1. Formulating Strategic Marketing Programs
Product and Brand Management

2. Product and Brand Management Goals
Determining product and brand management tactics is based on what goals are to be accomplished.

3. Product/Service Differentiation
Successful differentiation is distinguished by three characteristics:

4. Differentiation: Product
Differentiate by providing benefits uniquely provided by your product
Eight dimensions of product quality:
Performance
Durability
Features
Serviceability
Reliability
Appearance
Conformance
Reputation

5. Differentiation: Service
Provide unparalleled service to set your firm apart from competitors
Five dimensions of service quality:
Tangibles
Assurance
Responsiveness
Reliability
Empathy

6. Improving/Leveraging Brand Equity
A strong brand provides brand equity
Contributes to positive evaluations of product quality
Maintains a high level of product awareness
Provides a consistent image or brand personality

7. Brand Equity
A set of assets and liabilities linked to a brand’s name and symbol that add to or subtract from the value provided by a product or service to a firm and/or that firm’s customers

8. Model of Brand Equity
Brand
Awareness
Brand
Identity
Brand
Equity
Perceived
Quality
Brand
Loyalty

9. Brand Awareness
The level of familiarity consumers have with a brand name.
The ability to link a brand name with a particular product.
Can provide a competitive advantage:
Product parity
Low-involvement

10. Brand Identity The associations attached to a firm and its brands
Anything directly or indirectly linked in memory to a brand
The most common associations are usually product attributes or customer benefits
 Use or application  Lifestyle and feelings
 Product class  Personality
 Product user  Symbol

11. Brand Loyalty
The tendency of customers to continue to use the same product over time
Resistance to switching
Based on:
Simple habit
Preference
Switching costs

12. A Strong Base of Loyal Customers:
Reduces marketing costs
Provides substantial entry barrier to competitors
Provides trade leverage
Contributes to positive brand image
Provides time to respond to competitive moves

13. Expanding Breadth/Depth of Product/Service Offerings
In general, firms with broad product lines have:
More potential customers
Opportunity to sell more to each customer
Greater marketing efficiency
Greater production efficiency
Increased profits at introduction and growth stages of PLC

14. Product Line Management
Product line analysis
Product line length
Line modernization
Line featuring
Line pruning

15. Achieving Product Line Extensions: Product Extensions
New products in same product category owned by same company
Examples:

16. Achieving Product Line Extensions: Brand Extensions
New products with same brand name in product category
Examples:
Require lower investment and lower risk than product extensions

17. Product Line Extensions:
Requires product differentiation and careful product positioning
If not carefully positioned, may cannibalize core brand and increase marketing costs

18. Achieving Product Line Extensions: Product Bundling
Package individual products together and sell as one unit
Must share some common purpose
Must offer price savings to customer

19. Bundling Strategies Pure product bundling
Sell 2 or more products at an overall price lower than the total price paid if purchased separately

20. Bundling Strategies Mixed bundling
Offer customers the opportunity to purchase each item separately at a sale price or bundled with an additional level of savings

21. Bundling Strategies Unbundling
Unbundle a set of products that is normally sold as an integrated bundle
Useful when meets customers’ needs to purchase individual components

22. New Product Development
There are thousands of new product launches every year: ≈ 25,000
Expensive to launch new product
High failure rate: only about 56% of new products will still be around five years after introduction
Long-term survival of firm is tied into new product development

23. New Product Development Process
Lengthy
Multidisciplinary
Market-oriented

24. Types of New Products New-to-the-world products New product lines
Additions to existing product lines
Improvements and revisions of existing products
Re-positionings
Cost reductions

25. Stages in Development Process
Idea generation
Idea screening
Concept development
Concept testing
Marketing strategy development
Business analysis

26. Managing New Products Product development Market testing
Quality function deployment
Alpha testing
Beta testing
Market testing
Estimate trial, first repeat purchase, adoption, and purchase frequency
Commercialization
Product launch