Mar-3023 Lecture Notes - Lecture 9: Mothers Against Drunk Driving, Aisle, Campbell Soup Company
Product Concepts
Overview
⚫ Today is about managing products
⚫ Products defined broadly
⚫ Product Hierarchy
⚫ PLC
⚫ Managing a Product Line
⚫ Line depth, breadth
⚫ Line Extensions
⚫ Brand Extensions
⚫ Modifications
What is a Product?
A product is a good, service, or idea (or a combination of two or more of these)
• Includes supporting services: installations, guarantees, warranties
⚫ Goods – a tangible, physical entity
➢ iPod
⚫ Services – an intangible, result of application of human and mechanical efforts to people or objects
(hybrids)
➢ Concert
⚫ Ideas – concept, philosophy, image or issue
➢ Mothers Against Drunk Driving
Product Concepts
Which fire truck would kids want to build and play with? Make sure your customers like your product
LEGO
A privately held Danish company that has produced the iconic toys since 1932. Name is derived from the
Danish words Leg godt, meaning play well
⚫ Poor performance in the core LEGO business led to recent changes to the existing products
⚫ Now have 46 retail stores – 34 in the U.S.
⚫ Six theme parks: Denmark, Germany, UK, Malaysia, San Diego and Orlando
Product Types
⚫ Consumer Products: Purchased to satisfy personal and family needs and are classified according to
how buyers generally behave when purchasing them.
• Convenience products – gas station, end of aisle, check out grocery store
• Shopping Products – things that you would go to the mall to try to find
• Specialty Products – niche oriented
• Unsought Products – don’t seek out on a regular basis
⚫ Business Products: Purchased to use for operations, to resell, or to use in manufacture of other
products.
Managing Existing Products
Product Hierarchy
• Core products are the physical or intangible service that the customer receives
• Branded products are the core products plus the characteristics that allow the consumer to
differentiate it from similar products… buy the function + the brand
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
A product is a good, service, or idea (or a combination of two or more of these) Services an intangible, result of application of human and mechanical efforts to people or objects (hybrids) Ideas concept, philosophy, image or issue. A privately held danish company that has produced the iconic toys since 1932. Now have 46 retail stores 34 in the u. s. Poor performance in the core lego business led to recent changes to the existing products. Six theme parks: denmark, germany, uk, malaysia, san diego and orlando. Business products: purchased to use for operations, to resell, or to use in manufacture of other. Cheerios coke tylenol blue moon - your perception of the good changes when you put a brand on it. Product lines: depth, breadth, extensions, up & down. A product mix is all of the products a company sells. A product line consists of the closely related products marketed by an organization.
