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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 0 in Chapter 11 Chapter 11 Setting Product and Brand Strategy PowerPoint by Karen E. James Louisiana State University - Shreveport
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 1 in Chapter 11 Objectives Identify the various characteristics of products. Learn how companies build and manage product lines and mixes. Understand how companies make better brand decisions. Comprehend how packaging and labeling can be used as marketing tools.
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 2 in Chapter 11 What is a Product? Goods Services Experiences Events Persons Places Properties Organizations Information Ideas
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 3 in Chapter 11 The Product and Product Mix Potential customers judge product offerings according to three elements: –Product features and quality –Services mix and quality –Value-based prices
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 4 in Chapter 11 The Product and Product Mix The customer value hierarchy: –Core benefit –Basic product –Expected product –Augmented product –Potential product
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 5 in Chapter 11 The Product and Product Mix Product Classifications Durability and tangibility Consumer goods Industrial goods Nondurable –Tangible –Rapidly consumed –Example: Milk Durable –Tangible –Lasts a long time –Example: Oven Services –Intangible –Example: Tax preparation
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 6 in Chapter 11 The Product and Product Mix Product Classifications Durability and tangibility Consumer goods Industrial goods Classified by shopping habits: –Convenience goods –Shopping goods –Specialty goods –Unsought goods
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 7 in Chapter 11 The Product and Product Mix Product Classifications Durability and tangibility Consumer goods Industrial goods Materials and parts –Farm products –Natural products –Component materials –Component parts Capital items –Installations –Equipment Supplies and business services –Maintenance and repair –Advisory services
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 8 in Chapter 11 The Product and Product Mix Product mix dimensions: –Width: number of product lines –Length: total number of items in mix –Depth: number of product variants –Consistency: degree to which product lines are related
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 9 in Chapter 11 Product-Line Decisions Product-Line Analysis Product-Line Length Product-Line Modernization, Featuring, and Pruning
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 10 in Chapter 11 Brand Decisions The AMA definition of a brand: “A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.”
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 11 in Chapter 11 Brand Decisions Brands can convey six levels of meaning: –Attributes –Benefits –Values –Culture –Personality –User
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 12 in Chapter 11 Brand Decisions Brand identity decisions include: –Name –Logo –Colors –Tagline –Symbol Consumer experiences create brand bonding, brand advertising does not.
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 13 in Chapter 11 Brand Decisions Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers. Valuable and powerful brands enjoy high levels of brand loyalty.
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 14 in Chapter 11 Brand Decisions Aaker identified five levels of customer attitudes toward brands: –Will change brands, especially for price. No brand loyalty. –Satisfied -- has no reason to change. –Satisfied -- switching would incur costs. –Values brand, sees it as a friend. –Devoted to the brand.
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 15 in Chapter 11 Brand Decisions Brand equity refers to the positive differential effect that a brand name has on customers. Brand equity: –is related to many factors. –allows for reduced marketing costs. –is a major contributor to customer equity.
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 16 in Chapter 11 Brand Decisions Key Challenges To brand or not Brand sponsor Brand name Brand strategy Brand repositioning Advantages of branding: –Facilitates order processing –Trademark protection –Aids in segmentation –Enhances corporate image –Branded goods are desired by retailers and distributors
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 17 in Chapter 11 Brand Decisions Key Challenges To brand or not Brand sponsor Brand name Brand strategy Brand repositioning Options include: –Manufacturer (national) brand –Distributor (reseller, store, house, private) brand –Licensing the brand name
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 18 in Chapter 11 Brand Decisions Key Challenges To brand or not Brand sponsor Brand name Brand strategy Brand repositioning Strong brand names: –Suggest benefits –Suggest product qualities –Are easy to say, recognize, and remember –Are distinctive –Should not carry poor meanings in other languages
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 19 in Chapter 11 Brand Decisions Key Challenges To brand or not Brand sponsor Brand name Brand strategy Brand repositioning Varies by type of brand –Functional brands –Image brands –Experiential brands Line extensions Brand extensions Multibrands New brands Co-branding
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 20 in Chapter 11 Brand Decisions Key Challenges To brand or not Brand sponsor Brand name Brand strategy Brand repositioning A brand report card can be used to audit a brand’s strengths and weaknesses. Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 21 in Chapter 11 Packaging and Labeling Packaging includes: –The primary package –The secondary package –The shipping package Many factors have influenced the increased use of packaging as a marketing tool.
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 22 in Chapter 11 Packaging and Labeling Developing an effective package: –Determine the packaging concept –Determine key package elements –Testing: Engineering tests Visual tests Dealer tests Consumer tests
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©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 23 in Chapter 11 Packaging and Labeling Labeling functions: –Identifies the product or brand –May identify product grade –May describe the product –May promote the product Legal restrictions impact packaging for many products.
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