BUSI 406 – Principles of Marketing

Chapter 8: Product Concepts

Product Offerings

• Products satisfy needs, include customer service, warranty, etc.
• Quality is a product's ability to satisfy needs.
• Products can be goods, services, or a blend (e.g., restaurant meal).

Services

• Hard to see or feel beforehand; referrals are important.
• Service quality can be inconsistent; services are perishable.

Product Assortment

• Set of all product lines a firm sells.
• Product Line: closely related individual products.
• Individual Product: a specific product within a line.

Branding

• Use of names, terms, symbols to identify products.
• Strong brands reduce selling time, connect product and benefits.
• Successful branding requires easy identification, consistent quality, strong demand, etc.

Brand Familiarity Levels

1. Brand Rejection
2. Brand Nonrecognition
3. Brand Recognition
4. Brand Preference
5. Brand Insistence

Brand Types

• Family Brand, Licensed Brand, Individual Brand, Generic Products.
• Manufacturer Brands vs. Dealer/Private Brands.

Packaging and Labeling

• Promotes, protects, enhances products.
• Laws require clear labeling.

Product Classification

• Consumer Products: convenience, shopping, specialty, unsought.
• Business Products: installations, accessories, materials, components, services.

Chapter 9: Product Lifecycle

Stages

1. Market Introduction
2. Market Growth
3. Market Maturity
4. Sales Decline

New Product Development

1. Idea Generation
2. Screening
3. Idea Evaluation
4. Development
5. Commercialization

Legal and Safety

• FTC regulates antimonopoly laws.
• Product Liability and Safety Acts.

Chapter 10: Distribution

Channel of Distribution

• Direct vs. Indirect distribution decisions.
• Intermediaries can improve service efficiency.

Types of Vertical Marketing Systems

1. Corporate
2. Administered
3. Contractual

Distribution Strategies

• Intensive, Selective, Exclusive Distribution.
• Multichannel and Reverse Channels.

Chapter 11: Logistics

Physical Distribution

• Involves transporting, storing, handling goods.
• Supply Chain and Electronic Data Interchange.

Transportation Modes

• Rail, truck, water, containerization.

Storing

• Private vs. Public Warehouses, Distribution Centers.

Chapter 12: Retailing

Types of Retailers

• General Stores, Specialty Shops, Department Stores.
• Mass-merchandisers, Supercenters.

Retail Theories

• Wheel of Retailing, Scrambled Merchandising.

Wholesaling

• Merchant Wholesalers: General, Single-line, Specialty.
• Limited-function Wholesalers.

Chapter 13: Promotion

Promotion Methods

• Personal Selling, Mass Selling, Advertising, Publicity.
• Sales Promotion for immediate results.

Promotion Objectives

1. Informing
2. Persuading
3. Reminding

Chapter 14: Personal Selling

Sales Tasks

• Order-getting, Order-taking, Supporting.

Sales Strategies

• Team-selling, Major Accounts Sales Force.
• Prepared, Consultative, and Selling Formula Approaches.

Chapter 15: Advertising

Advertising Objectives

• Should be specific, reach a wide audience.

Types of Advertising

1. Product Advertising: Pioneering, Competitive, Reminder
2. Institutional Advertising

Advertising Agencies

• Develop marketing strategies.

Chapter 16: Pricing

Pricing Policies

• Flexible Pricing, Price Lifecycle Management.
• Discounts and Allowances.

Pricing Strategies

• Skimming, Penetration, Introductory Pricing.

Legal Considerations

• Unfair Trade Practices, Dumping, Price Fixing.

Chapter 17: Pricing Approaches

Cost-Oriented Pricing

• Markup and Average Cost Pricing.

Demand-Oriented Pricing

• Marginal Analysis, Value in Use Pricing.

Pricing Techniques

• Leader Pricing, Bait Pricing, Psychological Pricing.

These notes cover the key concepts, strategies, and legal aspects of marketing as outlined in the course chapters, providing a comprehensive overview for study and reference.