Chapter 14Setting the Product andBranding Strategyby                                PowerPoint by                         ...
Kotler onMarketingThe best way to holdcustomers is toconstantly figure outhow to give themmore for less.            www.bo...
Chapter ObjectivesIn this chapter, we focus on the followingquestions:  What are the characteristics of products?  How can...
The Product and the      Product MixProduct                               Figure 14.1: Components  Physical goods         ...
The Product and the        Product MixProduct levels                                            Figure 14.2: Five  Custome...
BabyCenter is not just an online merchant, it’s a metamediary      www.bookfiesta4u.blogspot.com   11-426
The Product and the         Product Mix  Consumption system  Potential product            General Mills’ Mycereal.comProdu...
The Product and the        Product Mix  Product system  Product mixProduct classifications  Durability and Tangibility  Cl...
The Product and the      Product MixConsumer-Consumer-Goods Classification:  Convenience goods     Staples     Impulse goo...
The Product and the      Product MixIndustrial-Industrial-Goods Classification  Materials and parts     Farm products     ...
The Product and the      Product MixSupplies and business services  Maintenance and  repair items  Operating supplies  Mai...
The Product and the      Product MixProduct mix (Productassortment)  Product mix has a certain:    Width    Length    Dept...
Table 14.1: Product-Mix Width and Product-Line         Length for Proctor& Gamble Products                                ...
The Product and the         Product MixProduct-Product-line decisions  Product-  Product-line analysis    Sales and Profit...
The Product and the          Product Mix    Market profileFigure 14.4:Product Mapfor aPaper-ProductLine                www...
The Product and the         Product MixProduct-Product-line length  Line Stretching    Downmarket Stretch       The compan...
Kmart has entered into branding anddistribution agreements with celebrities likeKate Smith for women’s apparel and MarthaS...
The Product and the    Product MixLine Filling                  Brand decisions  Just-  Just-noticeable                  W...
The Product and the        Product MixCommonly used research approachesto determine brand meaning:  Word associations  Per...
The Product and the      Product MixBuilding Brand Identity  Brand bonding    Brands are not built by advertising    but b...
The Product and the           Product MixBuilding Brands in the new economy Heidi and Don Schultz urge companies to:   Cla...
The Product and the        Product MixBrand Equity  Brand awareness  Brand acceptability  Brand preference    Aaker’s five...
The Product and the       Product MixValue of Brand Equity  Brand valuation  Competitive advantages of high brand equity: ...
The Product and the Product Mix    Managing Brand Equity  Branding Challenges    Branding Decision: To Brand or Not to Bra...
When is a brand more than just a brand?Have you ever based a purchasing decisionprimarily on the brand? Was it because ofs...
The Product and the       Product MixBranding gives the seller several advantages:  Brand name makes it easier for the sel...
The Product and the    Product MixBrand-Brand-Sponsor Decisions  Manufacturer brand  Distributor brand  Licensed brand nam...
The Product and the    Product MixBrand-Brand-Name Decision  Four available strategies:     Individual names     Blanket f...
The Product and the      Product MixDesirable qualities for a brand name  It should suggest something about the product’s ...
The Product and the      Product MixBrand building tools  Public relations and                Public facilities  press rel...
Nike’s arrangement with Michael Jordanhas provided an excellent example of acelebrity endorsement. Can you think ofan endo...
The Product and the    Product Mix Brand Strategy Decision      Functional brand      Image brand      Experimental      b...
The Product and the    Product Mix  Multibrands, New Brands, and  Co-Brands  Co-     Multibrand         Flanker Bands     ...
The Product and the    Product Mix Brand Asset Management Brand Auditing and Repositioning   Brand report card       www.b...
The Product and the      Product MixPackaging and Labeling  Packaging  Package    Primary Package    Secondary Package    ...
The Product and the    Product MixLabeling  Functions     Identification     Grading     Description  Consumerists have lo...
