Go beyond Attribute or Benefit
Positioning
Example: GODIVA
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8.
Product, service, and
branding strategy
(Revised)
1
2
Figure 9-1:
OUTLINE
Product line
design
Branding
decision
Product line
decision
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Product mix
decision
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The levels of
products
Three Levels of Product
Characteristics
and strategy of
service
3
The levels of
products
4
產品組合(P
(PRODUCT MIX)
消費產品分類
便利品(Convenience
goods)
專業品(Specialty
goods)
Unsought
goods
The levels of
products
產品組合的寬度(The
width)
產品組合的長度(The
length)
產品組合的深度(The
depth)
5
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goods)
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選購品(Shopping
A Product Mix is the set of all products
that a particular seller offers for sale.
Product mix
decision
6
Product line
decision
8
產品線長度決策
產品線決策(PRODUCT LINE DECISIONS)
產品線延伸
Modernization)
產品線填補
產品線之主打商品與刪減決策
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產品線更新(Line
Length)
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產品線長度決策(Line
(Line -Stretching)
向下延伸 (Downward Stretch)
向上延伸 (Upward Stretch)
雙向延伸 (Two-Way Stretch)
(Line filling)
(Line Featuring and Pruning)
Product line
decision
7
TwoTwo-Way ProductProduct-Line Stretch:
Marriott Hotels
Quality
Standard
Two
Superior
Good
Marriott
(Middle
managers)
Above
average
Segments: High and Low
Two products: High-end and Low-end
How to implement target marketing?
How to design the product line?
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Marriott
Marquis
(Top
executives)
High
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Price
Economy
OPTIMAL PRODUCT LINE DESIGN
Courtyard
(Salespeople)
Average
Fairfield Inn
Low (Vacationers)
Product line
decision
9
EXAMPLE (Q2=1, Q1=3/4)
10
OPTIMAL PRODUCT LINE PRICING
H-Segment
θ2=1
θ2 q2=1
L-Segment
θ1 =3/4
θ1 q2=3/4
θ2 q1=3/4
θ1 q1=9/16
cost c(q)=q2/2,
c1(q1 )=9/32, c2(q2 )=1/2
If P1=9/16, P2=1,
Will H-segment buy product 2? Π=?
To induce H-segment to buy product 2,
P1=9/16, P2=? , Π=?
Assume
consumer of type θi gets utility θi qj from
consuming a product of quality qj ,where
i=1,2; j=1,2 and θ2 >θ1 .
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Valuation for
high-end product
Valuation for
low-end product
Product line
design
A
Product line
design
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11
10
Product line
design
12
品牌定位
REDESIGNING THE PRODUCT LINE?
What
Benefits
Values
13
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Product line
design
Attributes
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if we expand the quality spectrum?
The optimal q1= θ1 -(θ2 -θ1)=1/2, q2=1;
c1(q1 )=1/8, c2(q2 )=1/2
p1=3/8, p2=7/8
Π=2/8+3/8=5/8 > 19/32.
Brand Positioning
14
EVERY PEPSI REFRESHES
THE WORLD?
Go beyond benefit positioning
Enjoy the Journey.
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15
16
LABELING AND LOGOS TO
ENHANCE POSITIONING
HAAGEN-DAZS LOVES
HONEY BEES
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17
MY BLACK IS BEAUTIFUL
CAMPAIGN
18
ELEMENTS OF BRAND EQUITY
Name
Awareness
Figure
9.5
Brand
Loyalty
Perceived
Quality
Name Symbol
Provides value to firm by
Enhancing:
Interpretation/Processing
of information
Efficiency and
effectiveness of
Marketing Programs
Confidence in the
Purchase Decision
Brand Loyalty
Use Satisfaction
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Provides value to customer
by Enhancing Customer:
Brand
Associations
Other
Proprietary Brand
Assets
Prices/Margins
Brand Extensions
Trade Leverage
Competitive Advantage
19
Branding
decision
Irwin/McGraw-Hill
20
The McGraw-Hill Companies, Inc., 1998
Source:Ellen N. and R. D.
Hof, ”Branding on the Net,”
Business Week, Nov. 9,
1998, 76-86.
