2003 prentice hall, inc. setting product and brand strategy chapter # 7
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 2 in Chapter 11 What is a Product? Goods Services Experiences Events Persons Places Properties Organizations Information IdeasTRANSCRIPT
©2003 Prentice Hall, Inc.
Setting Product and Setting Product and Brand StrategyBrand Strategy
Chapter # 7
©2003 Prentice Hall, Inc.
Chapter OutlineChapter Outline– The Product and the Product Mix– Product Line Decisions– Brand Decisions
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 11
What is a Product?What is a Product?
Goods Services Experiences Events Persons
Places Properties Organizations Information Ideas
©2003 Prentice Hall, Inc.
Basic Product ConceptsBasic Product Concepts
A product is a good, service, or idea– Tangible Attributes– Intangible Attributes
Product classification– Consumer goods– Industrial goods
10-4
©2003 Prentice Hall, Inc.
5ProductProduct A product is a bundle of utilities/ benefits/
features e.g., Attributes of a cold drink are flavor, taste,
quality as a thirst quencher, cool refreshment etc.
But different cold drink ’s have (emphasize) different product attributes intended to meet the demands of particular market segments. These products are now brands.
©2003 Prentice Hall, Inc.
Product Line & Product MixProduct Line & Product Mix
“A Product line is a broad group of products, intended for similar uses and having similar characteristics.”
“The Product mix is the set of all products offered for sale by a company.”
To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 11
©2003 Prentice Hall, Inc.
Product Mix DimensionsProduct Mix Dimensions A product mix has Four Dimensions:
– Breadth - the number of product lines– Depth - number of product variants i.e.
the variety of sizes, colors, and models offered within each product line.
– Length: total number of items in mix– Consistency: degree to which product
lines are related is the consistency of the product mix.
To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 11
©2003 Prentice Hall, Inc. 10 - 8
BREADTH (DIFFERENT LINES)Lawn mowers Gardening tools Lawn furniture
Power rotary
Power reel
Hand-powered
DEPTH
(ASSORTMENT
WITHIN A LINE) Rakes
Hoes
Shovels
Chairs
Chaise lounges
Benches
Each in varioussizes and prices
Each in varioussizes and prices
Various sizes and prices in redwood or aluminium withplastic webbing
Product Mix - An Example
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 11
Brand DefinitionBrand Definition
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.”
©2003 Prentice Hall, Inc.
10Brands CharacteristicsBrands Characteristics Brand is a bundle of images and experiences in the
customer’s mind. The added value that accrues to a product as a result of
investments in the marketing of the product. An asset that represents value created by the relationship
between the product and customer over time. A promise made by a particular company about a
particular product. A quality certification. Differentiation between competing products. The sum of impressions about a brand is the “Brand
Image.”
©2003 Prentice Hall, Inc.
11Brands resulted from…Brands resulted from…
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 11
Brand EquityBrand Equity “Brand equity refers to the positive differential
effect that a brand name has on customers.” Brand equity is the worth of a brand in
customer’s mind Brand equity:
– is related to many factors. – allows for reduced marketing costs.– is a major contributor to customer equity.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 11
Brand EquityBrand Equity
Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers to increase brand equity.
Valuable and powerful brands enjoy high levels of brand loyalty which ultimately results in high brand equity.
©2003 Prentice Hall, Inc.
Branding StrategiesBranding Strategies
1- Individual Brands 2- Brand extensions3- Line extensions4- Co-branding5- Multi Brands6- Blanket (Family) Brands
To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 11
©2003 Prentice Hall, Inc. 10-15
Branding StrategiesBranding Strategies1- Individual Brands: When there is no connections
among brands. Procter & Gamble (P&G) offered individual brands.
2- Brand Extension: It means when new and improved brands, with additives, new package size, new flavors are added in the brand.
– Lifebuoy & Lifebuoy Gold, Pepsodent & Pepsodent G
©2003 Prentice Hall, Inc.
Branding StrategiesBranding Strategies3- Line extensions/ Combination or tied Branding: It
allows marketers to leverage a company’s reputation while developing a distinctive identity for a line of products.– Samsung extended the product line of Personal use
products and now offered iphones in the market.
4- Multi Brand (Proliferation): When organizations want to increase shelf space and market share, catch brand switchers and reach new segments– Sting energy drink offered by Pepsi Co.
To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 11
©2003 Prentice Hall, Inc. 10-17
Branding StrategiesBranding Strategies5- Co-branding: It means when two or more brand
names are used for one package & it features two or more companies product or brands.– Ingredient branding – Intel Inside– Cooperative branding – NutraSweet and Coca-Cola– Complementary branding – 7 & 7
6- Blanket (Family) Brands: It means when Brand acts as an umbrella for new products.
– The LG Brands (LG split, oven, washing machine, TV, cell phone, camera etc)
– The Sony Brands (Sony laptops, LCD, Camera etc)
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 11
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/ help in
segmentation– Enhances corporate
image– Branded goods are
desired by retailers and distributors
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 11
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
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 11
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
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 11
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
Individual brands Line extensions Brand extensions Multi Brands Co-branding Blanket (Family) Brands
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 11
Brand DecisionsBrand Decisions
Key Challenges
To brand or not Brand sponsor Brand name Brand strategy Brand repositioning
Brand Repositioning means to move to a better segment when competition increased in current segment.
When customer preferences changed so the new segment opened up in a brand.
Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.
A brand report card can be used to audit a brand’s strengths and weaknesses.
©2003 Prentice Hall, Inc.
END OF CHAPTER!END OF CHAPTER!
To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 11