Managing Product Lines, Brands, and Packaging

Objectives Product Characteristics Building & Managing the Product Mix & Product Lines Brand Decisions Packaging & Labeling

Product Characteristics

Building & Managing the Product Mix & Product Lines

Brand Decisions

Packaging & Labeling

Components of the Market Offering Attractiveness of the market offering Value-based prices Services mix and quality Product features and quality

Five Product Levels Core benefit Potential product Augmented product Expected product Basic product

Consumer-Goods Classification Buy less frequently Gather product information Fewer purchase locations Compare for: Suitability & Quality Price & Style Special purchase efforts Unique characteristics Brand identification Few purchase locations New innovations Products consumers don’t want to think about. Require much advertising & personal selling Buy frequently & immediately Low priced Many purchase locations Includes: Staple goods Impulse goods Emergency goods Specialty Products Unsought Products Shopping Products Convenience Products

Buy less frequently

Gather product information

Fewer purchase locations

Compare for:

Suitability & Quality

Price & Style

Special purchase efforts

Unique characteristics

Brand identification

Few purchase locations

New innovations

Products consumers don’t want to think about.

Require much advertising &

personal selling

Buy frequently & immediately

Low priced

Many purchase locations

Includes:

Staple goods

Impulse goods

Emergency goods

Product Mix Width - number of different product lines Length - total number of items within the lines Depth - number of versions of each product Product Mix - all the product lines offered Consistency

Product-Line Length Line Stretching Downmarket Upmarket Two-way Line Filling Line Modernization Line Featuring & Line Pruning

Line Stretching

Downmarket

Upmarket

Two-way

Line Filling

Line Modernization

Line Featuring & Line Pruning

Two-Way Product-Line Stretch: Marriott Hotels Quality Economy Superior Standard Good Price High Above average Average Low Fairfield Inn (Vacationers) Courtyard (Salespeople) Marriott (Middle managers) Marriott Marquis (Top executives)

What is a Brand? Attributes Benefits Values Culture User Personality

Brand Equity No Brand Loyalty (customer will change) Satisfied Customer (no reason to change) Satisfied & Switching Cost Values the Brand (brand as friend) Devoted to Brand

An Overview of Branding Decisions Branding Decision Brand No brand Brand- Sponsor Decision Manu- facturer brand Distribu- tor (private) brand Licensed brand Brand- Name Decision Individual brand names Blanket family name Separate family names Company- individual names Brand- Repositioning Decision Reposi- tioning No reposi- tioning Brand- Strategy Decision Line extension Brand extension Multi- brands New brands Cobrands

Brand

No brand

Manu-

facturer

brand

Distribu-

tor

(private)

brand

Licensed

brand

Individual

brand

names

Blanket

family

name

Separate

family

names

Company-

individual

names

Reposi-

tioning

No

reposi-

tioning

Line

extension

Brand

extension

Multi-

brands

New

brands

Cobrands

Brand Strategies New Brands Brand Extension New Brand Name Product Category Line Extension Existing Existing Multibrands New

Good Brand Names: Suggest Product Benefits Distinctive Lack Poor Foreign Language Meanings Suggest Product Qualities Easy to: Pronounce Recognize Remember

Why Package Crucial as a Marketing Tool Self-service Consumer affluence Company & brand image Opportunity for innovation

Self-service

Consumer affluence

Company & brand image

Opportunity for innovation

Labels Identify Describe Promote

Review Product Characteristics Building & Managing the Product Mix & Product Lines Brand Decisions Packaging & Labeling

Product Characteristics

Building & Managing the Product Mix & Product Lines

Brand Decisions

Packaging & Labeling