Marketing Chapter 10: Product

Assortment:

In addition to product line decisions companies plan product assortment. Product assortment is the complete set of all products a business offers to its market.

Focus groups

Comanies use focus groups and other consumer panels to review product ideas and marketing mix choices.

How consumers Shop for goods

-Convenience Goods -Unsought Goods -Shopping Goods -Specialty Based

Marketing

is the direct link between a business and it's cosomers.

Convenience Goods

Staple, Impulse, Emergency

Environment

Concern about type and quality of materials used for packaging. -Increase use of low % plastic

Enhanced Product

Consumers are usually trying to satisfy several needs w/ 1 purchase. -Companies add enhancements to their products to meet those needs. -Enhancements include features and options -Ex. a bike can be manufactured in several frame sizes and models.

Ease of Use

Manufacturers must carefully consider the ways costumers use a product when designing the package. -Ex.. A cereal box taller than shelves in a home will not be purchased.

Trademark

a legal protection of the words or symbols for use by one company.

Product/Service assisting

in the design and development of product and service that will meet the needs of prospective consumers.

Product Planning

involves the careful analysis of many factors in order to create the best possible product.

Product

is anything tangible offered to a market by a business to satisfy needs. Consumers and business people have very different ideas of products.

Derived demand

is the quantity of a product or service needed by a business in order to operate at a level that will meet the needs of its customers.

Direct Demand

is the quantity of a product or service needed to meet the needs of consumers.

Specialty Based

specialty items

Unsought Goods

An unsought product is a product of which consumers are unaware or are not that interested in actively pursuing for purchase.

Shopping goods

Attribute based, Price based

Extended Products

Businesses can improve satisfaction by a product in other ways in addition to product enhancements. -That improvements can occur as the business offer: -services, -grantees, -info on effective use, -additional product to impoverish the use of the product.

Product design moves in 3 Steps:

-Basic Product -Enhanced Product -Extended product

Packaging: (5 methods)

-Ease of Use -Safety -Attraction -Handling -Environment

Levels of Brand Recognition

-None Recognition -Rejection -recognition -preference -insistence

Basic Product

-The most important part of the product. -A readily identifiable product in it's simplest form. Consumers should be able to easily see the needs for which product responds.

Product line variations

-Variations in Quantity -Variations in Quality -Assortments

Types of Business products:

1. Capital Equipment 2. Operation Equipment 3.Supplies 4.Raw materials 5. Component Parts

Product Mix Components

3 important considerations in panning the product mix are: 1. Product Line 2. Planning 3. Brand Development

Brand Development

A brand is a name symbol, design that identifies a product or company.

Brand

A brand provides unique identification for its offering.

Product Line

A group of similar products w/ slight variations in the marketing mix to satisfy different needs.

Gathering information

A new product is developed to meet company objectives.

Developing an effective strategy by:

Developing an effective strategy by: -identifying target markets, - determining company strengths and weaknesses -suggesting alternative market positioning

Variations In quality

Differences in quality an also be used to develop product line. -Some items are sold in two or three quality levels. -Consumers who use the product infrequently may not need the best quality and would prefer to save money in exchange for lower quality.

Product Development Three steps

Gathering Information Designing Effective Marketing Strategies Testing Marketing Mixes

Consumer Markets

Individuals of socially related groups who purchase products for personal consumption.

Licensed Brand

Is a well known name/symbol established by one company and sold for use by an other. -Ex. Disney licensing character names

Packaging

Package serves dual purpose of promotion and protection, in addition some packaging improves the use of products.

Handling

Packaging can be helpful in the display and security of products. Packaging may need to hang form hook or lie flat on shelf.

Variations in Quantity

Product lines can be developed in several ways one of the easiest to expand form one product to a product line is to vary the product size. Ex. The identical food item may be packaged in 3 sizes, single serving, 4 serving, 8 servings.

Safety

Safety & Protection are important concerns when planning the packaging of products. Ex. Lids form metal to plastic to prevent cuts on tong.

Testing Marketing Mixes

Testing is a way to reduce product failures and to avoid spending money on products that will not be successful.

Attraction

The promotional value of packaging. In pulse items are often purchased because of an attractive package that clearly shows the use of the product.