setting product and brand strategy

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To accompany A Framework for Marketing Management, 2 nd Edition Slide 1 in Chapter 11 ©2003 Prentice Hall, Inc. Chapter 11 Chapter 11 Setting Product and Setting Product and Brand Strategy Brand Strategy PowerPoint by Karen E. James PowerPoint by Karen E. James Louisiana State University - Shreveport Louisiana State University - Shreveport

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Page 1: 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

Page 2: Setting Product and Brand Strategy

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.

Page 3: Setting Product and Brand Strategy

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

Page 4: Setting Product and Brand Strategy

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

Page 5: Setting Product and Brand Strategy

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

Page 6: Setting Product and Brand Strategy

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

Page 7: Setting Product and Brand Strategy

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

Page 8: Setting Product and Brand Strategy

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

Page 9: Setting Product and Brand Strategy

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

Page 10: Setting Product and Brand Strategy

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

Page 11: Setting Product and Brand Strategy

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.”

Page 12: Setting Product and Brand Strategy

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

Page 13: Setting Product and Brand Strategy

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.

Page 14: Setting Product and Brand Strategy

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.

Page 15: Setting Product and Brand Strategy

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.

Page 16: Setting Product and Brand Strategy

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.

Page 17: Setting Product and Brand Strategy

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

Page 18: Setting Product and Brand Strategy

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

Page 19: Setting Product and Brand Strategy

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

Page 20: Setting Product and Brand Strategy

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

Page 21: Setting Product and Brand Strategy

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.

Page 22: Setting Product and Brand Strategy

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.

Page 23: Setting Product and Brand Strategy

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

Page 24: Setting Product and Brand Strategy

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.