Chapter 14 Setting the Product and Branding Strategy by
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1 Chapter 14 Setting the Product and Branding Strategy by PowerPoint byMilton M. PressleyUniversity of New Orleans
2 Kotler on MarketingThe best way to hold customers is to constantly figure out how to give them more for less.
3 Chapter ObjectivesIn this chapter, we focus on the following questions:What are the characteristics of products?How can a company build and manage its product mix and product lines?How can a company make better brand decisions?How can packaging and labeling be used as marketing tools?
4 The Product and the Product Mix Figure 14.1: Components of the Market OfferingProductPhysical goodsServicesExperiencesEventsPersonsPlacesPropertiesOrganizationsInformationIdeas
5 The Product and the Product Mix Figure 14.2: Five Product LevelsProduct levelsCustomer value hierarchyCore benefitBasic productExpected productAugmented product
6 The Product and the Product Mix Consumption systemPotential productProduct hierarchyNeed familyProduct familyProduct classProduct lineProduct typeItemGeneral Mills’ Mycereal.com Web site
7 The Product and the Product Mix Product systemProduct mixProduct classificationsDurability and Tangibility Classification:Nondurable goodsDurable goodsServices
8 The Product and the Product Mix Consumer-Goods Classification:Convenience goodsStaplesImpulse goodsEmergency goodsShopping goodsHomogeneous shopping goodsHeterogeneous shopping goodsSpecialty goodsUnsought goods
9 The Product and the Product Mix Industrial-Goods ClassificationMaterials and partsFarm productsNatural productsManufactured materials and partsComponent materialsComponent partsCapital itemsInstallationsEquipment
10 The Product and the Product Mix Supplies and business servicesMaintenance and repair itemsOperating suppliesMaintenance and repair servicesBusiness advisory services
11 The Product and the Product Mix Product mix (Product assortment)Product mix has a certain:WidthLengthDepthConsistency
12 See text for complete table Table 14.1: Product-Mix Width and Product-Line Length for Proctor& Gamble ProductsPRODUCT-LINE LENGTHProduct-Mix WidthDetergentsToothpasteDisposable Bar SoapDiapersPaper TissueIvory 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
13 The Product and the Product Mix Product-line decisionsProduct-line analysisSales and ProfitsFour types of product classes:Core productStaplesSpecialtiesConvenience items
14 Figure 14.3: Product-Item Contributions to a Product Line’s Total Sales and Profits
15 The Product and the Product Mix Market profileFigure 14.4: Product Map for a Paper-Product Line
16 The Product and the Product Mix Product-line lengthLine StretchingDownmarket StretchThe company may notice strong growth opportunities as mass retailers attract a growing number of shoppersThe company may wish to tie up lower-end competitors who might otherwise try to move upmarketThe company may find that the middle market is stagnating or decliningUpmarket StretchTwo-Way Stretch
17 Discussion QuestionKmart has entered into branding and distribution agreements with celebrities like Kate Smith for women’s apparel and Martha Stewart in house wares, gardening supplies, etc. Is this an upmarket stretch, a downmarket stretch or a two-way stretch for Kmart?
18 The Product and the Product Mix Brand decisionsWhat is brand?AttributesBenefitsValuesCulturePersonalityUserLine FillingJust-noticeable differenceLine Modernization, featuring, and pruning
19 The Product and the Product Mix Commonly used research approaches to determine brand meaning:Word associationsPersonifying the brandLaddering up the brand essenceBrand essenceLaddering up
20 The Product and the Product Mix Brand EquityBrand awarenessBrand acceptabilityBrand preferenceAaker’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.
21 The Product and the Product Mix Value of Brand EquityBrand valuationCompetitive advantages of high brand equity:The company will have more leverage in bargaining with distributors and retailers because customers expect them to carry the brand.The company can charge a higher price than its competitors because the brand has higher perceived quality.The company can more easily launch extensions because the brand name carries high credibility.The brand offers some defense against price competition.
22 Figure 14.5: An Overview of Branding Decisions The Product and the Product MixManaging Brand EquityBranding ChallengesBranding Decision: To Brand or Not to Brand?Figure 14.5: An Overview of Branding Decisions
23 The Product and the Product Mix Branding gives the seller several advantages:Brand name makes it easier for the seller to process orders and track down problemsSeller’s brand name and trademark provide legal protection of unique product featuresBranding gives the seller the opportunity to attract a loyal and profitable set of customers.Branding helps the seller segment markets.Strong brands help build corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers.
24 The Product and the Product Mix Brand-Sponsor DecisionsManufacturer brandDistributor brandLicensed brand nameSlotting feeBrand ladderBrand parity
25 The Product and the Product Mix Brand-Name DecisionFour available strategies:Individual namesBlanket family namesSeparate family names for all productsCorporate name combined with individual product names
26 The Product and the Product Mix Desirable qualities for a brand nameIt should suggest something about the product’s benefitsIt should suggest the product or service categoryIt should suggest concrete, “high imagery” qualitiesIt should be easy to spell, pronounce, recognize, and rememberIt should be distinctiveIt should not carry poor meanings in other countries and languages
27 The Product and the Product Mix Brand building toolsPublic relations and press releasesSponsorshipsClubs and consumer communitiesFactory visitsTrade showsEvent marketingPublic facilitiesSocial cause marketingHigh value for the moneyFounder’s or a celebrity personalityMobile phone marketing
28 Discussion QuestionNike’s arrangement with Michael Jordan and Tiger Wood 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?
29 The Product and the Product Mix Line ExtensionsBranded variantsBrand extensionsBrand dilutionMultibrands, New Brands, and Co-BrandsMultibrandFlanker BandsCo-branding (Dual branding)Ingredient co-brandingSame-company co-brandingJoint venture co-brandingMultisponsor co-branding