{"id":7348,"date":"2016-10-19T21:44:23","date_gmt":"2016-10-19T21:44:23","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&p=7348"},"modified":"2017-04-20T19:33:20","modified_gmt":"2017-04-20T19:33:20","slug":"product-marketing","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/chapter\/product-marketing\/","title":{"raw":"Product Marketing","rendered":"Product Marketing"},"content":{"raw":"\"Front<\/a>\r\n

Defining Product<\/h2>\r\nA product is a bundle of attributes (features, functions, benefits, and uses) that a person receives in an\u00a0exchange.\u00a0In essence, the term \"product\" refers to anything offered by a firm to provide customer satisfaction, tangible or intangible. Thus, a product may be an idea (recycling), a physical good\u00a0(a pair of sneakers), a service (banking), or any combination of the three.[footnote]https:\/\/www.ama.org\/resources\/Pages\/Dictionary.aspx?dLetter=P#product<\/a>[\/footnote]\r\n\r\nBroadly speaking, products fall into one of two categories: consumer products and business products (also called industrial products\u00a0and B2B products). Consumer products are purchased by the final consumer. Business products are purchased by other industries or firms and can be classified as\u00a0production goods<\/em>\u2014i.e.,\u00a0raw materials or\u00a0component parts used in the production of the final product\u2014or\u00a0support\u00a0goods<\/em>\u2014such as machinery, fixed equipment, software systems, and tools that assist in the production process.[footnote]http:\/\/www.businessdictionary.com\/definition\/industrial-goods.html[\/footnote] Some products, like computers, for instance, may be both consumer products and business products, depending on who purchases and uses them.\r\n\r\nThe product fills an important role in the marketing mix because it is the core of the exchange. Does the product provide the features, functions, benefits, and uses that the target customer expects and desires? Throughout our discussion of product we will focus on the target customer. Often companies become excited about their capabilities, technologies, and ideas and forget the perspective of the customer. This leads to investments in product enhancements or new products that don't provide value to the customer\u2014and, as a result, are unsuccessful.\r\n

Consumer Product Categories<\/h2>\r\nConsumer products are often classified into\u00a0four groups related to different kinds of\u00a0buying decisions: convenience, shopping, specialty, and unsought products. These are described below.\r\n

Convenience Products<\/h3>\r\n\"Photo<\/a>\r\n\r\nA convenience product\u00a0is an inexpensive product\u00a0that requires a minimum amount of effort on the part of the consumer in order to select and purchase it. Examples of convenience products are\u00a0bread, soft drinks, pain reliever, and coffee. They also include headphones, power cords, and other items that are easily misplaced.\r\n\r\nFrom the consumer's perspective, little time, planning, or effort go into buying convenience products. Often product purchases are made on impulse, so availability is important. Consumers have come to expect a wide variety\u00a0of products to be conveniently located at their local supermarkets. They\u00a0also expect easy online purchase options and low-cost, quick shipping for those purchases.\u00a0Convenience items are also found in\u00a0vending machines and kiosks.\r\n\r\nFor convenience products, the primary marketing strategy is extensive distribution. The product must be available in\u00a0every conceivable outlet and must be easily accessible in these outlets. These products are usually of low unit value, and they are highly standardized. Marketers must establish a high level of brand awareness and recognition. This is accomplished through extensive mass advertising, sales promotion devices such as coupons and point-of-purchase displays, and effective packaging. Yet, the key is to convince resellers\u00a0(wholesalers and retailers) to carry the product. If the product is not available when, where, and in a form the consumer desires, the convenience product will fail.\r\n

Shopping Products<\/h3>\r\nIn contrast, consumers want to be able to compare products categorized as shopping products. Shopping products are usually more expensive and are purchased occasionally. The\u00a0consumer is more likely to compare\u00a0a number of options to assess quality, cost, and features.\r\n\r\nAlthough many shopping goods are nationally advertised, in the marketing strategy it is often the ability of the retailer to differentiate itself that generates\u00a0the sale. If you decide to buy a TV\u00a0at BestBuy, then you are more likely to evaluate the range of options and prices that BestBuy has to offer. It becomes important for BestBuy to provide a knowledgeable and effective sales person and have the right pricing discounts to offer you a competitive deal. BestBuy might also offer you an extended warranty package or in-store service options. While shopping in BestBuy, consumers can easily check prices and options for online retailers, which places even greater pressure on BestBuy to provide the best total value\u00a0to the shopper. If the retailer can't make the sale, \u00a0product turnover is slower, and the retailer will have a great deal of their capital tied up in inventory.\r\n\r\nThere is a distinction between\u00a0heterogeneous and homogeneous shopping products.\u00a0Heterogeneous shopping products are unique. Think about shopping for clothing or furniture. There are many stylistic differences, and the shopper is trying to find the best stylistic match at the right price. The purchase decision\u00a0with heterogeneous shopping products is more likely to be based on\u00a0finding the right fit than\u00a0on price alone.\r\n\r\nIn contrast, homogeneous shopping products are very\u00a0similar. Take, for example, refrigerators.\u00a0Each model has\u00a0certain features that are available at different price points, but the basic functions of all of the models are very similar. A typical shopper will look for the lowest price available for the features that they desire.\r\n

