©2000 prentice hall objectivesobjectives ä product characteristics ä building & managing the...
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©2000 Prentice Hall
ObjectivesObjectivesObjectivesObjectives
Product CharacteristicsProduct Characteristics Building & Managing the Product Mix & Building & Managing the Product Mix &
Product LinesProduct Lines Brand DecisionsBrand Decisions Packaging & LabelingPackaging & Labeling
©2000 Prentice Hall
Components of theComponents of theMarket OfferingMarket Offering
Components of theComponents of theMarket OfferingMarket Offering
Value-based prices
Services mixand quality
Product featuresand quality
Attractiveness ofthe market offering
©2000 Prentice Hall
Five Product LevelsFive Product LevelsFive Product LevelsFive Product Levels
Potential product
Augmented product
Expected product
Basic product
Core benefit
©2000 Prentice Hall
Specialty ProductsSpecialty Products Unsought ProductsUnsought Products
Shopping ProductsShopping ProductsBuy less frequently> Gather product information> Fewer purchase locations> Compare for:
• Suitability & Quality • Price & Style
Convenience ProductsConvenience Products
Special purchase efforts> Unique characteristics> Brand identification> Few purchase locations
New innovations> Products consumers don’t want to think about. >Require much advertising & personal selling
Buy frequently & immediately> Low priced> Many purchase locations> Includes:
• Staple goods• Impulse goods• Emergency goods
Consumer-Goods Consumer-Goods ClassificationClassification
Consumer-Goods Consumer-Goods ClassificationClassification
©2000 Prentice Hall
Product MixProduct MixProduct MixProduct Mix
WidthWidth - number of different
product lines
WidthWidth - number of different
product lines
LengthLength - total number of itemswithin the lines
LengthLength - total number of itemswithin the lines
Depth Depth - number of versions of each product
Depth Depth - number of versions of each product
Product Mix - Product Mix - all the product
lines offered
Product Mix - Product Mix - all the product
lines offered
Co
nsi
sten
cy
©2000 Prentice Hall
Product-Line LengthProduct-Line LengthProduct-Line LengthProduct-Line Length
Line StretchingLine StretchingDownmarketDownmarketUpmarketUpmarketTwo-wayTwo-way
Line FillingLine Filling Line ModernizationLine Modernization Line Featuring & Line PruningLine Featuring & Line Pruning
©2000 Prentice Hall
Two-Way Product-Line Two-Way Product-Line Stretch: Marriott HotelsStretch: Marriott HotelsTwo-Way Product-Line Two-Way Product-Line Stretch: Marriott HotelsStretch: Marriott Hotels
QualityEconomy SuperiorStandard Good
Pri
ceP
rice
High
Aboveaverage
Average
Low Fairfield Inn(Vacationers)
Courtyard(Salespeople)
Marriott(Middle
managers)
MarriottMarquis
(Topexecutives)
©2000 Prentice Hall
What is a Brand?What is a Brand?What is a Brand?What is a Brand?
Attributes Benefits Values
Culture
User
Personality
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Brand EquityBrand EquityBrand EquityBrand Equity
No Brand Loyalty(customer will change)
No Brand Loyalty(customer will change)
Satisfied Customer(no reason to change)Satisfied Customer
(no reason to change)
Satisfied & Switching CostSatisfied & Switching Cost
Values the Brand(brand as friend)
Values the Brand(brand as friend)
Devoted to Brand
Devoted to Brand
©2000 Prentice Hall
An Overview ofAn Overview ofBranding DecisionsBranding Decisions
An Overview ofAn Overview ofBranding DecisionsBranding Decisions
BrandingDecision
•Brand
•No brand
Brand-SponsorDecision
•Manu-facturerbrand
•Distribu-tor(private)brand
•Licensedbrand
Brand-Name
Decision•Individualbrandnames•Blanketfamilyname•Separatefamilynames•Company-individualnames
Brand-Repositioning
Decision
•Reposi-tioning
•Noreposi-tioning
Brand-StrategyDecision
•Lineextension
•Brandextension
•Multi-brands
•Newbrands
•Cobrands
©2000 Prentice Hall
Brand StrategiesBrand StrategiesBrand StrategiesBrand Strategies
BrandExtension
New
Bra
nd
Nam
e
Product Category
LineExtension
Existing
Existing
MultibrandsNew NewBrands
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Good Brand Names:Good Brand Names:Good Brand Names:Good Brand Names:
SuggestProductBenefits
Distinctive
Lack PoorForeign
LanguageMeanings
SuggestProductQualities
Easy to:PronounceRecognizeRemember
©2000 Prentice Hall
Why Package Crucial as a Why Package Crucial as a Marketing ToolMarketing Tool
Why Package Crucial as a Why Package Crucial as a Marketing ToolMarketing Tool
Self-serviceSelf-service Consumer affluenceConsumer affluence Company & brand imageCompany & brand image Opportunity for innovationOpportunity for innovation
©2000 Prentice Hall
LabelsLabelsLabelsLabels
IdentifyIdentifyIdentifyIdentify
DescribeDescribeDescribeDescribe
PromotePromotePromotePromote
©2000 Prentice Hall
ReviewReviewReviewReview
Product CharacteristicsProduct Characteristics Building & Managing the Product Mix & Building & Managing the Product Mix &
Product LinesProduct Lines Brand DecisionsBrand Decisions Packaging & LabelingPackaging & Labeling