This document discusses key concepts related to product strategy and branding. It defines a product as anything offered in a market to satisfy a want or need, whether tangible or intangible. Products go through a life cycle of introduction, growth, maturity, and decline. A company's marketing strategy should evolve through these stages. Branding adds value by differentiating a product, building loyalty, and extending the life cycle. The 4Ps of marketing, especially product, packaging, and branding, are core elements of a product strategy.

1. Product Strategies
MS20A Lecture 7

2. MARKETING REVIEW
1. Find a Need & Fill It
2. Need = Segments & Targets
[Homogeneous Behaviour]
3. Segments & Targets = Demographics, Lifestyle, etc
4. Market Strategy – 4Ps > Target Market
Product Policies
Product/Service – Customer Need Link

3. What is a Product?


A PRODUCT is anything that can be offered to a
market for attention, acquisition, use, or
consumption and that might satisfy a want or need.
Can be tangible – partially intangible
What is a Service?

A SERVICE is a form of product that consist of
activities, benefits, or satisfactions offered for sale
that are essentially intangible and do not
result in the ownership of anything.

4. Nature and Characteristic
of a Service (Fig. 8-5)

5. WHAT IS A PRODUCT
A Product is truly defined by the behaviour that
associated with its use.
What does a miner buy a drilling rod or a hole????
What does toothpaste provide..whiter teeth or
…a winning smile????
What does a University sell…book learning
or a dream??

6. Levels of Product (Fig. 8-1)

7. Product Classifications: Consumer
Convenience Products
Shopping Products
 Buy frequently & immediately
 Buy less frequently
Specialty Products
Unsought Products
 Special purchase efforts
 New innovations
 Low priced
 Mass advertising
 Many purchase locations
i.e Candy, newspapers
 High price
 Unique characteristics
 Brand identification
 Few purchase locations
i.e Lamborghini, Rolex
 Higher price
 Fewer purchase locations
 Comparison shop
i.e Clothing, cars, appliances
 Products consumers don’t
want to think about
 Require much advertising &
personal selling
i.e Life insurance, blood donation

8. Product Classifications: Industrial, B2B
Materials and Parts
Materials and Parts
Raw materials, manufactured
Raw materials, manufactured
materials, and parts
materials, and parts
Capital Items
Capital Items
Industrial products that aid in
Industrial products that aid in
buyer’s production or operations
buyer’s production or operations
Supplies and Services
Supplies and Services
Operating supplies, repair/
Operating supplies, repair/
maintenance items
maintenance items

9. Product Life Cycle
S
a
l
e
s
Introduction
Growth
Maturity
Time
Decline

10. Product Life Cycle

Introduction




Slow sales
Low revenue
Promote to gain awareness
Varied length

11. Product Life Cycle

Growth






Increasing sales
Increasing profits
Increasing
competition
Product refinement
Profits peak
Promote to create
brand preference

12. Product Life Cycle

Maturity




Sales from
increase to
decline
Intense
competition
Prices and profit
margins decrease
Profits often still
high

13. Product Life Cycle

Decline


Falling industry sales
& profits
Industry shakeout

14. PRODUCT POLICIES
EXISTIN
G
PRODUC
T
NEW
EXISTIN
NEW
G
MARKET
MARKET
Penetration

Branding
Packaging


Market
Extenison
Modification
New
Diversi-

15. PACKAGING
•Containers
• Shipping
• Protection
• Information
• Labelling – Brand ID
• Convenience

16. 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

17. Product Support Services
Companies use product support services as a major
tool in gaining competitive advantage.
How?
Step 1. Survey customers to assess the value of
current services and to obtain ideas for new
services.
Step 2. Assess costs of providing desired services.
Step 3. Develop a package of services to delight
customers and yield profits to the company.

18. Branding



Brand name
Trademark
Advantages of branding



to consumers
to branders
Disadvantages of branding


to consumers
to branders

19. Branding

Advantages to
Branding

Buyers:



Identification
Quality and value
Sellers



Tells a story
Provides legal protection
Helps segments
markets

Brand Equity





Higher brand loyalty
Name awareness
Perceived quality
Strong brand
associations
Patents, trademarks,
channel relationships

20. Brands and Brand Symbols
(p. 292)

Powerful brands such
as these have brand
equity:



Coca-Cola brand - $69
billion
IBM brand - $53 billion
Offers defense
against fierce price
competition.

21. Advantages of branding
(Kotler)






easier for the seller to process
orders and track down orders
with the trademark, it provides legal
protection of features
it helps attract loyal and profitable
customers
gives protection from competition
aids segmentation
helps build the corporate image
…….ease of decision-making

22. Branding as PLC Extension ..cont
Renewal
$
time

23. Branding



Brand equity
Brand extension (line extension)
Levels of brand familiarity





rejection
no recognition
recognition
preference
insistence

24. Brand Strategies


Individual brand name (multibranding)
Family brands (multiproduct branding)



blanket family name for all products
separate family name for related products
combination family and individual brand
name

25. Product Line Decisions




Stretching
Filling
Pruning (dropping)
Line extensions (brand extensions)

26. The product and the
company’s marketing
strategy


Marketing strategy as a function of
product classification
The product life cycle and marketing
strategy

Introduction

Growth

Maturity

Saturation

Decline