Transcript product mix.

Total Product Concept
A product is a combination of tangible and
intangible benefits.
The decision to buy a Porsche is not based on
transportation needs. You buy it to display
achievement and success. You are concerned with
intangibles like status and image.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-1
Product Mix
A company may sell one product or 500
products. The range of products is referred
to as the product mix.
The product mix is described in terms of
items and lines and by width and
depth.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-2
Product Mix
Item
A unique product offering
(USP).
Line
A grouping of items with
common attributes.
Width
Number of lines in mix
Depth
Number of items in line
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-3
Product Line Width and Depth
Product Line Width
Gatorade Liquid
Product
Line
Depth
Frost
Powder
Lemon
Grape
Orange
Strawberry
Etc
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-4
Consumer Goods
“Goods purchased by consumers for
personal use.”
 Convenience Goods
 Shopping Goods
 Specialty Goods
 Unsought Goods
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-5
Convenience Goods
Impulse
Goods
Staple
Goods
Emergency
Goods
Marketing Considerations:
Brand Name
 Image
 Reputation

Performance
 Low Price
 Availability

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-6
Shopping Goods
“Goods purchased on the basis of comparison.”
Marketing considerations:
 Quality
 Suitability
 Price
 Dependability
 Style
 Service
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-7
Specialty Goods
Goods possessing a unique characteristic.
Consumers will make an effort to find.
Marketing considerations include:

Selective location

Image

Reputation

Superior quality
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-8
Business Goods
“Goods that have a direct or indirect role in
the manufacture of other goods.”
Capital
Items
Parts and
Materials
Supplies and
Services
$
$
$
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-9
What is a Brand?
“A product with a personality.”
“A known entity that provides value.”
“A promise that is conveyed publicly by
everything a customer can observe.”
“A set of product perceptions purchased by
the consumer.”
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-10
Branding Terms
Brand
Brand Name
Name, term, symbol or design.
Spoken part of brand.
Brandmark
Identifiable symbol or design.
Trademark
Part of a brand granted legal
protection. The symbol ®
designates the mark.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-11
Brand Name Strategies
National Brand
Individual Brand
Family Brand
Multibrand
Product / Company
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-12
Co-branding
“Using the equity of one brand name to
market another brand name product.”
Neilson
(milk)
=
+
Jersey Milk
Caramilk
Crispy Crunch
(chocolate bars)
Neilson Caramilk milkshakes
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-13
Private Label and Generic Brands
Private
Labels
Brands produced to distributor
specifications
Generic
Brands
Products without a brand name
or identifying feature.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-14
Other Branding Options
Licensed
Brands
Allowing someone to use your
logo: NHL, NBA.
Limited
Brands
Seizing the popularity of
something or someone: Flutie
Flakes.
Cult
Brands
Fringe brand moving to
mainstream: Miata, Krispy
Kreme.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-15
Benefits of Branding
Branding provides benefits to consumers.

Suggestion of quality

Psychological rewards

Distinguishing features allow for comparison
Name, package and marketing communications
present a desired image.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-16
Benefits of Branding
Organizations benefit from branding as well.

Create and develop an image

Communication of USP

Customer loyalty
Brands that keep their promise, keep their
customers.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-17
Brand Communications
Communications plays a key role in building
image.
Apple
“Think Different.”
Volkswagen
“Drivers Wanted.”
Nike
“Just Do It.”
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-18
Brand Loyalty
The degree of customer attachment to a brand.
Brand Recognition
Brand Preference
Brand Insistence
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-19
Brand Equity
“The value a consumer derives from a brand over and
above the value derived from the physical attributes.”
Equity is measured by factors such as:

Name awareness

Loyal customer base

Perceived quality

Association with an attribute
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-20
Components of a Package
Packaging decisions are important since a
majority of buying decisions are made at
point-of-sale.
 Primary package

Secondary package

Label

Shipping Container
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-21
Packaging
Communications start and end with the package.
A good package:
• Protects the product
• Markets the product
• Provides convenience
• Meets social concerns
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
8-22