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MODULE#10 Product Concept

This document defines key product marketing concepts and categorizes types of consumer products. It begins by defining a product as anything received in exchange, including tangible goods, services, and ideas. It then categorizes consumer products as convenience products (inexpensive and requiring little effort), shopping products (more expensive and found in fewer stores, including homogeneous and heterogeneous types), and specialty products (sought extensively with reluctance to accept substitutes). The document also defines product items, product lines (closely related items), and a product mix (all products a company sells). It provides examples and discusses marketing benefits of organizing items into lines and mixes.
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0% found this document useful (0 votes)
118 views

MODULE#10 Product Concept

This document defines key product marketing concepts and categorizes types of consumer products. It begins by defining a product as anything received in exchange, including tangible goods, services, and ideas. It then categorizes consumer products as convenience products (inexpensive and requiring little effort), shopping products (more expensive and found in fewer stores, including homogeneous and heterogeneous types), and specialty products (sought extensively with reluctance to accept substitutes). The document also defines product items, product lines (closely related items), and a product mix (all products a company sells). It provides examples and discusses marketing benefits of organizing items into lines and mixes.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 14

MODULE 9.

PRODUCT CONCEPT
LEARNING OUTCOMES

After studying this module, you will be able to…

10-1 Define the term product


10-2 Classify consumer products
10-3 Define the terms product item, product line, and product mix
10-4 Describe marketing uses of branding
10-5 Describe marketing uses of packaging and labeling
10-6 Discuss global issues in branding and packaging
10-7 Describe how and why product warranties are important marketing tools

10-1 What Is a Product?


The product offering, which is at the heart of an organization's marketing program, is typically
the starting point in developing a marketing mix. A marketing manager cannot set a price,
develop a promotion strategy, or establish a distribution channel unless the company has a
product to sell. A product is anything that a person receives in exchange, both favorable and
unfavorable.
A product can be a tangible good such as a pair of shoes, a service such as a haircut,
an idea such as "don't litter," or any combination of these three. Intangibles such as service,
the seller's image, the manufacturer's reputation, and how consumers believe others will
perceive the product are equally important. Most people associate the term "product" with
a tangible good.

10-2 TYPES OF CONSUMER PRODUCTS


Depending on the buyer's intentions, products can be classified as either business or
consumer. The primary difference between the two types of products is their intended use. If
the product's intended use is for business purposes, it is classified as a business or industrial
product. A consumer product is purchased to satisfy a person's personal wants or needs.
Depending on its intended use, the same item may be classified as a business or a consumer
product. They are marketed to various target markets and employ
product everything, both various distribution, promotion, and pricing strategies.
favorable and unfavorable, Major equipment, accessory equipment, component parts,
that a person receives in an
exchange processed materials, raw materials, supplies, and services were all
covered in Chapter 7. This chapter investigates an efficient method of categorizing consumer
goods.

10-2a Convenience Products


A convenience product is a low-cost item that requires
little shopping effort—that is, a consumer is unwilling to
go to great lengths to obtain such an item. Convenience
products include candy, soft drinks, aspirin, small
hardware items, dry cleaning, and car washes.
Consumers buy convenience products on a regular
basis, usually without much thought. Nonetheless, popular
convenience products such as Coca-Cola, Bayer aspirin, and Old Spice convenience product a
deodorant have brand names that consumers recognize. Typically, relatively inexpensive item that
merits little shopping effort
convenience products necessitate wide distribution is required in
order to sell enough units to meet profit targets. Extra gum, for
example, is sold everywhere, including Walmart, Walgreens, gas stations, newsstands, and
vending machines.

