Week 7

Product Classification

• A product can be classified as a convenience product, shopping product, specialty product, or unsought product based on how consumers buy them.
• Convenience products: inexpensive, frequently purchased, widely available, and have self-service packaging (e.g., groceries).
• Shopping products: purchased infrequently, with consumers comparing alternatives based on a few criteria (e.g., cameras, clothes, furniture).
• Specialty products: consumers make a special effort to obtain them due to unique characteristics (e.g., Mac laptop, Tesla, original artworks, iPhone 15).
• Unsought products: consumers are unaware of the need for the product until a sudden problem arises (e.g., mechanic, health insurance).

Product Line and Mix

• A product line is a group of closely related products that function similarly, are sold to the same customer groups, and are marketed through the same outlets or fall within a given price range.
• Product mix refers to all product lines and items a company offers for sale, with width referring to the number of product lines and consistency referring to how closely related the lines are.
• A company can expand its product line by filling or stretching it.

Branding

• A brand is a collection of symbols (name, logo, slogan, and design) intended to create an image in a customer's mind, differentiating a product from competitors.
• Brand image is the set of beliefs a customer has about a particular brand, while a brand name is a part of a brand that can be spoken (ideally distinctive, recognizable, relevant, suggestive, extendable, and protectable).
• A brand mark is the part of a brand not made up of words, often consisting of symbols or designs.
• Trademark refers to a brand name or brand mark that has been legally registered for exclusive use.

Benefits of Brands

• Benefits to organizations: company value, consumer preference and loyalty, barrier to competition, high profits, and a base for brand extensions.
• Benefits to customers: communicates features and benefits, reduces risk in purchasing, simplifies purchase decisions, and provides symbolic value, assurance of quality and reliability.

Branding Decisions

• Individual branding: each product is branded separately.
• Family branding: the same brand is used for several products.
• Brand sponsorships, manufacturer brands, co-brands, and licensed brands are other branding approaches.

Product Life Cycle (PLC)

• The PLC consists of five distinct stages: product development, introduction, growth, maturity, and decline.
• Each stage has its own characteristics regarding sales, profits, and investment costs.

Marketing Mix Strategies

• Extending the PLC: market modifications (increased consumption, new customers), product modifications (feature, quality, style), and mix modifications.

Total Product Concept

• A product consists of three core levels: the core product (core customer value), actual product (packaging, features, design, quality), and augmented product (warranty, delivery, credit, and symbolic benefits).

Product Definition

• A product is anything that can be offered to a market to satisfy a need or want, providing value and meeting customer needs and wants (hedonic or utilitarian, or hybrids).
• Products can be goods (physical, tangible), services (intangible), industrial products (materials, capital items, services), experiences (sporting events, festivals), ideas (concepts, issues, or philosophies), or people (politicians, entertainers), places (tourism), or organizations (not-for-profit).