2. 12-2
At the heart of a great brand isAt the heart of a great brand is
a great producta great product
3. 1.1. Define the termDefine the term product.product.
2. Classify consumer products.2. Classify consumer products.
3. Define the terms3. Define the terms product item, product line,product item, product line,
andand product mixproduct mix..
4.4. Describe marketing uses of branding.Describe marketing uses of branding.
4. You will learn to ...You will learn to ...
5. Describe marketing uses of packaging5. Describe marketing uses of packaging
and labeling.and labeling.
6. Discuss global issues in branding6. Discuss global issues in branding
and packaging.and packaging.
7.7. Describe how and why product warrantiesDescribe how and why product warranties
are important marketing tools.are important marketing tools.
5. 12-5
ProductProduct
Anything that can be offered to a market to
satisfy a want or need.
Physical Goods, services, experiences,
events, persons, places, properties,
organizations, information, ideas
6. ProductProduct
1.1. Everything, bothEverything, both
favorable andfavorable and
unfavorable, that aunfavorable, that a
person receives in anperson receives in an
exchange.exchange.
2.2. Product means the needProduct means the need
satisfying offering of asatisfying offering of a
firm.firm.
3.3. Goods and/or servicesGoods and/or services
are the productare the product
8. What is a Product?What is a Product?
Promotion
ProductProduct
is
the “heart” of
Marketing
Mix
ProductProduct
is
the “heart” of
Marketing
Mix
Place (Distribution)
Price
11. Business ProductBusiness Product
Products that are sold to other businesses asProducts that are sold to other businesses as
opposed to end consumers, and used toopposed to end consumers, and used to
produce other products.produce other products.
Source:Source: Boundless LearningBoundless Learning -- CC BY-SA 3.0CC BY-SA 3.0
A product used to manufacture other goods or services,A product used to manufacture other goods or services,
to facilitate an organization’s operations, or to resell toto facilitate an organization’s operations, or to resell to
other consumers.other consumers.
12-11
12. Categories of Business ProductsCategories of Business Products
BusinessBusiness-to--to-businessbusiness (B2B) describes commerce transactions(B2B) describes commerce transactions
between businesses, such as between a manufacturer and abetween businesses, such as between a manufacturer and a
wholesaler or a wholesaler and a retailer.wholesaler or a wholesaler and a retailer.
B2B transactions involve many classificationsB2B transactions involve many classifications
ofof businessbusiness productsproducts, including the following: Raw Materials: A, including the following: Raw Materials: A
raw material is the basic material from which a product israw material is the basic material from which a product is
manufactured or made.manufactured or made.
Equipment: Equipment includesEquipment: Equipment includes productsproducts used in productionused in production
activities and operational activities.activities and operational activities.
Equipment includes large buildings that serve as placesEquipment includes large buildings that serve as places
ofof businessbusiness for other companies.for other companies.
Processed Materials: TheseProcessed Materials: These productsproducts are created from raware created from raw
materials and are used in the production of another product.materials and are used in the production of another product.
BusinessBusiness-to--to-businessbusiness (B2B) transactions involve many(B2B) transactions involve many
classifications ofclassifications of business productsbusiness products..
12-12
13. Categories of Business ProductsCategories of Business Products
BusinessBusiness productsproducts represent a very important productrepresent a very important product
category, and in the case of some manufacturers, theycategory, and in the case of some manufacturers, they
are the only product sold.are the only product sold.
ManufacturedManufactured productsproducts are those that have undergoneare those that have undergone
some processing.some processing.
Lumber and crude oil are examples of these typesLumber and crude oil are examples of these types
ofof productsproducts..
TheseThese productsproducts are normally purchased asare normally purchased as
convenienceconvenience productsproducts with a minimum of effort andwith a minimum of effort and
evaluation.evaluation.
BusinessBusiness services include maintenance, repairs, andservices include maintenance, repairs, and
advisory.advisory.
BusinessBusiness productsproducts are sold to other businesses, asare sold to other businesses, as
opposed to convenience, shopping, andopposed to convenience, shopping, and
specialtyspecialty productsproducts, which are sold to consumers., which are sold to consumers.
