Foundations of Marketing David Jobber and John Fahy

1. © The McGraw-Hill Companies, 2009 1 Foundations of Marketing David Jobber and John Fahy

2. © The McGraw-Hill Companies, 2009 2

3. © The McGraw-Hill Companies, 2009 3 Products A product is anything capable of satisfying customers needs. It exists on three levels:

4. © The McGraw-Hill Companies, 2009 4 The Levels of Product

5. © The McGraw-Hill Companies, 2009 5 The Difference Between a Product and a Brand Branding is the process by which companies distinguish their product offerings from the competition. Branding permits customers to develop associations (e.g. status, prestige) with products, which eases the purchase decision. Note: Replace add on the Daewoo with exhibit 6.1 (Mercedes-Benz)Note: Replace add on the Daewoo with exhibit 6.1 (Mercedes-Benz)

6. © The McGraw-Hill Companies, 2009 6

7. © The McGraw-Hill Companies, 2009 7 The Benefits of Brands Company value Consumer preference and loyalty Barrier to competition High profits Base for brand extensions Note: New SlideNote: New Slide

8. © The McGraw-Hill Companies, 2009 8 Building Brands This involves making decisions about the following: Naming brands Developing brands Note: New SlideNote: New Slide

9. © The McGraw-Hill Companies, 2009 9 Brand Name Considerations: A good brand name should: Evoke positive association Be easy to pronounce and remember Suggest product benefits Be distinctive Use numerals when emphasising technology Not infringe an existing registered brand name

10. © The McGraw-Hill Companies, 2009 10 Brand Name Strategies and Choices

11. © The McGraw-Hill Companies, 2009 11 The Anatomy of Brand Positioning

12. © The McGraw-Hill Companies, 2009 12 Brand Management Issues Manufacturer brands versus own-label brands Brand extension and stretching Pan–European and global branding Co-branding Note: added co-brandingNote: added co-branding

13. © The McGraw-Hill Companies, 2009 13 Anadin Has successfully extended its core brand to appeal to different market segments Replace current advert with exhibit 1.1 (Polaroid)Replace current advert with exhibit 1.1 (Polaroid)

14. © The McGraw-Hill Companies, 2009 14 The Boston Consulting Group Growth-Share Matrix

15. © The McGraw-Hill Companies, 2009 15 Strategic Objectives and theBoston Box

16. © The McGraw-Hill Companies, 2009 16 Strategic Objectives and theBoston Box

17. © The McGraw-Hill Companies, 2009 17 Strategic Objectives and theBoston Box

18. © The McGraw-Hill Companies, 2009 18 Strategic Objectives and theBoston Box

19. © The McGraw-Hill Companies, 2009 19 The Product Life Cycle

20. © The McGraw-Hill Companies, 2009 20 What is a New Product?

21. © The McGraw-Hill Companies, 2009 21 The Seven-Stage New Product Development Process

22. © The McGraw-Hill Companies, 2009 22 Green and Black’s Are prospering in a market where sales of dark chocolate are rising faster than milk chocolate Replace current advert with exhibit 1.1 (Polaroid)Replace current advert with exhibit 1.1 (Polaroid)

23. © The McGraw-Hill Companies, 2009 23 Diffusion of Innovations

24. © The McGraw-Hill Companies, 2009 24 Product Management Issues Product safety Planned obsolescence Deceptive packaging

25. © The McGraw-Hill Companies, 2009 25 Chapter Summary A product is anything that is capable of satisfying customer needs. Brands are the means by which companies differentiate their offerings from those of the competitors. The key to developing a brand is the brand name and the positioning of the brand. Brand management may involve dealing with own-label brands, brand extension, pan-European, global and co-branding decisions. Portfolio planning and the product life cycle are important for the management of a diverse group of products and brands. New product development should be carefully managed throughout the development process. Product safety, packaging and labelling decisions can present management with challenges.