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8.Product, Services, and Branding Strategy, 8.2 Product Decisions, Market…

- - - - Core customer value
        
        The most basic
        
        What the buyer really buys
        
        The core, problem-solving benefits/ services consumers seek
      - Actual product.
        
        The turned core benefits
        
        Include features, design, quality level, brand name, packaging.
      - Augmented product,
        
        additional consumer services and benefits created around the
        core benefit and actual product
    - - Consumer products
        Divided based on how consumer go ab buying them/229
        
        Convenience Products
        
        buy frequently
        immediately
        
        minimum of comparison
        and buying effort.
        
        Shopping Products
        
        less frequently
        
        compared carefully
        
        Specialty Products
        
        unique characteristics or brand
        identification
        
        a significant group of buyers
        is willing to make a special purchase effort.
        
        no comparison.
        
        Unsought Products
        
        does not know
        about
        
        knows about but does not normally think of buying
        
        bought by final consumers
        for personal consumption.
      - Industrial products
        
        purchased for further processing or for use in conducting a business.
        
        Divided based on why the products purchased
- - - - Total Quality Management
      - Return on quality
      - 2 dimensions:
        
        Quality level: Performance quality
        
        Consistency: Conformance quality & freedom from defects.
    - - Design > style.
      - Style: apperance
      - Design: contribute to the product's usefulness & looks.
- - - - High brand awareness & loyalty
      - More leverage in bargaining
      - Launch line & brand extensions more easily
      - Defenses against price competition
      - Forms the basis for building customer
        relationships
    - - Differentation
      - Relevant.
      - Knowledge.
      - Esteem
  - - - Existing brand name & existing product category.
      - Low cost & low risk.
      - Can cause consumer confusion / lose specific meaning
    - - Old brand name & new/modified product in new category.
      - Pros:
        
        Instant recognition & faster acceptance
        
        Save the costs
        Cons:
        
        Confuse main brand's image.
        
        Harm consumer attitudes toward other products.
    - - Pros:
        
        establish
        different features
        
        appeal to
        different buying motives.
        
        lock up more reseller shelf space. => larger market share
      - Many different (+ new) names & old product category.
        
        Multiple brands in multiple segments.
      - Limitations:
        
        obtain only small /& not very profitable market shares
        
        spreading resources over many brands
        => reduce the number of brands in a given category & set up tighter screening procedures for new brands.
    - - New name & new product category.
      - when existing brand names are
        inappropriate/ waning power
  - - - Lowest & least desirable level
      - Can be easily copied
    - - Strongest
- - - - Internal service quality
- - - - add more items within the present range of line
    - - lengthen product lines beyond current range (go up/down markets)