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Total Product Concept
A product is a combination of tangible and intangible benefits.
A young, rising executive buys a Mercedes not based on transportation needs. It is to display achievement and success.
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Product Mix
The range of products a company sells is called the product mix.
The product mix is described in terms of items and lines and width and depth.
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Product Mix
Item
A unique product offering
A grouping of items with common attributes
Line
Width
The number of lines
Depth
Number of items in line
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4. Product Line Width and Depth
Men’s Deodorant
Women’s Antiperspirant
Speed Stick 24/7
Speed Stick Lightening
Speed Stick Cyclone
Speed stick Ultimate
Speed Stick Clear
Lady Speed Clean Glide
Lady Speed Stick Invisible
Lady Speed Stick Aloe
Lady Speed Stick Gel
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Consumer Goods
“Goods purchased by consumers for personal use.”
Convenience Goods
Shopping goods
Specialty Goods
Unsought Goods
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Convenience Goods
Impulse
Goods
Staple
Goods
Emergency
Goods
Key Marketing Considerations
Brand Name
Image
Reputation
Performance
Low Price
Availability
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Shopping Goods
“Goods purchased on the basis of comparison.”
Key Marketing Considerations
Quality
Price
Style
Suitability
Dependability
Service
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Specialty Goods
“Goods possessing unique characteristics that a customer will make an effort to find.”
Key Marketing Considerations
Reputation
Superior quality
Selective location
Image
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Business Goods
“Goods that have a direct or indirect role in the manufacture of other goods.”
Capital
Items
Parts and
Materials
Supplies and
Services $ $ $
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What Is a Brand?
“A product with a personality.”
“A known entity that provides value.”
“A promise that is conveyed publicly by everything a customer can observe.”
“A set of product perceptions purchased by a consumer.”
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Branding Terms
Brand
Name, term, or symbol
Brand Name
Spoken part of brand
Identifiable symbol or design
Brandmark
Legally protected part of brand identified by the symbol®
Trademark
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Brand Name Strategies
Individual Brand
Multi-brand
Family Brand
Product/Company
Co-brand
National
Brand
Strategies
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Co-branding
“Using the equity of one brand name
to market another brand name product.”
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Private Label Brands
Brands produced according to specifications established by the distributor.
1 in 5 products sold in a supermarket is a private label product.
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Generic Brands
“Products without a brand name or identifying feature.” They are often referred to as:
No Name
Yellow Label
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16. Other Branding Options
Licensed
Brands
Allowing another party to use your name: NHL, NBA
Seizing the popularity of something or someone: Star Wars cereal
Limited
Brands
Fringe brands with a unique and loyal following: Apple, Harley-Davidson
Cult
Brands
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Benefits of Branding
Branding benefits consumers:
Suggestion of quality
Psychological rewards
Distinguishing features allow comparison
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Benefits of Branding
Branding benefits organizations:
Create and nurture an image
Communication of USP
Builds loyalty
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Brand Communications
Communications play a key role in building a brand image.
Volkswagen “Drivers Wanted.”
Nike “Just Do It.”
MasterCard “Priceless”
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20. Importance of Branding
In many categories the top brand in 1925 is still the top brand today.
Product
Razors
Soft Drinks
Toothpaste
Soap
Crackers
Brand
Gillette
Coca-Cola
Colgate
Ivory
Nabisco
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Brand Loyalty
“The degree of customer attachment to a brand.”
Brand Recognition
Brand Awareness
Brand Insistence
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Brand Equity
“The value a consumer derives from a brand.” Equity is influenced by factors such as:
Name awareness
Loyal customer base
Perceived quality
Association with a key attribute
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Brand Equity
An organization defines equity in terms of monetary value. What is the brand worth as an asset?
Global Brand Values
Coca-Cola $67.4
Microsoft
IBM GE
Intel
5. Disney $27.1
McDonald’s
Nokia
Toyota
Marlboro
Source: “Top 100 Brands,” Business Week, August2, 2004.
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24. Components of a Package
Package decisions are critical since a majority of buying decisions are made at point-of-sale.
Primary package
Secondary package
Label
Shipping container
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Packaging
Communications start and end with the package.
A good package:
Protects the product
Markets the product
Provides convenience
Meets social concerns
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Labelling Strategies
A label communicates essential information to differentiate one brand from another.
Brand Name
Illustration
Directions
Mandatory Information
Marketing Information
UPC
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