10-2b Shopping Products


Shopping products are typically more expensive than convenience products and are
available in fewer stores. Consumers typically purchase a shopping product after comparing
several brands or stores based on style, functionality, price, and lifestyle compatibility. They
are willing to put in some effort to achieve the desired results.
Shopping products are classified into two types: homogeneous and
heterogeneous. Consumers perceive homogeneous shopping products, such as
washers, dryers, refrigerators, and televisions, to be fundamentally similar. When shopping
for homogeneous products, consumers typically look for the lowest-priced brand with the
desired features. For example, they could compare refrigerators from Kenmore, Whirlpool,
and General Electric.
Consumers, on the other hand, perceive heterogeneous shopping products as
fundamentally different, such as furniture, clothing, housing, and universities. Because prices,
quality, and features vary so widely, consumers frequently have difficulty comparing
heterogeneous shopping products. The advantage of
comparing disparate shopping products is "finding
the best product or brand for me"; this decision is
frequently highly personal. It would be difficult, for
example, to compare a small, private college to a
large, public university, or IKEA to La-Z-Boy.

10-2c Specialty Products


When customers search extensively for a specific
item and are extremely hesitant to accept
substitutes, that item is classified as a specialty
product. Specialty products include Omega
watches, Rolls-Royce automobiles, Bose speakers, Ruth's Chris Steak shopping product a product
House, and highly specialized forms of medical care. that requires comparison shopping
because it is usually more expensive
To maintain a product's exclusive image, marketers of specialty than a convenience product and is
products frequently use selective, status-conscious advertising. found in fewer stores
specialty product a particular
Distribution is frequently limited to one or a few outlets in a given item for which consumers search
geographic area. Brand names and service quality are frequently very extensively and are very reluctant to
accept substitutes
important. unsought product a product
unknown to the potential buyer or a
known product that the buyer does
10-2d Unsought Products not actively seek
product item a specific version of
An unsought product is a product that is unknown to the potential a product that can be designated as a
distinct offering among an
buyer or a known product that the buyer does not actively seek. Some organization’s products
product line a group of closely
goods are always marketed as unwanted items, particularly needed related product items
products that we do not want to think about or spend money on.
Prospective buyers are actively sought after by salespeople.

10-3 PRODUCT ITEMS, LINES, AND MIXES


A company rarely sells a single product. A product item is a specific version of a product
that can be designated as a distinct offering among the products offered by an organization.
A product item is, for example, Campbell's Cream of Chicken Soup. A product line is a
collection of closely related product items.
Exhibit 10.1's "Soups" column, for example, represents
one of Campbell's product lines. Different container sizes and
shapes distinguish items within a product line as well. Each
product in the product mix may necessitate its own marketing
strategy. However, some marketing strategy components are
shared by product lines and even entire product mixes in some
cases. Organizations derive several benefits from organizing
related items into product lines:
 Advertising economies: Product lines allow for
advertising economies of scale. The line can be used to
promote a variety of products. Campbell's can boast that
its soups are "M'm, M'm, Good!" " as well as promote the
entire line.
 Package uniformity: Package consistency can help a
product line. All packages in the line can have a similar
appearance while still retaining their distinct identities.
Campbell's soup is another good example.
 Standardized components: Product lines enable
businesses to standardize components, lowering
product mix all products that an
manufacturing and inventory costs. General Motors, for organization sells
example, uses the same parts on a variety of automobile
makes and models.
 Efficient sales and distribution: A product line enables sales personnel at companies
such as Procter & Gamble to provide customers with a comprehensive range of
options. Distributors and retailers are more likely to stock a company's products if it
has a complete line. A product line's transportation and warehousing costs are likely
to be lower than those of a collection of individual items.
 Equivalent quality: Buyers typically expect and believe that all products in a line are
of comparable quality. Consumers anticipate that all Campbell's soups and Gillette
razors will be of comparable quality.

The number of product lines offered by an organization is referred to as its product mix
width. Exhibit 10.1 shows that Campbell's product mix spans five product lines. The sauces
product line has four product items, as shown in Exhibit 10.1, and the frozen entrée product
line has three product items.
Firms broaden their product mix in order to diversify risk. Firms also diversify their
product offerings in order to capitalize on established reputations. Starbucks, for example,
purchased specialty upscale tea retailer Teavana in order to expand its portfolio of beverage-
related businesses. Teavana sells loose-leaf teas, tea accessories, and food items. Starbucks
intends to position tea in the same way that it does coffee: as a luxury beverage rather than
a commodity.

10-3a Adjustments to Product Items, Lines, and Mixes


Firms change product items, lines, and mixes over time to capitalize on new technological or
product developments or to respond to environmental changes. They may modify products,
reposition products, or expand or contract product lines to make adjustments.

