Textbook Notes (362,882)
Canada (158,081)
Administration (1,246)
ADM2320 (142)
Chapter 9

ADM2320 Chapter 9

5 Pages
Unlock Document

University of Ottawa
Marzena Cedzynski

Chapter 9 Product, Branding, and Packaging Decisions Complexity of Products and Types of Products Complexity of Products  Core customer values: the basic problem-solving benefits that consumers are seeking. o “What are customers looking for?” o Marketers convert these values into an actual product. o Brand name o Quality level o Features/design o Packaging  Associated services (or augmented product): the nonphysical attributes of the product. o Product warranties o Product support o Financing o After-sale service Types of Products  Consumer products: products and services used by people for their personal use.  Marketers further classify these products by the way they are used and purchased: o Specialty Products/Services: customers show a strong preference that they will expend considerable effort to search for best suppliers. o Shopping Products/Services: customers will spend a fair amount of time comparing alternatives. (Furniture, apparel, fragrances) o Convenience Products/Services: consumers are not willing to spend any effort to evaluate prior to purchase. o Unsought Products/Services: consumers either do not normally think of buying, or do not know about. Product Mix and Product Line Decisions  Product mix: the complete set of all products offered by a firm. o Product lines: groups of associated items, such as those that consumers use together of think of as part of a group of similar products.  Product category: an assortment of items that the customer sees as reasonable substitutes for one another.  Brand: the name, term, design, symbol, or any other features that identify one seller’s good or service as distinct from those of other sellers.  Product mix breadth: the number of product lines, or variety, offered by the firm.  Product line depth: the number of products within a product line.  Stock keeping units: individual items within each product category; the smallest unit available for inventory control.  The decision to expand product lines and categories depends on several industry-, customer-, and firm-level factors.  Firms expand their product lines (breadth) when it is relatively easy to enter a specific market and/or when there is a substantial market opportunity.  Adding unlimited numbers of new products can have adverse consequences. o Too costly to maintain o Too many brands may weaken the firm’s brand reputation Change Product Mix Breadth  Increased Breadth: Firms often add new product lines to capture new or evolving markets, increasing sales, and compete in new ventures.  Decreased Breadth: Sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities. Change Product Line Depth  Increased Breadth: Firms may add new products within a line to address changing consumer preferences or pre-empt competitors while boosting sales. A firm may also add new products to its product line to serve new target segments.  Decreased Breadth: It may be necessary to delete product categories to realign resources. Change Number of SKUs  A very common activity for many firms is the addition or deletion of SKUs in existing categories to stimulate sales or react to consumer demand. Product Line Decisions for Services  Very similar to product line decisions for physical products. o Ex: a bank – business/consumer accounts represent product lines. Branding  Branding provides a way for a firm to differentiate its product offerings from those of its competitors  Branding can also be used to represent the name of the firm and its entire product mix, one product line, or a single item. Value of Branding for the Customer and the Marketer  Brands Facilitate Purchasing: brands are often easily recognized by consumers and can help consumers make quick decisions.  Brands Establish Loyalty: consumers learn to trust certain brands.  Brands Protect from Competition and Price Competition: strong brands are more established in the market and have a loyal customer base, neither competitive pressures on price nor retail-level competition is a threat.  Brands Reduce Marketing Costs: firms with well-known brands can spend relatively less on marketing costs than firms with little-known brands because the brand sells itself.  Brands Are Assets: brands are an asset that can be legally protected through trademarks and copyrights.  Brands Impact Market Value: having a well-known brand can have a direct impact on the company’s bottom line. Brand Equity  Brand equity: the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service .  Experts look at four aspects of a brand to determine its equity: o Brand awareness  Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements, in the firm’s communications to consumers.  Matters most for products that are bought without much thought.  Also for infrequently purchased items  Marketers create brand awareness through r
More Less

Related notes for ADM2320

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.