Managing Products & Brands

A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support

What is a Product? Tangible good Idea Service Person

Types of Consumer Products Convenience Shopping Specialty Unsought

Convenience Relatively inexpensive Little shopping effort Without much planning Require wider distribution

Unsought Products Known but not actively sought New products Products we don’t wan to think about

Shopping Products Homogeneous Similar Look for lowest price Heterogeneous Different Price, quality varies Personal benefit More expensive than convenience Found in fewer stores

Specialty Products Extensive search Reluctant to accept substitutes Selective, status advertising Limited/exclusive distribution

Managing the product Product item Product Line – Closely related products Product Mix – all the products sold

Managing Products Width/Breadth – Number of product lines Product Line Depth – Number of products in a product line Changes – Increase/decrease breadth Eliminate/Add a Product line – Increase/decrease depth Eliminate/Add a product item to a Line

Managing Products Product Modification – Changes one or more of a product characteristic Quality Functions Style Planned Obsolence

Managing Products Repositioning – Changing consumers’ perceptions of a brand – Changing target market

Branding And we are back to telling our story Brand is more than a story; there are elements Brand is – Name, term, symbol, design, or combination that identifies a seller’s products and differentiates them from competitors – Brand Name: can be spoken (GM) – Brand Mark: elements that cannot be spoken (Chevy symbol, Apple’s apple)

Importance of Branding Establish Brand Equity – Value of company and brand names – Measured on awareness, perceived quality, brand loyalty – Can leverage equity to sell other products

Why Brand? Facilitates Purchases Establish Brand Loyalty Protect from Competition Protect from Price Competition Reduce Marketing Costs

Branding Strategies Ownership Name Brand Line Extension Co-branding Licensing

Ownership Manufacturer Brands Private Label brands – Premium – Generic – Copycat – Exclusive co-brands

Manufacturer vs. Private Manufacturer Advertise to consumer Strong consumer loyalty Attract new customer’s Enhance store If bad customer experience with product does not affect store Private Higher profits Drop other brands in favor of own Ties customer to store Control of distribution

Name Individual – Products vary enough to have own name – P&G different detergents Family – Selling different products under same brand name Jack Daniel’s Absolute Tide

Co-branding Two or more brand names on a product or its package

Brand Line Extension Use brand name for different product line Line extension – Use of brand name within same line

Licensing Contractual agreement Allow a firm to use brand name, logo, etc. for a fee Common in toys, apparel, and video games.

Packaging Primary package – The one the consumer uses Secondary package – Wrapper/Exterior – In line with Branding – UPC symbol – Attracts attention – Differentiate from competition Labeling – Persuasive – Informational – Greenwashing

Packaging Functions Contain and protect product Promote product Facilitate storage, use and convenience Facilitate recycling and disposal