12-13
15. Types of Consumer ProductsTypes of Consumer Products
Specialty
Products
Convenience
Products
Shopping
Products
Unsought
Products
16.
17. Types of Consumer ProductsTypes of Consumer Products
Convenience
Product
Convenience
Product
Shopping
Product
Shopping
Product
Specialty
Product
Specialty
Product
Unsought
Product
Unsought
Product
A relatively inexpensive item that
merits little shopping effort.
A relatively inexpensive item that
merits little shopping effort.
A product that requires comparison
shopping, because it is usually more
expensive and found in fewer stores.
A product that requires comparison
shopping, because it is usually more
expensive and found in fewer stores.
A particular item that consumers
search extensively for and are
reluctant to accept substitutes.
A particular item that consumers
search extensively for and are
reluctant to accept substitutes.
A product unknown to the potential
buyer or a known product that the
buyer does not actively seek.
A product unknown to the potential
buyer or a known product that the
buyer does not actively seek.
18. Convenience Product – purchasedConvenience Product – purchased
quickly with little effortquickly with little effort
StaplesStaples
Impulse
Products
Impulse
Products
Emergency
Products
Emergency
Products
Products that are bought often,
routinely, and without much thought –
like breakfast cereals, bread, butter.
Products that are bought often,
routinely, and without much thought –
like breakfast cereals, bread, butter.
Products that are bought quickly – as
unplanned purchases – because of
strongly felt need. candy, chocolate, magazines,
novelties, snacks.
Products that are bought quickly – as
unplanned purchases – because of
strongly felt need. candy, chocolate, magazines,
novelties, snacks.
Products that are purchased
immediately when the need is great.
Products that are purchased
immediately when the need is great.
The customer doesn’t have time to shop around
when a accident occurs, or an important party
starts
The customer doesn’t have time to shop around
when a accident occurs, or an important party
starts
19. Shopping Products – are products that aShopping Products – are products that a
customer feels are worth the time and effort tocustomer feels are worth the time and effort to
compare with competing productscompare with competing products
Homogeneous
Products
Homogeneous
Products
Heterogeneous
Products
Heterogeneous
Products
Products the customer sees as
basically the same – and wants at the
lowest price. E.g.. Microwaves etc.
Products the customer sees as
basically the same – and wants at the
lowest price. E.g.. Microwaves etc.
Products the customer sees as
different – and wants to inspect for
quality and suitability. Furniture,
cameras etc.
Products the customer sees as
different – and wants to inspect for
quality and suitability. Furniture,
cameras etc.
21. Product Items, Lines, and MixesProduct Items, Lines, and Mixes
Product ItemProduct Item
Product LineProduct Line
Product MixProduct Mix
A specific version of a product
that can be designated as a
distinct offering among an
organization’s products.
A specific version of a product
that can be designated as a
distinct offering among an
organization’s products.
A group of closely-related
product items.
A group of closely-related
product items.
All products that an
organization sells.
All products that an
organization sells.
22. P&G Product MixP&G Product Mix
It isIt is
estimatedestimated
that atthat at
least oneleast one
of P&G'sof P&G's
more thanmore than
100100
consumerconsumer
productsproducts
can becan be
found infound in
everyevery
householdhousehold
in World.in World.
23.
24. Gillette’s Product Lines and MixGillette’s Product Lines and Mix
Blades and Writing
razors Toiletries instruments Lighters
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
Venus
Width of the product mixWidth of the product mix
DepthoftheproductlinesDepthoftheproductlines
29. Product LineProduct Line
A group of related products manufacturedA group of related products manufactured
by a single company. For example, aby a single company. For example, a
cosmetic company's makeup product linecosmetic company's makeup product line
might include foundation, concealer,might include foundation, concealer,
powder, blush, eyeliner, eyeshadow,powder, blush, eyeliner, eyeshadow,
mascara and lipstick products that are allmascara and lipstick products that are all
closely related. The same company mightclosely related. The same company might
also offer more than one product line.also offer more than one product line.
