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Midterm

ECON 344 - Post Midterm.docx

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Department
Economics
Course
ECON 344
Professor
Kal Kotecha
Semester
Winter

Description
ProductBrandingandPackagingDecisions05072014SomebrandextensionsfailsbcthereisntastrongfitwiththecorebrandComplexityofProductsandTypesofProductsComplexityofProductsMustthinkofproductsinaninterrelatedfashionAtthecenteristhecorecustomervalueDefinesthebasicproblemsolvingbenefitsthatconsumersareseekingMustdeterminewhatthecustomersarelookingforMarketersconvertcorecustomervalueintoanactualproductBrandnamefeaturesdesignqualitylevelandpackagingconsideredthoughimportanceoftheseattributesvariesdependingonproductAssociatesservicesakaaugmentedproductincludesnonphysicalaspectsofproductProductwarrantiesfinancingproductsupportandaftersaleserviceTheamountofassociatedservicesvariesdependingontheproductWhendevelopingchangingaproductstartwithcorecustomervaluetodeterminewhatpotentialcustomersareseekingThenmakeactualphysicalproductandaddassociatedservicestoroundouttheofferingTypesofProducts2primarycategoriesofproductsandservicesbasedonwhoisbuyingthemconsumersorbusinessesConsumerproductsproductsandservicesusedbypeoplefortheirpersonaluseFurtherclassifiedbywaytheyareusedandpurchasedSpecialtyProductsServicesProductstowardwhichcustomersshowstrongpreferencethattheywillexpendconsiderableefforttosearchforthebestsuppliersLuxurycarslegalmedicalprofessionalsdesignerapparelShoppingProductsServicesProductsforwhichconsumerwillspendafairamountoftimecomparingalternativesFurnitureapparelfragrancesappliancesandtravelalternativesConvenienceProductsServicesConsumernotwillingtospendanyefforttoevaluatepriortopurchaseFrequentlypurchasescommodityitemspurchasedwithverylittlethoughCommonbeveragesbreadsoapUnsoughtProductsServicesConsumerseitherdonotnormallythinkofbuyingordonotknowaboutBcoftheirnatureproductsrequirelotsofmarketingeffortandvariousformsofpromotionNewtotheworldproductsfirstintroducedoftenrepresentunsoughtproductsProductMixProductLineDecisionsCompletesetofallproductsofferedbyafirmproductmixTypicallyconsistsofvariousproductlinesgroupsofassociateditemsWithinaproductlinewillbemultipleproductcategoriesProductcategoryisanassortmentofitemsthatcustomerseesasreasonablesubstitutesforoneanotherEachcategorywithinaproductlinemayusesameordifferentbrandswhicharethenamestermsdesignssymbolsoranyotherfeaturesthatidentifyonesellersgoodsorserviceasdistinctfromthoseofothersellersProductmixreflectsbreadthanddepthofcompanysproductlinesProductmixbreadthrepresentedofproductlinesofferedbyfirmProductlinedepthistheofproductswithinaproductlineWithineachproductcategorythereareindividualitemscalledstockkeepingunitsSKUssmallestunitavailableforinventorycontrolDecisiontoexpandcontractproductlinesandcategoriesdependsonseveralindustryconsumerandfirmlevelfactorsIndustryfactorsfirmsexpandproductlinesbreadthwhenitisrelativelyeasytoenterspecificmarketentrybarriersloworwhenthereisasubstantialmarketopportunityFirmsaddnewlinestoproductmixoftenearnsignificantsalesandprofitsAddingunlimitedsofnewproductscanhaveadverseconsequencesToomuchvarietyinproductmixtoocostlytomaintaintoomanybrandsmayweakenfirmsbrandreputationChangeProductMixBreadthFirmsmaychangeproductmixbreadthbyaddingtodeletingentireproductlinesIncreaseBreadthFirmsoftenaddnewproductlinestocaptureneworevolvingmarketsincreasesalescompeteinnewvenuesDecreaseBreadthSometimesnecessarytodeleteentireproductlinestoaddresschangingmarketconditionsormeetinternalstrategicprioritiesChangeProductLineDepthFirmsoccasionallyeitheradddeletefromtheirproductlinedepthIncreaseDepthFirmsmayaddnewproductswithinalinetoaddresschangingconsumerpreferencesorpreemptcompetitorswhileboostingsalesFirmsmaycomeoutwithnewproductsinordertogetamuchneededsalesboostinthefaceoftoughcompetitionfromotherbrandsandtoreachnewtargetmarketsbysellingthroughotherretailersMayalsoaddnewproductstoproductlinetoservenewtargetsegmentsDecreaseDepthFromtimetotimeitisnecessarytodeleteproductcategoriestorealignresourcesSubstantialinvestmentshavebeenmadetodevelopbrandandmanufacturetheproductsConsumergoodsfirmsmakepruningdecisionsregularlytoeliminateunprofitableitemsandrefocustheirmarketingeffortsonmoreprofitableitemsChangeofSKUsAdditionofmanyfirmsistheadditionordeletionofSKUsinexistingcategoriestostimulatesalesorreacttoconsumerdemandsFashionmanufacturersandretailschangeSKUseveryseasonChangesareminordiffcolourordifffabric
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