Slide 0 in Chapter 11

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Chapter 11

• Setting Product and Brand Strategy

PowerPoint by Karen E. James Louisiana State
University - Shreveport
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Objectives

• 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.

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What is a Product?

• Goods
• Services
• Experiences
• Events
• Persons

• Places
• Properties
• Organizations
• Information
• Ideas

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The Product and Product Mix

• Potential customers judge product offerings
  according to three elements
• Product features and quality
• Services mix and quality
• Value-based prices

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The Product and Product Mix

• The customer value hierarchy
• Core benefit
• Basic product
• Expected product
• Augmented product
• Potential product

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The Product and Product Mix

• Product
• Classifications
• 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

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The Product and Product Mix

• Product
• Classifications
• Durability and tangibility
• Consumer goods
• Industrial goods

• Classified by shopping habits
• Convenience goods
• Shopping goods
• Specialty goods
• Unsought goods

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The Product and Product Mix

• Materials and parts
• Farm products
• Natural products
• Component materials
• Component parts
• Capital items
• Installations
• Equipment
• Supplies and business services
• Maintenance and repair
• Advisory services

• Product
• Classifications
• Durability and tangibility
• Consumer goods
• Industrial goods

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The 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

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Product-Line Decisions

• Product-Line Analysis
• Product-Line Length
• Product-Line Modernization, Featuring, and
  Pruning

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Brand 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.

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Brand Decisions

• Brands can convey six levels of meaning
• Attributes
• Benefits
• Values
• Culture
• Personality
• User

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Brand Decisions

• Brand identity decisions include
• Name
• Logo
• Colors
• Tagline
• Symbol
• Consumer experiences create brand bonding, brand
  advertising does not.

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Brand 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.

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Brand 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.

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Brand 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.

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Brand 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

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Brand 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

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Brand 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

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Brand 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

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Brand 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
  brands strengths and weaknesses.
• Changes in preferences or the presence of a new
  competitor may indicate a need for brand
  repositioning.

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Packaging 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.

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Packaging and Labeling

• Developing an effective package
• Determine the packaging concept
• Determine key package elements
• Testing
• Engineering tests
• Visual tests
• Dealer tests
• Consumer tests

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Packaging 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.