12. Developing & Managing Products & Brands

Product Decisions Product attributes –Quality, features (performance), design (appearance) Branding –Brand name, mark; trademark –Brand loyalty (awareness, preference, insistence) –Brand equity (Y&R: differentiation, relevance, esteem, knowledge) –Brand sponsorship Manufacturer’s brand/national brand –Captive brand Private brand/store brand Licensed brand Co-branding

Product Decisions (Cont.) Brand strategy –Line extensions, brand extensions, multiproduct (blanket/family) brands, multibrands (individual brands), mixed brands, generics –Corporate brands, sub-brands, brand variants Packaging –Primary container, secondary package, shipping package –Packaging concept –Labeling –Product support services

Growth Strategy Market-Product Growth Grid Strategies include: –Market penetration –Market development –Product development –Diversification

New Product Development Process Steps to consider: –Idea generation –Idea screening and evaluation –Business analysis Concept development & testing Marketing strategy development –Product development –Test marketing –Commercialization

New Product Development Process (Cont.) Idea generation –New product ideas must align with firm’s strategic objectives –Market(s) for new product ideas must be accurately identified –Sources of ideas Internal sources –Cross-functional new product departments –Cross functional venture teams Competitors Marketing channel members Customers

New Product Development Process (Cont.) Idea screening and evaluation –Focus on rating & evaluating ideas Internal evaluation –I.e., technical & cost feasibility –Frequently performed by new product department –Sometimes performed by new product committee

New Product Development Process (Cont.) Business analysis –Review & assessment of sales, costs, & profit projections re. firm’s objectives –Concept development Product idea Product concept Product image –Concept testing External evaluation of new product concept Products presented symbolically to consumers

New Product Development Process (Cont.) Business analysis (cont.) –Marketing strategy development Marketing strategy statement –States planned strategy & intended target market –Outlines planned price, distribution, & marketing budget for 1st year –Describes planned long-term sales, profit goals, & marketing mix strategy –Brand manager/product manager’s role: pricing & promotion –Category managers: like brand/product managers, but have profit/loss responsibility

New Product Development Process (Cont.) Product development –Prototypes developed –Product testing carried out Test marketing –Three approaches: Standard test markets Controlled test markets Simulated test markets Commercialization –Rollout