COMMERCE 2MA3 Final: Marketing Chapter 9
27 Apr 2018
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Chapter 9: Product, Branding, and Packaging Decisions
Complexity of Products
Marketers start with Core Customer Value
Core Customer Value: The basic problem-solving benefits that consumers are
seeking.
Convert core customer value product
o brand name, features/design, quality level, and packaging are considered,
though the importance of these attributes varies depending on the product
Associated/Augmented Services: The nonphysical attributes of the product,
including product warranties, financing, product support, and after-sale service.
Types of Products
Consumer Products: Products and services used by people for their personal use.
• Specialty
○ Interested in one brand; willing to do research
○ Customers are convinced of which brand they want to buy
○ Ex. Canada Goose
• Shopping
○ Customers evaluate many options and weigh options before deciding
○ May be willing to go to another store
○ Ex. Shoes
• Convenience
○ Looking for highest convenience
○ Not looking to compare, put in effort evaluating alternatives
○ Want to buy as easily as possible; purchased with little thought
○ Bread
• Unsought
○ Ex. Funeral services
○ Consumer don’t know about or try to avoid, or don’t actively think about
○ Ex. Insurance, pharmaceuticals Ex. Buckley's
Product Mix + Product Lines decisions
Product Mix: The complete set of all products offered by a firm.
o BREADTH: The number of product lines, or variety, offered by the firm.
Product Lines: Groups of associated items, such as those that consumers use
together or think of as part of a group of similar products.
o DEPTH: The number of products within a product line.
Stock Keeping Units: Individual items within each product category; the smallest
unit available for inventory control.
o Colgate-Palmolive offers 49 Colgate SKUs that represent various sizes,
flavours, and configurations of Colgate Herbal White, Colgate Total, and
Colgate Fresh Confidence.
find more resources at oneclass.com
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Document Summary
Core customer value: the basic problem-solving benefits that consumers are seeking. Convert core customer value product: brand name, features/design, quality level, and packaging are considered, though the importance of these attributes varies depending on the product. Associated/augmented services: the nonphysical attributes of the product, including product warranties, financing, product support, and after-sale service. Consumer products: products and services used by people for their personal use: specialty. Interested in one brand; willing to do research. Customers are convinced of which brand they want to buy. Customers evaluate many options and weigh options before deciding. May be willing to go to another store. Not looking to compare, put in effort evaluating alternatives. Want to buy as easily as possible; purchased with little thought. Consumer don"t know about or try to avoid, or don"t actively think about. Product mix: the complete set of all products offered by a firm: breadth: the number of product lines, or variety, offered by the firm.
