1. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 0 in Chapter 11 PowerPoint by Karen E. James Louisiana State University - Shreveport Chapter 11 Setting Product and Brand Strategy

2. ©2003 Prentice Hall, Inc. Pengertian  Product → anything that can be offered to a market to satisfy a need or want  Produk → segala sesuatu yang dapat ditawarkan ke pasar untuk memuaskan kebutuhan atau keinginan  Produk dapat berupa : –Barang berwujud –Jasa / Pelayanan

3. ©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

4. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 3 in Chapter 11 The Product and Product Mix Figure 11-1: Components of the Market Offering

5. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 4 in Chapter 11 The Product and Product Mix Figure 11-2: Five Product Levels

6. ©2003 Prentice Hall, Inc. Product Level  Core Benefit → Manfaat inti suatu produk  Basic Product → Produk Dasar  Expected Product (Brand, Quality, Package, Features, Design)  Augmented Product (Installation, After- Sales Service, Delivery, Credit, Warranty)  Potential Product

7. ©2003 Prentice Hall, Inc. Basic Product

8. ©2003 Prentice Hall, Inc. Expected Product

9. ©2003 Prentice Hall, Inc. Augmented Product

10. ©2003 Prentice Hall, Inc. Potential Product

11. ©2003 Prentice Hall, Inc. Tingkatan Produk  Setiap tingkat dalam product level terdapat peningkatan nilai-nilai pelanggan (customer value)  Setiap peningkatan membutuhkan biaya  Customer value senantiasa berubah, maka ada kemungkinan pergeseran tingkatan pada produk level, terutama antara expected product dan augmented product

12. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 11 in Chapter 11 The Product and Product Mix Product Classifications  Durability and tangibility  Consumer goods  Industrial goods  Nondurable –Tangible –Rapidly consumed –Example: Milk  Durable –Tangible –Lasts a long time –Example: Oven  Services –Intangible –Example: Tax preparation

13. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 12 in Chapter 11 The Product and Product Mix Product Classifications  Durability and tangibility  Consumer goods  Industrial goods  Classified by shopping habits: –Convenience goods –Shopping goods –Specialty goods –Unsought goods

14. ©2003 Prentice Hall, Inc. Klasifikasi Produk Konsumen 1.Convenience Goods → Produk yang sering dan cepat dibeli oleh konsumen, banyak tersedia, harga murah, usaha minimal 2.Shopping Goods → Produk yang tidak terlalu sering dibeli, dalam proses pembeliannya memerlukan seleksi dalam hal kualitas, selera, kebutuhan, harga 3.Specialty Goods → Produk dengan karakteristik tertentu, jarang dibeli, harga mahal, perlu usaha maksimal dalam proses pembeliannya 4.Unsought Goods → Produk yang sangat jarang dibeli, tidak pernah terpikirkan sebelumnya

15. ©2003 Prentice Hall, Inc. Convenience Goods

16. ©2003 Prentice Hall, Inc. Shopping Goods

17. ©2003 Prentice Hall, Inc. Specialty Goods

18. ©2003 Prentice Hall, Inc. Unsought Goods

19. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 18 in Chapter 11 The Product and Product Mix Product Classifications  Durability and tangibility  Consumer goods  Industrial goods  Materials and parts –Farm products –Natural products –Component materials –Component parts  Capital items –Installations –Equipment  Supplies and business services –Maintenance and repair –Advisory services

20. ©2003 Prentice Hall, Inc. Klasifikasi Produk Industri  Material and Parts –Raw Materials (Bahan Mentah) –Manufactured Materials & Parts (Suku Cadang)  Capital Items –Installation (Instalasi) → gedung, kantor –Equipment (Perlengkapan) → lift, computer  Supplies and Services → Produk barang & jasa yang tidak tahan lama, yang membantu pengembangan produk jadi

21. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 20 in Chapter 11 The Product and Product Mix Product Mix Width Product Mix Depth Product Mix Length Product Mix Consistency Product Mix Decisions

22. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 21 in Chapter 11 The Product and Product Mix What is Heinz’s product mix width, depth, and length? Are the brands listed on the web consistent?

23. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 22 in Chapter 11 Product-Line Decisions Product-line analysis Product-line length Product-Line Modernization, Featuring, and Pruning

24. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 23 in Chapter 11 Brand Decisions  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.”

25. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 24 in Chapter 11 PersonalityCulture Brand Decisions Levels of Meaning Conveyed by Brands Value User Attributes Benefits

26. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 25 in Chapter 11 Discussion Scenario Think about BMW for a moment. Discuss the various levels of brand meaning (attribute, benefits, values, culture, personality, user) that you associate with the BMW brand of car.

27. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 26 in Chapter 11 Brand Decisions NameLogo ColorsTagline Symbol Brand Identity Decisions

28. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 27 in Chapter 11 Brand Decisions  Consumer experiences create brand bonding, brand advertising does not.  Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers.  Valuable and powerful brands enjoy high levels of brand loyalty.

29. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 28 in Chapter 11 Brand Decisions Consumer Attitudes Toward Brands Satisfied – no reason to change Willing to change brands – No brand loyalty Satisfied – switching would incur costs Values brand, sees it as a friend Devoted to the brand Attitudes Towards Brands

30. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 29 in Chapter 11 Discussion Scenario Identify a brand that you feel some or strong loyalty toward, as well as a brand toward which you feel little or no loyalty. Which specific attitude of those previously listed describes your attitude toward each of these brands? What specific actions could a marketer take to enhance the level of loyalty you feel toward each brand?

31. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 30 in Chapter 11 Brand Decisions  Brand equity refers to the positive differential effect that a brand name has on customers.  Brand equity: –is related to many factors. –allows for reduced marketing costs. –is a major contributor to customer equity.

32. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 31 in Chapter 11 Brand Decisions Figure 11-3: An Overview of Branding Decisions

33. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 32 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 in segmentation –Enhances corporate image –Branded goods are desired by retailers and distributors

34. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 33 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

35. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 34 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

36. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 35 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  Line extensions  Brand extensions  Multibrands  New brands  Co-branding

37. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 36 in Chapter 11 Brand Decisions Key Challenges  To brand or not  Brand sponsor  Brand name  Brand strategy  Brand repositioning  A brand report card can be used to audit a brand’s strengths and weaknesses.  Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.

38. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 37 in Chapter 11 Packaging and Labeling Secondary Package Primary Package Shipping Package Packaging Aspects

39. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 38 in Chapter 11 Packaging and Labeling  Developing an effective package: –Determine the packaging concept –Determine key package elements –Testing: Engineering tests Visual tests Dealer tests Consumer tests

40. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 39 in Chapter 11 Packaging and Labeling May Promote the Product Functions of Labeling May Describe the Product May Identify Product Grade Identifies the Product or Brand

41. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 40 in Chapter 11 Discussion Scenario Packaging and labeling can help stimulate impulse purchasing at the point-of-sale, and trail of new brands. In addition to being visually pleasing, how can packaging and labeling help to promote the product or other brands marketed by the parent company?