Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services...

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Managing Products & Brands

Transcript of Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services...

Page 1: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Managing Products & Brands

Page 2: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

A product has….

• Core customer value– Benefits

• Associated Services (augmented product)– Financing– Warranty– Support

Page 3: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

What is a Product?

• Tangible good• Idea• Service• Person

Page 4: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Types of Consumer Products

• Convenience• Shopping• Specialty• Unsought

Page 5: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Convenience

• Relatively inexpensive• Little shopping effort• Without much planning• Require wider distribution

Page 6: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Unsought Products

• Known but not actively sought• New products• Products we don’t wan to think about

Page 7: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Shopping Products

Homogeneous• Similar• Look for lowest price

Heterogeneous• Different• Price, quality varies• Personal benefit

More expensive than convenienceFound in fewer stores

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Specialty Products

• Extensive search• Reluctant to accept substitutes• Selective, status advertising• Limited/exclusive distribution

Page 9: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Managing the product

• Product item

• Product Line– Closely related products

• Product Mix – all the products sold

Page 10: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Managing Products

• Width/Breadth– Number of product lines

• Product Line Depth– Number of products in a product line

• Changes– Increase/decrease breadth• Eliminate/Add a Product line

– Increase/decrease depth• Eliminate/Add a product item to a Line

Page 11: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Managing Products

• Product Modification– Changes one or more of a product characteristic• Quality• Functions• Style• Planned Obsolence

Page 12: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Managing Products

• Repositioning– Changing consumers’ perceptions of a brand– Changing target market

Page 13: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Branding

• And we are back to telling our story• Brand is more than a story; there are elements• Brand is– Name, term, symbol, design, or combination that

identifies a seller’s products and differentiates them from competitors

– Brand Name: can be spoken (GM)– Brand Mark: elements that cannot be spoken

(Chevy symbol, Apple’s apple)

Page 14: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Importance of Branding

• Establish Brand Equity– Value of company and brand names– Measured on awareness, perceived quality, brand

loyalty– Can leverage equity to sell other products

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Why Brand?

• Facilitates Purchases• Establish Brand Loyalty• Protect from Competition• Protect from Price Competition• Reduce Marketing Costs

Page 16: Managing Products & Brands. A product has…. Core customer value – Benefits Associated Services (augmented product) – Financing – Warranty – Support.

Branding Strategies

• Ownership• Name• Brand Line Extension• Co-branding• Licensing

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Ownership

• Manufacturer Brands• Private Label brands– Premium– Generic– Copycat– Exclusive co-brands

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Manufacturer vs. Private

Manufacturer• Advertise to consumer• Strong consumer loyalty• Attract new customer’s• Enhance store• If bad customer experience

with product does not affect store

Private• Higher profits• Drop other brands in favor

of own• Ties customer to store• Control of distribution

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Name

• Individual– Products vary enough to have own name– P&G different detergents

• Family– Selling different products under same brand name• Jack Daniel’s• Absolute• Tide

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Co-branding

• Two or more brand names on a product or its package

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Brand Line Extension

• Use brand name for different product line• Line extension– Use of brand name within same line

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Licensing

• Contractual agreement• Allow a firm to use brand name, logo, etc. for

a fee• Common in toys, apparel, and video games.

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Packaging

• Primary package– The one the consumer uses

• Secondary package– Wrapper/Exterior– In line with Branding– UPC symbol– Attracts attention– Differentiate from competition

• Labeling– Persuasive– Informational– Greenwashing

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Packaging Functions

• Contain and protect product• Promote product• Facilitate storage, use and convenience• Facilitate recycling and disposal