Chapter 11Product and Brand Decisions

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Basic Product Concepts

• A product can be defined as

– a collection of physical, psychological, service, and symbolic attributes that collectively yield satisfaction, or benefits, to a buyer or user

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Product Types

• Consumer vs. industrial products

• Convenience, preference, shopping, specialty goods

• Durable, nondurable, disposable products

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Brands

• A brand represents a promise by a particular company about a particular product

– Brand image is a mental image about both the physical product and the company that markets the product

– Brand equity reflects the brand’s value to a company as an intangible asset`

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Global Products and Brands

• A global product meets the wants and needs of a global market

• A global brand has the same name and a similar image and positioning throughout the world (e.g. Coca-Cola, Nike, Gillette)

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Global Products and Brands

• Combination or tiered branding is using a corporate name combined with a product brand name (e.g. Sony Walkman)

• Cobranding is branding in which two or more different company or product brands are featured prominently on product packaging or in advertising (Dell and Intel)

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Strategic Alternatives inGlobal Marketing

• Extension Strategy – Calls for marketing a standardized product,

using a standardized communication approach in multiple markets

• Adaptation Strategy – Involves changing elements of design, function,

packaging in response to needs or conditions in particular country markets

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Global Product Planning:Strategic Alternatives

Strategy 1:Dual ExtensionS

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Strategy 2:Product Extension/Comm. Adaptation

Strategy 4:Dual Adaptation

Strategy 3:Product Adaptation/Comm. Extension

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Global Product Planning:Strategic Alternatives

• Strategy 1: Product-Communication Extension (Dual Extension)– Campbell Soup failed in United Kingdom but

succeeded in Japan. Why?

• Strategy 2: Product Extension-Communication Adaptation– Bicycles and motor scooters in different countries

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Global Product Planning:Strategic Alternatives

• Strategy 3: Product Adaptation-Communication Extension– Soap and detergent manufacturers in Japan

• Strategy 4: Product-Communication Adaptation (Dual Adaptation)– Unilever’s experience with fabric softener in Europe

(different brand and different messages for each region)

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

Global Product Planning:Strategic Alternatives

• Strategy 5: Product Invention

– Invention is a demanding but potentially rewarding product strategy for reaching mass markets in less developed countries

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

New Products in Global Marketing

• Identifying New Product Ideas– Discontinuous Innovations

• Entirely new inventions or innovations that require a relatively large amount of learning on the part of users (e.g. VCRs)

– Dynamically Continuous Innovations• An intermediate category of newness that is less

disruptive and requires less learning on the part of consumers (e.g. Gillette’s shaving system)

2002 – Chapter 11 Andrew P. Yap - FIU – MAR 4156

New Products in Global Marketing

• Continuous Innovation

– Products that are typically “new and improved” versions

– Often take the form of line extensions, such as new sizes, flavors, and low-fat versions