Lines, Brands, and Packaging Chapter 13 Managing Product Lines, Brands, and Packaging Marketing Management Tenth Edition Philip Kotler

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

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

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

Consumer-Goods Classification Convenience Products Shopping Products Buy frequently & immediately Low priced Many purchase locations Includes: Staple goods Impulse goods Emergency goods Buy less frequently Gather product information Fewer purchase locations Compare for: Suitability & Quality Price & Style Specialty Products Unsought Products 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

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

Product-Line Length 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 Fairfield Inn (Vacationers) Courtyard (Salespeople) Marriott (Middle managers) Marquis (Top executives) Price High Above average Average Low

What is a Brand? User Culture Personality Attributes Benefits Values

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

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

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

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

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

Labels Promote Describe Identify

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