Objectives
ObjectivesObjectives Objectives
Product CharacteristicsProduct Characteristics
Building & Managing the Product Mix & Building & Managing the Product Mix &
Product Lines Product Lines
Brand DecisionsBrand Decisions
Components of the
Components of the
Market Offering
Market Offering
Components of the Components of the
Market Offering Market Offering
Value-based prices
Services mix Product features
Five Product Levels
Five Product LevelsFive Product Levels Five Product Levels
Potential product Augmented product
Specialty Products
Specialty Products Unsought ProductsUnsought Products Shopping Products Shopping Products
Buy less frequently
> Gather product information
> Fewer purchase locations
> Compare for:
• Suitability & Quality
• Price & Style
Convenience Products Convenience Products
Special purchase efforts
> Unique characteristics
> Brand identification
> Few purchase locations
New innovations
> Products consumers don’t want to think about.
>Require much advertising & personal selling
Buy frequently & immediately
> Low priced
> Many purchase locations
> Includes:
• Staple goods
• Impulse goods
• Emergency goods
Product Mix
Product MixProduct Mix Product Mix
Width
Width - number of different product
lines
Width
Width - number of different product
lines
Length
Length - total number of items
within the lines
Length
Length - total number of items
within the lines
Depth
Depth - number of versions of each
product
Depth
Depth - number of versions of each
product
Product Mix -
Product Mix - all the product
lines offered
Product Mix -
Product Mix - all the product
Product-Line Length
Product-Line LengthProduct-Line Length Product-Line Length
Line StretchingLine Stretching DownmarketDownmarket UpmarketUpmarket
Two-wayTwo-way Line FillingLine Filling
Line ModernizationLine Modernization
Two-Way Product-Line
Two-Way Product-Line
Stretch: Marriott Hotels
Stretch: Marriott Hotels Two-Way Product-Line Two-Way Product-Line Stretch: Marriott Hotels Stretch: Marriott Hotels
Quality
Economy Standard Good Superior
P ri c e P ri c e High Above average Average
Low (Vacationers)Fairfield Inn
What is a Brand?
What is a Brand?What is a Brand? What is a Brand?
Attributes Benefits Values Culture
User
Brand Equity
Brand EquityBrand Equity Brand Equity
No Brand Loyalty (customer will change)No Brand Loyalty (customer will change)
Satisfied Customer (no reason to change)Satisfied Customer (no reason to change) Satisfied & Switching Cost
Satisfied & Switching Cost
Values the Brand
(brand as friend)
Values the Brand
(brand as friend) Devoted
to Brand
An Overview of
An Overview of
Branding Decisions
Branding Decisions An Overview of
An Overview of
Branding Decisions Branding Decisions
Branding Decision
•Brand
•No brand
Brand Strategies
Brand StrategiesBrand Strategies Brand Strategies
Brand Extension
New
B
ra
n
d
N
a
m
e
Product Category
Line
Extension
Existing
Existing
Multibrands
New New
Good Brand Names:
Good Brand Names:Good Brand Names: Good Brand Names:
Suggest Product Benefits Distinctive
Lack Poor Foreign Language
Meanings
Suggest Product Qualities
Easy to: Pronounce
Why Package Crucial as a
Why Package Crucial as a
Marketing Tool
Marketing Tool
Why Package Crucial as a Why Package Crucial as a
Marketing Tool Marketing Tool
Self-serviceSelf-service
Consumer affluenceConsumer affluence
Labels
LabelsLabels Labels
Identify
Identify Identify
Identify
Describe
Describe Describe
Describe
Promote
Promote Promote
Review
ReviewReview Review
Product CharacteristicsProduct Characteristics
Building & Managing the Product Mix & Building & Managing the Product Mix &
Product Lines Product Lines
Brand DecisionsBrand Decisions
