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

Slide 1 in

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

Slide 2 in

What is a Product?
Goods

Places

Services

Properties

Experiences

Organizations

Events

Information

Persons

Ideas

2003 Prentice Hall, Inc.

To accompany A Framework for

Slide 3 in

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

Slide 4 in

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

Slide 5 in

The Product and Product

Mix
Product
Classifications
Durability and
tangibility
Consumer goods
Industrial goods
2003 Prentice Hall, Inc.

Nondurable
Tangible
Rapidly consumed
Example: Milk

Durable
Tangible
Lasts a long time
Example: Oven

Services
Intangible
Example: Tax preparation

To accompany A Framework for

Slide 6 in

The Product and Product

Mix
Product
Classifications
Durability and
tangibility
Consumer goods
Industrial goods
2003 Prentice Hall, Inc.

Classified by
shopping habits:
Convenience
goods
Shopping goods
Specialty goods
Unsought goods

To accompany A Framework for

Slide 7 in

The Product and Product

Mix
Product
Classifications

Materials and parts

Farm products
Natural products
Component materials
Component parts

Durability and
tangibility

Capital items

Consumer goods

Supplies and business

services

Industrial goods
2003 Prentice Hall, Inc.

Installations
Equipment

Maintenance and repair

Advisory services

To accompany A Framework for

Slide 8 in

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

Slide 9 in

Product-Line Decisions
Product-Line Analysis
Product-Line Length
Product-Line Modernization,
Featuring, and Pruning

2003 Prentice Hall, Inc.

To accompany A Framework for

Slide 10 in

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

Slide 11 in

Brand Decisions
Brands can convey six levels of
meaning:
Attributes
Benefits
Values
Culture
Personality
User
2003 Prentice Hall, Inc.

To accompany A Framework for

Slide 12 in

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

Slide 13 in

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

Slide 14 in

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

Slide 15 in

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

Slide 16 in

Brand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
2003 Prentice Hall, Inc.

Advantages of
branding:
Facilitates order
processing
Trademark protection
Aids in segmentation
Enhances corporate
image
Branded goods are
desired by retailers
and distributors

To accompany A Framework for

Slide 17 in

Brand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
2003 Prentice Hall, Inc.

Options include:
Manufacturer
(national) brand
Distributor
(reseller, store,
house, private)
brand
Licensing the
brand name

To accompany A Framework for

Slide 18 in

Brand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
2003 Prentice Hall, Inc.

Strong brand names:

Suggest benefits
Suggest product
qualities
Are easy to say,
recognize, and
remember
Are distinctive
Should not carry poor
meanings in other
languages

To accompany A Framework for

Slide 19 in

Brand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
2003 Prentice Hall, Inc.

Varies by type of brand

Functional brands
Image brands
Experiential brands

Line extensions
Brand extensions
Multibrands
New brands
Co-branding

To accompany A Framework for

Slide 20 in

Brand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
2003 Prentice Hall, Inc.

A brand report card

can be used to audit
a brands strengths
and weaknesses.
Changes in
preferences or the
presence of a new
competitor may
indicate a need for
brand repositioning.

To accompany A Framework for

Slide 21 in

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

Slide 22 in

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

Slide 23 in

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

Slide 24 in