Chapter 2The Product is Sports andEntertainment
The Product Mix1. How are the elements of the product mix used to create an effective marketing campaign?2. Compare and contrast the different elements of the product mix and the role they play in producing a good product.3. How are product enhancements used to satisfy additional customer needs?
The Product• Every product contains both tangible and intangible parts. – Tangible – physical features that can be seen and felt. – Intangible – nonphysical service features.
Product• Product Mix – A new product’s final form including • Brand name • Various products offered under the brand • Packaging
Product Extension – Items added to a product to make it more attractive to the target market. • Examples: – Guarantees – Warranties/Extended Warranties – Instructional Information/CD’s – Easy Instructions – 1-800 Numbers – Testimonials
Product EnhancementsFeatures added to the basic product that satisfy additional needs and wants with the same purchase. Examples: (Car) Dual comfort controls Higher quality interior fabrics Air Conditioning Cruise control Power convertible roof Stereo system
Product Mix• Product Line – A group of similar products with slight variations to satisfy the different needs of consumers. • Goal: Achieve the greatest amount of sales possible by satisfying the needs of a diverse target market. • Example: Soft Drinks
Product Mix Con’t• Packaging – Packaging is important and must be convenient for consumers to handle.• Brand Development – The name, symbol, word, design, or combination of these elements that identifies a product, service, or company. – Represents the company’s reputation of quality, reliability, and status in the marketplace.
BrandTrademark The legal protection of words and symbols used by a company. Makes it illegal for other companies to use a brand name.Licensed Brand A well-know name and/or symbol established by one company and sold for use by another company to promote its products. Example: Walt Disney Company College and professional teams license names and mascots.
Brand RecognitionNon-recognition Consumers are unable to identify brands.Rejection When a customer will not purchase a product due to the brand.Recognition Consumers know the brand but the brand has little influence on their purchases.
Brand RecognitionPreference Consumers view brands as valuableInsistence Occurs when consumers value a brand to the extent that they reject other brands when the preferred brand is not readily available.
Chapter ReviewWhich of the following is not a stage of brand recognitions? A. Preference B. Introduction C. Recognition D. Rejection
Chapter ReviewProduct extensions include A. Warranties B. Testimonials from satisfied customers C. Instructional CDs D. All of the above
Product Marketing Strategies1. Compare and contrast the elements of a product life cycle and identify the importance knowing where your product falls on this timeline.2. Compare and contrast the different types of pricing strategies and what step in the product life cycle they are used within.3. Compare and contrast different types of strategies that are used within the decline stage and identify when they would be appropriate.
Product Life CycleIntroduction The product somewhat of a novelty in the marketplace and only one brand of the new product is available. Skimming Price Strategy Introduces new products at a very high price. Penetration Price Strategy Uses low pricing to help capture a large market share early.
Product Life CycleGrowth Sales of a product and profits increase. Target market knows about and regularly purchases the product.Maturity Sales level off or slow down. Most of the target market has already purchased the product.Decline Sales decrease and may not generate enough revenue to justify continued marketing of this product.
Other Marketing IdeasDrop a Product To cut losses, marketers may choose to drop a product entirely.Sell/License Choose to minimize losses during the decline stage by selling or licensing the product to another company.Discount The reduction of prices during the decline stage to sell merchandise faster.
More Marketing IdeasRegionalize Only sell a product in the region where it is the most popular and profitable.Modernize/Alter Alter or modernize a product to re-ignite interest within a product.Recommit The product’s “duty” is recommitted after different purposes are found for the product.
PositioningUse by companies to differentiate its products or services from its competitors products or services.