4. Product Management and Branding PDF

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MAN Lecture 402/03/4. Product Management and BrandingProduct management - By manipulating elements of the marketing mix managers can fine tune the customer offering and achieve competitive successProduct - Anythingthatcanbeofferedtoamarketforattention,acquisiti on,useorconsumptionthatmight satisfy a...

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Marketing Principles MAN1075 Lecture 4 02/03/2020

4. Product Management and Branding Product management - By manipulating elements of the marketing mix managers can fine tune the customer offering and achieve competitive success Product - Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need - Tangible attributes: - Colour - Size - Material composition - Intangible attributes - Image - Perceived value - Design - Quality - Products levels - Core product - benefit that consumer is actually seeking when buying that product - Tangible product: packaging, brand name, quality, styling, features - turn core product into an actual good that consumer can buy - Augmented product: after sales service, installation, delivery and credit, warranty additional features that can add extra value to core product - Potential: future developments - Product decisions at 3 levels - Individual products - product attributes, branding, packaging, labelling and product support services - Product line decisions - group of products closely related because they function in similar manner, marketed through similar outlets and fall within given price ranges Coca Cola drinks - ‘health-kick’ drinks, full fat drinks and energy drinks - Product mix decisions - set of all product lines and items a particular seller offers for sale to buyers - marketers look at width, depth and consistency of product lines - Product and service attributes - Product quality - Ability of a product to perform its functions - Durability, reliability and speed - Product features - Designing in features that appeal to customers - Key means of differentiation - Product style and design - Style - appearance - Design - impacts on performance - Packaging - activities of designing and producing the container or wrapper for a product - Packaging concept - Package should be or do for the customer - Product protection, gift enhancement - Packaging as part of branding - Catching the eye - Noticeable logo/colours

Marketing Principles MAN1075 Lecture 4 02/03/2020

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Packaging and labelling decisions - Number of containers - Primary container = egg carton - Secondary packaging = toothpaste tube box - Shipping packaging = cardboard box with multiple units - Practical decisions - Size - Shape - Materials - Colour - Labelling - Identification - Price - Brand markings Product line = a group of products that are closely related because they function in a similar manner, sold to the same customer groups, marketed through the same types of outlet, fall within given price Product line length decisions - Line is too short if profits could be increased by adding items - Line is too long if profits could be increased by dropping items Stretching and filling - Stretching: upward and downward - Filling: different different package sizes - Spare production capacity - Keeping out competitors

New product development - Innovation through NPD is essential to survival of organisation - Products and services become obsolete very quickly as technology forces changes on our lifestyles - New products keep company profitable - NPD is a risky activity - Loss of money - Product failure - Company reputation - Process - Idea generation - Idea screening - Concept development and testing - Business analysis - Product development - Test marketing - Commercialisation Branding - ‘A name, term sign, symbol or design, or combination of these, intended to identify the goods or services of one seller or group of sellers, and to differentiate them from those of a competitor’ - Types of brands - Manufacturer brand - developed by producers - Own label brands - helps retailers to enhance image and generate more profits

Marketing Principles MAN1075 Lecture 4 02/03/2020

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- Generic ‘brandless’ products Consumer’s viewpoint on branding - Product quality - Increased shopper efficiency - Calls attention to new products - Reduces psychological risk Seller’s viewpoint - Trademark - legal protection - Higher market share, increased sales, profitability - Brand loyalty Brand equity = the value of a brand, based on extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations and other assets such as patents Brand strategies

Line extension - Same brand name - additional items - New flavours - New sizes - Ingredients - Most common branding activity - Safety - already understand the market - Meets customer demands for variety - Problems - Can dilute focus of brand Brand extension - Using successful brand name to launch new product - Can fail - Some brands stretch further than others - Virgin - Extension must be compatible with original product/associations Multibrands - Where focus is on brand, not manufacturer - Tends to happen where firm has more than one brand in same market - Unilever - Product families - Some firms have brands for ranges of their products - Families grouped together by price/quality - Drawbacks

Marketing Principles MAN1075 Lecture 4 02/03/2020

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Cannibalisation Can be very costly

Brand decisions - Brand positioning - Domain, values, reflection - Personality, assets, heritage - Brand name selection - Selection - Protection - trademarks - Brand sponsorship - Co-branding - create hype in market, could sponsor sporting events - Product based - Communications based - Brand development - Brand extension - Brand stretching - New brands

Emotional brand attachment - Relative importance of the actual and ideal self - Brand personality = brand image expressed in human characteristics - Creates emotional connection that draws in a target market - Reflects relationship between consumers and a company products/services and must inspire the target market but also reflects companies values - Something consumers rely on - enduring reputation of a brand is measured is how true/long consumers stay to that personality...