Speciality Products<\/h3>\r\nSpecialty goods represent the third product classification. From the consumer's perspective, these products are so unique that it's worth it to go to great lengths to find and purchase them. Almost without exception, price is not the principle factor affecting the sales of specialty goods. Although these products may be custom-made or one-of-a-kind, it is also possible that the marketer has been very successful in differentiating the product in the mind of the consumer.\r\n\r\n[caption id=\"attachment_4148\" align=\"alignright\" width=\"337\"]\"Two<\/a> Blizzcon attendees, 2014[\/caption]\r\n\r\nFor example, some consumers feel a strong attachment to their hair stylist or barber. They are more likely to wait for an appointment than schedule time with a different stylist.\r\n\r\nAnother example is the annual Blizzcon event produced by Blizzard Entertainment. The $200 tickets sell out minutes after they are released, and they are\u00a0resold at a premium. At the event, attendees get the chance\u00a0to learn about new video games and play games that have not yet been released. They can also purchase limited-edition promotional items. From a marketer's perspective, in\u00a0Blizzcon the company has succeeded in creating a specialty product that has incredibly high\u00a0demand. Moreover, Blizzard's customers are paying for the opportunity to be part of a massive marketing event.\r\n\r\nIt is generally desirable for a marketer to lift her product from the shopping to the specialty class\u2014and keep it there. With the exception of price-cutting, the entire range of marketing activities is\u00a0needed\u00a0to accomplish this.\r\n

Unsought Products<\/h3>\r\nUnsought products are those the consumer never plans or hopes to buy. These are either products that the customer is unaware of or products the consumer hopes not to need. For example, most consumers hope never to purchase pest control services and try\u00a0to avoid purchasing funeral plots. Unsought products have a tendency to draw\u00a0aggressive\u00a0sales techniques, as it is difficult to get the attention of a buyer who is not seeking the product.\r\n

Elements of Brand<\/h2>\r\n

What Is a Brand?<\/h3>\r\n

As we start our exploration of brand and its role in marketing, take a few minutes to watch the following video about Coca-Cola, which is\u00a0perha<\/span>ps one of the most iconic brands of all time. As you watch this video, look and listen for the all the different elements that contribute to the thing we call a \"brand.\"<\/p>\r\nhttps:\/\/youtu.be\/C_7tMOusVYo\r\n\r\nClick here<\/a> to read a transcript of the video.\r\n

\r\n\r\nBrands are interesting, powerful concoctions of the marketplace that create tremendous value for organizations and for individuals. Because brands serve several functions, we can define the term \"brand\" in the following\u00a0ways:\r\n
    \r\n \t
  1. A brand is an identifier:<\/strong>\u00a0a name, sign, symbol, design, term, or some combination of these things that identifies an offering\u00a0and helps simplify choice for the consumer.<\/li>\r\n \t
  2. A brand is a promise:<\/strong> the promise of what a company or offering\u00a0will provide to the people who interact with it.<\/li>\r\n \t
  3. A brand is an asset:<\/strong> a reputation in the marketplace that can drive price premiums and customer preference for goods from a particular provider.<\/li>\r\n \t
  4. A brand is a set of\u00a0perceptions:<\/strong> the sum total of everything\u00a0individuals believe, think, see, know, feel, hear, and\u00a0experience about a product, service, or organization.<\/li>\r\n \t
  5. A brand is \"mind share\":<\/strong>\u00a0the unique position a company or offering holds in the customer's mind, based on their past experiences and what they expect in the future.<\/li>\r\n<\/ol>\r\nA brand consists of all the features that distinguish the goods and services of one seller from another:\u00a0name, term, design, style, symbols, customer touch points, etc. Together, all elements of the brand work as a psychological trigger or stimulus that causes an association to all other thoughts one has\u00a0had about this brand.\r\n\r\nBrands are a combination of tangible and intangible elements, such as the following:\r\n