Chapter 12: Marketing Mix and Product Strategy

Product
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
Good
A physical entity you can touch
Examples: Cars, Printers, Pets
Service
Actions that provide intangible benefits to customers
Examples: Air travel, dry cleaning, haircuts, banking, insurance, medical care, and day car
Ideas
Include concepts, philosophies, images and issues
Examples: Legal advise about what rights you have if the IRS audits your tax return, political parties, churches, schools
New Idea Screening
Look at the firm’s resource and objectives and assess its ability to product/market the product
Business Analysis
Assess product’s potential profitability
Product Development
Go into prototype stage
Test Marketing
Goal is to get feedback through extensive market research
Commercialization
The full introduction of a complete marketing strategy and the launch of a product
Consumer Products
Products intended for household or family use
*Convenience products, shopping products, specialty products
Business Products
Products that are used directly or indirectly in the operation or manufacturing processes of business
*Raw Materials, equipment, processed materials, supplies
Product Line
A group of closely related products that are treated as a unit because of a similar marketing strategy
Product Mix
All the products offered by an organization
Product Identification
Branding (Branding is the process of naming and identifying products.)
Brand
A name, phrase, design, symbols, or combination of these to identify its products and distinguishes them from those of competitors
Brand Mark
The part of the brand that is a distinctive design
Trademark
A brand that is registered with te US Patent and trademark office and is thus legally protected from use by any other firm
Manufacturer Brands
Brand initiated and owned by the manufacturer to identify products from the point of production to the point of purchase
Private Distributor Brands
Usually costs less than manufacturer brands are owned/controlled by a wholesaler or retailer — names of private brands do not usually identify their manufacturer
Packaging
The external container that holds and describes the product
Labeling
The presentation of important information on a package
Name
Companies often spend between $25,000 and $100,000 to identify and test a new brand name
Idea Development
Developing new ideas that will successfully convince the target market to buy the product