Page 292 - Foundations of Marketing

Product, Branding, and Packaging Concepts | Chapter 10 259

In this chapter, we first define a product and discuss how products are classified. Next, we
examine the concepts of product line and product mix. We then explore the stages of the prod-
uct life cycle and the effect of each life-cycle stage on marketing strategies. Next, we outline
the product adoption process. Then we discuss branding, its value to customers and marketers,
brand loyalty, and brand equity. We examine the various types of brands and consider how
companies choose and protect brands, the various branding policies employed, brand exten-
sions, co-branding, and brand licensing. We also look at the role of packaging, the functions
of packaging, issues to consider in packaging design, and how the package can be a major
element in marketing strategy. We conclude with a discussion of labeling.

WHAT IS A PRODUCT? LO 1 . Understand the concept of
a product.
As defined in Chapter 1 , a product is a good, a service, or an idea received in an exchange. good A tangible physical entity
It can be either tangible or intangible and includes functional, social, and psychological service An intangible result of
utilities or benefits. It also includes supporting services, such as installation, guarantees, the application of human and
product information, and promises of repair or maintenance. Thus the four-year/ 50,000 -mile mechanical efforts to people
warranty that covers some new automobiles is part of the product itself. A good is a tan- or objects
gible physical entity, such as an iPad or a Quiznos sandwich. A service , in contrast, is idea A concept, philosophy,
intangible; it is the result of the application of human and mechanical efforts to people image, or issue
or objects. Examples of services include a concert perfor-
mance by Lady Gaga, an online travel agency booking, a
medical examination, and child day care. State Farm insur-
ance is another example of a product that is a service. In its
advertisement, State Farm uses a tangible product—choc-
olate cake—and a play on words to illustrate the benefits
of State Farm insurance. Many intangible products try to
make their products more tangible to consumers through
advertising and tangible images. An idea is a concept, phi-
losophy, image, or issue. Ideas provide the psychological
stimulation that aids in solving problems or adjusting to the
environment. For example, Mothers Against Drunk Driving
(MADD) promotes safe consumption of alcohol and stricter
enforcement of laws against drunk driving.
It is helpful to think of a total product offering as hav-
ing three interdependent elements: the core product itself, its
supplemental features, and its symbolic or experiential ben-
efi ts (see Figure 10.1 ). Consider that some people buy new
tires for their basic utility (e.g., Goodyear), whereas some
look for safety (e.g., Michelin), and others buy on the basis
of brand name or exemplary performance (e.g., Pirelli). The
core product consists of a product’s fundamental utility or
main benefi t and usually addresses a fundamental need of the
consumer. Broadband Internet services, for instance, offer
speedy Internet access, but some buyers want additional fea-
tures, such as wireless connectivity anywhere they go. Courtesy of State Farm Insurance
Supplemental features provide added value or attributes in
addition to the core utility or benefi t. Supplemental products
also can provide installation, delivery, training, and fi nancing.
These supplemental attributes are not required to make the
Services as Products
core product function effectively, but they help to differenti- It can be hard for service organizations such as State Farm
ate one product brand from another. The Ritz- Carlton Hotels to illustrate services in their advertisements. Often service
is considered to be one of the top hotel chains in customer organizations will use tangible objects as comparisons to
service. In an attempt to expand its service offerings to demonstrate the benefits of their service offerings.

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.