MM: Chapter 14
Setting the product and
branding strategy
Warin Chotekorakul
Product and The Product Mix
Events
Services
Physical
goods
Possible
Range of
Products
Experiences
Persons
Product is anything that can
be offered to a market to satisfy
a want or need.
Ideas
Places
Properties
Organizations
Information
Five Product Levels
Potential Product
Augmented product
Expected Product
Basic Product
Core Benefit
Five Product Levels (2)
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Core benefit: basis for company to survive
Basic product: basis for delivering the core
benefit
Expected product: basis for cust satisfaction
Augmented product: basis for competitive
advantage
Potential product: basis for new product
Five Product Levels (3)
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Core benefit: Transportation
Basic product: Wheels, steering-wheel, engine, gear, etc.
Expected product: Working lights, quiet engine, etc.
Augmented product:Free 4-wheel change, Free 5-yr check, etc
Potential product: Self-driving car
Product Hierarchy
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Need family: Need of Foods;
Product family: Heavy meals;
Product class: Fast food;
Product line: Deep fried;
Product type: Deep fried meat;
Brand: Mc Donald’s ;
Item: Mc Donald’s deep fried chicken;
Look and feel better
Toiletries
Cosmetics
Lipstick
Tube Lipstick
Shiseido
Shi’s Lip Gloss 07
Product Classifications
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Durability and Tangibility
Consumer-goods classification
Industrial-goods classification
Durability and Tangibility
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Nondurable goods
Durable goods
Services
Consumer-Goods Classification
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Convenience goods: custs purchase frequently
 Staple: purchase on a regular basis
 Impulse goods: purchase on impulse
 Emergency goods: purchase when a need is
urgent
Shopping goods: custs compare on some bases
 Homogenous goods: similar in quality but diff
in price
 Heterogeneous goods: pdt features are
important more than price
Specialty Goods: pdt with unique characteristics
Unsought Goods
Industrial-Goods Classification
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Materials and parts
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Raw materials
 Farm products
 Natural products
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Manufactured materials and parts
 Component materials
 Component parts
Capital items
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Installation
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Equipment
Supplies
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Operating supplies
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Maintenance and repair items
Business services
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Maintenance and repair services
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Business advisory services
Product Mix/Assortment
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is the set of all products and items that a
particular seller offer for sales to buyers.
Width: no. of product lines
Length: no. of pdt items in each pdt line
Depth: no. of pdts in each pdt item
Consistency: how closely related pdt
lines are in end use
Product-Line Decisions
Product-Line Analysis
• Sales and Profits
• Market Profile
Product-Line Length
• Line Stretching
•Downmarket stretch: e.g., C-Class Mercedes
•Upmarket stretch: e.g., Lexus
•Two-way stretch: e.g., Toyota (Soluna, Camry)
• Line filling: e.g., new fragrances of perfume
• Line Modernization: e.g., new look, new style
• Line Featuring: one or a few items in the line to feature
• Line Pruning: pruning slow moving items
Market Profile
High
D B
Medium
C
Point-ofPurchase
displays
C
D X
General
Printing
X
B
A
B
D C
Low
Low (90)
X
Medium (120)
Office
Supplies
High (150)
A
Extra High (180)
Brand Decisions
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What is a brand?
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A name, term, sign, or design, or a combination
of them, intended to identify the goods or
services of one seller or group of sellers and to
differentiate them form those of competitors.
Key Decisions of Branding
BrandName
BrandBrandSponsor Decision Strategy
Decision *Individual Decision
Branding
names
Decision *Manufactu- *Blanket
*Line
family
rer brand
name
*Brand *Distributor
*Separate
*No brand
(private)
family
brand
names
*Licensed
*Companybrand
Individual
name
BrandRepositioning
extensions
*Brand
*Repositioning
extensions
*No Reposit*Multibrands
ioning
*New brands
*Cobrands
Brand-Sponsor Decision
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Manufacturer/National brand: e.g., Jaspal, IBM
Distributor/Private brand: e.g., aro brand, Tops
brand, Watsons
Licensed brand name: using licensor’s brand
Brand-Name Decision
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Individual names: e.g., Sunsilk, Dove, Lux
Blanket family name: e.g., Sony, Mitsubishi
Separate family names: e.g., Betagro for animal
feeds, Better Pharma for drugs
Company-individual names: e.g., Toyota
Soluna, Kellogg’s Corn Flakes, Windows XP
Brand-Strategy Decision
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Line extension: use existing brand name for new sizes or
flavors in the existing pdt category e.g., Fanta, Mama
Brand extension: use existing brand name for new-pdt
category e.g., Nike on watches, sunglasses, sports
equipment; Vidal Sassoon on shampoo, hair drier
Multibrands: new brand names for the same pdt category
e.g., Lipovitan-D and Looktoong from Osadsapa
New brands: new brand for new pdt e.g., Ole’ & Lipo
from Osadsapa
Co-brands: e.g., Sony Ericsson
Other Issues
Package:
Label:
The container for
a product
A part of
package