MET 470 Lecture Notes - Lecture 1: Volvo Cars, Car Model, Income Statement
22 May 2018
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Marketers face three product-related strategy decisions
1. Product Introductions and Modifications
2. Positioning
3. Branding
Positioning
locating a brand in consumers minds over and against competitors in terms of attributes and benefits
that the brand offers
Brand
is a name, term, sign, symbol or design or a combination of these that identifies maker or seller of a
product or service
*Personality
Product
a product consists of the complete BUNDLE OF BENEFITS or satisfaction provided to target markets by
any organization
A product is a...
Good or Service
Six elements of a Product:
1. Tangible product/service
2. Intangibles
3. Brand names
4. Packaging
5. Warranties/Guarantees
6. Related Services
Brand names
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Ex. BMW
Intangibles
Ex. DVD Experience, Education, Lawyer, Perfume
Product Portfolio or...
Product Mix
Product mix/Product portfolio
the TOTALITY of an organizations offerings
Product Line
A family of closely related products
Ex. Volvo- Cars, Construction Equiptment
Product items
a specific product or service that has a particular name, size, or price
Ex. Car model
Width
the number of product lines
Wide vs. Narrow
Wide- many product lines
Ex. Walmart-Clothes, Groceries & Gardening
Narrow- only one or two product lines
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Ex. Chico's- only women's clothing
Depth
the number of items in each line
Deep vs. Shallow
Deep- lots of product items
Ex. Room's to Go Furniture
Shallow- few product items
Ex. Walmart furniture
Bundling
involves the marketing of TWO OR MORE product or service items in a SINGLE "package" that creates a
new product
Ex. Expedia & Value Meals
* consumers VALUE the package more than the individual items sold separately- money & time
Four Product mix modification strategy decisions
1. Adding to the product mix
2. Modifying the product
3. Harvesting the product
4. Eliminating the project
When adding a new product you can take two options:
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Document Summary
Marketers face three product-related strategy decisions: product introductions and modifications, positioning, branding. Positioning locating a brand in consumers minds over and against competitors in terms of attributes and benefits that the brand offers. Brand is a name, term, sign, symbol or design or a combination of these that identifies maker or seller of a product or service. Product a product consists of the complete bundle of benefits or satisfaction provided to target markets by any organization. Six elements of a product: tangible product/service, intangibles, brand names, packaging, warranties/guarantees, related services. Product mix/product portfolio the totality of an organizations offerings. Product items a specific product or service that has a particular name, size, or price. Depth the number of items in each line. Bundling involves the marketing of two or more product or service items in a single package that creates a new product. * consumers value the package more than the individual items sold separately- money & time.
