1. Marketing Mix The 1st P: Product
Product and Brand
(Kolter and Keller Ch 10 and 12)

2. Kotler on Marketing
The best way to hold customers is to constantly figure out how to give them more for less.

3. What Is a Product? Types of Products activities/ events persons/ Ideas
goods/service
activities/
events
persons/
organization
Ideas
Definition of product：
Anything that can provide
consumer needs or benefits

4. Examples of Products
Goods/service
Persons/organizations

5. Examples of Products
Activities/events
Ideas/information

6. The Product and the Product Mix
Figure 14.1: Components of the Market Offering
Product
Physical goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas

7. Product
...anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
…everything, both favourable and unfavourable, tangible or intangible, received in an exchange
Dibb et al (2001:49)

8. Product levels Augmented Customer communication Actual Delivery Brand
Quality
After
sales
service
Core
solution
Features
Packaging
Personnel
Design
Capabilities
Warranty
Product
Performance

9. The Product and the Product Mix
Figure 12.2: Five Product Levels
Product levels
Customer value hierarchy
Core benefit
Basic product
Expected product
Augmented product

10. Example of Product Levels
Quality of call (clear and stable)
Text messages, s, games
Core benefit
Basic product
Wireless use
Size like a piece of paper
Augmented product
Lower radiation than other
brands
Expected product
Able to receive and make
phone calls
Potential product
Dynamic

11. BabyCenter is not just an online merchant, it’s a metamediary

12. The Product and the Product Mix
Consumption system
Potential product
Product hierarchy
Need family
Product family
Product class
Product line
Product type
Item
General Mills’ Mycereal.com Web site

13. The Product and the Product Mix
Product system
Product mix
Product classifications
Durability and Tangibility Classification:
Nondurable goods
Durable goods
Services

14. The Product and the Product Mix
Consumer-Goods Classification:
Convenience goods
Staples
Impulse goods
Emergency goods
Shopping goods
Homogeneous shopping goods
Heterogeneous shopping goods
Specialty goods
Unsought goods

15. Classifying products Convenience goods Shopping goods Specialty goods
Unsought goods

16. Product classification is not only based on product categories but also on individuals and purchase motivations. EX: chocolates
Unsought goods woman on diet
Shopping good: for a little girl
on her birthday

17. The Product and the Product Mix
Industrial-Goods Classification
Materials and parts
Farm products
Natural products
Manufactured materials and parts
Component materials
Component parts
Capital items
Installations
Equipment

18. The Product and the Product Mix
Supplies and business services
Maintenance and repair items
Operating supplies
Maintenance and repair services
Business advisory services

19. The Product and the Product Mix
Product mix (Product assortment)
Product mix has a certain:
Width
Length
Depth
Consistency

20. See text for complete table
Table 12.1: Product-Mix Width and Product-Line Length for Proctor& Gamble Products
PRODUCT-LINE LENGTH
Product-Mix Width
Detergents
Toothpaste
Disposable Bar Soap
Diapers
Paper Tissue
Ivory Snow (1930)
Dreft (1933)
Tide (1946)
Cheer (1950)
Gleem (1952)
Crest (1955)
Ivory (1879)
Kirk’s (1885)
Lava (1893)
Camay (1926)
Pampers (1961)
Luvs (1976)
Charmin (1928)
Puffs (1960)
Banner (1982)
Summit (1992)
See text for complete table

21. Above case: Proctor& Gamble Products (p. 353-354)
Width (different product lines) = 5
Length:
Total number of items in the mix = 20
Average length across lines: 20/5 = 4
Depth: (for a particular product line)
Crest comes in three sizes and two formulations = 3 X 2 = 6
Consistency: medium (consumer goods but perform different functions for the buyers)

22. The Product and the Product Mix
Product-line length
Line Stretching
Downmarket Stretch
The company may notice strong growth opportunities as mass retailers attract a growing number of shoppers
The company may wish to tie up lower-end competitors who might otherwise try to move upmarket
The company may find that the middle market is stagnating or declining
Upmarket Stretch
Two-Way Stretch

23. Product-line Length Line Stretching Upward stretch Downward stretch
Higher price, higher quality products
Existing product lines
Downward stretch
Lower price, lower quality products

24. Example of Line Stretching
Product-line Length
Example of Line Stretching
Star product
Stretch product line
lengths of “Tomato”
Stretch product line of “fresh” 「鮮採」

