Study Guide.docx

79 views29 pages
Published on 10 Dec 2014
School
Department
Course
COMM 296 Study Guide
Chapter 10: Product, Branding, and Packaging Decisions
A product is anything that is of value to a consumer and can be offered through
a voluntary marketing exchange
Complexity of Products and Types of Products
Complexity of Products
Core Customer Value defines the basic problem-solving benefits that
consumers are seeking (eg. CCV gets converted into the actual product)
Associated Services/Augmented product: include the nonphysical aspects of
the product (eg. Warranties, financing options, product support, after sale
service)
Type of Products
Two primary categories of products and services: consumers and businesses
Consumer Products are products and services used by people for personal use
Specialty Products/Services are products or services toward which
customers show a strong preference that they will expend considerable
effort to search for the best suppliers (eg. Luxury cars, legal professionals,
designer apparel)
Shopping Products/Services are products or services for which
consumers will spend a fair amount of time comparing alternatives (eg.
Furniture, appliances)
Convenience Products/Services are those products or services for
which the consumer is not willing to spend any effort to evaluate prior to
purchase (eg. soap, beverages, commodities)
Unsought Products/Services are products consumers either do not
normally think of buying or do not know about (eg. new products,
inventions)
Product Mix and Product Line Decisions
A product mix is the complete set of all products offered by a firm
The product mix usually consists of various product lines
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 29 pages and 3 million more documents.

Already have an account? Log in
Product Lines are groups of associated items that consumers tend to use
together or think of as part of a group of similar products (eg. Kellogg’s ready-to-
eat cereal)
Product mix breadth represents a count of the number of product lines offered
by the firm
Product line depth equals the number of products within a product line
Change Product Mix Breadth
Increase breadth
Firms add new product lines to capture new or evolving markets to
increase sales (eg. Palm going from PDAs to mobile phones in response
to BlackBerry)
Decrease breadth
Delete product lines to address changing market conditions or meet
internal strategic priorities (eg. obsolete technology, old game consoles)
Change a Product Line’s Depth
Increase depth
Firms might add items to address changing consumers preferences or
pre-empt competitors while boosting sales (eg. bandaid from one size to
over forty sizes today)
Decrease depth
Delete products within a line to realign firm’s resources (eg. eliminating
unprofitable products, Zune)
Product Line Decisions for Services
Product line strategies can be applied to services (eg. service provider like a
bank typically offers different product lines for its business and consumer
accounts
Branding
A company will fail if it has no brand awareness and it offers a way for firms to
differentiate its product offerings from those of its competitors
Value of Branding for the Customers and the Marketer
Brands add value to products or services
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 29 pages and 3 million more documents.

Already have an account? Log in
Brands facilitate Purchases
Brands recognized by consumers and signify quality or attributes to help
consumers make quick decisions
Enable customers to differentiate one firm or product from another (eg.
coke and pepsi, without tasting them)
Brands establish loyalty
Continued use of brands creates brand loyalty with consumers
(eg. Consumers loyal to coke purchase 7-up as opposed to pepsi’s sierra
mist
Brands protect from competition and price competition
People are willing to pay more for brands they are loyal with
Brands can reduce marketing Costs
Firms with well-known brands can spend less on marketing (eg. consumer
walking down street can spot Starbucks logo without large ads)
Brands are assets
Can be legally protected through trademarks and copyrights
Brands impact market value
Value of brand (Eg. goodwill)
Brand Equity
Brand Equity is the value of a brand and is the set of assets and liabilities linked
to a brand that add or subtract from the value provided by the product or service
Licensed brands are brands in which there is a contractual arrangement
between firms, whereby one firm allows another to use it brand name,
logo, etc. for a fee (eg. fragrances and clothing brands)
Brand Awareness measures how many consumers in a market are familiar with
the brand and what it stands for and what opinion they have about it
Perceived Value is the relationship between a product or service’s benefits and
its cost
(eg. Green Products may be slightly more expensive, but they are less
harmful to the environment and some consumers perceive a higher value)
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 29 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Grade+

Unlimited access to all notes and study guides.

Grade+All Inclusive
$10 USD/m
This Study Guide
$25 USD
You will be charged $120 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.