Chapter 10
Product Concepts
This chapter begins with the learning outcome summaries followed by a set of lesson plans for
you to use to deliver the content.
Lecture on page 4
Company Clips (video) on page 5
Group Work (for smaller sections) on page 7
Review and Assignments begin on page 7
Review questions
Application questions
Application exercise
Ethics exercise
Video Assignment
Case Assignment
Great Ideas for Teaching Marketing from faculty around the country begin on page 18
Learning Outcomes
10-1 Define the term product
An organization’s product offering is the crucial element in any marketing mix. A product may
be defined as everything, both favorable and unfavorable, that a person receives in an exchange.
The basic goal of purchasing decisions is to receive the tangible and intangible benefits
associated with a product. A product may be a tangible good like a pair of shoes, a service like a
haircut, an idea like “don’t litter,” or any combination of these three. Tangible aspects include
packaging, style, color, options, and size. Intangible qualities include service, the seller’s image,
the manufacturer’s reputation, and the way consumers believe others will view the product.
10-2 Classify consumer products
Consumer products are classified into four categories: convenience products, shopping products,
specialty products, and unsought products. Convenience products are relatively inexpensive and
require limited shopping effort. Shopping products are of two types: homogeneous and
heterogeneous. With homogeneous shopping products, consumers typically look for the lowest
priced brand that has the desired features. In contrast, heterogeneous products appeal to
consumers because of their distinct characteristics. Specialty products possess unique benefits
that are highly desirable to certain customers. Finally, unsought products are either new products
or products that require aggressive selling because they are generally avoided or overlooked by
consumers.
10-3 Define the terms product item, product line, and product mix
A product item is a specific version of a product that can be designated as a distinct offering
among an organization’s products. A product line is a group of closely related products offered
by an organization. An organization’s product mix includes all the products it sells. Product mix
width refers to the number of product lines an organization offers. Product line depth is the
number of product items in a product line. Firms modify existing products by changing their
quality, functional characteristics, or style. Planned obsolescence is a term commonly used to
describe the practice of modifying products so that those that have already been sold become
obsolete before they actually need replacement. Product line extension occurs when a firm adds
new products to existing product lines. Contracting product lines is a strategic way to deal with
overextension.
10-4 Describe marketing uses of branding
A brand is a name, term, symbol, design, or combination thereof that identifies a seller’s product
and differentiates them from a competitors’ products. Branding strategies require decisions about
individual, family, manufacturers’, and private brands. Cooperative branding occurs when two
brands receiving equal treatment borrow from each other’s brand equity.
10-5 Describe marketing uses of packaging and labeling
Packaging has four functions: containing and protecting products; promoting products;
facilitating product storage, use, and convenience; and facilitating recycling and reducing
environmental damage. As a tool for promotion, packaging identifies the brand and its features.
It also serves the critical function of differentiating a product from competing products and
linking it with related products from the same manufacturer. The label is an integral part of the
package, with persuasive and informational functions. Package aesthetics may also
require some attention. Even though simple visual elements of the brand,
such as a symbol or logo, can be a standardizing element across products
and countries, marketers must stay attuned to cultural traits in host
countries.
10-6 Discuss global issues in branding and packaging
When planning to enter a foreign market with an existing product, a firm has three options for
handling the brand name: one brand name everywhere, adaptations and modifications, and
different brand names in different markets. Three aspects of packaging that are especially
important in international marketing are labeling, aesthetics, and climate considerations.
10-7 Describe how and why product warranties are important marketing tools
Product warranties are important tools because they protect the buyer and gives essential
information about the product. A warranty confirms the quality or performance of a good or
service. Express warranty is a written guarantee, whereas an implied warranty is an unwritten
guarantee that the good or service is fit for the purpose for which it was sold.
