Setting Product and
Brand Strategy
Chapter # 7
©2003 Prentice Hall, Inc.
Chapter Outline
– The Product and the Product Mix
– Product Line Decisions
– Brand Decisions
©2003 Prentice Hall, Inc.
What is a Product?
 Goods
 Places
 Services
 Properties
 Experiences
 Organizations
 Events
 Information
 Persons
 Ideas
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 2 in Chapter 11
Basic Product Concepts
 A product is a good, service, or
idea
– Tangible Attributes
– Intangible Attributes
 Product classification
– Consumer goods
– Industrial goods
©2003 Prentice Hall, Inc.
10-3
Product
4
 A product is a bundle of utilities/ benefits/
features
 e.g., Attributes of a cold drink are flavor, taste,
quality as a thirst quencher, cool refreshment
etc.
 But different cold drink ’s have (emphasize)
different product attributes intended to meet
the demands of particular market segments.
These products are now brands.
©2003 Prentice Hall, Inc.
Product Line & Product Mix
 “A Product line is a broad group of
products, intended for similar uses and
having similar characteristics.”
 “The Product mix is the set of all products
offered for sale by a company.”
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 5 in Chapter 11
Product Mix Dimensions
 A product mix has Four Dimensions:
Breadth - the number of product lines
– Depth - number of product variants i.e.
the variety of sizes, colors, and models
offered within each product line.
– Length: total number of items in mix
– Consistency: degree to which product
lines are related is the consistency of
the product mix.
–
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 6 in Chapter 11
Product Mix - An Example
BREADTH (DIFFERENT LINES)
Lawn mowers
Gardening tools Lawn furniture
Power rotary
Power reel
Hand-powered
Rakes
Hoes
Shovels
Chairs
Chaise lounges
Benches
Various sizes
and prices in
redwood or
Each in various
Each in various aluminium with
sizes and prices sizes and prices plastic webbing
©2003 Prentice Hall, Inc.
10 - 7
Brand Definition
 The AMA definition of a brand:
“A name, term, sign, symbol, or
design, or a combination of these,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them
from the competition.”
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 8 in Chapter 11
Brands Characteristics
9
 Brand is a bundle of images and experiences in the
customer’s mind.
 The added value that accrues to a product as a result of
investments in the marketing of the product.
 An asset that represents value created by the relationship
between the product and customer over time.
 A promise made by a particular company about a
particular product.
 A quality certification.
 Differentiation between competing products.
 The sum of impressions about a brand is the “Brand
Image.”
©2003 Prentice Hall, Inc.
Brands resulted from…
10
©2003 Prentice Hall, Inc.
Brand Equity
 “Brand equity refers to the positive
differential effect that a brand name has on
customers.”
 Brand equity is the worth of a brand in
customer’s mind
 Brand equity:
– is related to many factors.
– allows for reduced marketing costs.
– is a major contributor to customer equity.
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 11 in Chapter 11
Brand Equity
 Marketers should attempt to create or
facilitate awareness, acceptability,
preference, and loyalty among
consumers to increase brand equity.
 Valuable and powerful brands enjoy
high levels of brand loyalty which
ultimately results in high brand equity.
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 12 in Chapter 11
Branding Strategies
1- Individual Brands
2- Brand extensions
3- Line extensions
4- Co-branding
5- Multi Brands
6- Blanket (Family) Brands
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 13 in Chapter 11
Branding Strategies
1- Individual Brands: When there is no connections
among brands.

Procter & Gamble (P&G) offered individual brands.
2- Brand Extension: It means when new and
improved brands, with additives, new package
size, new flavors are added in the brand.
– Lifebuoy & Lifebuoy Gold, Pepsodent & Pepsodent G
©2003 Prentice Hall, Inc.
10-14
Branding Strategies
3- Line extensions/ Combination or tied Branding: It
allows marketers to leverage a company’s
reputation while developing a distinctive identity
for a line of products.
– Samsung extended the product line of Personal use
products and now offered iphones in the market.
4- Multi Brand (Proliferation): When organizations
want to increase shelf space and market share,
catch brand switchers and reach new segments
– Sting energy drink offered by Pepsi Co.
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 15 in Chapter 11
Branding Strategies
5- Co-branding: It means when two or more brand
names are used for one package & it features two
or more companies product or brands.
– Ingredient branding – Intel Inside
– Cooperative branding – NutraSweet and Coca-Cola
– Complementary branding – 7 & 7
6- Blanket (Family) Brands: It means when Brand acts
as an umbrella for new products.
– The LG Brands (LG split, oven, washing machine, TV, cell
phone, camera etc)
– The Sony Brands (Sony laptops, LCD, Camera etc)
©2003 Prentice Hall, Inc.
10-16
Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Brand repositioning
©2003 Prentice Hall, Inc.
 Advantages of
branding:
– Facilitates order
processing
– Trademark protection
– Aids/ help in
segmentation
– Enhances corporate
image
– Branded goods are
desired by retailers and
distributors
To accompany A Framework for Marketing Management, 2nd Edition
Slide 17 in Chapter 11
Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Options include:
– Manufacturer
(national) brand
– Distributor (reseller,
store, house,
private) brand
– Licensing the brand
name
 Brand repositioning
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 18 in Chapter 11
Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Brand repositioning
©2003 Prentice Hall, Inc.
 Strong brand names:
– Suggest benefits
– Suggest product
qualities
– Are easy to say,
recognize, and
remember
– Are distinctive
– Should not carry poor
meanings in other
languages
To accompany A Framework for Marketing Management, 2nd Edition
Slide 19 in Chapter 11
Brand Decisions
 Varies by type of brand
Key Challenges
 To brand or not
– Functional brands
– Image brands
– Experiential brands
 Individual brands
 Brand sponsor
 Line extensions
 Brand name
 Brand extensions
 Brand strategy
 Multi Brands
 Brand repositioning
 Co-branding
©2003 Prentice Hall, Inc.
 Blanket (Family) Brands
To accompany A Framework for Marketing Management, 2nd Edition
Slide 20 in Chapter 11
Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Brand repositioning
©2003 Prentice Hall, Inc.
 Brand Repositioning means
to move to a better segment
when competition increased
in current segment.
 When customer preferences
changed so the new segment
opened up in a brand.
 Changes in preferences or
the presence of a new
competitor may indicate a
need for brand repositioning.
 A brand report card can be
used to audit a brand’s
strengths and weaknesses.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 21 in Chapter 11
END OF CHAPTER!
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 22 in Chapter 11