30. Product LineProduct Line
Firms may decide to split their product mix into groups known asFirms may decide to split their product mix into groups known as
product lines. A product line is a number of products groupedproduct lines. A product line is a number of products grouped
together based on similar characteristics. The characteristic used totogether based on similar characteristics. The characteristic used to
split products, will depend on the firm and its product strategy. Theysplit products, will depend on the firm and its product strategy. They
include product price, product quality, who the product is aimed atinclude product price, product quality, who the product is aimed at
(target group), and product specification/features. For example(target group), and product specification/features. For example
Samsung's mobile phones are divided into product lines based on theSamsung's mobile phones are divided into product lines based on the
following features; touch screens, slider/folders, QWERTY keyboardsfollowing features; touch screens, slider/folders, QWERTY keyboards
and bar phones. Product lines help firms manage their products asand bar phones. Product lines help firms manage their products as
product strategy can be designed around product lines. This is usefulproduct strategy can be designed around product lines. This is useful
if the firm has a large product mix as there is less need toif the firm has a large product mix as there is less need to
concentrate on individual product type strategy.concentrate on individual product type strategy.
31. Product Line - LengthProduct Line - Length
The product line length shows the number of differentThe product line length shows the number of different
products in a product line. A long product line has lots ofproducts in a product line. A long product line has lots of
different products in it and a short product line has a smalldifferent products in it and a short product line has a small
number of different products. The product manager's job is tonumber of different products. The product manager's job is to
work out how many products to include in the product line. Ifwork out how many products to include in the product line. If
there are too many product types in a product line, they willthere are too many product types in a product line, they will
begin to compete with each other, increase costsbegin to compete with each other, increase costs
unnecessarily and even confuse customers. If the product lineunnecessarily and even confuse customers. If the product line
is too short it will limit customer choice and send customers tois too short it will limit customer choice and send customers to
competitors with a greater selection of products.competitors with a greater selection of products.
32. Benefits of Product LinesBenefits of Product Lines
Equivalent QualityEquivalent Quality
Efficient Sales and
Distribution
Efficient Sales and
Distribution
Standardized
Components
Standardized
Components
Package UniformityPackage Uniformity
Advertising EconomiesAdvertising Economies
Why FormWhy Form
Product Lines?Product Lines?
Why FormWhy Form
Product Lines?Product Lines?
33. Product Line DepthProduct Line Depth
Attracts buyers with different preferences
Increases sales/profits by further
market segmentation
Capitalizes on economies of scale
Evens out seasonal sales patterns
The number of productThe number of product
items in a product lineitems in a product line
34. Product Line - DepthProduct Line - Depth
Some of the product types in a product line may be split againSome of the product types in a product line may be split again
into groups, the product line depth shows how manyinto groups, the product line depth shows how many
subgroups the product line contains. For example Samsungsubgroups the product line contains. For example Samsung
have split their mobile phones into the following product lineshave split their mobile phones into the following product lines
touch screens, slider/folders, QWERTY keyboards and bartouch screens, slider/folders, QWERTY keyboards and bar
phones. Each of these product lines can be further split intophones. Each of these product lines can be further split into
subgroups at the time of writing this article Samsung had 7subgroups at the time of writing this article Samsung had 7
slider mobile phones and 32 touch screen mobile phones, 32slider mobile phones and 32 touch screen mobile phones, 32
is a deep product line.is a deep product line.
35. Product Line StretchingProduct Line Stretching
Product line stretching occurs when a business adds new product toProduct line stretching occurs when a business adds new product to
the product line and the new product types are of a higher or lowerthe product line and the new product types are of a higher or lower
quality than existing products in the product line. If the new productquality than existing products in the product line. If the new product
types are cheaper or of a lower quality it is known as a downwardtypes are cheaper or of a lower quality it is known as a downward
stretch. If the new product types are more expensive or of a higherstretch. If the new product types are more expensive or of a higher
quality it is known as an upward stretch. Supermarkets often stretchquality it is known as an upward stretch. Supermarkets often stretch
product lines by offering value, standard and premium versions ofproduct lines by offering value, standard and premium versions of
their own brand products. Product stretching enables firms to fill anytheir own brand products. Product stretching enables firms to fill any
GapsGaps they have identified in the market.they have identified in the market.
