©2003 Prentice Hall, Inc. Setting Product and Brand Strategy Chapter # 7

©2003 Prentice Hall, Inc. Chapter Outline –The Product and the Product Mix –Product Line Decisions –Brand Decisions

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 2 in Chapter 11 What is a Product?  Goods  Services  Experiences  Events  Persons  Places  Properties  Organizations  Information  Ideas

©2003 Prentice Hall, Inc. Basic Product Concepts  A product is a good, service, or idea –Tangible Attributes –Intangible Attributes  Product classification –Consumer goods –Industrial goods 10-3

©2003 Prentice Hall, Inc. 4 Product  A product is a bundle of utilities/ benefits/ features  e.g., Attributes of a cold drink are flavor, taste, quality as a thirst quencher, cool refreshment etc.  But different cold drink ’s have (emphasize) different product attributes intended to meet the demands of particular market segments. These products are now brands.

©2003 Prentice Hall, Inc. Product Line & Product Mix  “A Product line is a broad group of products, intended for similar uses and having similar characteristics.”  “The Product mix is the set of all products offered for sale by a company.” To accompany A Framework for Marketing Management, 2 nd Edition Slide 5 in Chapter 11

©2003 Prentice Hall, Inc. Product Mix Dimensions  A product mix has Four Dimensions: – Breadth - the number of product lines – Depth - number of product variants i.e. the variety of sizes, colors, and models offered within each product line. –Length: total number of items in mix –Consistency: degree to which product lines are related is the consistency of the product mix. To accompany A Framework for Marketing Management, 2 nd Edition Slide 6 in Chapter 11

©2003 Prentice Hall, Inc BREADTH (DIFFERENT LINES) Lawn mowersGardening toolsLawn furniture Power rotary Power reel Hand-powered DEPTH (ASSORTMENT WITHIN A LINE) Rakes Hoes Shovels Chairs Chaise lounges Benches Each in various sizes and prices Each in various sizes and prices Various sizes and prices in redwood or aluminium with plastic webbing Product Mix - An Example

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 8 in Chapter 11 Brand Definition  The AMA definition of a brand: “A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.”

©2003 Prentice Hall, Inc. 9 Brands Characteristics  Brand is a bundle of images and experiences in the customer’s mind.  The added value that accrues to a product as a result of investments in the marketing of the product.  An asset that represents value created by the relationship between the product and customer over time.  A promise made by a particular company about a particular product.  A quality certification.  Differentiation between competing products.  The sum of impressions about a brand is the “Brand Image.”

©2003 Prentice Hall, Inc. 10 Brands resulted from…

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 11 in Chapter 11 Brand Equity  “Brand equity refers to the positive differential effect that a brand name has on customers.”  Brand equity is the worth of a brand in customer’s mind  Brand equity: –is related to many factors. –allows for reduced marketing costs. –is a major contributor to customer equity.

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 12 in Chapter 11 Brand Equity  Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers to increase brand equity.  Valuable and powerful brands enjoy high levels of brand loyalty which ultimately results in high brand equity.

©2003 Prentice Hall, Inc. Branding Strategies 1- Individual Brands 2- Brand extensions 3- Line extensions 4- Co-branding 5- Multi Brands 6- Blanket (Family) Brands To accompany A Framework for Marketing Management, 2 nd Edition Slide 13 in Chapter 11

©2003 Prentice Hall, Inc Branding Strategies 1- Individual Brands: When there is no connections among brands.  Procter & Gamble (P&G) offered individual brands. 2- Brand Extension: It means when new and improved brands, with additives, new package size, new flavors are added in the brand. –Lifebuoy & Lifebuoy Gold, Pepsodent & Pepsodent G

©2003 Prentice Hall, Inc. Branding Strategies 3- Line extensions/ Combination or tied Branding: It allows marketers to leverage a company’s reputation while developing a distinctive identity for a line of products. –Samsung extended the product line of Personal use products and now offered iphones in the market. 4- Multi Brand (Proliferation): When organizations want to increase shelf space and market share, catch brand switchers and reach new segments –Sting energy drink offered by Pepsi Co. To accompany A Framework for Marketing Management, 2 nd Edition Slide 15 in Chapter 11

©2003 Prentice Hall, Inc Branding Strategies 5- Co-branding: It means when two or more brand names are used for one package & it features two or more companies product or brands. –Ingredient branding – Intel Inside –Cooperative branding – NutraSweet and Coca-Cola –Complementary branding – 7 & 7 6- Blanket (Family) Brands: It means when Brand acts as an umbrella for new products. –The LG Brands (LG split, oven, washing machine, TV, cell phone, camera etc) –The Sony Brands (Sony laptops, LCD, Camera etc)

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 17 in Chapter 11 Brand Decisions Key Challenges  To brand or not  Brand sponsor  Brand name  Brand strategy  Brand repositioning  Advantages of branding: –Facilitates order processing –Trademark protection –Aids/ help in segmentation –Enhances corporate image –Branded goods are desired by retailers and distributors

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 18 in Chapter 11 Brand Decisions Key Challenges  To brand or not  Brand sponsor  Brand name  Brand strategy  Brand repositioning  Options include: –Manufacturer (national) brand –Distributor (reseller, store, house, private) brand –Licensing the brand name

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 19 in Chapter 11 Brand Decisions Key Challenges  To brand or not  Brand sponsor  Brand name  Brand strategy  Brand repositioning  Strong brand names: –Suggest benefits –Suggest product qualities –Are easy to say, recognize, and remember –Are distinctive –Should not carry poor meanings in other languages

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 20 in Chapter 11 Brand Decisions Key Challenges  To brand or not  Brand sponsor  Brand name  Brand strategy  Brand repositioning  Varies by type of brand –Functional brands –Image brands –Experiential brands  Individual brands  Line extensions  Brand extensions  Multi Brands  Co-branding  Blanket (Family) Brands

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 21 in Chapter 11 Brand Decisions Key Challenges  To brand or not  Brand sponsor  Brand name  Brand strategy  Brand repositioning  Brand Repositioning means to move to a better segment when competition increased in current segment.  When customer preferences changed so the new segment opened up in a brand.  Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.  A brand report card can be used to audit a brand’s strengths and weaknesses.

©2003 Prentice Hall, Inc. END OF CHAPTER! To accompany A Framework for Marketing Management, 2 nd Edition Slide 22 in Chapter 11