Published on 20 Mar 2019
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Chapter 10: Product Concepts
What is a Product?
● Everything, both favorable and unfavorable, that a person receives in an exchange
○ Tangible good
○ Service
○ Idea
Types of Products
● Business Product: A product used to manufacture other goods or services, to facilitate an
organization’s operations, or to resell to other customers
● Consumer Product: A product bought to satisfy an individual’s personal wants
Types of Consumer Products
● Convenience product: A relatively inexpensive item that merits little shopping effort
● Shopping product: A product that requires comparison shopping, because it is usually
more expensive and found in fewer stores
● Specialty product: A particular item for which consumers search extensively and are
reluctant to accept substitutes
● Unsought product: A product unknown to the potential buyer or a known product that the
buyer does not actively seek
Product Items, Liens, and Mixes
● Product Item: A specific version of a product that can be designated as a distinct offering
among an organization’s products.
● Product Line: A group of closely-related product items
● Product Mix: All products that an organization sells
Product Line Extension
● Adding additional products to an existing product line in order to compete more broadly
in the industry
● Symptoms of overextension
○ Some products have low sales or cannibalize sales of other items
○ Resources are disproportionately allocated to slow-moving products
○ Items have become obsolete because of new product entries
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 (e.g., Nike’s “Swoosh”)
● Brand Equity: The value of company and brand names
● Global Brand: A brand where at least a third of the earnings come from outside its home
country