1. Chapter Seven Product Positioning, Branding, and Product Line Strategies

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-2 Product Positioning, Branding, and Product Line Strategies Product positioning Product positioning and differentiation Branding and brand management strategies Brand equity Brand and product line strategies

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-3 Branding Benefits of branding: –High brand awareness –Emotional connection –Brand loyalty –Price premiums –Product line extensions A BRAND is a name or symbol used to identify the source of a product.

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-4 Product Positioning What is product positioning? Why is it important to determine a product positioning strategy? What is the goal of a positioning strategy? How does the positioning strategy affect market share? Market Share = X Marketing Efforts Product Position

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-5 Product Positioning and Market Share Figure 7-5 Product-Price Position, Marketing Efforts, and Market Share

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-6 Product Positioning Strategies Figure 7-7 Product Positioning Strategies

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-7 Product Positioning Strategies Price Leadership vs. Product Differentiation When is price leadership appropriate? When is differentiation appropriate? Types of differentiation Brand Benefits Service Benefits Product Benefits Trans- action Costs Price Customer Value Brand Differentiation Service Differentiation Product Differentiation

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-8 Brand Differentiation What is brand identity? How do firms develop brand identity? What is brand encoding?

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-9 Brand Assets and Liabilities Brand Assets –Brand awareness –Emotional connection –Brand loyalty –Product line extensions –Price premium Brand Liabilities –Customer dissatisfaction –Product or service failures –Questionable practices –Poor record on social issues –Negative associations

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-10 Brand Equity Figure 7-15 Brand Balance Sheet and Brand Equity

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-11 Broad vs. Narrow Product Line Figure 7-16 Breadth of Product Line and Return on Invested Assets

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-12 Product Line Development How do firms expand their product line? –Flanker brands –Umbrella brands –New brands How do flanker brands benefit from umbrella brands? –Brand awareness –Known quality –Market reach –Product mix

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-13 Product Line Extensions and Enhancements Vertical brand-line extensions Horizontal brand-line extensions New product-market brand extensions Co-branding

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-14 Bundling and Unbundling Strategies Product bundling –Pure product bundling –Mixed bundling Product unbundling Effects of all product-line enhancements –Scale –Substitution

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-15 Review Product positioning Product positioning and differentiation Branding and brand management strategies Brand equity Brand and product line strategies

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-16 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall