Setting Product and Brand Strategy
What is a Product?
Goods Services Experiences Events Persons Places Properties Organizations Information Ideas
The Product and Product Mix
Potential customers judge product offerings according to three elements:
Product features and quality Services mix and quality Value-based prices
The Product and Product Mix
The customer value hierarchy:
Core benefit Basic product Expected product Augmented product Potential product
The Product and Product Mix
Product Classifications
Durability and tangibility
Consumer goods Industrial goods
Nondurable
Tangible Rapidly consumed Example: Milk
Durable
Tangible Lasts a long time Example: Oven
Services
Intangible Example: Tax preparation
The Product and Product Mix
Product Classifications
Durability and tangibility
Consumer goods Industrial goods
Classified by shopping habits:
Convenience goods Shopping goods Specialty goods Unsought goods
The Product and Product Mix
Product Classifications
Durability and tangibility
Consumer goods Industrial goods
Materials and parts
Farm products Natural products Component materials Component parts
Capital items
Installations Equipment
Supplies and business services
Maintenance and repair Advisory services
The Product and Product Mix
Product mix dimensions:
Width: number of product lines Length: total number of items in mix Depth: number of product variants Consistency: degree to which product lines are related
Product-Line Decisions
Product-Line Analysis
Product-Line Length
Product-Line Modernization, Featuring, and Pruning
Brand Decisions
The AMA definition of a brand:
A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.
Brand Decisions
Brands can convey six levels of meaning:
Attributes Benefits Values Culture Personality User
Brand Decisions
Brand identity decisions include:
Name Logo Colors Tagline Symbol
Consumer experiences create brand bonding, brand advertising does not.
Brand Decisions
Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers.
Valuable and powerful brands enjoy high levels of brand loyalty.
Brand Decisions
Aaker identified five levels of customer attitudes toward brands:
Will change brands, especially for price. No brand loyalty. Satisfied -- has no reason to change. Satisfied -- switching would incur costs. Values brand, sees it as a friend. Devoted to the brand.
Brand Decisions
Brand equity refers to the positive differential effect that a brand name has on customers.
Brand equity:
is related to many factors. allows for reduced marketing costs. is a major contributor to customer equity.
Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name
Advantages of branding:
Facilitates order processing Trademark protection Aids in segmentation Enhances corporate image Branded goods are desired by retailers and distributors
Brand strategy
Brand repositioning
Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name
Options include:
Manufacturer (national) brand Distributor (reseller, store, house, private) brand Licensing the brand name
Brand strategy
Brand repositioning
Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name
Strong brand names:
Suggest benefits Suggest product qualities Are easy to say, recognize, and remember Are distinctive Should not carry poor meanings in other languages
Brand strategy
Brand repositioning
Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name
Varies by type of brand
Functional brands Image brands Experiential brands
Line extensions
Brand extensions Multibrands New brands Co-branding
Brand strategy
Brand repositioning
Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name
A brand report card can be used to audit a brands strengths and weaknesses.
Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.
Brand strategy
Brand repositioning
Packaging and Labeling
Packaging includes:
The primary package The secondary package The shipping package
Many factors have influenced the increased use of packaging as a marketing tool.
Packaging and Labeling
Developing an effective package:
Determine the packaging concept Determine key package elements Testing:
Engineering Visual
tests
tests Dealer tests Consumer tests
Packaging and Labeling
Labeling functions:
Identifies the product or brand May identify product grade May describe the product May promote the product
Legal restrictions impact packaging for many products.
