Copyright © 2007 Pearson Education Canada Total Product Concept A product is a combination of tangible and intangible benefits. A young, rising executive buys a Mercedes not based on transportation needs. It is to display achievement and success. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Product Mix The range of products a company sells is called the product mix. The product mix is described in terms of items and lines and width and depth. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Product Mix Item A unique product offering A grouping of items with common attributes Line Width The number of lines Depth Number of items in line Copyright © 2007 Pearson Education Canada

Product Line Width and Depth Men’s Deodorant Women’s Antiperspirant Speed Stick 24/7 Speed Stick Lightening Speed Stick Cyclone Speed stick Ultimate Speed Stick Clear Lady Speed Clean Glide Lady Speed Stick Invisible Lady Speed Stick Aloe Lady Speed Stick Gel Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Consumer Goods “Goods purchased by consumers for personal use.” Convenience Goods Shopping goods Specialty Goods Unsought Goods Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Convenience Goods Impulse Goods Staple Goods Emergency Goods Key Marketing Considerations Brand Name Image Reputation Performance Low Price Availability Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Shopping Goods “Goods purchased on the basis of comparison.” Key Marketing Considerations Quality Price Style Suitability Dependability Service Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Specialty Goods “Goods possessing unique characteristics that a customer will make an effort to find.” Key Marketing Considerations Reputation Superior quality Selective location Image Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Business Goods “Goods that have a direct or indirect role in the manufacture of other goods.” Capital Items Parts and Materials Supplies and Services $ $ $ Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada What Is a Brand? “A product with a personality.” “A known entity that provides value.” “A promise that is conveyed publicly by everything a customer can observe.” “A set of product perceptions purchased by a consumer.” Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Branding Terms Brand Name, term, or symbol Brand Name Spoken part of brand Identifiable symbol or design Brandmark Legally protected part of brand identified by the symbol® Trademark Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Brand Name Strategies Individual Brand Multi-brand Family Brand Product/Company Co-brand National Brand Strategies Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Co-branding “Using the equity of one brand name to market another brand name product.” Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Private Label Brands Brands produced according to specifications established by the distributor. 1 in 5 products sold in a supermarket is a private label product. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Generic Brands “Products without a brand name or identifying feature.” They are often referred to as: No Name Yellow Label Copyright © 2007 Pearson Education Canada

Other Branding Options Licensed Brands Allowing another party to use your name: NHL, NBA Seizing the popularity of something or someone: Star Wars cereal Limited Brands Fringe brands with a unique and loyal following: Apple, Harley-Davidson Cult Brands Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Benefits of Branding Branding benefits consumers: Suggestion of quality Psychological rewards Distinguishing features allow comparison Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Benefits of Branding Branding benefits organizations: Create and nurture an image Communication of USP Builds loyalty Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Brand Communications Communications play a key role in building a brand image. Volkswagen “Drivers Wanted.” Nike “Just Do It.” MasterCard “Priceless” Copyright © 2007 Pearson Education Canada

Importance of Branding In many categories the top brand in 1925 is still the top brand today. Product Razors Soft Drinks Toothpaste Soap Crackers Brand Gillette Coca-Cola Colgate Ivory Nabisco Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Brand Loyalty “The degree of customer attachment to a brand.” Brand Recognition Brand Awareness Brand Insistence Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Brand Equity “The value a consumer derives from a brand.” Equity is influenced by factors such as: Name awareness Loyal customer base Perceived quality Association with a key attribute Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Brand Equity An organization defines equity in terms of monetary value. What is the brand worth as an asset? Global Brand Values Coca-Cola $67.4 Microsoft 61.4 IBM 53.8 GE 44.1 Intel 33.5 5. Disney $27.1 McDonald’s 25.0 Nokia 24.0 Toyota 22.7 Marlboro 22.1 Source: “Top 100 Brands,” Business Week, August2, 2004. Copyright © 2007 Pearson Education Canada

Components of a Package Package decisions are critical since a majority of buying decisions are made at point-of-sale. Primary package Secondary package Label Shipping container Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Packaging Communications start and end with the package. A good package: Protects the product Markets the product Provides convenience Meets social concerns Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Labelling Strategies A label communicates essential information to differentiate one brand from another. Brand Name Illustration Directions Mandatory Information Marketing Information UPC Copyright © 2007 Pearson Education Canada