Product Positioning, Branding, and Product-Line Strategies Chapter Seven M arket-Based Management, 4 th edition

7-2 Product Positioning, Branding, and Product Line Strategies Chapter Seven –Product Positioning and Product Positioning Strategies –Product Differentiation –Brand Name, Brand Equity, and Branding Strategies –Product Line Expansion

7-3 Product Positioning What is product positioning? Why is it important to determine a product positioning strategy? What is the goal of a positioning strategy? How does the positioning strategy affect market share? Market Share = X Marketing Efforts Product Position

7-4 Product Positioning Strategies

7-5 Product Positioning Strategies Price Leadership vs. Product Differentiation When is price leadership appropriate? When is differentiation appropriate? Types of Differentiation Brand Benefits Service Benefits Product Benefits Trans- action Costs Price Customer Value Brand Differentiation Service Differentiation Product Differentiation

7-6 Differentiation Dimensions of Product Quality 1 1. Quality Killers 4. Quality Aesthetics3. Quality Enhancers 2. Quality Drivers Reliability Conformance Performance Durability Features Serviceability Appearance Reputation

7-7 Differentiation Dimensions of Service Quality 1. Quality Killers 4. Quality Aesthetics3. Quality Enhancers 2. Quality Drivers Reliability Assurance Performance Responsiveness Extended Services Customer Empathy Appearance Reputation

7-8 Brand Differentiation What is brand identity? How do firms develop brand identity? What is brand encoding? What is the importance/value of a brand name ? (enhance positioning and differential advantage) –Rational vs. Emotional How are products positioned with brand differentiation? (Marriot, Kellogg, Hitachi) What are brand extensions ? (Coca-Cola) –Flanker vs. Umbrella

7-9 Brand Encoding Strategies Company and Brand Name Brand and Sub-Brand Name Company and Product Name Company, Brand, and Product Name Company Name, Brand Name, and Number Brand Name and Benefit Brand Name Only

7-10 Brand Name Development Four ways in which new brand names are created: 1.Functional or Descriptive Names 2.Invented Names 3.Experiential Names 4.Evocative Names Customer Problem Company/ Product Solution Customer Benefits Descriptive Words Brand Name Candidates Brand Name Tests

7-11 Brand Assets and Liabilities Brand Liabilities: –Customer Dissatisfaction –Environmental Problems –Product or Service Failures –Lawsuits and Boycotts –Questionable Business Practices Brand Assets: –Brand Awareness –Market Leadership –Reputation for Quality –Brand Relevance –Brand Loyalty How are Brand Assets and Liabilities Measured?

7-12 Brand Equity

7-13 Broad Vs. Narrow Product Line

7-14 Product Line Development How do firms expand their product line? –Flanker Brands –Umbrella Brands –New Brands How do flanker brands benefit from umbrella brands? –Brand Awareness –Known Quality –Market Reach –Product Mix

7-15 Product Line Extensions and Enhancements Vertical Brand-Line Extensions Horizontal Brand-Line Extensions New Product-Market Brand Extensions Co-Branding Product Bundling Product Unbundling Effects of all product-line enhancements –Scale –Substitution

7-16 Takeaways / Review Product Positioning Product Differentiation –Quality –Service –Brand Brand Encoding Strategies Brand Name Development Brand Equity Product Line Enhancements Effects of Enhancing Product Line

7-17 Marketing Performance Tools Impact of Product Line Substitution

7-18 Marketing Performance Tools Impact of Product Line Substitution

7-19 Marketing Performance Tools Impact of Product Line Scale Effects

7-20 Marketing Performance Tools Impact of Product Line Scale Effects

7-21 Marketing Performance Tools Assessing Brand Assets

7-22 Marketing Performance Tools Assessing Brand Liabilities