Key Terms
Brand Generic product name Product line depth
Brand equity Global brand Product line extension
Brand loyalty Implied warranty Product mix
Brand mark Individual branding Product mix width
Brand name Informational labeling Product modification
Captive brand Manufacturer’s brand Service mark
Co-branding Persuasive labeling Shopping product
Convenience product Planned obsolescence Specialty product
Express warranty Private brand Trademark
Family branding Product Universal product code
(UPCs)
Product item Unsought product
Product line Warranty
Lesson Plan for Lecture
Suggested Homework
The end of this chapter contains assignments for the Zappos video and for the Google case.
This chapter’s online study tools include flashcards, visual summaries, practice quizzes, and
other resources that can be assigned or used as the basis for longer investigations into
marketing.
Lesson Plan for Video
Company Clips
Segment Summary: Zappos
Zappos discusses how the company builds its product offerings and enters into new fields.
Zappos also has a limited line of private label offerings that it creates to fill a perceived gap in
the market. Choosing the correct products is the starting point for Zappos to offer its great
customer service and “deliver happiness.”
These teaching notes combine activities that you can assign students to prepare before class, that
you can do in class before watching the video, that you can do in class while watching the video,
and that you can ask students to complete as assignments after watching the video.
During the viewing portion of the teaching notes, stop the video periodically when it is
appropriate to ask students the questions or perform the activities listed on the grid. You may
even want to give the students the questions before starting the video and have them think about
the answer while viewing the segment. That way, students will be engaged in active viewing
rather than passive viewing.
Pre-class Prep for You Pre-class Prep for Your Students
Preview the Company Clips video segment
for Chapter 10. This exercise reviews
concepts for LO1–LO5.
Review your lesson plan.
Stream the video HERE.
Have students review and familiarize
themselves with the following terms and
concepts: product; types of consumer
products; product items, lines, and mixes;
branding; and warranties.
Refer students to Exhibit 10.1, “Campbell’s
Product Lines and Product Mix.” Encourage
students to think of other companies that
have multiple product lines.
Video Review Exercise
Activity
Warm-up Begin by asking students the following question: “What is a product?”
In-class
Preview
Discuss the types of consumer products.
Review Exhibit 10.1 with students. Ask them to offer examples of product
items and product lines from other companies, making sure they understand
the difference between product items, lines, and mixes.
Discuss the difference between a product line extension and the addition of a
new product line, and discuss the difference between mix width and line
depth.
Review the Company Clips questions below with students, and make sure
they’re prepared to answer them after viewing the video.
Viewing
(Solutions
below)
1. What type of products does Zappos offer? How would you classify their
products?
2. When Zappos began offering couture products, it is classified as which type
of move? What about working with vendors to sell more of its product?
Follow-up
Outside of class, have students create a chart or written statement that lists the
items in the product and/or service lines the college or university “sells.” The
chart or list should place related products and services into specific product
lines, to be turned in at the following class or in a discussion section.
Solutions for Viewing Activities
1. What type of products does Zappos offer? How would you classify their products?
Recycling offers consumer products. Students may argue for the products as convenience
or shopping products. Zappos offers a wide variety of products, including items such as
flip-flops and tennis shoes, which are convenience products, but it also offers products that
are Zappos-specific, as well as a number of products exclusively distributed at Zappos,
which classifies as a shopping product.
2. When Zappos began offering couture products, it is classified as which type of
decision? What about working with vendors to sell more of its product?
Adding couture is adding a product line, which affects the width or breadth of the product
mix. Working with vendors to sell more of their products would be considered increasing
the product line depth available at Zappos.
Lesson Plan for Group Work
In most cases, group activities should be completed after some chapter content has been covered,
probably in the second or third session of the chapter coverage. (See “Lesson Plan for Lecture”
above.)
For “Class Activity: Brand Names,” provide the information and the questions asked by the
class activity.
Applications questions 1 and 2 lend themselves well to group work. For these activities,
divide the class into small groups of four or five people. Each group should read the
question and then use their textbooks, or any work completed previously, to perform the
exercise. Then each group should discuss or present their work to the class.
Class Activity: Brand Names
The use of branding on the Internet has become an important topic as more consumers turn to the
Internet for information and purchase. Ask students to list the five best known search engines on
the Internet. They should then explain what financial impact brand recognition has for those
dot-coms.