Kotler11exs

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 11

Chapter 11Chapter 11

Setting Product and Setting Product and Brand StrategyBrand Strategy

PowerPoint by Karen E. JamesPowerPoint by Karen E. JamesLouisiana State University - ShreveportLouisiana State University - Shreveport


ObjectivesObjectives

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.


What is a Product?What is a Product?

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas


The Product and Product The Product and Product MixMix

Potential customers judge product offerings according to three elements:

– Product features and quality

– Services mix and quality

– Value-based prices



The customer value hierarchy:

– Core benefit

– Basic product

– Expected product

– Augmented product

– Potential product



ProductClassifications

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





Consumer goods

Industrial goods

Classified by shopping habits:

– Convenience goods

– Shopping goods– Specialty goods– Unsought goods





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



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


Product-Line DecisionsProduct-Line Decisions

Product-Line Analysis

Product-Line Length

Product-Line Modernization, Featuring, and Pruning


Brand DecisionsBrand 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.”



Brands can convey six levels of meaning:

– Attributes– Benefits– Values– Culture– Personality– User



Brand identity decisions include:

– Name– Logo– Colors– Tagline– Symbol

Consumer experiences create brand bonding, brand advertising does not.



Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers.

Valuable and powerful brands enjoy high levels of brand loyalty.



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.



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.



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



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



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



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



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.


Packaging and LabelingPackaging 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.



Developing an effective package:

– Determine the packaging concept– Determine key package elements– Testing:

Engineering testsVisual testsDealer testsConsumer tests



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.

Business

Kotler11exs