Product & Brand StgyChapter 11 - Kotler

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Chapter 11

Setting Product and


Brand Strategy

PowerPoint by Karen E. James


Louisiana State University - Shreveport
Objectives
• Identify the various characteristics of products.
• Learn how companies build and manage
product lines and mixes.
• Understand how companies make better brand
decisions.
• Comprehend how packaging and labeling can
be used as marketing tools.
What is a Product?

• Goods • Places
• Services • Properties
• Experiences • Organizations
• Events • Information
• Persons • Ideas
The Product and Product Mix
• Potential customers judge product offerings
according to three elements:
– Product features and quality
– Services mix and quality
– Value-based prices
The Product and Product Mix
• The customer value hierarchy:
– Core benefit
– Basic product
– Expected product
– Augmented product
– Potential product
The Product and Product Mix
Product • Nondurable
– Tangible
Classifications – Rapidly consumed
– Example: Milk
• Durability and • Durable
tangibility – Tangible
• Consumer goods – Lasts a long time
– Example: Oven
• Industrial goods
• Services
– Intangible
– Example: Tax preparation
The Product and Product Mix
Product • Classified by shopping
Classifications habits:
– Convenience goods
• Durability and – Shopping goods
tangibility – Specialty goods
• Consumer goods – Unsought goods
• Industrial goods
The Product and Product Mix
• Materials and parts
Product – Farm products
Classifications – Natural products
– Component materials
– Component parts
• Durability and
• Capital items
tangibility – Installations
• Consumer goods – Equipment
• Supplies and business
• Industrial goods services
– Maintenance and repair
– Advisory services
The Product and Product Mix
• Product mix dimensions:
– Width: number of product lines
– Length: total number of items in mix
– Depth: number of product variants
– Consistency: degree to which product lines are
related
Product-Line Decisions
• Product-Line Analysis
• Product-Line Length
• Product-Line Modernization, Featuring, and
Pruning
Brand Decisions
• The AMA definition of a brand:
“A name, term, sign, symbol, or design, or a
combination of these, intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from the
competition.”
Brand Decisions
• Brands can convey six levels of meaning:
– Attributes
– Benefits
– Values
– Culture
– Personality
– User
Brand Decisions
• Brand identity decisions include:
– Name
– Logo
– Colors
– Tagline
– Symbol
• Consumer experiences create brand bonding,
brand advertising does not.
Brand Decisions
• Marketers should attempt to create or facilitate
awareness, acceptability, preference, and loyalty
among consumers.
• Valuable and powerful brands enjoy high levels of
brand loyalty.
Brand Decisions
• Aaker identified five levels of customer
attitudes toward brands:
– Will change brands, especially for price. No
brand loyalty.
– Satisfied -- has no reason to change.
– Satisfied -- switching would incur costs.
– Values brand, sees it as a friend.
– Devoted to the brand.
Brand Decisions
• Brand equity refers to the positive differential
effect that a brand name has on customers.
• Brand equity:
– is related to many factors.
– allows for reduced marketing costs.
– is a major contributor to customer equity.
Brand Decisions
Key Challenges • Advantages of branding:
– Facilitates order
• To brand or not processing
– Trademark protection
• Brand sponsor
– Aids in segmentation
• Brand name – Enhances corporate image
• Brand strategy – Branded goods are
• Brand repositioning desired by retailers and
distributors
Brand Decisions
Key Challenges • Options include:
– Manufacturer (national)
• To brand or not brand
– Distributor (reseller,
• Brand sponsor
store, house, private)
• Brand name brand
• Brand strategy – Licensing the brand name
• Brand repositioning
Brand Decisions
Key Challenges • Strong brand names:
– Suggest benefits
• To brand or not – Suggest product qualities
• Brand sponsor – Are easy to say,
recognize, and remember
• Brand name – Are distinctive
• Brand strategy – Should not carry poor
• Brand repositioning meanings in other
languages
Brand Decisions
• Varies by type of brand
Key Challenges – Functional brands
– Image brands
• To brand or not – Experiential brands
• Brand sponsor • Line extensions
• Brand name • Brand extensions
• Brand strategy • Multibrands
• New brands
• Brand repositioning
• Co-branding
Brand Decisions
Key Challenges • A brand report card can
be used to audit a
• To brand or not brand’s strengths and
• Brand sponsor weaknesses.
• • Changes in preferences
Brand name
or the presence of a new
• Brand strategy competitor may indicate
• Brand repositioning a need for brand
repositioning.
Packaging and Labeling
• Packaging includes:
– The primary package
– The secondary package
– The shipping package
• Many factors have influenced the increased
use of packaging as a marketing tool.
Packaging and Labeling
• Developing an effective package:
– Determine the packaging concept
– Determine key package elements
– Testing:
• Engineering tests
• Visual tests
• Dealer tests
• Consumer tests
Packaging and Labeling
• Labeling functions:
– Identifies the product or brand
– May identify product grade
– May describe the product
– May promote the product
• Legal restrictions impact packaging for
many products.

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