Everything, both favorable and unfavorable, that a person receives in an exchange. May be a tangible good or an intangible service.
Branding
The main tool marketers use to distinguish their products from the competition's
Brand
A name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
Brand name
That part of a brand that can be spoken, including letters, words, and numbers
Brand mark
The elements of a brand that cannot be spoken, e.g. the Mercedes-Benz and Delta Air Lines symbols
Benefits of Branding
Product identification
Repeat sales
New product
Product identification
Branding allows marketers to distinguish their products from all others
Brand equity
The value of company and brand names
Repeat sales
Branding helps consumers identify products they wish to buy again and avoid those they do not
Brand loyalty
A consistent preference for one brand over all others
New product sales
Branding facilitates the sales of new products
Branding strategies
Manufacturers' brands
Private (distributor) brands
Manufacturers' brands
The brand name of a manufacturer, e.g. Kodak
Private brand
A brand name owned by a wholesaler or a retailer, e.g. Tesco brand
Trademark
The exclusive right to use a brand or part of a brand
Examples of trademarks
Shapes
Ornamental color or design
Catchy phrases
Abbreviations
Sounds
Packaging functions
Contain and protect products
Promote products
Facilitate storage, use, and convenience
Facilitate recycling and reduce environmental damage
Containing and protecting products
Packaging enables manufacturers, wholesalers, and retailers to market products in specific quantities and protects products from various conditions
Promoting products
Packaging differentiates a product from competing products and may associate a new product with a family of other products from the same manufacturer
Facilitating storage, use, and convenience
Packaging that is easy to ship, store, stock, handle, open, and reclose can increase a product's utility and market share
Facilitating recycling and reducing environmental damage
Packaging that is compatible with the environment and can be perpetually recycled
Advantages of new products
Increased sales through longer sales life
Increased margins
Increased product loyalty
More resale opportunities
Greater market responsiveness
A sustained leadership position
New product development process
1. New-product strategy
2. Idea generation
3. Idea screening
4. Business analysis
5. Development
6. Test marketing
7. Commercialization
New-product strategy
Links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
Sources of new-product ideas
Customers
Employees
Distributors
Vendors
Competitors
R & D
Consultants
Idea screening
The first filter that eliminates ideas inconsistent with the organization's new-product strategy or inappropriate
Concept test
Evaluates a new-product idea, usually before any prototype has been created
Business analysis
Calculates preliminary figures for demand, cost, sales, and profitability
Development
The R&D or engineering department develops a prototype, and the marketing department decides on packaging, branding, labeling, etc.
Simultaneous product development
All relevant functional areas and outside suppliers participate in all stages of the development process
Test marketing
The limited introduction of a product and a marketing program to determine the reactions of potential customers
Commercialization
The decision to market a product, setting tasks in motion like ordering production materials, starting production, building inventories, training the sales force, and advertising
Product life cycle (PLC)
A biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death)
product refers to all tangible goods, services, ideas, information, experiences, events, people, places, properties, organizations, and other entities that can be offered to target customers for their satisfaction and fulfillment
Product
The goods or services offered by an organization to satisfy customers' needs. Includes tangible, intangible, consumable, and industrial products.
Price
The amount paid by customers to acquire a product or service. Includes pricing strategies such as skimming, penetration, competitive, premium, and bundling.
Promotion
The communication and publicity efforts used to persuade customers to buy a product or service. Includes promotional tools such as advertising, sales promotions, public relations, and personal selling.
Place (or Distribution)
The process of making a product or service available to customers. Includes distribution channels such as direct, indirect, online, and offline.
Purchase Intentions
Pricing can change customers' purchase intentions. For example, high prices can discourage customers, while low prices can encourage them.
Perceived Value
Pricing can influence customers' perceptions of a product or service's value. Higher prices can make it seem more valuable, while lower prices can make it seem less valuable.