MKT Final: CH 11-13

Product line

A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, and are marketed through the same channels. It may consist of different brands, a single-family brand, or an individual brand that has been extended. An example is life insurance, and the graphic with different brands of shampoo or detergents

Brand

A name, term, sign, symbol, or design, or a combination intended to identify the goods and services of one seller or group with sellers, and to differentiate them from their competitors.

Product licensing

A type of brand sponsorship. A product whose brand-name has been licensed to other manufactures that actually make the product. Has many financially lucrative opportunities. It is a contractual agreement where one company allows its brand-name or trademark to be used with products or services offered by another. Ex: Disney Jansport backpack's

Co-branding

A type of brand sponsorship. Also called dual branding or brand bundling, is where two or more well-known brands are combined into a joint product or marketed together in some fashion. For example, General Mills who owns Yoplait and Trix cereal, advertises a trix yogurt. Can be a joint venture or have multiple sponsors like a tech alliance between Apple and IBM.

Line stretching

A way to lengthen the product line beyond its current range. It can be a down market stretch, and upmarket stretch, or a two way stretch. Up market: middle-market companies want to enter the high-end market for more growth and higher margins Down market: Middle-market companies want to introduce a lower price to line for stronger growth or tying up lower end competition

Line filling

A way to lengthen the product line by adding more items within the present range. This is used for reaching incremental profits, satisfying dealers about lost sales, and utilizing excess capacity.

Product mix

Also called a product assortment, is the set of all products and items a particular seller offers. It consists of various product lines and has a certain width, length, depth, and consistency.

Labeling

An integral part of the package that identifies the product or brand, who where and when it was made, how to use it, and contents. It may also include a grade, a description, or a promotion with attractive graphics. Established brands must be wary when changing this.

Product

Anything offered to a market for attention, acquisition, consumption or use that might satisfy a need or want.

Brand development alternatives

Can be evaluated using the brand and product development matrix. Includes brand extension, line extension, and multi brand. Product category New Existing New brand Mulibrand Brand ext. line ext. New Existing Brand-name

Product levels CVH

Core benefit- The benefit the customer is really buying (rest and sleep) Basic product- the hotel room Expected product- conditions buyers normally expect when purchasing the product (clean bed, quiet) Augmented product- exceed customer expectations, brand positioning and competition Potential product- encompasses all the possible augmentations and transformations the product offering might undergo

Product line length

Determined by the number of separate items within the mix. Detergents: Tide, Gain, etc. this can be increased by either: -line filling or line stretching

Common product lifecycle patterns

Growth slump (mainly for appliances, sales grow rapidly at first and then decline in plateau), cycle recycle (common with pharmaceuticals, aggressive promotions and then decline and then more aggressive promotions leading to the second cycle), and scalloped (Discovery of new product characteristics, uses, and users. A good example is nylon that has multiple uses).

Packaging

Includes all the activities of designing and producing the container for the product. May have up to three layers including the primary package, the secondary package which holds the primary, and the shipping package which is the corrugated box. The objectives are to: identify the brand, convey information, assist with at home storage, product protection, and aiding in consumption.

Brand Sponsorships

Manufacturer's brand (Kellogg's), private brand (Kirkland, great value), licensing, co-branding

product mix width

The ________ of a product mix refers to how many different product lines the company carries. For example, Proctor and Gamble has a line of shampoos, detergents, and diapers.

Product mix depth

The ________ of a product mix refers to how many variants are offered of each product in the line. Tide comes in two scents, and also comes in either a liquid or a powder with different additives.

Product mix length

The ________ of a product mix refers to the total number of items in the mix. Proctor and Gamble has 10 different detergents like Tide and Gain

Decline PLC strategy

The main goal is to get as much profit possible before cutting losses. Strategies include eliminating weak products (opportunity cost), harvesting (gradually reducing product costs), and divesting (selling to another firm).

Introduction PLC strategy

The main goal is to inform potential customers, induce product trials, and secure retail distribution. A key strategy is the "pioneering advantage," which are first movers to develop a working model of the product or to sell in a new product category. Establishes a baseline the product class should possess, however, imitators can surpass the innovators.

Growth PLC strategy

The main goal is to sustain rapid marketshare. This can be done by improving product quality, adding new models, entering new market segments, increasing distribution, lowering prices, and shifting from awareness and trials to loyalty.

Maturity PLC strategy

This can be divided into three phases: growth, stable, and decaying. Strategies include market modification (expanding the market to increase usage), product modification (improving quality and features for a new and improved product), and marketing program modifications (modifying nonproduct elements like price, distribution, and communication).

Brand equity

the added value a brand name gives to a product beyond the functional benefits provided. It may be reflected in the way consumers think, feel, and act with respect to the brand. Recognizing that the power of the brand lies in what customers feel over time