25. Brand Meaning of a Brand = + Brand Brand name Brand mark
Register brand: trademark
Brand
Brand name
Brand mark = +

26. Brand... …a name, term, symbol or combination
which identifies, differentiates, and adds value

27. The brand exists mainly by virtue of a continuous process whereby the values and expectations imbued in the brand object (product or service) are set and enacted by the firm’s staff and interpreted and redefined by the consumers...
brand
firm’s
activities
consumers’
perceptions
de Chernatony and Dall’Olmo Riley (1998) ”Defining a ‘brand’: beyond the literature with experts’ interpretations”, Journal of Marketing Management, 14, p 428)

28. Four Dimensions of Brand
The most important weapon;
it represents a corporation’s culture
AFBP
Asus laptop
Attributes
Functions
Benefits
Personalities
Different
functions
Black/silver (color)
Small size
Convenient, elegant,
professional
Professional
use

29. The Product and the Product Mix
Commonly used research approaches to determine brand meaning:
Word associations: 「瀉立停」、「蟑會滅」
Personifying the brand
Laddering up the brand essence
Brand essence
Laddering up

30. Brand-Name Decision Four available strategies (Kolter)
Individual names
Blanket family names
Separate family names for all products
Corporate name combined with individual product names

31. Brand-name Strategies
P&G ：
Olay, Pert, Tide, Crest,
Always
Definition
Pros
Cons
Use individual
names
Brands don’t affect each other
Multi-markets
High costs
Can’t share
images and
reputation
Individual
brand
SONY
BMW
Single name for family products
For a product line
Lower marketing costs
Reputation share
Easily affected
by other negative
brands
Family
brand
Uni-President instant noodle, milk tea, coffee
Combine company
and product name
Multi-markets
Reputation share
Higher costs
Easily affected
by other negative
brands
Mixed
brand

32. Brand Sponsors: Manufacturer or Retailer brands?
Generic
(no brand)
Manufacturer
Retailer
individual
overall family
line family
brand extension
a.k.a.
own brands
private labels
distributor’ brand

33. Brands and Private Labels: A Partnership?
Retailers are becoming essential partners in many consumer-product businesses...in the right conditions, supplying private labels offers a profitable way to work with these partners. It can make good economic and strategic sense if:
private label is a premium line
entry barriers are low
company’s brand is not market leader
substantial cost economies exist
Dunne and Narasimhan (1999), “The New Appeal of Private Labels”, HBR, May-June

34. Brand Loyalty (Preference)
Aaker’s five levels of customer attitude:
The customer will change brands, especially for price reasons. No brand loyalty.
Customer is satisfied. No reason to change brands.
Customer is satisfied and would incur cost by changing brand.
Customer values the brand and sees it as a friend.
Customer is devoted to the brand.

35. Higher Brand Equity Competitive advantages of high brand equity:
More leverage in bargaining with distributors and retailers because customers expect them to carry the brand
Can charge a higher price than its competitors because the brand has higher perceived quality
More easily launch extensions because the brand name carries high credibility
The brand offers some defense against price competition.

36. An Overview of Branding Decisions
Branding Challenges
Branding Decision: To Brand or Not to Brand?
Managing Brand Equity
An Overview of Branding Decisions

37. Desirable Qualities for a Brand Name
Should suggest something about the product’s benefits
Should suggest the product or service category
Should suggest concrete, “high imagery” qualities
Should be easy to spell, pronounce, recognize, and remember
Should be distinctive
Should not carry poor meanings in other
countries and languages

38. Brand Building Tools Public relations and press releases
Sponsorships
Clubs and consumer communities
Factory visits
Trade shows
Event marketing
Public facilities
Social cause marketing
High value for the money
Founder’s or a celebrity personality
Mobile phone marketing

39. Celebrity Endorsement
To stimulate demand for milk, an industry trade group tapped a huge range of celebrities to show off their milk mustaches.

40. Celebrity Endorsers
Omega uses tennis star Anna Kournikova as a celebrity endorser

41. Discussion Question
Nike’s arrangement with Michael Jordan has provided an excellent example of a celebrity endorsement. Can you think of an endorsement campaign that backfired? What did it cost the company in the short term? What, if any, have been the lasting effects?

42. Packaging
Packaging
Primary Package
Secondary Package
Shipping Package
Factors which have contributed to the growing use of packaging as a marketing tool
Self-Service
Consumer affluence
Company and brand image
Innovation opportunity

43. Labeling Functions Consumerists have lobbied for: Identification
Grading
Description
Consumerists have lobbied for:
Open dating
Unit pricing
Grade labeling
Percentage labeling