copyright © 2007 pearson education canada 8-1 total product concept a product is a combination of...

Copyright © 2007 Pearson Education Canada 8-1

Total Product Concept

A product is a combination of tangible and intangible benefits.

A young, rising executive buys a Mercedes not based on transportation needs. It is to display achievement and success.


Product Mix

The range of products a company sells is called the product mix.

The product mix is described in terms of items and lines and width and depth.


Product Mix

ItemItem

LineLine

WidthWidth

DepthDepth

A unique product offering

A grouping of items with common attributes

The number of lines

Number of items in line


Product Line Width and Depth

WidthDepth Men’s Deodorant Women’s Antiperspirant

Speed Stick 24/7

Speed Stick Lightening

Speed Stick Cyclone

Speed stick Ultimate

Speed Stick Clear

Lady Speed Clean Glide

Lady Speed Stick Invisible

Lady Speed Stick Aloe

Lady Speed Stick Gel


Consumer Goods

“Goods purchased by consumers for personal use.”

Convenience Goods

Shopping goods

Specialty Goods

Unsought Goods


Convenience Goods

ImpulseGoods

ImpulseGoods

StapleGoodsStapleGoods

EmergencyGoods

EmergencyGoods

Key Marketing Considerations

Brand Name Image Reputation

Performance Low Price Availability


Shopping Goods

“Goods purchased on the basis of comparison.”


Quality Price Style

Suitability Dependability Service


Specialty Goods

“Goods possessing unique characteristics that a customer will make an effort to find.”


Selective location

Image

Reputation

Superior quality


Business Goods

“Goods that have a direct or indirect role in the manufacture of other goods.”

Capital ItemsCapital Items

Parts andMaterialsParts andMaterials

Supplies and Services

Supplies and Services

$ $ $


What Is a Brand?

“A product with a personality.”

“A known entity that provides value.”

“A promise that is conveyed publicly by everything a customer can observe.”

“A set of product perceptions purchased by a consumer.”


Branding Terms

BrandBrand

Brand NameBrand Name

BrandmarkBrandmark

TrademarkTrademark

Name, term, or symbol

Spoken part of brand

Identifiable symbol or design

Legally protected part of brand identified by the symbol®


Brand Name Strategies

NationalBrand

Strategies

NationalBrand

Strategies

• Individual Brand• Multi-brand• Family Brand• Product/Company• Co-brand

• Individual Brand• Multi-brand• Family Brand• Product/Company• Co-brand


Co-branding

“Using the equity of one brand name

to market another brand name product.”


Private Label Brands

Brands produced according to specifications established by the distributor.

1 in 5 products sold in a supermarket is a private label product.


Generic Brands

“Products without a brand name or identifying feature.” They are often referred to as:

No Name

Yellow Label


Other Branding Options

LicensedBrandsLicensedBrands

LimitedBrandsLimitedBrands

CultBrands

CultBrands

Allowing another party to use your name: NHL, NBA

Seizing the popularity of something or someone: Star Wars cereal

Fringe brands with a unique and loyal following: Apple, Harley-Davidson


Benefits of Branding

Branding benefits consumers:

Suggestion of quality

Psychological rewards

Distinguishing features allow comparison


Benefits of Branding

Branding benefits organizations:

Create and nurture an image

Communication of USP

Builds loyalty


Brand Communications

Communications play a key role in building a brand image.

Volkswagen “Drivers Wanted.”

Nike “Just Do It.”

MasterCard “Priceless”


Importance of Branding

In many categories the top brand in 1925 is still the top brand today.

ProductRazors

Soft DrinksToothpaste

SoapCrackers

ProductRazors

Soft DrinksToothpaste

SoapCrackers

BrandGillette

Coca-ColaColgateIvory

Nabisco

BrandGillette

Coca-ColaColgateIvory

Nabisco


Brand Loyalty

“The degree of customer attachment to a brand.”

Brand RecognitionBrand Recognition

Brand AwarenessBrand Awareness

Brand InsistenceBrand Insistence


Brand Equity

“The value a consumer derives from a brand.” Equity is influenced by factors such as:

Name awareness

Loyal customer base

Perceived quality

Association with a key attribute


Brand Equity

An organization defines equity in terms of monetary value. What is the brand worth as an asset?

Global Brand Values1. Coca-Cola

$67.4

2. Microsoft 61.4

3. IBM 53.8

4. GE 44.1

5. Intel 33.5

5. Disney $27.1

6. McDonald’s 25.0

7. Nokia 24.0

8. Toyota 22.7

9. Marlboro 22.1

Source: “Top 100 Brands,” Business Week, August2, 2004.


Components of a Package

Package decisions are critical since a majority of buying decisions are made at point-of-sale.

Primary package

Secondary package

Label

Shipping container


Packaging

Communications start and end with the package.

A good package:

Protects the product

Markets the product

Provides convenience

Meets social concerns


Labelling Strategies

A label communicates essential information to differentiate one brand from another.

Brand Name

Illustration

Directions

Mandatory Information

Marketing Information

UPC

copyright © 2007 pearson education canada 8-1 total product concept a product is a combination of...

Documents

brand image

symbol brand

total product concepta

private label product

set of product perceptions

key role

terms of items

unique characteristics