Products

goods, services, or knowledge sold to satisfy customer needs. Tangible, intangible, combination of both.

Convenience (Consumer product)

a product that is bought without much thought, lower price, readily available

Specialty (consumer product)

higher price, buy less frequently, brand is important, luxury

Shopping (Consumer Product)

pricier than convenience, not available everywhere, ex. appliances

unsought (Consumer Product)

something a consumer does not know about or does not know they want/need

Material and Parts (B2B)

raw materials , parts to assemble final product

Capital Items (B2B)

items used to conduct business

Supplies and Services

the supplies and services used to conduct business

Product attributes, branding, packaging, labeling, support services

Individual Product Decision (Steps)

Product Mix

all of the brands a company sells

Product line

same products different variations, similar price ranges

Brand Equity

the differential effect that knowing the brand name has on a customer response to the product or its marketing

1)Positioning 2) Brand name selection 3) Brand Sponsorship 4) Brand Development

4 Steps of Brand Equity Brand

Brand Positioning

Brands can be clearly positioned in customers' minds Product Features, Product Benefits, Beliefs and Values

Brand Name Selection

A brand name should suggest benefits and qualities, Easy to pronounce, recognize, and remember Be distinctive and extendable, Easily able to translate to foreign languages Capable of registration and legal protection Selection and Protection

Brand Sponsorship

Co-Branding- 2 established brand names of different companies on the same product Licensing- Disney Shirts Store Brands vs. Name Brands- Generic vs. Brand name

Brand Development

Communication/Promotion Brand Touch Points- Anything that a customer touches that is directly the connected to the brand Customer Experience Employees Live Brand Audit of Brands' Strengths & Weaknesses Growth of products or services

New Product Categories Two biggest percentages Smallest

Product line additions (26%) Product Improvements (26%)Repositioning (7%)

Start with Strategic plan 1) Opportunity ID and Selection 2) Concept Generation 3) Concept/Project Evaluation 4) Development (Technical and Marketing) 5) Launch/Commercialization

The New Product Development Process: (Like a funnel)

Product life cycle

the course of the product's sales and profits over its lifetime

1) Product Development 2) Introduction 3) Growth 4) Maturity 5) Decline

Product Life Cycle (Steps)

Product Development

Sales are zero at this point

Introduction

product introduced to the market, slow sales growth

Growth

period of rapid market acceptance and increasing profits

Maturity

period of slow-down in sales because product has achieved acceptance by most potential buyers. Profits level off or decline.

Decline

Period when sales fall off and profits drop

Cost-Based Pricing

Set prices based on sellers' costs to produce, distribute, and sell a product + a fair rate of return

Competition-Based Pricing

Setting prices based on competitors' strategies, prices, costs, offeringsGive customers superior value for the price

Customer Value-Based Pricing

Setting a price based on buyers' perception of value vs. seller's cost

Fixed Costs

Do not vary with production or sales level

Variable Costs

Vary directly with the level of production

1) Discount- direct reduction in price 2) Allowances (trade-in)3) Promotional Pricing- temporarily price products below list price to create buying excitement, special event pricing 4) Dynamic Pricing- price continually changing to meet customer needs

Price Adjustment Strategies1)

Market Skimming

setting high price to skim maximum revenues from buyers will to pay high price, fewer but more profitable shares

Market-Penetration

setting a low price to attract a large number of buyers and large market share

Deceptive Pricing

misleading the consumer, they don't really get everything that they thought they would

Price fixing

when companies all agree to charge the same price

Predatory pricing

when one company takes their price so low that the other company cannot compete and goes out of business

Upstream

Suppliers

Downstream

Marketing channel partners, Distribution Channels

Direct Marketing Channels

no intermediaries (producer right to the consumer)

Indirect Marketing

there are intermediaries (Producer to business distributor to consumer)

Inbound Logistics

moving goods from the supplier to the manufacturer

Outbound logistics

moving goods from the manufacturer to the reseller to the customer

Reverse Logistics

when someone makes a return

Supply Chain Management

managing upstream and downstream flows of materials, final goods, and related information

1) Warehousing 2)Inventory Management 3) Transportation 4) Logistics Information Management

4 major logistic functions

Retailing

activities involved in selling goods or services directly to final consumers for their own personal, non-business use

Show Rooming

people go in and see the product and maybe try it but then they go online and buy it somewhere

Wholesaling

selling goods and services to those buying for resale

Merchant Wholesaler

by goods from suppliers, takes the title and resells to customers ○ Compensated by margin between price they pay and price they receive

Broker and Agents

do not take title to goods, they represent organizations in sale or purchase of goods/services ○ They specialize in buying and selling ○ Perform much fewer functions