Chapter 4: product

Powerpoint: chapter 4.1

Powerpoint: chapter 4.2

Powerpoint: chapter 4.3 Powerpoint: chapter 4.4

Chapter 5: place

Powerpoint: chapter 5.1

Powerpoint: chapter 5.2

Chapter 6: price

Chapter 7: promotion

A.What is a product

B. Product categories

C. Product mix

D. Brand decisions

E. Product features

F. Product development

G. Product life cycle

4 classes:

4.1, 4.2, 4.3 and 4.4

4.1

4.2

4.3

4.4

Brand name strategies Mono and multi branding

Brand extensions

Choosing a brand name

Co-branding

E. product features Quality

Guarantee/ Warranty

Service

Concept/product design

Packaging

= continue 4.2: D. Brand decisions

Monobranding Multibranding (umbrella branding)

Mondelez (Kraft Snacking)

Advantages:

Expansion by means of market segmentation

Mondelez: Mignonette versus Oreo

Stimulate internal competition

Improve negotiation position

More brands = more shelf space

Variety seeking of consumer

Disadvantages of monobranding

Up to you

Think of at least 3 disadvantages

In pairs

5’

Advantages:

Launch of many new products

Halo-effect in marketing

Disadvantages:

Damaged reputation for one product => whole company can be ‘hurt’

Mono-multibranding Multi-monobranding

Fox, Golf, Lupo, …

Strong brand name? Extensions can become successful!

But they can fail too…: Bic perfume

Up to you

Think of 5 products that have extended their brand

Successfully or unsuccessfully

FMCG, car industry, entertainment industry, …

In pairs

5’

Basically 2 choices

Descriptive

Associative

Or combination of both

What makes a brand name really good?

Pronunciation, easy to remember, short, logical, elastic (in case of brand extension), …

International?

More in 2nd year marketing

What do you think of

Up to you.

Think of brand names whereby the following elements were used to compose the name:

Founder of the company

Location

Reference to the basic features of the product (eg. Ingredients)

A symbolic meaning

Many companies have already experienced the consequences of a badly chosenbrand name

Rolls Royce Silver Mist

Fiat Uno: ‘loser’ in Finnish

Lada Nova: ‘doesn’t go’ in Spanish

Mercedes 400: 4 symbolizes death in many Asian countries

Nissan Serena: ‘serena’ is also brand of monthly towel

Spunk biscuits

Crap spread

The Joyce principle: spontaneous brand name associations

The Juliet principle: associations made because of education

Competition:

Innovation

Me-too

Think of potential internationalisation

Relationship between product and brand name

Positioning based on

Instrumental features: Belolive

Expressive features: Vitalinea, Dove, Danette

Depends on brand extension plans

Not easy with every brand name

Tomorrowland => Tomorrow world

Maes Pils => ?

Watch out: me-too names can be dangerous

Confusion

Legal consequences

Conduct market research to check appropriateness

Exampes:

WE radio station versus

Radio station MNM versus

Example:

Strategy whereby two/more brand names are used to market a product

2 completely different products complement each other and have the samepositioning

Co-branding: when?

On product level

On distribution level

On communication level

On product level:

On distribution level:

On communication level:

Advantages

More efficient

‘surprise’ effect

Competitive power

Meets consumers’ needs of laziness

Spread costs and risks

Disadvantages

Up to you

Many trials and errors: Philips

At last… :

A.What is a product

B. Product categories

C. Product mix

D. Brand decisions

E. Product features

F. Product development

G. Product life cycle

4 classes:

4.1, 4.2, 4.3 and 4.4

4.1

4.2

4.3

4.4

E.

Quality

Guarantee/warranty

Service

Concept/product design

Packaging

Quality management:

Look for quality improvements on all company levels and for all stakeholders

Consumer satisfaction is key here:

Especially in services marketing

Product quality: life expectation, easiness to use, …

Happy consumer? WOM and repeated purchase

Unhappy consumer?

Product quality

Sustainable consumption goods

Food products

Other

Consumer quality

Way in which quality is perceived byconsumer

Depends on situation

Depends on expectations

Earlier experiences, marketing, price, quality labels, …

Up to you: depict situation when yourquality demands were not met

Quality labels = a promise

• “Champagne”

• “Delft” pottery

Quality management for products =

Choose the quality level that supports the positioning of your product

Written statement containing a clause

Actions (to be) taken if a product does not meet the quality requirements within a giventime span

Conditions: time, parts, functionality

Function: reduce (financial) risk

FMCG: trial and reimbursements

In general

Before, during and after sales

Before becoming an actual product, product first have a concept design

Actual design:

Must be of good quality

Must be practical

Must be attractive

Must be beautiful

Technical function:

Protection/use and re-use

Management and logistical function

Bar codes

Commercial and communicative function

‘silent’ sales agent

Communicative function:

Mentions type of product

Carries brand name

Mentions product information

Sales promotions carrier

Can lead to cross-selling

Mentions differences in future design

Think of examples whereby the packaging can lead to cross-selling: