Chapter 11

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

2. 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. To accompany A Framework for Marketing Management, 2nd Edition

3. Goods Services Experiences Events Persons Places Properties Organizations Information Ideas What is a Product? To accompany A Framework for Marketing Management, 2nd Edition

4. 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 To accompany A Framework for Marketing Management, 2nd Edition

5. The Product and Product Mix • The customer value hierarchy: • Core benefit • Basic product • Expected product • Augmented product • Potential product To accompany A Framework for Marketing Management, 2nd Edition

6. 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 The Product and Product Mix To accompany A Framework for Marketing Management, 2nd Edition

7. Product Classifications Durability and tangibility Consumer goods Industrial goods Classified by shopping habits: Convenience goods Shopping goods Specialty goods Unsought goods The Product and Product Mix To accompany A Framework for Marketing Management, 2nd Edition

8. Product Classifications 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 The Product and Product Mix To accompany A Framework for Marketing Management, 2nd Edition

9. 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 To accompany A Framework for Marketing Management, 2nd Edition

10. Product-Line Decisions • Product-Line Analysis • Product-Line Length • Product-Line Modernization, Featuring, and Pruning To accompany A Framework for Marketing Management, 2nd Edition

11. 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.” To accompany A Framework for Marketing Management, 2nd Edition

12. Brand Decisions • Brands can convey six levels of meaning: • Attributes • Benefits • Values • Culture • Personality • User To accompany A Framework for Marketing Management, 2nd Edition

13. Brand Decisions • Brand identity decisions include: • Name • Logo • Colors • Tagline • Symbol • Consumerexperiences create brand bonding, brand advertising does not. To accompany A Framework for Marketing Management, 2nd Edition

14. 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. To accompany A Framework for Marketing Management, 2nd Edition

15. 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. To accompany A Framework for Marketing Management, 2nd Edition

16. 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. To accompany A Framework for Marketing Management, 2nd Edition

17. 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 Brand Decisions To accompany A Framework for Marketing Management, 2nd Edition

18. 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 Brand Decisions To accompany A Framework for Marketing Management, 2nd Edition

19. 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 Brand Decisions To accompany A Framework for Marketing Management, 2nd Edition

20. 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 Brand Decisions To accompany A Framework for Marketing Management, 2nd Edition

21. 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. Brand Decisions To accompany A Framework for Marketing Management, 2nd Edition

22. 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. To accompany A Framework for Marketing Management, 2nd Edition

23. Packaging and Labeling • Developing an effective package: • Determine the packaging concept • Determine key package elements • Testing: • Engineering tests • Visual tests • Dealer tests • Consumer tests To accompany A Framework for Marketing Management, 2nd Edition

24. 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. To accompany A Framework for Marketing Management, 2nd Edition