37. 12-37
Two-Way Product-Line Stretch:Two-Way Product-Line Stretch:
Marriott HotelsMarriott Hotels
Quality
Economy SuperiorStandard Good
PricePrice
High
Above
average
Average
Low Fairfield Inn
(Vacationers)
Courtyard
(Salespeople)
Marriott
(Middle
managers)
Marriott
Marquis
(Top
executives)
38. Product Mix WidthProduct Mix Width
Diversifies risk
Capitalizes on established reputations
The number of productThe number of product
lines an organization offerslines an organization offers
39. Product Mix - WidthProduct Mix - Width
The product mix width is the number of product lines in the productThe product mix width is the number of product lines in the product
mix. A wide product mix increases the type of customers a firm canmix. A wide product mix increases the type of customers a firm can
target. However it may involve a lot of work as each product line willtarget. However it may involve a lot of work as each product line will
require a strategy and management. It could also reducerequire a strategy and management. It could also reduce
specialisation as it is difficult to offer every variant of a product type ifspecialisation as it is difficult to offer every variant of a product type if
you are selling lots of different types of product. A narrow product mixyou are selling lots of different types of product. A narrow product mix
may be easier to manage and allow the firm to specialise in particularmay be easier to manage and allow the firm to specialise in particular
product lines and product types. However a small product mixproduct lines and product types. However a small product mix
reduces the type of customers a firm can target as they can't cater forreduces the type of customers a firm can target as they can't cater for
everyone's product "needs and wants".everyone's product "needs and wants".
40. Product Line ExtensionProduct Line Extension
Adding additional productsAdding additional products
to an existing product lineto an existing product line
in order to compete morein order to compete more
broadly in the industry.broadly in the industry.
41. Product Line ContractionProduct Line Contraction
Some products have low sales or cannibalize
sales of other items
Resources are disproportionately allocated
to slow-moving products
Items have become obsolete because of new
product entries
Symptoms ofSymptoms of
Product LineProduct Line
OverextensionOverextension
Symptoms ofSymptoms of
Product LineProduct Line
OverextensionOverextension
42. Planned ObsolescencePlanned Obsolescence
The practice of modifyingThe practice of modifying
products so those thatproducts so those that
have already been soldhave already been sold
become obsolete beforebecome obsolete before
they actually needthey actually need
replacement.replacement.
46. Product WarrantiesProduct Warranties
WarrantyWarranty
Express
Warranty
Express
Warranty
Implied
Warranty
Implied
Warranty
A confirmation of the quality or
performance of a good or service.
A confirmation of the quality or
performance of a good or service.
A written guarantee.A written guarantee.
An unwritten guarantee that the
good or service is fit for the purpose
for which it was sold. (UCC)
An unwritten guarantee that the
good or service is fit for the purpose
for which it was sold. (UCC)
48. Express WarrantyExpress Warranty
An agreement between the contract sellerAn agreement between the contract seller
(dealer, manufacturer or independent(dealer, manufacturer or independent
company) and the buyer of a product tocompany) and the buyer of a product to
provide repair or replacement for coveredprovide repair or replacement for covered
components of the product for somecomponents of the product for some
specified time period. An express warrantyspecified time period. An express warranty
is a seller's promise or guarantee that ais a seller's promise or guarantee that a
buyer relies on when they purchase anbuyer relies on when they purchase an
item.item.
49. Implied WarrantyImplied Warranty
Under a sales contract, whetherUnder a sales contract, whether
written or oral, there is a guaranteewritten or oral, there is a guarantee
that the item sold is merchantable andthat the item sold is merchantable and
fit for the purpose intended. Thisfit for the purpose intended. This
guarantee arises by operation of lawguarantee arises by operation of law
and is in addition to any expressedand is in addition to any expressed
warranties that are provided at thewarranties that are provided at the
time of sale.time of sale.
51. Customer Value – Core BenefitCustomer Value – Core Benefit
The core benefit is what consumers feel they are getting whenThe core benefit is what consumers feel they are getting when
they purchase a product. E.g A Hotel offering roomthey purchase a product. E.g A Hotel offering room
– The same product may have different coreThe same product may have different core benefitsbenefits to different users. For example,to different users. For example,
one user may install a pool for fitness purposes, while another may do so forone user may install a pool for fitness purposes, while another may do so for
status.status.
