kotler11exs-setting product and brand strategy

7/25/2019 Kotler11exs-Setting Product and Brand Strategy

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To accompany A Framework for Slide 1 in2003 Prentice Hall, Inc.

Chapter 11Chapter 11

Setting Product andSetting Product and

Brand StrategyBrand Strategy

PowerPoint by Karen E. JamesPowerPoint by Karen E. James

Louisiana State Uniersity ! S"ree#ortLouisiana State Uniersity ! S"ree#ort


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ObjectivesObjectives

Identify the various characteristics ofproducts.

Learn how companies build and manageproduct lines and mixes.

Understand how companies make better

brand decisions. Comprehend how packaging and labeling

can be used as marketing tools.


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What is a Product?What is a Product?

Goods

Services

xperiences

vents

!ersons

!laces

!roperties

"rgani#ations

Information

Ideas


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The Product and ProductThe Product and Product

MixMix

!otential customers $udge product

offerings according to three

elements%

$ Product features and quality

$ Services mix and quality$ Value-based prices


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To accompany A Framework for Slide in2003 Prentice Hall, Inc.


MixMix

&he customer value hierarchy%

$ Core benefit

$ Basic product

$ Expected product

$Augmented product$ Potential product


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MixMix

!roduct

Classifications

Durability and

tangibility

Consumer goods

ndustrial goods

'ondurable

$ !angible

$ "apidly consumed

$ Example# $il%

(urable

$ !angible

$ &asts a long time

$ Example# 'ven Services

$ ntangible

$ Example# !ax preparation


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MixMix

!roduct

Classifications

Durability and

tangibility

Consumer goods

ndustrial goods

Classified by

shopping habits%

$ Convenience

goods

$ S(opping goods

$ Specialty goods

$ )nsoug(t goods


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MixMix

!roduct

Classifications

Durability and

tangibility

Consumer goods

ndustrial goods

)aterials and parts

$ *arm products

$ +atural products

$ Component materials$ Component parts

Capital items

$ nstallations

$ Equipment

Supplies and businessservices

$ $aintenance and repair

$ Advisory services


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MixMix

!roduct mix dimensions%

$ ,idt(#number of product lines$ &engt(#total number of items in mix

$ Dept(#number of product variants

$ Consistency#degree to (ic(product lines are related


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Product-Line DecisionsProduct-Line Decisions

!roduct*Line +nalysis

!roduct*Line Length

!roduct*Line )oderni#ation,

-eaturing, and !runing


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Brand DecisionsBrand Decisions

&he +)+ definition of a brand%

.A name/ term/ sign/ symbol/ ordesign/ or a combination of t(ese/

intended to identify t(e goods or

services of one seller or group of

sellers and to differentiate t(em

from t(e competition01




rands can convey six levels of

meaning%

$Attributes

$ Benefits

$ Values

$ Culture

$ Personality

$ )ser




rand identity decisions include%

$ +ame

$ &ogo

$ Colors

$ !agline

$ Symbol Consumerexperiences create brand

bonding, brand advertising does not.


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2003 Prentice Hall, Inc.


)arketers should attempt to create or

facilitate aareness, acceptability,

preference, and loyaltyamongconsumers.

/aluable and powerful brands en$oy

high levels of brand loyalty.


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+aker identified five levels of

customer attitudes toward brands%

$ ,ill c(ange brands/ especially for price0

+o brand loyalty0

$ Satisfied -- (as no reason to c(ange0

$ Satisfied -- sitc(ing ould incur costs0$ Values brand/ sees it as a friend0

$ Devoted to t(e brand0


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Brand equityrefers to the positive

differential effect that a brand name

has on customers.

rand e0uity%

$ is related to many factors0

$ allos for reduced mar%eting costs0

$ is a ma2or contributor to customer equity0


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1ey Challenges

!o brand or not

Brand sponsor

Brand name

Brand strategy

Brand repositioning

+dvantages ofbranding%

$ *acilitates orderprocessing

$ !rademar% protection

$ Aids in segmentation

$ En(ances corporate

image$ Branded goods are

desired by retailersand distributors


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1ey Challenges

!o brand or not

Brand sponsor

Brand name

Brand strategy

Brand repositioning

"ptions include%

$ $anufacturer

3national4 brand$ Distributor

3reseller/ store/(ouse/ private4

brand$ &icensing t(e

brand name


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1ey Challenges

!o brand or not

Brand sponsor

Brand name

Brand strategy

Brand repositioning

Strong brand names%

$ Suggest benefits

$ Suggest productqualities

$ Are easy to say/recogni5e/ andremember

$ Are distinctive$ S(ould not carry poor

meanings in ot(erlanguages


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To accompany A Framework for Slide 2% in2003 Prentice Hall, Inc.


1ey Challenges

!o brand or not

Brand sponsor

Brand name

Brand strategy

Brand repositioning

/aries by type of brand

$ *unctional brands

$ mage brands

$ Experiential brands

Line extensions

rand extensions

)ultibrands

'ew brands

Co*branding


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1ey Challenges

!o brand or not

Brand sponsor

Brand name

Brand strategy

Brand repositioning

+ brand report cardcan be used to audita brand2s strengthsand weaknesses.

Changes inpreferences or the

presence of a newcompetitor mayindicate a need forbrand repositioning.


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Packain and Labe!inPackain and Labe!in

!ackaging includes%

$ !(e primary pac%age

$ !(e secondary pac%age

$ !(e s(ipping pac%age

)any factors have influenced theincreased use of packaging as amarketing tool.


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(eveloping an effective package%

$ Determine t(e pac%aging concept

$ Determine %ey pac%age elements

$ !esting#

ngineering tests

/isual tests(ealer tests

Consumer tests


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Labeling functions%

$ dentifies t(e product or brand

$ $ay identify product grade

$ $ay describe t(e product

$$ay promote t(e product

Legal restrictions impactpackaging for many products.

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