marketing quality circle. after reading this chapter, students should: know what are the...
TRANSCRIPT
Marketing Quality Circle
Chapter no: 10, 11, 12Brands and Products
Marketing Quality Circle
LEARNING OBJECTIVES
After reading this chapter, students should: Know what are the characteristics of products and how do
marketers classify products. Know how companies can differentiate products Know how a company can build and manage its product
mix and product lines Know how companies can combine products to create
strong co-brands or ingredient brands Know how companies can use packaging, labeling,
warranties, and guarantees as marketing tools Know what a is brand and how branding works Know what brand equity is Know how a firm can choose and communicate an
effective positioning in the market Know how brands are differentiated
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Steps in Strategic Brand Management
Identifying and establishing brand positioning
Planning and implementing brand marketing
Measuring and interpreting brand performance
Growing and sustaining brand value
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What is a Brand?
A brand is a name, term, sign, symbol or design, or a combination
of them, intended to identify the goods or services of one seller or
group of sellers and to differentiate them from those of competitors.
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The Role of Brands
Identify the maker Simplify product handling Organize accounting Offer legal protection
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The Role of Brands
Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium
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What is Branding?
Branding is endowing products and services with the power of the brand.
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What is Brand Equity?
Brand equity is the added value endowed on products and services, which may be reflected in the way
consumers, think, feel, and act with respect to the brand.
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Advantages of Strong Brands
Improved perceptions of product performance
Greater loyalty Less
vulnerability to competitive marketing actions
Less vulnerability to crises
Larger margins More inelastic
consumer response
Greater trade cooperation
Increased marketing communications effectiveness
Possible licensing opportunities
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What is a Brand Promise?
A brand promise is the marketer’s vision of what the brand must be and
do for consumers.
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Brand Elements
Brand names Slogans Characters
Symbols Logos URLs
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Brand Element Choice Criteria
Memorable Meaningful Likeability Transferable Adaptable Protectible
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Table 9.2 The 10 Most Valuable Brands
Brand 2006 Brand Value (Billions)
Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13
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Managing Brand Equity
Brand reinforcement Brand revitalization Brand crises
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What is a Product?
A product is anything that can be offered to a market to satisfy a want or need, including physical goods,
services, experiences, events, persons, places, properties,
organizations, information, and ideas.
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Product Characteristics and Classifications
Product levels: The Customer-Value Hierarchy
Product Classification Product and Brand Relationships
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Product levels: The Customer-Value Hierarchy Five Product Levels
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Core Product
Attributes Styling
Colour
BrandName
PackagingQuality
InstructionsManual
After salesservices
Deliverypoints & systems
Installation(for bulkyproducts)
Customer
education
and TrainingCustomercomplaint management
Payment options (for high priced prod- cts)
Replacement orreturnspolicy
Guarantees &warranties
Core Product
FormalProduct
Augmented Product
Future ProductThe total product concept
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Industrialproducts
Consumerproducts
Product
Materials andparts
Supplies andservices
Capital itemsSpecialty
Shopping
Unsought
Convenience
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Consumer Product
Marketing Consideration
Convenience Shopping Specialty Un-sought
Customer buyingbehavior
Frequent purchases
Less frequent purchase
Special purchase effort
Little product awareness
Price Low Higher high varies
Distribution Widespread DistributionConvenient
location
Selective distribution in fewer outlets
Exclusive in one or few outlets.
varies
Promotion Mass promotion Advertising and personal selling
More carefully targeted
promotion by both.
Aggressive advertising and personal selling
Example Toothpaste, soap, candy
Television , furniture
Luxury items, Rolex watches.
Life insurance, blood donations
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Product Differentiation
Product form Features Customization Performance Conformance Durability Reliability Repairability Style
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Service Differentiation
Ordering ease Delivery Installation Customer training Customer consulting Maintenance and
repair Returns
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Product Systems and Mixes
Product system Product mix Product assortment Depth Length Width Consistency
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Product Line Analysis
Core product Staples Specialties Convenience items
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Line Stretching
Down-market stretch Up-market stretch Two-way stretch
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Product-Mix Pricing
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
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What is the Fifth P?
Packaging, sometimes called the 5th P, is all the activities of designing and producing the
container for a product.
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Factors Contributing to the Emphasis on Packaging
Self-service Consumer affluence Company/brand image Innovation opportunity
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Packaging Objectives
Identify the brand Convey descriptive and persuasive
information Facilitate product transportation and
protection Assist at-home storage Aid product consumption
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Functions of Labels
Identifies Grades Describes Promotes
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What is Positioning?
Positioning is the act of designing the company’s offering and image to
occupy a distinctive place in the mind of the target market.
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Value Propositions
Perdue Chicken More tender golden chicken at a
moderate premium price Domino’s
A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
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Defining Associations
Points-of-difference (PODs)
Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand
Points-of-parity
(POPs) Associations
that are not necessarily unique to the brand but may be shared with other brands
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Marketing Program Modifications
Prices Distribution Advertising Sales promotion Services
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Ways to Increase Sales Volume Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on
more occasions Have consumers use more of the
product on each occasion Have consumers use the product in
new ways