1. Chapter Eight Product and Branding Strategy
With Duane Weaver
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OUTLINE
Products
Branding
Packaging
Labeling
Services
Responsibility Marketing
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Products Defined
Product: any market offering that is intended to satisfy a want or need.
Service: a type of product that is intangible and does not result in the ownership of anything.
Experience: a type of product that combines a service or physical product with a memorable experience.
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Levels of a Product
Core product or benefit.
Actual product.
Packaging, features, design, quality level, brand name.
Augmented product.
Warranty, delivery, credit, installation, service.
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5. Consumer Product Types
Convenience — Frequent purchase, easy buy, highly available, mass promotion.
Shopping — Less frequent, brand comparison, selective distribution and promotion.
Specialty — Strong brand preference, special effort, low price sensitivity, exclusive distribution, targeted promotion.
Unsought — Low awareness, new innovations, negative interest (don’t want to think about it), need lots of advertising and personal selling.
PLEASE GET INTO YOUR GROUPS: provide one example for each of the above Types (explain why you chose that one).
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6. Business Products Types
Materials and parts.
Raw and manufactured materials, parts.
Capital items.
Buildings and equipment used in buyer’s production or operations, long useful life.
Supplies and services.
Operating supplies, repair and maintenance items and services.
Chapter 8, page
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Product Decisions
Individual product decisions.
Product attributes.
Branding.
Packaging and labelling.
Product support services.
Product line decisions.
Product mix.
Line filling.
Line stretching.
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8. Product and Service Attributes
Quality.
Performance and satisfaction includes level and consistency.
Features.
Differentiates a product from the competition.
Assessed based on value and cost.
Style and design.
Style equals appearance: design is the heart of the product.
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Branding
Creating, maintaining, protecting and enhancing products and services.
A brand is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service.
Chapter 8, page
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Branding
Advantages to buyers.
Product identification.
Product quality.
Advantages to sellers.
Basis for product’s quality story.
Provides legal protection.
Helps to segment markets.
Chapter 8, page
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Packaging
Designing and producing the container or wrapper for a product.
Developing a good package.
Packaging concept.
Package elements.
Product safety.
Environmental concerns.
Chapter 8, page 304
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Labelling
Printed information appearing on or with the package.
Performs several functions:
Identifies product or brand.
Describes several things about the product.
Promotes the product through attractive graphics.
Chapter 8, page
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13. Product Support Services
Assess the value of current services and obtain ideas for new services.
Assess the cost of providing the services.
Put together a package of services that delights the customers and yields profits for the company.
IN YOUR GROUPS: think of a product you recently purchased. If you were the business, what other services could you bundle (without extra cost per se) that would have helped to “delight” the customer?
Chapter 8, page 307
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14. Product Line Decisions
Group of closely related products because they function in a similar manner and are sold to similar segments with similar marketing mixes.
Product line length refers to the number of items in the product line.
Line stretching.
Adding products to the line outside of current range.
Can stretch upwards, downwards or both ways.
Line filling.
Adding more products within current range.
Customers must see a difference or they will get confused by too many choices.
Chapter 8, page 307
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Product Mix Decisions
Product mix.
All of the product lines and items that a particular seller offers for sale.
Width.
Number of different product lines the company carries.
Depth.
Number of versions offered of each product in the line.
Consistency.
How closely related the various lines are.
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Brand Equity
The positive differential effect that knowing the brand name has on customer response to the product or service.
Provides:
More brand awareness and loyalty.
Basis for strong, profitable customer relationships.
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17. Major Brand Strategy Decisions
Brand positioning.
Attributes, benefits, beliefs and values.
Brand name selection.
Selection, protection.
Brand sponsorship.
Manufacturer’s brand, private brand, licensing, co-branding.
Brand development.
Line extension, brand extension, multi-brands, new brand.
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Brand Name Selection
It should suggest product’s benefits and qualities.
It should be easy to pronounce, recognize and remember.
It should be distinctive.
It should be extendable.
It should translate easily into foreign languages.
It should be capable of registration and legal protection.
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Four Brand Strategies
Line
extension
Brand
Multi- brands
New
brands
Existing
Product category
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Brand Management
Managing long-term brand equity.
Deliver a full brand experience to customers.
Train employees to deliver the brand experience.
Rebrand if needed to meet changing customer needs.
Appoint brand equity managers.
Chapter 8, page
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21. Service Characteristics
Intangibility.
Cannot be seen, tasted, felt or smelled before purchasing.
Inseparability.
Consumed when it is provided and cannot be separated from the provider.
Variability.
Quality depends on who provides.
Perishability.
Cannot be stored or resold.
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22. Major Service Marketing Tasks
Managing service differentiation.
Develop a differentiated offer, delivery and image.
Managing service quality.
Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.
Managing service productivity.
Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology.
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23. Responsible Product Decisions
Social responsibility in product decisions.
Things to consider:
Competition Act.
Hazardous Products Act.
Food and Drug Act.
Patent laws.
Issues for discontinuing products.
Legal and ethical dangers of defective product design.
Chapter 8, page 326
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Thank You for your time
To Brand or NOT to Brand?
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