Objectives

 Product Characteristics
 Building & Managing the Product Mix &
Product Lines
 Brand Decisions
 Packaging & Labeling

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 Components of the
Market Offering
Value-based prices

Attractiveness of
the market offering

Product features Services mix

and quality
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and quality
 Five Product Levels
Potential product
Augmented product
Expected product
Basic product
Core benefit

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 Consumer-Goods
Classification
Convenience Products Shopping Products
Buy frequently & immediately Buy less frequently
> Low priced > Gather product information
> Many purchase locations > Fewer purchase locations
> Includes: > Compare for:
• Staple goods • Suitability & Quality
• Impulse goods • Price & Style
• Emergency goods

Specialty Products Unsought Products

Special purchase efforts
> Unique characteristics New innovations
> Brand identification > Products consumers don’t
> Few purchase locations want to think about.
>Require much advertising &
personal selling

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 Product Mix

Width - number of
different product
lines

Length - total Product Mix -

number of items all the product
within the lines lines offered

Depth - number of
versions of each
product

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 Product-Line Length

 Line Stretching
 Downmarket
 Upmarket
 Two-way
 Line Filling
 Line Modernization
 Line Featuring & Line Pruning

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 Two-Way Product-Line
Stretch: Marriott Hotels
Quality
Economy Standard Good Superior
Marriott
High Marquis
(Top
executives)
Price

Above Marriott
average (Middle
managers)

Average Courtyard
(Salespeople)

Fairfield Inn
Low (Vacationers)
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 What is a Brand?

User

Culture Personality

Attributes Benefits Values

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 Brand Equity

Devoted
to Brand

Values the Brand

(brand as friend)

Satisfied & Switching Cost

Satisfied Customer
(no reason to change)
No Brand Loyalty
(customer will change)
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 An Overview of
Branding Decisions

Brand- Brand- Brand- Brand-

Branding Sponsor Name Strategy Repositioning
Decision Decision Decision Decision Decision
•Manu- •Individual •Line
facturer brand extension
brand names
•Blanket •Brand •Reposi-
family extension tioning
•Brand •Distribu- name
tor •Separate •Multi- •No
•No brand (private) family brands reposi-
brand names •New tioning
•Licensed •Company- brands
brand individual
names •Cobrands

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 Brand Strategies

Product Category
Existing New
Brand Name

Existing Line Brand

Extension Extension

New Multibrands New

Brands

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 Good Brand Names:

Lack Poor
Foreign
Distinctive
Language
Meanings

Easy to:
Suggest Suggest
Pronounce
Product Product
Recognize
Qualities Benefits
Remember

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 Why Package Crucial as a
Marketing Tool
 Self-service
 Consumer affluence
 Company & brand image
 Opportunity for innovation

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 Labels

Promote

Describe

Identify

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 Review

 Product Characteristics
 Building & Managing the Product Mix &
Product Lines
 Brand Decisions
 Packaging & Labeling

©2000 Prentice Hall