Chapter Seven Product Positioning, Branding, and Product Line Strategies

Product Positioning, Branding, and Product Line Strategies Product positioning and differentiation Branding and brand management strategies Brand equity Brand and product line strategies

Branding A BRAND is a name or symbol used to identify the source of a product. Benefits of branding: High brand awareness Emotional connection Brand loyalty Price premiums Product line extensions

Product Positioning What is product positioning? Why is it important to determine a product positioning strategy? What is the goal of a positioning strategy? How does the positioning strategy affect market share? Market Share Product Position Marketing Efforts = X

Product Positioning and Market Share Figure 7-5 Product-Price Position, Marketing Efforts, and Market Share

Product Positioning Strategies Figure 7-7 Product Positioning Strategies

Product Positioning Strategies Price Leadership vs. Product Differentiation When is price leadership appropriate? When is differentiation appropriate? Types of differentiation Brand Benefits Service Benefits Product Benefits Trans-action Costs Price Customer Value Brand Differentiation Service Differentiation Product Differentiation

Brand Differentiation What is brand identity? How do firms develop brand identity? What is brand encoding?

Brand Assets and Liabilities Brand awareness Emotional connection Brand loyalty Product line extensions Price premium Brand Liabilities Customer dissatisfaction Product or service failures Questionable practices Poor record on social issues Negative associations

Figure 7-15 Brand Balance Sheet and Brand Equity

Broad vs. Narrow Product Line Figure 7-16 Breadth of Product Line and Return on Invested Assets

Product Line Development How do firms expand their product line? Flanker brands Umbrella brands New brands How do flanker brands benefit from umbrella brands? Brand awareness Known quality Market reach Product mix

Product Line Extensions and Enhancements Vertical brand-line extensions Horizontal brand-line extensions New product-market brand extensions Co-branding

Bundling and Unbundling Strategies Product bundling Pure product bundling Mixed bundling Product unbundling Effects of all product-line enhancements Scale Substitution

Review Product positioning Product positioning and differentiation Branding and brand management strategies Brand equity Brand and product line strategies

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