Brand Marketing
Managing product and brands
The Product Life Cycle Concept
• Products, like people, have been viewed as
having a life cycle.
• The concept of the product life cycle
describes the stages a new product goes
through in the marketplace: introduction,
growth, maturity, and decline.
Some Dimensions of the PLC--Length
1.
Consumer products have shorter
PLCs than industrial products.
2.
Mass communication informs
consumers faster and shortens PLCs.
3.
Products affected by technological
change tend to have shorter PLCs.
Some Dimensions of the PLC--Shape
1.
High learning product
2.
Low learning product
3.
Fashion product
4.
Fad product
Some Dimensions of the PLC--Product Level
1.
Product brand -- the specific version of a
product offered by a particular company
2.
Product class -- refers to the entire product
category or industry such as video games
3.
Product form -- pertains to variations
within the product class
The PLC’s life and Consumers
1.
Usage barriers -- the product
compatible with existing habits.
is
2.
Value barriers -- the product provides no
not
incentive to change…not that much better.
3.
Risk barriers -- risk can be physical, social or
economic/financial.
4.
Psychological barriers -- which can be the
result of cultural differences or image.
Managing the PLC
• Product manager. Manages the marketing
efforts for a close-knit family of products or
brands.
• Product Modification involves altering a
product’s characteristic, such as its quality,
performance, or appearance, to try to
increase and extend the product’s sales:
– new features
– new package
– new scents, etc.
Branding
• Branding involves an organization using a
name, phrase, design, symbols,or combination
of these to identify its products and distinguish
them from those of competitors.
• A brand name is any word, “device” (design,
sound, shape, or colour), or combination of
these used to distinguish a seller’s goods or
services.
Branding
• A trade name is a commercial, legal name under
which a company does business. For example,
the Campbell Soup Company is the trade name
of that firm.
• A trademark identifies that a firm has legally
registered its brand name or trade name so the
firm has its exclusive use, thereby preventing
others from using it.
Examples of Well-Known Trademarks, Brand Names,
and Trade Names
Brand name that
can be spoken
Big Mac hamburger
Levi’s jeans
Teflon plastic
Betty Crocker cake
mix
Macintosh computer
Brand name that
cannot be spoken
LOGOS
Trade name/
legal name/
of organization
Campbell Soup Co.
Compaq Corp.
Ford Motor Co.
Kellogg Co.
Ralston Purina Co.
Trademark, brand name, or trade name
registered with the and Trademark Office
Definition of Brand Equity
Brand Equity is . . . .
The added value a given brand
provides a product beyond the
functional benefits provided.
Definition of Licensing
Licensing is . . . .
a contractual agreement whereby a
company allows another firm to use
its brand name, patent, trade secret,
or other property for a royalty or a
fee.
Alternative Branding Strategies
Branding strategy
Manufacturer branding strategy
Multiproduct
branding
strategy
Multibranding Private
strategy
branding
strategy
Mixed
branding
strategy
Generic
branding
strategy
Sunbeam makes:
Sunbeam irons
Sunbeam
toasters
Sunbeam
crockware
Pillsbury Canada Sears Canada
makes:
has:
Green Giant
Kenmore
Prima
appliances
Old El Paso
Craftsman
Underwood
tools
Die Hard
batteries
Michelin
makes:
Michelin
tires
Sears tires
Dog food
Peanut butter
Green beans
Paper towels
Aspirin
Cola
Toro makes:
Toro
snowblowers
Toro lawn
mowers
Toro garden
hoses
Epson makes
printers as:
Epson
IBM
Packaging
• Packaging is the component of a product that
refers to any container in which it is offered for
sale and on which information is communicated.
• To a great extent, the customer’s first exposure to
a product is the package.
• Packaging is expensive and an important part of
marketing strategy.