PRODUCT MODIFICATION. Marketing executives must decide whether and when to modify
existing products. A product modification is a change in one or more of the following
characteristics of a product:
 Quality modification: a shift in the dependability or durability of a product Lowering
the quality of a product may allow the manufacturer to lower the price and appeal to
target markets that could not afford the original product. Increasing quality, on the
other hand, can help the firm compete with rival firms. Barnes & Noble, for example,
offers a color version of its Nook that runs Android apps, allowing it to compete with
tablet and netbook manufacturers such as Dell and Asus. Increasing quality can also
lead to increased brand loyalty, a greater ability to raise prices, or new market
segmentation opportunities.
 Functional modification: a change in the versatility, effectiveness, convenience, or
safety of a product Cat's Pride introduced a new litter, Fresh & Light Ultimate Care, in
2015, with a unique ultra-lightweight formula that is beneficial to both cats and their
owners. It is half the weight of traditional scoopable clay cat litters, has superior
clumping ability, and a dust-free formula.
 Style modification: a cosmetic (how the product looks) product change rather than a
functional or quality change Style changes are frequently used by clothing and
automobile manufacturers to encourage customers to replace products before they
wear out.

The term "planned obsolescence" refers to the practice of modifying products so that
those that have already been sold become obsolete before they need to be replaced.
Products such as printers and cell phones, for example, become obsolete because technology
evolves at such a rapid pace.
Some argue that planned obsolescence is wasteful, while others argue that it is
unethical. Marketers respond that consumers prefer style changes because they enjoy
changes in the appearance of goods such as clothing and automobiles. Marketers also argue
that it is up to consumers, not manufacturers or marketers, to determine when a style is no
longer fashionable.
product mix width the number
REPOSITIONING. As explained in previous module, of product lines an organization
offers
repositioning entails changing consumers' perceptions of a product line depth the number
of product items in a product line
brand. McDonald's has long fought to reposition itself as a
product modification changing
healthy fast food option, despite being known primarily for its fat- one or more of a product’s
characteristics
, sugar-, and salt-laden product offerings. McDonald's also
planned obsolescence the
announced that it would use menu boards and national television practice of modifying products so
those that have already been sold
advertising to help customers understand the nutritional options become obsolete before they actually
available to them. Changing demographics, declining sales, and need replacement
social changes are frequently motivators for a company to product line extension adding
reposition an established brand. According to the company's additional products to an existing product
line in order to compete more broadly in the
research, while only 38% of its shoppers said the store was their industry
favorite, 54% of Hispanic Millennials said Target was their
favorite. Several departments, including the baby department,
will be renovated to cater to Hispanic moms.
PRODUCT LINE EXTENSIONS. When a company's management decides to add products to an
existing product line in order to compete more broadly in the industry, this is referred to as a
product line extension. Krispy Kreme has recently launched a new line of ready-to-drink
iced coffees. Coffees that it intends to sell in Walmart locations that sell Krispy Kreme
products. The drinks are reasonably priced, convenient, and come in the signature Krispy
Kreme donut flavors. The company hopes to increase the number of coffee drinkers and
Walmart customers who purchase their products. Furthermore, Krispy Kreme will try to
capture a larger share of the home-brew consumer market by selling packages of its coffee
blends at select Sam's Club locations in the Southeast.
A company may introduce too many products, or demand for the type of products
introduced may change over time. When this occurs, a product line becomes overextended.
Product lines can be overextended if and only if the following conditions are met:
 Some products in the line do not contribute to profits because of low sales or they
cannibalize sales of other items in the line.
 Manufacturing or marketing resources are disproportionately allocated to slow-
moving products.
 Some items in the line are obsolete because of new product entries in the line or new
products offered by competitors.
PRODUCT LINE CONTRACTION. Marketers can get carried away with product extensions at
times. Product line contraction is a strategic approach to dealing with overextension. Yahoo
announced in March 2013 that it would be discontinuing seven products: The Yahoo
BlackBerry app, Sports IQ, Yahoo Message Boards, Yahoo Avatars,
Yahoo Clues, Yahoo App Search, and Yahoo Updates. “Ultimately, brand a name, term, symbol, design,
or combination thereof that identifies a
we're making these changes to sharpen our focus,” said Jay seller’s products and differentiates
Rossiter, executive vice president of platforms at Yahoo. “By them from competitors’ products
brand name that part of a brand
focusing on our core products and experiences, we'll be able to that can be spoken, including letters,
make our existing products the best they can be”. words, and numbers
brand mark the elements of a brand
When a company contracts an overextended product line, that cannot be spoken
three major benefits are likely. First, resources are directed brand equity the value of a
company or brand name
toward the most important products. Second, managers no global brand a brand that obtains at
longer squander resources attempting to boost the sales and least a one-third of its earnings from
outside its home country, is
profits of underperforming products. Third, because more recognizable outside its home base of
financial and human resources are available to manage new- customers, and has publicly available
marketing and financial data
product items, they have a better chance of success. brand loyalty consistent preference
for one brand over all others
10-4 BRANDING
The ability of the target market to distinguish one product from
another is an important factor in the success of any business or
consumer product. Branding is the primary tool used by
marketers to differentiate their products from those of their
competitors.
A brand is a name, term, symbol, design, or
combination of these that identifies and differentiates a seller's
products from those of competitors. A brand name is any part
of a brand that can be spoken, such as letters (GM, YMCA),
words (Chevrolet), or numbers (WD-40, 7-Eleven). The brand
mark refers to the elements of a brand that cannot be spoken,
such as the well-known Mercedes-Benz and Delta Air Lines
symbols.

