Total Product Concept A product is a combination

Total Product Concept A product is a combination of tangible and intangible benefits. A young, rising executive buys a Mercedes not based on transportation needs. It is to display achievement and success. Copyright © 2007 Pearson Education Canada 1

Product Mix The range of products a company sells is called the product mix. The product mix is described in terms of items and lines and width and depth. Copyright © 2007 Pearson Education Canada 2

Product Mix Item A unique product offering Line A grouping of items with common attributes Width The number of lines Depth Number of items in line Copyright © 2007 Pearson Education Canada 3

Product Line Width and Depth Width Depth Men’s Deodorant Women’s Antiperspirant Speed Stick 24/7 Lady Speed Clean Glide Speed Stick Lightening Lady Speed Stick Invisible Speed Stick Cyclone Lady Speed Stick Aloe Speed stick Ultimate Lady Speed Stick Gel Speed Stick Clear Copyright © 2007 Pearson Education Canada 4

Consumer Goods “Goods purchased by consumers for personal use. ” Ø Convenience Goods Ø Shopping goods Ø Specialty Goods Ø Unsought Goods Copyright © 2007 Pearson Education Canada 5

Convenience Goods Impulse Goods Staple Goods Emergency Goods Key Marketing Considerations ü Brand Name ü Image ü Reputation ü Performance ü Low Price ü Availability Copyright © 2007 Pearson Education Canada 6

Shopping Goods “Goods purchased on the basis of comparison. ” Key Marketing Considerations ü Quality ü Price ü Style ü Suitability ü Dependability ü Service Copyright © 2007 Pearson Education Canada 7

Specialty Goods “Goods possessing unique characteristics that a customer will make an effort to find. ” Key Marketing Considerations ü Selective location ü Reputation ü Image ü Superior quality Copyright © 2007 Pearson Education Canada 8

Business Goods “Goods that have a direct or indirect role in the manufacture of other goods. ” Capital Items Parts and Materials $ $ Copyright © 2007 Pearson Education Canada Supplies and Services $ 9

What Is a Brand? “A product with a personality. ” “A known entity that provides value. ” “A promise that is conveyed publicly by everything a customer can observe. ” “A set of product perceptions purchased by a consumer. ” Copyright © 2007 Pearson Education Canada 10

Branding Terms Brand Name, term, or symbol Brand Name Spoken part of brand Brandmark Identifiable symbol or design Trademark Legally protected part of brand identified by the symbol® Copyright © 2007 Pearson Education Canada 11

Brand Name Strategies National Brand Strategies • Individual Brand • Multi-brand • Family Brand • Product/Company • Co-brand Copyright © 2007 Pearson Education Canada 12

Co-branding “Using the equity of one brand name to market another brand name product. ” Copyright © 2007 Pearson Education Canada 13

Private Label Brands produced according to specifications established by the distributor. 1 in 5 products sold in a supermarket is a private label product. Copyright © 2007 Pearson Education Canada 14

Generic Brands “Products without a brand name or identifying feature. ” They are often referred to as: Ø No Name Ø Yellow Label Copyright © 2007 Pearson Education Canada 15

Other Branding Options Licensed Brands Allowing another party to use your name: NHL, NBA Limited Brands Seizing the popularity of something or someone: Star Wars cereal Cult Brands Fringe brands with a unique and loyal following: Apple, Harley-Davidson Copyright © 2007 Pearson Education Canada 16

Benefits of Branding benefits consumers: ü Suggestion of quality ü Psychological rewards ü Distinguishing features allow comparison Copyright © 2007 Pearson Education Canada 17

Benefits of Branding benefits organizations: ü Create and nurture an image ü Communication of USP ü Builds loyalty Copyright © 2007 Pearson Education Canada 18

Brand Communications play a key role in building a brand image. Volkswagen “Drivers Wanted. ” Nike “Just Do It. ” Master. Card “Priceless” Copyright © 2007 Pearson Education Canada 19

Importance of Branding In many categories the top brand in 1925 is still the top brand today. Product Brand Razors Soft Drinks Toothpaste Soap Crackers Gillette Coca-Cola Colgate Ivory Nabisco Copyright © 2007 Pearson Education Canada 20

Brand Loyalty “The degree of customer attachment to a brand. ” Brand Recognition Brand Awareness Brand Insistence Copyright © 2007 Pearson Education Canada 21

Brand Equity “The value a consumer derives from a brand. ” Equity is influenced by factors such as: Ø Name awareness Ø Loyal customer base Ø Perceived quality Ø Association with a key attribute Copyright © 2007 Pearson Education Canada 22

Brand Equity An organization defines equity in terms of monetary value. What is the brand worth as an asset? Global Brand Values 1. 2. 3. 4. 5. Coca-Cola $67. 4 Microsoft 61. 4 IBM GE Intel 53. 8 44. 1 33. 5 5. Disney 6. 7. 8. 9. $27. 1 Mc. Donald’s 25. 0 Nokia Toyota Marlboro 24. 0 22. 7 22. 1 Source: “Top 100 Brands, ” Business Week, August 2, 2004. Copyright © 2007 Pearson Education Canada 23

Components of a Package decisions are critical since a majority of buying decisions are made at point-of-sale. ü Primary package ü Secondary package ü Label ü Shipping container Copyright © 2007 Pearson Education Canada 24

Packaging Communications start and end with the package. A good package: ü Protects the product ü Markets the product ü Provides convenience ü Meets social concerns Copyright © 2007 Pearson Education Canada 25

Labelling Strategies A label communicates essential information to differentiate one brand from another. ü Brand Name ü Illustration ü Directions ü Mandatory Information ü Marketing Information ü UPC Copyright © 2007 Pearson Education Canada 26