– Different target markets will have differentDifferent target markets will have different core productscore products, and it is up to the, and it is up to the
marketer to discover which markets must be targeted for their particular product.marketer to discover which markets must be targeted for their particular product.
52. Product LevelsProduct Levels
Basic Product -Basic Product - The next level – A hotel room with bed,The next level – A hotel room with bed,
towels, desktowels, desk
Expected Product –Expected Product – Clean Bed, Fresh Towels,Clean Bed, Fresh Towels,
working lampworking lamp
Augmented product –Augmented product – Exceeds customerExceeds customer
expectationsexpectations
Potential Product –Potential Product – New product that does not existNew product that does not exist
beforebefore
56. 12-56
Packaging has been influencedPackaging has been influenced
by…by…
Self-serviceSelf-service
Consumer affluenceConsumer affluence
Company/brand imageCompany/brand image
Innovation opportunityInnovation opportunity
60. BrandBrand
A name, term, symbol,A name, term, symbol,
design, or combinationdesign, or combination
thereof that identifies athereof that identifies a
seller’s products andseller’s products and
differentiates them fromdifferentiates them from
competitors’ products.competitors’ products.
62. BRANDSBRANDS
We hear about brands a lot nowadays.We hear about brands a lot nowadays.
What really is a brand? It sure is a conceptWhat really is a brand? It sure is a concept
of marketing but it must have somethingof marketing but it must have something
very important associated with it thatvery important associated with it that
makes it so popular in current times.makes it so popular in current times.
The word “BRAND” is derived from theThe word “BRAND” is derived from the
Old Norse word “brandr”, which means,Old Norse word “brandr”, which means,
“to burn”. This was used by the owners of“to burn”. This was used by the owners of
livestock to mark their animals for thelivestock to mark their animals for the
ease of identification.ease of identification.
63. American Marketing Association,American Marketing Association,
““A brand is a “name, term, symbol,A brand is a “name, term, symbol,
or design, or a combination of themor design, or a combination of them
intended to identify the goods andintended to identify the goods and
services of one seller or group ofservices of one seller or group of
sellers and to differentiate themsellers and to differentiate them
from those of competition”.from those of competition”.
64. Benefits of BrandingBenefits of Branding
ProductProduct
IdentificationIdentification
ProductProduct
IdentificationIdentification
Repeat SalesRepeat SalesRepeat SalesRepeat Sales
New ProductNew Product
SalesSales
New ProductNew Product
SalesSales
Branding distinguishesBranding distinguishes
products fromproducts from
competitioncompetition
Branding distinguishesBranding distinguishes
products fromproducts from
competitioncompetition
65. BrandingBranding
Brand
Name
Brand
Name
Brand
Mark
Brand
Mark
Brand
Equity
Brand
Equity
Master
Brand
Master
Brand
That part of a brand that can be spoken,
including letters, words, and numbers.
That part of a brand that can be spoken,
including letters, words, and numbers.
The elements of a brand that
cannot be spoken.
The value of company and brand names.The value of company and brand names.
A brand so dominant that it comes to
mind immediately when a product category,
use, attribute, or benefit is mentioned.
A brand so dominant that it comes to
mind immediately when a product category,
use, attribute, or benefit is mentioned.
66. Master Brands ?Master Brands ?
Baby Nappies
Adhesive Bandages
Soft drink
Cooking Oil
Soup
Butter
Washing Powder
Nam he khafee hay
Pampers
Sani Plast
Pepsi/Coca Cola
Dalda
Knorr
Nurpur
Surf
Waves
68. An Effective Brand NameAn Effective Brand Name
Is easy to pronounce
Is easy to recognize and remember
Is short, distinctive, and unique
Describes the product, use, and benefits
Has a positive connotation
Reinforces the product image
Is legally protectable
69. Brand LoyaltyBrand Loyalty
A consistent preference forA consistent preference for
one brand over all others.one brand over all others.
Once consumers areOnce consumers are
convinced of the quality andconvinced of the quality and
value of a particular brand,value of a particular brand,
it takes a lot of money andit takes a lot of money and
effort to change their minds.effort to change their minds.
