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Chapter 10: Product Concepts (Product Items, Lines, and Mixes (Product…
Chapter 10: Product Concepts
Product:
Everything, both favorable and unfavorable, that a person receive in an exchange.
Tangible Good:
To most people, product means
Tangible good*. However, Service and Idea are also products.
The product offering, the heart of an organization's MK program, is usually the STARTING POINT in creating a MK mix
Business Products:
(1) major equipment (2) accessory equipment (3) component parts (4) processed materials (5) raw materials (6) supplies (7) services
Consumer Products
Convenience products
Shopping products
Specialty products
Unsought products
Type of Consumer Product
Business Products
Major equipment, accessory equipment, component parts, processed materials, raw materials, supplies, and service
Consumer Product
Convenience Products
Shopping Products
Specialty Products
Unsought Products
Product Items, Lines, and Mixes
Product items:
Specific versions of a product that can be designated as a distinct offering among an organization's products
Product Lines:
Group of closely related product items (Exhibit 10.1 Coca-Cola)
Product line depth
: The number of product items in a product lines
Product mixes
: all product that an organization sells (rarely company sells a single product, it sells a variety of product items that may be categorized into
product line
and
product mixes
Product mix width
: number of product lines an organization offers
Depth of product line - Width of product mix
Product Modification
Product Modification
is changing one or more characteristics of a product
Includes
Quality modification
: change in product's dependability or durability
Functional Modification
change in product's versatilely (linh hoạt), effectiveness, convenience, or safety
Style Modification
: an aesthetic (tham my) product change
What is
Planned obsolescence
(lỗi thời): the practice of modifying products so those that have already been sold become obsolete before they actually need replacement
Product Line Extension and Contraction
Product line extension
: is adding additional product to an existing product line in order to compete more boardly
Product can be overextended when
Some products do not contribute to profits
Manufacturing or marketing resources are disproportionately allocated to slow-moving products
Some items in the line are obsolete
When overextended happen, contraction is needed
Resources can be concentrated on the most important products
Managers will not waste resources on poorly performing product
New products items have a better chance of being successful because more financial and human resources are available
Brand
A name, term, symbol, design, or combination there of that identifies a seller's products, and differentiates them from competitors' product
Branding
Brand name
: that part of a brand that can be spoken including letters, words, and numbers
Brand Mark
the elements of a brand that cannot be spoken
Brand Equity
The value of company and brand names
Global Brand
A brand where at least
1/3
of the products sold outside its home country
Repositioning: 2nd strategy of product concept.
