Chapter 6: Product and Brand strategy

6 basic issues in product strategy Product definition: the way in which the product variable is defined can have important implications for the survival, profitability, and long-run growth of the firm. Product classification: can be useful to the marketing manager as an analytical device to assist in planning marketing strategy and programs. Products are classed according to two basic criteria: end use or market and degree of processing or physical transformation. Product quality and value: Quality: can be defined as the degree of excellence or superiority that an organization’s product possesses. Value can be defined as what the customer gets in exchange for what the customer gives. Product mix and product lines: Product mix: is the full set of products offered for sale by the organization and a product mix may consist of several product lines, or groups of products that share common characteristics, distribution channels, customers, or uses. Branding and brand equity: the brand name is perhaps the single most important element on the package, serving as a unique identifier. Line extension Brand extension Franchise extension Packaging: distinctive or unique packaging is one method of differentiating a relatively homogeneous product.

Product life cycle and product audit Forces management to take a long-range view of marketing planning. Does not predict how long a product category will remain in any one stage A tool to help marketers understand where their product is now what may happen which strategies are normally appropriate. The product audit: is a marketing management technique. Deletions: many products are competing for limited shelf space. So organizations have to detect sick products and then bury them. Product improvement: is the top-level management decision. Implementing a product improvement decision will valuable product-improvement tool.