Selling Product and Brand

8/13/2019 Selling Product and Brand

1/23

Sett ing Product and

B rand Strategy


2/23

What is a Product?

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas


3/23

The Product and Product Mix

Potential customers judge product

offerings according to three

elements:

Product features and qual ity

Services m ix and qual i tyValue-based prices


4/23


The customer value hierarchy:

Core benefi t

Basic product

Expected product

Augmented product

Potent ial produ ct


5/23


Product

Classifications

Durabi l ity and

tangibi l i ty

Consumer goods

Industr ial goods

Nondurable

Tangible

Rapid ly consum ed

Example: Milk

Durable

Tangible

Lasts a long t ime

Example: Oven

Services

Intangible

Example: Tax p reparat ion


6/23


Product

Classifications

Durabi l ity and

tangibi l i ty

Consumer goods

Industr ial goods

Classified by

shopping habits:

Convenience

goods

Shopp ing goods

Special ty goods

Unsought goods


7/23


Product

Classifications

Durabi l ity and

tangibi l i ty

Consumer goods

Industr ial goods

Materials and parts

Farm produ cts

Natural p roduc ts

Component mater ials

Component par ts

Capital items

Instal lat ions

Equipment

Supplies and businessservices

Maintenance and repair

Advisory serv ices


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Product mix dimensions:

Width:number of product l inesLength:total number of i tems in m ix

Depth:number of produc t var iants

Consistency:degree to whichproduc t l ines are related


9/23

Product-Line Decisions

Product-Line Analysis

Product-Line Length

Product-Line Modernization,

Featuring, and Pruning


10/23

Brand Decisions

The AMA definition of a brand:

A name, term, sign, symbol, ordesign , or a combinat ion o f these,

intended to ident i fy the goods or

serv ices of one sel ler o r g roup of

sel lers and to d if ferent iate them

from the competition.


11/23

Brand Decisions

Brands can convey six levels of

meaning:

Att r ibutes

Benef i ts

Values

Culture

Personal i ty

User


12/23

Brand Decisions

Brand identity decisions include:

Name

Logo

Colors

Tagline

Symbol Consumerexperiences create brand

bonding, brand advertising does not.


13/23

Brand Decisions

Marketers should attempt to create or

facilitate awareness, acceptabi l i ty,

preference, and loyaltyamongconsumers.

Valuable and powerful brands enjoy

high levels of brand loyalty.


14/23

Brand Decisions

Aaker identified five levels of

customer attitudes toward brands:

Wil l change brands, especial ly for pr ice.

No b rand loyal ty .

Satisf ied -- has no reason to change.

Sat isf ied -- sw itching wou ld incur cos ts.

Values brand , sees it as a friend .

Devo ted to the brand .


15/23

Brand Decisions

Brand equ i tyrefers to the positive

differential effect that a brand name

has on customers.

Brand equity:

is related to many facto rs.

al low s for reduced market ing costs .

is a major con tr ibu tor to custom er equi ty .


16/23

Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy

Brand repos i t ion ing

Advantages ofbranding:

Facil i t ates orderprocessing

Trademark protect ion

Aids in segmentat ion

Enhances co rporate

image

Branded goods are

desired by retai lers

and dist r ibutors


17/23

Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy


Options include:

Manufacturer

(nat ional) brand Distr ibutor

(reseller, sto re,

house, pr ivate)

brand Licens ing the

brand name


18/23

Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy


Strong brand names:

Suggest benefi ts

Suggest produ ctqual i t ies

Are easy to say,

recognize, and

remember

Are dist inct ive

Should not carry poor

meanings in other

languages


19/23

Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy


Varies by type of brand

Funct ional brands

Image brands

Exper ient ia l brands

Line extensions

Brand extensions

Multibrands

New brands

Co-branding


20/23

Brand Decisions

Key Challenges

To brand o r not

Brand sponso r

Brand name

Brand s trategy


A brand repo rt cardcan be used to audita brands strengthsand weaknesses.

Changes inpreferences or the

presence of a newcompetitor mayindicate a need forbrand repositioning.


21/23

Packaging and Labeling

Packaging includes:

The pr im ary package

The secondary package

The sh ipping package

Many factors have influenced theincreased use of packaging as amarketing tool.


22/23


Developing an effective package:

Determ ine the packaging concept

Determ ine key package elements

Test ing:

Engineering tests

Visual tests

Dealer tests

Consumer tests


23/23


Labeling functions:

Ident i f ies the product or b rand

May ident i fy produc t grade

May descr ibe the produc t

May promote the product

Legal restrictions impactpackaging for many products.

Selling Product and Brand

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