10-4a Benefits of Branding


Product identification, repeat sales, and new-product
sales are the three main goals of branding. The primary goal is
product identification. Marketers can use branding to
differentiate their products from the competition. Many brand names are well-known among
consumers and are associated with high quality.
The value of a company or brand name is referred to as brand equity. A global
brand is one that earns at least one-third of its revenue outside of its home country, is well-
known outside of its home market, and has publicly available marketing and financial data.
Yum! Brands, which owns Pizza Hut, KFC, and Taco Bell, is an
excellent example of a company that has built strong global
brands. Yum! believes that its restaurants must adapt to local
tastes as well as different cultural and political climates. In
product categories such as cigarettes, mayonnaise,
toothpaste, coffee, headache remedies, bath soap, and
ketchup, more than half of consumers are brand loyal.
Many students go to college and buy the same brands they
used at home rather than shopping around for the best price.

10-4b Branding Strategies


Firms must make difficult branding decisions. Firms can
choose to use manufacturer's brands, private (distributor)
brands, or both. In either case, they must choose between an
individual branding policy (different brands for different
products), a family branding policy (common names for
different products), or a combination of individual and family
branding.
MANUFACTURERS’ BRANDS VERSUS PRIVATE BRANDS. Private labels
manufacturer s brand the brand
name of a manufacturer
are becoming more popular and more expensive as customers develop
private brand a brand name owned loyalty to store brands such as Archer Farms. According to UK research,
by a wholesaler or a retailer
44 percent of shoppers believe that private label brands are simply
repackaged national brands. Private label products now have a 23%
unit share and a 19% dollar share of the food and beverage market. Retailers are ecstatic
about consumers' increased acceptance of private brands.
Private label products generate 10% higher profit margins than manufacturer's brands
on average due to lower overhead and no marketing costs. Exhibit 10.3 depicts key issues that
wholesalers and retailers should think about when deciding whether to sell manufacturer's
brands or private brands. Rather than marketing private brands as less expensive and inferior
to manufacturer's brands, many retailers are developing and promoting their own captive
brands. According to a recent study, 88 percent of consumers prefer store brands over name
brands.
These customers believe that many store brands are as good as, if not better than,
their preferred name brands. Simple Truth and Simple Truth Organic, for example, are
Kroger's natural and organic product lines designed to meet consumer demand for upscale
brands. Kroger's private brands accounted for $1.2 billion in sales in 2014.

