chapter 4.3 product management
TRANSCRIPT
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Chapter 4: product
Powerpoint: chapter 4.1
Powerpoint: chapter 4.2
Powerpoint: chapter 4.3 Powerpoint: chapter 4.4
Chapter 5: place
Powerpoint: chapter 5.1
Powerpoint: chapter 5.2
Chapter 6: price
Chapter 7: promotion
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A.What is a product
B. Product categories
C. Product mix
D. Brand decisions
E. Product features
F. Product development
G. Product life cycle
4 classes:
4.1, 4.2, 4.3 and 4.4
4.1
4.2
4.3
4.4
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Brand name strategies Mono and multi branding
Brand extensions
Choosing a brand name
Co-branding
E. product features Quality
Guarantee/ Warranty
Service
Concept/product design
Packaging
= continue 4.2: D. Brand decisions
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Monobranding Multibranding (umbrella branding)
Mondelez (Kraft Snacking)
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Advantages:
Expansion by means of market segmentation
Mondelez: Mignonette versus Oreo
Stimulate internal competition
Improve negotiation position
More brands = more shelf space
Variety seeking of consumer
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Disadvantages of monobranding
Up to you
Think of at least 3 disadvantages
In pairs
5’
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Advantages:
Launch of many new products
Halo-effect in marketing
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Disadvantages:
Damaged reputation for one product => whole company can be ‘hurt’
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Mono-multibranding Multi-monobranding
Fox, Golf, Lupo, …
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Strong brand name? Extensions can become successful!
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But they can fail too…: Bic perfume
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Up to you
Think of 5 products that have extended their brand
Successfully or unsuccessfully
FMCG, car industry, entertainment industry, …
In pairs
5’
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Basically 2 choices
Descriptive
Associative
Or combination of both
What makes a brand name really good?
Pronunciation, easy to remember, short, logical, elastic (in case of brand extension), …
International?
More in 2nd year marketing
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What do you think of
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Up to you.
Think of brand names whereby the following elements were used to compose the name:
Founder of the company
Location
Reference to the basic features of the product (eg. Ingredients)
A symbolic meaning
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Many companies have already experienced the consequences of a badly chosenbrand name
Rolls Royce Silver Mist
Fiat Uno: ‘loser’ in Finnish
Lada Nova: ‘doesn’t go’ in Spanish
Mercedes 400: 4 symbolizes death in many Asian countries
Nissan Serena: ‘serena’ is also brand of monthly towel
Spunk biscuits
Crap spread
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The Joyce principle: spontaneous brand name associations
The Juliet principle: associations made because of education
Competition:
Innovation
Me-too
Think of potential internationalisation
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Relationship between product and brand name
Positioning based on
Instrumental features: Belolive
Expressive features: Vitalinea, Dove, Danette
Depends on brand extension plans
Not easy with every brand name
Tomorrowland => Tomorrow world
Maes Pils => ?
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Watch out: me-too names can be dangerous
Confusion
Legal consequences
Conduct market research to check appropriateness
Exampes:
WE radio station versus
Radio station MNM versus
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Example:
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Strategy whereby two/more brand names are used to market a product
2 completely different products complement each other and have the samepositioning
Co-branding: when?
On product level
On distribution level
On communication level
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On product level:
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On distribution level:
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On communication level:
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Advantages
More efficient
‘surprise’ effect
Competitive power
Meets consumers’ needs of laziness
Spread costs and risks
Disadvantages
Up to you
Many trials and errors: Philips
At last… :
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A.What is a product
B. Product categories
C. Product mix
D. Brand decisions
E. Product features
F. Product development
G. Product life cycle
4 classes:
4.1, 4.2, 4.3 and 4.4
4.1
4.2
4.3
4.4
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E.
Quality
Guarantee/warranty
Service
Concept/product design
Packaging
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Quality management:
Look for quality improvements on all company levels and for all stakeholders
Consumer satisfaction is key here:
Especially in services marketing
Product quality: life expectation, easiness to use, …
Happy consumer? WOM and repeated purchase
Unhappy consumer?
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Product quality
Sustainable consumption goods
Food products
Other
Consumer quality
Way in which quality is perceived byconsumer
Depends on situation
Depends on expectations
Earlier experiences, marketing, price, quality labels, …
Up to you: depict situation when yourquality demands were not met
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Quality labels = a promise
• “Champagne”
• “Delft” pottery
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Quality management for products =
Choose the quality level that supports the positioning of your product
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Written statement containing a clause
Actions (to be) taken if a product does not meet the quality requirements within a giventime span
Conditions: time, parts, functionality
Function: reduce (financial) risk
FMCG: trial and reimbursements
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In general
Before, during and after sales
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Before becoming an actual product, product first have a concept design
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Actual design:
Must be of good quality
Must be practical
Must be attractive
Must be beautiful
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Technical function:
Protection/use and re-use
Management and logistical function
Bar codes
Commercial and communicative function
‘silent’ sales agent
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Communicative function:
Mentions type of product
Carries brand name
Mentions product information
Sales promotions carrier
Can lead to cross-selling
Mentions differences in future design
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Think of examples whereby the packaging can lead to cross-selling: