Chapter 7The Product is Sports and Entertainment

The Product Mix

1. How are the elements of the product mix used to create an effective marketing campaign?

2. Compare and contrast the different elements of the product mix and the role they play in producing a good product.

3. How are product enhancements used to satisfy additional customer needs?

The Product

• Every product contains both tangible and intangible parts.– Tangible – physical features that can be

seen and felt.– Intangible – nonphysical service features.

Product

• Product Mix – A new product’s final form including

• Brand name• Various products offered under the brand• Packaging

Product Extension– Items added to a product to make it more

attractive to the target market.• Examples:

– Guarantees– Warranties/Extended Warranties– Instructional Information/CD’s– Easy Instructions– 1-800 Numbers– Testimonials

Product Enhancements

Features added to the basic product that satisfy additional needs and wants with the same purchase. Examples: (Car)

Dual comfort controlsHigher quality interior fabricsAir ConditioningCruise controlPower convertible roofStereo system

Product Mix

• Product Line– A group of similar products with slight

variations to satisfy the different needs of consumers.

• Goal: Achieve the greatest amount of sales possible by satisfying the needs of a diverse target market.

• Example: Soft Drinks

Product Mix Con’t

• Packaging– Packaging is important and must be

convenient for consumers to handle.

• Brand Development– The name, symbol, word, design, or

combination of these elements that identifies a product, service, or company.

– Represents the company’s reputation of quality, reliability, and status in the marketplace.

BrandTrademark

The legal protection of words and symbols used by a company.

Makes it illegal for other companies to use a brand name.

Licensed BrandA well-know name and/or symbol established by

one company and sold for use by another company to promote its products.

Example:Walt Disney CompanyCollege and professional teams license names

and mascots.

Brand Recognition

Non-recognitionConsumers are unable to identify brands.

RejectionWhen a customer will not purchase a

product due to the brand.

RecognitionConsumers know the brand but the brand

has little influence on their purchases.

Brand Recognition

PreferenceConsumers view brands as valuable

InsistenceOccurs when consumers value a brand to

the extent that they reject other brands when the preferred brand is not readily available.

Chapter Review

Which of the following is not a stage of brand recognitions?A. PreferenceB. IntroductionC. RecognitionD. Rejection

Chapter Review

Product extensions includeA. WarrantiesB. Testimonials from satisfied customersC. Instructional CDsD. All of the above

Product Marketing Strategies

1. Compare and contrast the elements of a product life cycle and identify the importance knowing where your product falls on this timeline.

2. Compare and contrast the different types of pricing strategies and what step in the product life cycle they are used within.

3. Compare and contrast different types of strategies that are used within the decline stage and identify when they would be appropriate.

Product Life Cycle

Introduction The product somewhat of a novelty in the

marketplace and only one brand of the new product is available.

Skimming Price StrategyIntroduces new products at a very high

price.

Penetration Price StrategyUses low pricing to help capture a large

market share early.

Product Life Cycle Growth

Sales of a product and profits increase.Target market knows about and regularly

purchases the product. Maturity

Sales level off or slow down.Most of the target market has already

purchased the product.Decline

Sales decrease and may not generate enough revenue to justify continued marketing of this product.

Other Marketing Ideas

Drop a ProductTo cut losses, marketers may choose to

drop a product entirely.

Sell/LicenseChoose to minimize losses during the

decline stage by selling or licensing the product to another company.

DiscountThe reduction of prices during the decline

stage to sell merchandise faster.

More Marketing Ideas

RegionalizeOnly sell a product in the region where it is

the most popular and profitable.

Modernize/AlterAlter or modernize a product to re-ignite

interest within a product.

RecommitThe product’s “duty” is recommitted after

different purposes are found for the product.

Positioning

Use by companies to differentiate its products or services from its competitors products or services.