INDIVIDUAL BRANDS VERSUS FAMILY BRANDS. Individual branding is a practice in which


many businesses use different brand names for different products. Individual brands are used
by businesses when the use or performance of their products varies greatly. It would be
absurd to use the same brand name for a pair of dress socks and a baseball bat. Procter &
Gamble's laundry detergent brands include Bold, Cheer, Dash, Dreft, Era, Gain, and Tide,
which cater to different segments of the market.
A company that markets multiple products under the same brand name, on the other
hand, is engaging in family branding. The Jack Daniel's family of brands includes whiskey,
coffee, barbeque sauce, heat-and-serve meat products such as brisket and pulled pork,
mustard, playing cards, and clothing lines.

CO-BRANDING. Ingredient branding, cooperative branding, and complementary branding


are the three most common types of co-branding. Ingredient branding identifies the brand
of a component of a product. Cooperative branding was used in a promotional contest
sponsored by Ramada Inn, American Express, and United Airlines. Guests who paid with an
American Express card at Ramada were automatically entered in a contest to win one of more
than 100 getaways for two at any Ramada in the continental United States, as well as round-
trip airfare from United.
In 2014, Bruegger's Bagels and Jamba Juice announced the opening of five co-branded
and co-operated locations in Florida. “The combination of Bruegger's Bagels and Great Service
Restaurants is a fantastic match,” said Paul Carolan, chief development officer for Le Duff
America, which owns Bruegger's Bagels.

10-4c Trademarks
The exclusive right to use a brand or a portion of a brand is defined as a trademark. Others
are not permitted to use the brand without permission. A service mark serves the same
purpose for services like H&R Block and Weight Watchers. Parts of a brand or other product
identification may be protected as trademarks. Some examples are:
 Sounds, such as the MGM lion’s roar.
 Shapes, such as the Jeep front grille and the Coca-Cola bottle.
 Ornamental colors or designs, such as the decoration on Nike tennis shoes, the black-
and-copper color combination of a Duracell battery, Levi’s small tag on the left side of
the rear pocket of its jeans, or the cutoff black cone on the top of Cross pens.
 Catchy phrases, such as Prudential’s “Own a Piece of the Rock,” Mountain Dew’s “This
Is How We Dew,” and Nike’s “Just Do It!”
 Abbreviations, such as Bud, Coke, or the Met.
The U.S. Patent and Trademark
Office receives an intent-to-use
application. Typically, trademark
protection lasts ten years. To renew the
trademark, the company must
demonstrate that it is still using the
mark. A trademark's rights are valid
for as long as the mark is used.
Normally, if a company does not use a
trademark for two years, it is
considered abandoned, and a new user
can claim exclusive ownership of the
mark.
This law imposes financial penalties on those who violate trademarks or register a
domain name that is otherwise trademarked. A generic product name, which identifies a
product by class or type and cannot be trademarked, identifies it by class or type. Former
brand names that were not adequately protected by their owners
and were later declared generic product names by the U. In order
trademark the exclusive right to use
to reduce the number of trademark infringements, violations are a brand or part of a brand
subject to harsh penalties. Nonetheless, infringement lawsuits are service mark a trademark for a
service
still common, despite the risk of a penalty. generic product name identifies
A French court ruled in Guess' favor in 2015, finding that a product by class or type and cannot
be trademarked
there was no trademark infringement, counterfeiting, or unfair
competition between the two brands. The court determined that Guess diluted, rather than
copied, Gucci's logos. However, an American court ruled that Guess had copied four of Gucci's
five trademarked logos. This example also demonstrates that a global trademark does not
exist.
Companies must also deal with counterfeit or unauthorized brands. Knockoffs of
trademarked clothing lines are common in discount stores around the world, and loose
imitations can also be found in some reputable department stores. Only if your brand, logo,
or trademark is formally registered in Europe can you sue counterfeiters. Previously, formal
registration was required in each country where a company sought protection.
A company, on the other hand, can now register its trademark in all European Union
member countries with a single application.

10-5 PACKAGING
Packages have always served a practical purpose, holding contents together and protecting
goods as they move through the distribution channel. However, packaging is now also used
to promote a product and make it easier and safer to use.