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  1. 1. Chapter 14Setting the Product andBranding Strategyby PowerPoint by Milton M. Pressley University of New Orleans www.bookfiesta4u.blogspot.com 11-421
  2. 2. Kotler onMarketingThe best way to holdcustomers is toconstantly figure outhow to give themmore for less. www.bookfiesta4u.blogspot.com 11-422
  3. 3. Chapter ObjectivesIn this chapter, we focus on the followingquestions: What are the characteristics of products? How can a company build and manage its product mix and product lines? How can a company make better brand decisions? How can packaging and labeling be used as marketing tools? www.bookfiesta4u.blogspot.com 11-423
  4. 4. The Product and the Product MixProduct Figure 14.1: Components Physical goods of the Market Offering Services Experiences Events Persons Places Properties Organizations Information Ideas www.bookfiesta4u.blogspot.com 11-424
  5. 5. The Product and the Product MixProduct levels Figure 14.2: Five Customer value Product Levels hierarchy Core benefit Basic product Expected product Augmented product www.bookfiesta4u.blogspot.com 11-425
  6. 6. BabyCenter is not just an online merchant, it’s a metamediary www.bookfiesta4u.blogspot.com 11-426
  7. 7. The Product and the Product Mix Consumption system Potential product General Mills’ Mycereal.comProduct hierarchy Web site Need family Product family Product class Product line Product type Item www.bookfiesta4u.blogspot.com 11-427
  8. 8. The Product and the Product Mix Product system Product mixProduct classifications Durability and Tangibility Classification: Nondurable goods Durable goods Services www.bookfiesta4u.blogspot.com 11-428
  9. 9. The Product and the Product MixConsumer-Consumer-Goods Classification: Convenience goods Staples Impulse goods Emergency goods Shopping goods Homogeneous shopping goods Heterogeneous shopping goods Specialty goods Unsought goods www.bookfiesta4u.blogspot.com 11-429
  10. 10. The Product and the Product MixIndustrial-Industrial-Goods Classification Materials and parts Farm products Natural products Manufactured materials and parts Component materials Component parts Capital items Installations Equipment www.bookfiesta4u.blogspot.com 11-430
  11. 11. The Product and the Product MixSupplies and business services Maintenance and repair items Operating supplies Maintenance and repair services Business advisory services www.bookfiesta4u.blogspot.com 11-431
  12. 12. The Product and the Product MixProduct mix (Productassortment) Product mix has a certain: Width Length Depth Consistency www.bookfiesta4u.blogspot.com 11-432
  13. 13. Table 14.1: Product-Mix Width and Product-Line Length for Proctor& Gamble Products Product- Product-Mix Width Disposable Paper Detergents Toothpaste Bar Soap Diapers Tissue Ivory Snow Gleem (1952) Ivory Pampers Charmin (1930) (1879) (1961) (1928) Crest (1955)PRODUCT-PRODUCT- Dreft Kirk’s Luvs PuffsLINE (1933) (1885) (1976) (1960)LENGTH Tide Lava Banner (1946) (1893) (1982) Cheer Camay Summit (1950) (1926) (1992) See text for complete table 11-433 www.bookfiesta4u.blogspot.com
  14. 14. The Product and the Product MixProduct-Product-line decisions Product- Product-line analysis Sales and Profits Four types of product classes: Core product Staples Specialties Convenience items www.bookfiesta4u.blogspot.com 11-434
  15. 15. The Product and the Product Mix Market profileFigure 14.4:Product Mapfor aPaper-ProductLine www.bookfiesta4u.blogspot.com 11-435
  16. 16. The Product and the Product MixProduct-Product-line length Line Stretching Downmarket Stretch The company may notice strong growth opportunities as mass retailers attract a growing number of shoppers The company may wish to tie up lower-end competitors lower- who might otherwise try to move upmarket The company may find that the middle market is stagnating or declining Upmarket Stretch Two- Two-Way Stretch www.bookfiesta4u.blogspot.com 11-436
  17. 17. Kmart has entered into branding anddistribution agreements with celebrities likeKate Smith for women’s apparel and MarthaStewart in house wares, gardening supplies,etc. Is this an upmarket stretch, adownmarket stretch or a two-way stretch two-for Kmart? www.bookfiesta4u.blogspot.com 11-437
  18. 18. The Product and the Product MixLine Filling Brand decisions Just- Just-noticeable What is brand? difference AttributesLine Modernization, Benefitsfeaturing, and Valuespruning Culture Personality User www.bookfiesta4u.blogspot.com 11-438
  19. 19. The Product and the Product MixCommonly used research approachesto determine brand meaning: Word associations Personifying the brand Laddering up the brand essence Brand essence Laddering up www.bookfiesta4u.blogspot.com 11-439
  20. 20. The Product and the Product MixBuilding Brand Identity Brand bonding Brands are not built by advertising but by the brand experience Everyone in the company lives the brand Three ways to carry on internal branding – Employees must Understand Desire, and Deliver on the brand promise www.bookfiesta4u.blogspot.com 11-440
