicate an organisation with a diverse interest in a number of different markets, such as Nestlé.
Product item
These are the individual products or brands, each with its own features, benefits, price, etc. A product line consists of a number of product items.
Semi-finished goods
Unlike raw materials, semi-finished goods have already been subject to a significant level of processing before arriving at the purchaser's factory. They still, however, need further processing before incorporation into the ultimate product.
Discreet branding
Where individual products are given entirely separate individual brand identities. There is thus no obvious relationship between different products produced by the same organisation.
Unsought goods
Within the unsought goods category, there are two types of situation. The first is the sudden emergency, such as the burst water pipe or the flat tyre. The second unsought situation arises with the kinds of products that people would not normally buy without aggressive hard-selling techniques, such as timeshare properties and some home improvements.
The prosaic definition of brand, is
is any name, design, style, words or symbols, singly or in any combination that distinguish one product from another in the eyes of the customer.
The manufacturer's key interest (in branding)
is in the building of defendable brand loyalty to the point where the trust, liking and preference for the brand overcome any lingering price sensitivity, thus allowing a reasonable measure of premium pricing and the prevention of brand switching.
The basic anatomy of a product as a series of four concentric rings representing ...
the core product; the tangible product; the augmented product; and finally the potential product.
The most important function of branding is ..
the creation and communication of a three-dimensional character for a product that is not easily copied or damaged by competitors' efforts.
The potential product
the potential product layer acknowledges the dynamic and strategic nature of the product. The first three layers have described the product as it is now, but the marketer also needs to think about what the product could be and should be in the future.
The benefits of branding for retailers
• Benefits from brand marketing support • Attracts customers
The benefits of branding for consumers
• Easier product identification • Communicates features and benefits • Helps product evaluation • Establishes product's position in the market • Reduces risk in purchasing • Creates interest/character for product
The benefits of branding for manufacturers
• Helps create loyalty • Defends against competition • Creates differential advantage • Allows premium pricing • Helps targeting/positioning • Increases power over retailer