10-5a Packaging Functions


Packaging's three most important functions are to contain and protect products, to promote
products, and to facilitate product storage, use, and convenience. A fourth and increasingly
important function of packaging is to facilitate recycling and reduce environmental damage.
CONTAINING AND PROTECTING PRODUCTS. Packaging's most obvious function is to contain
products that are liquid, granular, or otherwise divisible. Packaging also allows
manufacturers, wholesalers, and retailers to sell their products in specific quantities, such as
ounces.
Another obvious function of packaging is physical protection. Between the time a
product is manufactured, harvested, or otherwise produced and the time it is consumed or
used, it is handled several times. Many products are also shipped, stored, and inspected
several times between the time they are manufactured and the time they are consumed.
Some, such as milk, must be refrigerated. Others, such as beer, are light sensitive. Others,
such as medicines and bandages, must be kept sterile.
PROMOTING PRODUCTS. A package distinguishes a product from competitors and may
associate a new product with a family of other products manufactured by the same company.
However, the packaging of some products is devoid of useful information. The FDA hopes that
these changes will catch the attention of consumers and assist them in better managing their
health. Packages employ designs, colors, shapes, and materials to influence consumer
perceptions and purchasing behavior.
According to marketing research, health-conscious consumers are more likely to
believe that any food is probably good for them as long as it comes in green packaging.

FACILITATING STORAGE, USE, AND CONVENIENCE. Packages that are easy to ship, store, and
stock on shelves are preferred by wholesalers and retailers. They also prefer packages that
protect products, prevent spoilage or breakage, and extend the shelf life of the product.
According to research, difficult-to-open packages are among the most common
complaints among consumers, particularly when it comes to clamshell electronics packaging.
Indeed, Quora users voted clamshell packaging "the worst piece of design ever done," and
there is even a Wikipedia page devoted to "wrap rage," the rage associated with attempting
to open clamshells and other poorly designed packages. As the cost of plastics used in
packaging rises due to rising oil prices, companies such as Amazon, Target, and Walmart are
pressuring suppliers to eliminate unnecessary and
infuriating packaging. Packaging is used by some
businesses to segment markets.
A C&H sugar carton, for example, with an
easy-to-pour, re-closable top is aimed at consumers
who do not bake frequently and are willing to pay at
least 20 cents more for the package.

FACILITATING RECYCLING AND REDUCING


ENVIRONMENTAL DAMAGE. Eco-consciousness is
one of today's most pressing packaging issues, a
trend that has recently shifted in and out of
consumer and media attention. Studies disagree on
whether consumers will pay more for eco-friendly
packaging, despite the fact that consumers
repeatedly express a desire to purchase such
products. According to a 2013 Harris Interactive
study, 78 percent of customers buy green products
and services, up from 69 percent in 2012. Twenty
percent of respondents said they bought eco-friendly
products to improve their health, while 47 percent
said they bought them to help the environment.

10-5b Labeling
The label is an essential component of any package.
Labeling can take one of two forms: persuasive or
informational. Consumer information is secondary
in persuasive labeling, which focuses on a promotional theme or logo. It's worth noting
that standard promotional claims like "new," "improved," and "super" are no longer very
persuasive. Informational labeling, by contrast, is designed to help consumers make
proper product selections and lower their cognitive dissonance after the purchase. Most
major furniture manufacturers attach labels to their products that explain the product's
construction features, such as frame type, number of coils, and fabric characteristics. The
Nutritional Labeling and Education Act of 1990 required detailed nutritional information on
most food packages as well as health claim standards on food packaging. Researchers at
Eindhoven University of Technology, Universitá di Catania, CEA-Liten, and STMicroelectronics,
for example, have developed a low-cost plastic converter that tests the safety of packaged
foods.
persuasive labeling a type
GREENWASHING. Greenwashing is used by numerous products of package labeling that focuses on
in every product category to try to sell products. Green a promotional theme or logo, and
consumer information is secondary
certifications proliferated as consumer demand for green
products appeared to rise. The Federal Trade Commission issued new rules in response to
consumer distrust and confusion. Beginning in late 2011, new regulations govern the use of
green-certification logos on products.