品牌權益價值(B
(BRAND EQUITY)
Brand Awareness
Brand Acceptability
Brand Preference
Brand Loyalty
THE INTERNET AND BRAND EQUITY
- 5 most valuable brands (Business Week, 2001)
Coca-Cola ($69 billion), Microsoft ($65 billion),
IBM ($53 billion), GE, Nokia
Branding
decision
Rational Branding
Experiential Marketing
21
BRANDING ON THE NET
23
Branding
decision
22
品牌決策(B
(BRAND DECISIONS)
發展品牌決策
(To Brand or not to Brand?)
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Shan-Yu Chou
Mass media of TV and print become more
fragmented.
The Net generation and their favorite media
cannot be ignored.
More help and less hype: helping customers
and building your brand at the same time, e.g.,
MasterCard
Different positioning strategies
Complementarity, e.g., General Motors and
Macy’s
Web site itself (experience) is the crucial
building block; examples of Amazon and
Coca-Cola
Branding
decision
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The biggest brands on the Internet are
those that built their equity on the Net.
品牌支援廠商決策
(Brand-Sponsor Decision)
–Name Decision
Brand-Strategy Decision
Brand-Repositioning Decision
Brand
Branding
decision
24
THE BATTLE BETWEEN NATIONAL
TYPES OF BRANDS
Manufacturer
BRANDS AND STORE BRANDS
Brands
Retailers
- The battle between national brands and
store brands
Branding
decision
control shelf space and are closer
to consumers;
Numerous line extensions have blurred brand
identity;
The quality of store brands have been
improved;
The dilemma facing national brand
manufacturers.
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Brands
Generics
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Store
25
Branding
decision
26
品牌命名決策
SHARPEN VALUE PROPOSITIONS
(B
BRAND-NAME DECISION)
Gillete’s razor: providing high performance
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shaving for as little $1 a week
Unilever’s repositioning: With Ragu and one
pound of pasta, you can feed a family of 4
for less than $4.
Individual
Emphasizing affordable quality, not price.
Never give up the core value proposition.
27
27
brand names
Blanket family name
Distinct name for each product
class
Company name plus individual
brand name
Branding
decision
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P&G Pentene: Affordable salon alternative;
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28
品牌策略(C
品牌策略(CONT.)
品牌策略(B
品牌策略(BRAND STRATEGY)
產品線延伸(Line
新產品別
現有品牌
Line
Extension
Brand
Extension
新品牌
Multibrands
New brands
29
Branding
decision
LINE EXTENSIONS
A
30
Co-Branding Examples
May
oversegment a
product line;
Weaken a brand’s
identity;
Risk undermining
brand equity;
Nike-iPod
Sport kit
Tim Hortons -Cold stone
全家-伯朗 Coffee
32
Branding
decision
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Branding
decision
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low-cost shortterm growth
strategy;
Expand category
sales?
Develop a new
market?
Build entry barriers?
More shelf space
occupied?
Extension)
-What are branded variants?
品牌延伸 (Brand Extension)
多品牌策略(Multibranding)
新品牌策略(New Brands)
共同品牌策略(Cobranding)
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現有產品別
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品牌\產品類
品牌 產品類
別
31
PRODUCTS, SERVICES AND
EXPERIENCES
COMPLEMENTARY CO-BRANDING
Products
Characteristics
and strategy of
service
33
SERVICE MARKETING
Pure
Characteristics
Tangible
35
tangible good
good with accompanying services
Hybrid
Major service with accompanying minor
goods and services
Pure service
Characteristics
and strategy of
service
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Classification
Characteristics
and strategy of
service
34
CLASSIFICATION OF SERVICES
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of services
of services
Strategies of service firms
How can goods-producing companies
improve their customer support services?
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and services are external.
Experiences are created within customers.
Experiences are memorable.
36
MARKETING STRATEGIES FOR
SERVICE FIRMS
CLASSIFICATION OF SERVICES
Experience
Inseparable
Variability
Characteristics
and strategy of
service
37
Word
of mouth or
signaling
3Ps: People, Process,
Physical evidence
Interactive
marketing
Internal marketing
and high loyalty
Characteristics
and strategy of
service
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or
credence good
Intangible
38