  21. 21. The Product and the Product MixBuilding Brands in the new economy Heidi and Don Schultz urge companies to: Clarify the corporation’s basic values and build the corporate brand. Use brand managers to carry out the tactical work. Develop a more comprehensive brand-building plan. brand- Define the brand’s basic essence to be delivered wherever it is sold. Use the brand-value proposition as the key driver of the company’s brand- strategy, operations, services, and product development. Measure their brand-building effectiveness, not by the old measures brand- of awareness, recognition, and recall, but by a more comprehensive set of measures including customer-perceived value, customer customer- satisfaction, customer share of wallet, customer retention, and customer advocacy. www.bookfiesta4u.blogspot.com 11-441
  22. 22. The Product and the Product MixBrand Equity Brand awareness Brand acceptability Brand preference Aaker’s five levels of customer attitude: The customer will change brands, especially for price reasons. No brand loyalty. Customer is satisfied. No reason to change brands. Customer is satisfied and would incur cost by changing brand. Customer values the brand and sees it as a friend. Customer is devoted to the brand. www.bookfiesta4u.blogspot.com 11-442
  23. 23. The Product and the Product MixValue of Brand Equity Brand valuation Competitive advantages of high brand equity: The company will have more leverage in bargaining with distributors and retailers because customers expect them to carry the brand. The company can charge a higher price than its competitors because the brand has higher perceived quality. The company can more easily launch extensions because the brand name carries high credibility. The brand offers some defense against price competition. www.bookfiesta4u.blogspot.com 11-443
  24. 24. The Product and the Product Mix Managing Brand Equity Branding Challenges Branding Decision: To Brand or Not to Brand? www.bookfiesta4u.blogspot.com 11-444
  25. 25. When is a brand more than just a brand?Have you ever based a purchasing decisionprimarily on the brand? Was it because ofsome perceived quality difference, or was itbased on the expectation of how otherswould see or treat you? Have you ever seensomeone buying a givenbrand of an item in anattempt to be seen as “cool”? www.bookfiesta4u.blogspot.com 11-445
  26. 26. The Product and the Product MixBranding gives the seller several advantages: Brand name makes it easier for the seller to process orders and track down problems Seller’s brand name and trademark provide legal protection of unique product features Branding gives the seller the opportunity to attract a loyal and profitable set of customers. Branding helps the seller segment markets. Strong brands help build corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers. www.bookfiesta4u.blogspot.com 11-446
  27. 27. The Product and the Product MixBrand-Brand-Sponsor Decisions Manufacturer brand Distributor brand Licensed brand name Slotting fee Brand ladder Brand parity www.bookfiesta4u.blogspot.com 11-447
  28. 28. The Product and the Product MixBrand-Brand-Name Decision Four available strategies: Individual names Blanket family names Separate family names for all products Corporate name combined with individual product names www.bookfiesta4u.blogspot.com 11-448
  29. 29. The Product and the Product MixDesirable qualities for a brand name It should suggest something about the product’s benefits It should suggest the product or service category It should suggest concrete, “high imagery” qualities It should be easy to spell, pronounce, recognize, and remember It should be distinctive It should not carry poor meanings in other countries and languages www.bookfiesta4u.blogspot.com 11-449
  30. 30. The Product and the Product MixBrand building tools Public relations and Public facilities press releases Social cause Sponsorships marketing Clubs and consumer High value for communities the money Factory visits Founder’s or a Trade shows celebrity personality Event marketing Mobile phone marketing www.bookfiesta4u.blogspot.com 11-450
  31. 31. Nike’s arrangement with Michael Jordanhas provided an excellent example of acelebrity endorsement. Can you think ofan endorsement campaign that backfired?What did it cost the companyin the short term? What,if any, have been thelasting effects? www.bookfiesta4u.blogspot.com 11-451
  32. 32. The Product and the Product Mix Brand Strategy Decision Functional brand Image brand Experimental brands Line Extensions Branded variants Brand extensions Brand dilution www.bookfiesta4u.blogspot.com 11-452
  33. 33. The Product and the Product Mix Multibrands, New Brands, and Co-Brands Co- Multibrand Flanker Bands Co-branding (Dual branding) Co- Ingredient co-branding co- Same- Same-company co-branding co- Joint venture co-branding co- Multisponsor co-branding co- www.bookfiesta4u.blogspot.com 11-453
  34. 34. The Product and the Product Mix Brand Asset Management Brand Auditing and Repositioning Brand report card www.bookfiesta4u.blogspot.com 11-454
  35. 35. The Product and the Product MixPackaging and Labeling Packaging Package Primary Package Secondary Package Shipping Package Factors which have contributed to the growing use of packaging as a marketing tool Self- Self-Service Consumer affluence Company and brand image Innovation opportunity www.bookfiesta4u.blogspot.com 11-455
  36. 36. The Product and the Product MixLabeling Functions Identification Grading Description Consumerists have lobbied for: Open dating Unit pricing Grade labeling Percentage labeling www.bookfiesta4u.blogspot.com 11-456

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