10-5c Universal Product Codes


The universal product codes (UPCs) that are now found on the majority of items in
supermarkets and other high-volume outlets were first introduced in 1974. The numerical
codes are commonly referred to as bar codes because they appear as a series of thick and
thin vertical lines. Computerized optical scanners read the lines and match the codes to brand
names, package sizes, and prices. They also print information on cash register tapes and assist
retailers in quickly and accurately preparing customer purchase records, controlling
inventories, and tracking sales. Scanners and the UPC system are also used in scanner-based
research (see Module 9.1).

10-6 GLOBAL ISSUES IN BRANDING AND PACKAGING


When considering entering a foreign market with an existing product, a company has three
options for dealing with the brand name:
 One brand name everywhere: This strategy is useful when a company primarily
markets a single product and the brand name has no negative connotations in any
local market. The Coca-Cola Company employs a one-brand-name strategy in over 195
countries worldwide. The benefits of a one-brand-name strategy include increased
product identification from market to market and ease of coordinating promotion
from market to market.
 Adaptations and modifications: When the name cannot be pronounced in the local
language, when the brand name is owned by someone else, or when the brand name
has a negative or vulgar connotation in the local language, a one-brand name strategy
is not possible. The Iranian detergent Barf, for example, may run into some issues on
the American market.
 Different brand names in different markets: Local brand names are frequently used
when there is a problem with translation or pronunciation, when the marketer wants
the brand to appear to be a local brand, or when regulations require localization. In
England, Ireland, Australia, and New Zealand, Unilever's Axe line of male grooming
products is known as Lynx. In Argentina, PepsiCo renamed its eponymous cola Pecsi
to reflect how the word is pronounced with an Argentinian accent.

Companies must consider global packaging


requirements in addition to global branding decisions.
warranty a confirmation of the
Labeling, aesthetics, and climate considerations are three quality or performance of a good or
aspects of packaging that are especially important in service
international marketing. The primary concern with labeling express warranty a written
guarantee
is correctly translating ingredient, promotional, and implied warranty an unwritten
instructional information on labels. Labeling is also more guarantee that the good or service is fit
for the purpose for which it was sold
difficult in countries such as Belgium and Finland, where
bilingual packaging is required.
Aesthetics of the package may also necessitate some attention. Even though simple
visual elements of the brand, such as a symbol or logo, can serve as a unifying element across
products and countries, marketers must remain sensitive to cultural differences in host
countries. If colors are chosen for another country's interpretation, such cultural differences
may necessitate a packaging change. Green is typically associated with eco-friendly products
in the United States, but that packaging may turn off customers in countries where green is
associated with danger. Package size is also influenced by aesthetics. In countries where
refrigeration is unavailable, soft drinks are not sold in six-packs. Due to a lack of storage space,
products such as detergent may only be purchased in small quantities in some countries.

10-7 PRODUCT WARRANTIES


A warranty, like a package, is intended to protect the product while also providing important
information about the product to the buyer. A warranty attests to the quality or
performance of a product or service. Express warranties can range from simple
statements like "100% cotton" and "complete satisfaction guaranteed" to lengthy documents
written in technical jargon. An implied warranty, on the other hand, is an unwritten
guarantee that the good or service is fit for the purpose for which it was sold. The Magnuson-
Moss Warranty–Federal Trade Commission Improvement Act was passed by Congress in 1975
to assist consumers in understanding warranties and obtaining action from manufacturers
and dealers. A manufacturer who promises a full warranty must meet certain minimum
standards, such as repairing any defects "within a reasonable time and without charge" and
replacing the merchandise or providing a full refund if the product does not work "after a
reasonable number of attempts" at repair. Any warranty that does not meet this stringent
standard must be "conspicuously" promoted as a limited warranty.

For your activities & assessment for this module kindly refer
to Moodle.
REFERENCES

BOOKS

Principles of Marketing
Charles W. Lamb, Joseph F. Hair, Jr., Carl McDaniel

Principles of Marketing. Sixteenth Edition


Philip Kotler & Gary Armstrong

Marketing: An Introduction
Gary Armstrong, Philip Kotler, Valerie Trifts, & Lilly Anne Buchwitz

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