Setting Product and Brand Strategy
Transcript of Setting Product and Brand Strategy
To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 11©2003 Prentice Hall, Inc.
Chapter 11Chapter 11
Setting Product and Setting Product and Brand StrategyBrand Strategy
PowerPoint by Karen E. JamesPowerPoint by Karen E. JamesLouisiana State University - ShreveportLouisiana State University - Shreveport
To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 11©2003 Prentice Hall, Inc.
ObjectivesObjectives
Identify the various characteristics of products.
Learn how companies build and manage product lines and mixes.
Understand how companies make better brand decisions.
Comprehend how packaging and labeling can be used as marketing tools.
To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 11©2003 Prentice Hall, Inc.
What is a Product?What is a Product?
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas
To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 11©2003 Prentice Hall, Inc.
The Product and Product MixThe Product and Product Mix
Potential customers judge product offerings according to three elements:
– Product features and quality
– Services mix and quality– Value-based prices
To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 11©2003 Prentice Hall, Inc.
The Product and Product MixThe Product and Product Mix
The customer value hierarchy:
– Core benefit
– Basic product– Expected product
– Augmented product
– Potential product
To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 11©2003 Prentice Hall, Inc.
The Product and Product MixThe Product and Product Mix
ProductClassifications
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 11©2003 Prentice Hall, Inc.
The Product and Product MixThe Product and Product Mix
ProductClassifications
Durability and tangibility
Consumer goods
Industrial goods
Classified by shopping habits:
– Convenience goods
– Shopping goods– Specialty goods
– Unsought goods
To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 11©2003 Prentice Hall, Inc.
The Product and Product MixThe Product and Product Mix
ProductClassifications
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 11©2003 Prentice Hall, Inc.
The Product and Product MixThe 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
To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 11©2003 Prentice Hall, Inc.
Product-Line DecisionsProduct-Line Decisions
Product-Line Analysis
Product-Line Length
Product-Line Modernization, Featuring, and Pruning
To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand 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.”
To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand Decisions
Brands can convey six levels of meaning:
– Attributes
– Benefits– Values– Culture– Personality– User
To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand Decisions
Brand identity decisions include:– Name– Logo– Colors– Tagline– Symbol
Consumer experiences create brand bonding, brand advertising does not.
To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand 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.
To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand 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.
To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand 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.
To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Advantages of branding:– Facilitates order
processing– Trademark protection– Aids in segmentation– Enhances corporate
image– Branded goods are
desired by retailers and distributors
To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Options include:– Manufacturer
(national) brand– Distributor
(reseller, store, house, private) brand
– Licensing the brand name
To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Varies by type of brand
– Functional brands– Image brands– Experiential brands
Line extensions
Brand extensions
Multibrands
New brands
Co-branding
To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 11©2003 Prentice Hall, Inc.
Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
A brand report card can be used to audit a brand’s strengths and weaknesses.
Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.
To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 11©2003 Prentice Hall, Inc.
Packaging and LabelingPackaging 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.
To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 11©2003 Prentice Hall, Inc.
Packaging and LabelingPackaging and Labeling
Developing an effective package:
– Determine the packaging concept– Determine key package elements
– Testing: Engineering tests Visual tests Dealer tests Consumer tests
To accompany A Framework for Marketing Management, 2nd Edition Slide 24 in Chapter 11©2003 Prentice Hall, Inc.
Packaging and LabelingPackaging 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.