70. Branding StrategiesBranding Strategies
Branded NameBranded Name GenericGeneric
Manufacturers’
Brand
Manufacturers’
Brand Private BrandPrivate Brand
Individual
Brand
Individual
Brand
Family
Brand
Family
Brand
Combi-
nation
Combi-
nation
Individual
Brand
Individual
Brand
Family
Brand
Family
Brand
Combi-
nation
Combi-
nation
71. Generic BrandGeneric Brand
A no-frills, no-brand-name,A no-frills, no-brand-name,
low-cost product that islow-cost product that is
simply identified by itssimply identified by its
product category.product category.
72. Manufacturers’ Brands VersusManufacturers’ Brands Versus
Private BrandsPrivate Brands
Manufacturers’Manufacturers’
BrandBrand
Manufacturers’Manufacturers’
BrandBrand
PrivatePrivate
BrandBrand
PrivatePrivate
BrandBrand
The brand name of a manufacturer.The brand name of a manufacturer.
A brand name owned by a
wholesaler or a retailer.
A brand name owned by a
wholesaler or a retailer.
73. Advantages ofAdvantages of
Manufacturers’ BrandsManufacturers’ Brands
Develop customer loyaltyDevelop customer loyalty
Attract new customersAttract new customers
Enhance prestigeEnhance prestige
Offer rapid delivery, can carry lessOffer rapid delivery, can carry less
inventoryinventory
Ensure dealer loyaltyEnsure dealer loyalty
74. Advantages ofAdvantages of
Private BrandsPrivate Brands
Earn higher profitsEarn higher profits
Less pressure to mark down pricesLess pressure to mark down prices
Manufacturer may drop a brand orManufacturer may drop a brand or
become a direct competitor to dealersbecome a direct competitor to dealers
Ties to wholesaler or retailerTies to wholesaler or retailer
No control over distribution ofNo control over distribution of
manufacturers’ brandsmanufacturers’ brands
75. Individual Brands VersusIndividual Brands Versus
Family BrandsFamily Brands
IndividualIndividual
BrandBrand
FamilyFamily
BrandBrand
Using different brand names for
different products.
Marketing several different
products under the same
brand name.
76. Line extensionLine extension
Similar products under the sameSimilar products under the same
brandbrand
E.G…..? Next, Prime, NestleE.G…..? Next, Prime, Nestle
77. Brand ExtensionBrand Extension
Diversified products under oneDiversified products under one
brandbrand
E.G…..? Polo, Ck, Guard, Chen OneE.G…..? Polo, Ck, Guard, Chen One
78. Multi BrandingMulti Branding
One organization having more thanOne organization having more than
one brandone brand
E.G…..? Mutsushita,E.G…..? Mutsushita,
ShakarganjhShakarganjh
Engro,Engro,
LacksonLackson
79. TrademarksTrademarks
Many parts of a brand and
associated symbols qualify for
trademark protection
The mark has to be continuously
protected
Rights continue for as long as it
is used
A Trademark is the exclusiveA Trademark is the exclusive
right to use a brandright to use a brand
80.
81. Packaging FunctionsPackaging Functions
Contain and ProtectContain and Protect
FunctionsFunctions
ofof
PackagingPackaging
FunctionsFunctions
ofof
PackagingPackaging
PromotePromote
Facilitate Storage, Use,
and Convenience
Facilitate Storage, Use,
and Convenience
Facilitate RecyclingFacilitate Recycling
84. Universal Product CodesUniversal Product Codes
A series of thick and thinA series of thick and thin
vertical lines (bar codes),vertical lines (bar codes),
readable by computerizedreadable by computerized
optical scanners, thatoptical scanners, that
represent numbers usedrepresent numbers used
to track products.to track products.
85. Global Issues in BrandingGlobal Issues in Branding
Adaptations &
Modifications
Adaptations &
Modifications
Global OptionsGlobal Options
for Brandingfor Branding
One Brand Name
Everywhere
One Brand Name
Everywhere
Different Brand
Names for
Different Markets
Different Brand
Names for
Different Markets
86.
87. Global Issues in PackagingGlobal Issues in Packaging
AestheticsAesthetics
GlobalGlobal
ConsiderationsConsiderations
for Packagingfor Packaging
Climate
Considerations
Climate
Considerations
LabelingLabeling