Chapter Ten Product Branding and Packaging Decisions Beginning Case Spend millions of dollars for 30 second advertising spots during event opportunities such as Super Bowl or series finale of popular show o Olympics offer a unique chance to get a companies name out to a global audience o Clothing an entire team less costly than signing one star athlete but also may reach wider range of fans reduces risk of negative publicity from a single persons mistakes Equivalent of about 90 seconds of advertising during one Super Bowl Half time o Highly visible participants will display Polo s image multiple times during course of tournament Complexity of Products and Types of Products voluntary marketing exchange Complexity of Products Product is anything that is of value to a consumer can be offered through a o Core customer value basic problem solving benefits that consumers are What are customers looking for o Associated services augmented product include nonphysical aspects of o When developing or changing product marketers start with core customer value to determine what their potential customers are seeking Then make actual physical product and add associated services to Types of Products round out offering seeking product use o Consumer products products services used by people for their personal o Specialty products services products services toward which customers show such a strong preference that they will expend considerable effort to search for best suppliers o Shopping products services product services for which consumers will spend fair amount of time comparing alternatives o Convenience products services products services for which consumer not willing to spend any effort to evaluate prior to purchase o Unsought products services products consumers either do not normally think of buying or do not know about require lots of marketing effort various forms of promotion Product Mix and Product Line Decisions Complete set of all products offered by firm called product mix o Consists of various product lines which are groups of associated items that consumers tend to use together think of as part of group of similar products Product mix reflects breadth and depth of companies product lines o Breadth represents count of number of product lines offered by firm o Depth number of products within product line Expand number of product lines when it is relatively easy to enter a specific market Too much breadth in product mix becomes costly to maintain Change Product Mix Breadth o Increase breadth add new product lines to capture new or evolving markets and increase sales o Decrease breadth sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities Change Product Lines Depth o Increase depth firms might add items to address changing consumer preferences or preempt competitors while boosting sales o Decrease depth necessary to delete products within a product line to realign the firms resources Firms often must prune their product lines to eliminate unprofitable or low margin items and refocus their marketing efforts on their more profitable items Branding far more likely to make purchase based on based on positive experience with brand and because of sense of obligation to retailer for relatively inexpensive or free facials Provides way for firm to differentiate its product offerings from those of its competitors Brand name can describe product or service product characteristics and or be composed of words invented or derived from colloquial or contemporary language o Logos are visual branding elements that stand for corporate names or trademarks and symbols are logos without words o Slogans are short phrases used to describe brand or persuade consumers about some characteristics of the brand Value of Branding for the Customer and the Marketer o Brands facilitate purchases brands often easily recognized by consumers and because they signify certain quality level and contain familiar attributes brands help consumers make quick decisions Brands enable customers to differentiate one firm product from another trust certain brands o Brands establish loyalty over time with continued use consumers learn to Companies can maintain great depth in their product lines because their customers will buy other brands within their product mix o Brands protect from competition and price competition strong brands are somewhat protected from competition from other firms and price competition Brands are more established in market and have more loyal customer base neither competitive pressures on price nor retail level competition is as threatening to the firm o Brands can reduce marketing costs firms with well known brands can spend relatively less on marketing than firms with little known brands because brand sells itself Can direct their spending to areas where they gain most benefit o Brands are assets can be legally protected through trademarks and copyrights and constitute a unique form of ownership o Brands impact market value having well known brands can have direct impact on companies bottom line value of company is it overall monetary worth comprising vast number of assets Power of Internet Amazon has always focuses its strategy on its customers Customers experience is important competitive advantage of Amazon what customers want and how to get it to them quickly Maintaining customer centric company means money spent on customer service doesn t reach the bottom line in the short term in long term company is hoping to have gained lifetime customer Brand Equity set of assets and liabilities linked to a brand that add to or subtract from value provided by product or service o Brands are assets a firm can build manage and harness overtime to increase their revenue profitability and overall value o Can result in greater brand recognition awareness and consumer loyalty for the brand which all enhance brands overall equity o Licensed brand one for which there is contractual arrangement between firms whereby one firm allows another to use its brand name logo symbols and or characters in exchange for negotiated fee o Brand Awareness measures how many consumers in market are familiar with brand and what it stands for and have an opinion about that brand More aware or familiar with brand easier their decision making process will be If consumer recognizes brand it probably has attributes that make it valuable Certain brands gain such
View Full Document
Unlocking...