Chapter 11 Product and Brand Decisions

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Basic Product Concepts A product can be defined as –a collection of physical, psychological, service, and symbolic attributes that collectively yield satisfaction, or benefits, to a buyer or user

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Product Types Consumer vs. industrial products Convenience, preference, shopping, specialty goods Durable, nondurable, disposable products

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Brands A brand represents a promise by a particular company about a particular product –Brand image is a mental image about both the physical product and the company that markets the product –Brand equity reflects the brand’s value to a company as an intangible asset`

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Global Products and Brands A global product meets the wants and needs of a global market A global brand has the same name and a similar image and positioning throughout the world (e.g. Coca-Cola, Nike, Gillette)

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Global Products and Brands Combination or tiered branding is using a corporate name combined with a product brand name (e.g. Sony Walkman) Cobranding is branding in which two or more different company or product brands are featured prominently on product packaging or in advertising (Dell and Intel)

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Strategic Alternatives in Global Marketing Extension Strategy –Calls for marketing a standardized product, using a standardized communication approach in multiple markets Adaptation Strategy –Involves changing elements of design, function, packaging in response to needs or conditions in particular country markets

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Global Product Planning: Strategic Alternatives Strategy 1: Dual Extension Same Different SameDifferent Communication Product Strategy 2: Product Extension/ Comm. Adaptation Strategy 4: Dual Adaptation Strategy 3: Product Adaptation/ Comm. Extension

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Global Product Planning: Strategic Alternatives Strategy 1: Product-Communication Extension (Dual Extension) –Campbell Soup failed in United Kingdom but succeeded in Japan. Why? Strategy 2: Product Extension- Communication Adaptation –Bicycles and motor scooters in different countries

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Global Product Planning: Strategic Alternatives Strategy 3: Product Adaptation- Communication Extension –Soap and detergent manufacturers in Japan Strategy 4: Product-Communication Adaptation (Dual Adaptation) –Unilever’s experience with fabric softener in Europe (different brand and different messages for each region)

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 Global Product Planning: Strategic Alternatives Strategy 5: Product Invention –Invention is a demanding but potentially rewarding product strategy for reaching mass markets in less developed countries

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 New Products in Global Marketing Identifying New Product Ideas –Discontinuous Innovations Entirely new inventions or innovations that require a relatively large amount of learning on the part of users (e.g. VCRs) –Dynamically Continuous Innovations An intermediate category of newness that is less disruptive and requires less learning on the part of consumers (e.g. Gillette’s shaving system)

2002 – Chapter 11Andrew P. Yap - FIU – MAR 4156 New Products in Global Marketing Continuous Innovation –Products that are typically “new and improved” versions –Often take the form of line extensions, such as new sizes, flavors, and low-fat versions