1. Chapter 11
Setting Product and
Brand Strategy
PowerPoint by Karen E. James
Louisiana State University - Shreveport
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 11

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

3. What is a Product?
 Goods  Places
 Services  Properties
 Experiences  Organizations
 Events  Information
 Persons  Ideas
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 11

4. The Product and Product Mix
 Potential customers judge product
offerings according to three
elements:
– Product features and quality
– Services mix and quality
– Value-based prices
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 11

5. The Product and Product Mix
 The customer value hierarchy:
– Core benefit
– Basic product
– Expected product
– Augmented product
– Potential product
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 11

6. The Product and Product Mix
 Nondurable
Product – Tangible
Classifications – Rapidly consumed
– Example: Milk
 Durable
 Durability and
– Tangible
tangibility – Lasts a long time
– Example: Oven
 Consumer goods  Services
 Industrial goods – Intangible
– Example: Tax preparation
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 11

7. The Product and Product Mix
Product  Classified by
Classifications shopping habits:
– Convenience
 Durability and goods
tangibility – Shopping goods
 Consumer goods – Specialty goods
– Unsought goods
 Industrial goods
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 11

8. The Product and Product Mix
 Materials and parts
Product – Farm products
Classifications –
–
Natural products
Component materials
– Component parts
 Durability and  Capital items
tangibility – Installations
– Equipment
 Consumer goods  Supplies and business
services
 Industrial goods – Maintenance and repair
– Advisory services
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 11

9. The Product and Product Mix
 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
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 11

10. Product-Line Decisions
 Product-Line Analysis
 Product-Line Length
 Product-Line Modernization,
Featuring, and Pruning
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 11

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

12. Brand Decisions
 Brands can convey six levels of
meaning:
– Attributes
– Benefits
– Values
– Culture
– Personality
– User
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 11

13. Brand Decisions
 Brand identity decisions include:
– Name
– Logo
– Colors
– Tagline
– Symbol
 Consumer experiences create brand
bonding, brand advertising does not.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 11

14. Brand Decisions
 Marketers should attempt to create or
facilitate awareness, acceptability,
preference, and loyalty among
consumers.
 Valuable and powerful brands enjoy
high levels of brand loyalty.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 11

15. Brand Decisions
 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.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 11

16. Brand Decisions
 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.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 11

17. Brand Decisions
 Advantages of
Key Challenges
branding:
– Facilitates order
 To brand or not processing
 Brand sponsor – Trademark protection
– Aids in segmentation
 Brand name – Enhances corporate
image
 Brand strategy
– Branded goods are
 Brand repositioning desired by retailers
and distributors
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 11

18. Brand Decisions
Key Challenges  Options include:
– Manufacturer
 To brand or not (national) brand
– Distributor
 Brand sponsor (reseller, store,
 Brand name house, private)
brand
 Brand strategy – Licensing the
 Brand repositioning brand name
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 11

19. Brand Decisions
 Strong brand names:
Key Challenges
– Suggest benefits
– Suggest product
 To brand or not qualities
 Brand sponsor – Are easy to say,
recognize, and
 Brand name remember
– Are distinctive
 Brand strategy
– Should not carry poor
 Brand repositioning meanings in other
languages
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 11

20. Brand Decisions
 Varies by type of brand
Key Challenges
– Functional brands
– Image brands
 To brand or not – Experiential brands
 Brand sponsor  Line extensions
 Brand extensions
 Brand name
 Multibrands
 Brand strategy
 New brands
 Brand repositioning  Co-branding
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 11

21. Brand Decisions
 A brand report card
Key Challenges
can be used to audit
a brand’s strengths
 To brand or not and weaknesses.
 Brand sponsor  Changes in
preferences or the
 Brand name presence of a new
 Brand strategy competitor may
indicate a need for
 Brand repositioning brand repositioning.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 11

22. Packaging 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.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 11

23. Packaging and Labeling
 Developing an effective package:
– Determine the packaging concept
– Determine key package elements
– Testing:
Engineering tests
Visual tests
Dealer tests
Consumer tests
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 11

24. Packaging and Labeling
 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.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 24 in Chapter 11