marketing quality circle. after reading this chapter, students should: know what are the...

Marketing Quality Circle

Chapter no: 10, 11, 12Brands and Products

Marketing Quality Circle

LEARNING OBJECTIVES

After reading this chapter, students should: Know what are the characteristics of products and how do

marketers classify products. Know how companies can differentiate products Know how a company can build and manage its product

mix and product lines Know how companies can combine products to create

strong co-brands or ingredient brands Know how companies can use packaging, labeling,

warranties, and guarantees as marketing tools Know what a is brand and how branding works Know what brand equity is Know how a firm can choose and communicate an

effective positioning in the market Know how brands are differentiated

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Steps in Strategic Brand Management

Identifying and establishing brand positioning

Planning and implementing brand marketing

Measuring and interpreting brand performance

Growing and sustaining brand value

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What is a Brand?

A brand is a name, term, sign, symbol or design, or a combination

of them, intended to identify the goods or services of one seller or

group of sellers and to differentiate them from those of competitors.

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The Role of Brands

Identify the maker Simplify product handling Organize accounting Offer legal protection

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The Role of Brands

Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium

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What is Branding?

Branding is endowing products and services with the power of the brand.

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What is Brand Equity?

Brand equity is the added value endowed on products and services, which may be reflected in the way

consumers, think, feel, and act with respect to the brand.

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Advantages of Strong Brands

Improved perceptions of product performance

Greater loyalty Less

vulnerability to competitive marketing actions

Less vulnerability to crises

Larger margins More inelastic

consumer response

Greater trade cooperation

Increased marketing communications effectiveness

Possible licensing opportunities

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What is a Brand Promise?

A brand promise is the marketer’s vision of what the brand must be and

do for consumers.

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Brand Elements

Brand names Slogans Characters

Symbols Logos URLs

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Brand Element Choice Criteria

Memorable Meaningful Likeability Transferable Adaptable Protectible

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Table 9.2 The 10 Most Valuable Brands

Brand 2006 Brand Value (Billions)

Coca-Cola $67.00

Microsoft $56.93

IBM $56.20

GE $48.91

Intel $38.32

Nokia $30.13

Toyota $27.94

Disney $27.85

McDonald’s $27.50

Mercedes-Benz $22.13

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Managing Brand Equity

Brand reinforcement Brand revitalization Brand crises

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What is a Product?

A product is anything that can be offered to a market to satisfy a want or need, including physical goods,

services, experiences, events, persons, places, properties,

organizations, information, and ideas.

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Product Characteristics and Classifications

Product levels: The Customer-Value Hierarchy

Product Classification Product and Brand Relationships

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Product levels: The Customer-Value Hierarchy Five Product Levels

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Core Product

Attributes Styling

Colour

BrandName

PackagingQuality

InstructionsManual

After salesservices

Deliverypoints & systems

Installation(for bulkyproducts)

Customer

education

and TrainingCustomercomplaint management

Payment options (for high priced prod- cts)

Replacement orreturnspolicy

Guarantees &warranties

Core Product

FormalProduct

Augmented Product

Future ProductThe total product concept

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Industrialproducts

Consumerproducts

Product

Materials andparts

Supplies andservices

Capital itemsSpecialty

Shopping

Unsought

Convenience

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Consumer Product

Marketing Consideration

Convenience Shopping Specialty Un-sought

Customer buyingbehavior

Frequent purchases

Less frequent purchase

Special purchase effort

Little product awareness

Price Low Higher high varies

Distribution Widespread DistributionConvenient

location

Selective distribution in fewer outlets

Exclusive in one or few outlets.

varies

Promotion Mass promotion Advertising and personal selling

More carefully targeted

promotion by both.

Aggressive advertising and personal selling

Example Toothpaste, soap, candy

Television , furniture

Luxury items, Rolex watches.

Life insurance, blood donations

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Product Differentiation

Product form Features Customization Performance Conformance Durability Reliability Repairability Style

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Service Differentiation

Ordering ease Delivery Installation Customer training Customer consulting Maintenance and

repair Returns

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Product Systems and Mixes

Product system Product mix Product assortment Depth Length Width Consistency

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Product Line Analysis

Core product Staples Specialties Convenience items

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Line Stretching

Down-market stretch Up-market stretch Two-way stretch

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Product-Mix Pricing

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

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What is the Fifth P?

Packaging, sometimes called the 5th P, is all the activities of designing and producing the

container for a product.

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Factors Contributing to the Emphasis on Packaging

Self-service Consumer affluence Company/brand image Innovation opportunity

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Packaging Objectives

Identify the brand Convey descriptive and persuasive

information Facilitate product transportation and

protection Assist at-home storage Aid product consumption

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Functions of Labels

Identifies Grades Describes Promotes

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What is Positioning?

Positioning is the act of designing the company’s offering and image to

occupy a distinctive place in the mind of the target market.

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Value Propositions

Perdue Chicken More tender golden chicken at a

moderate premium price Domino’s

A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

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Defining Associations

Points-of-difference (PODs)

Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand

Points-of-parity

(POPs) Associations

that are not necessarily unique to the brand but may be shared with other brands

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Marketing Program Modifications

Prices Distribution Advertising Sales promotion Services

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Ways to Increase Sales Volume Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on

more occasions Have consumers use more of the

product on each occasion Have consumers use the product in

new ways