12. Developing & Managing
Products & Brands
Product Decisions
• Product attributes
– Quality, features (performance), design (appearance)
• Branding
– Brand name, mark; trademark
– Brand loyalty (awareness, preference, insistence)
– Brand equity (Y&R: differentiation, relevance, esteem,
knowledge)
– Brand sponsorship
• Manufacturer’s brand/national brand
– Captive brand
• Private brand/store brand
• Licensed brand
• Co-branding
Product Decisions (Cont.)
• Brand strategy
– Line extensions, brand extensions, multiproduct
(blanket/family) brands, multibrands (individual
brands), mixed brands, generics
– Corporate brands, sub-brands, brand variants
• Packaging
– Primary container, secondary package, shipping
package
– Packaging concept
– Labeling
– Product support services
Growth Strategy
• Market-Product Growth Grid
• Strategies include:
– Market penetration
– Market development
– Product development
– Diversification
New Product Development
Process
• Steps to consider:
– Idea generation
– Idea screening and evaluation
– Business analysis
• Concept development & testing
• Marketing strategy development
– Product development
– Test marketing
– Commercialization
New Product Development
Process (Cont.)
• Idea generation
– New product ideas must align with firm’s strategic
objectives
– Market(s) for new product ideas must be accurately
identified
– Sources of ideas
• Internal sources
– Cross-functional new product departments
– Cross functional venture teams
• Competitors
• Marketing channel members
• Customers
New Product Development
Process (Cont.)
• Idea screening and evaluation
– Focus on rating & evaluating ideas
• Internal evaluation
– I.e., technical & cost feasibility
– Frequently performed by new product department
– Sometimes performed by new product committee
New Product Development
Process (Cont.)
• Business analysis
– Review & assessment of sales, costs, & profit
projections re. firm’s objectives
– Concept development
• Product idea
• Product concept
• Product image
– Concept testing
• External evaluation of new product concept
• Products presented symbolically to consumers
New Product Development Process
(Cont.)
• Business analysis (cont.)
– Marketing strategy development
• Marketing strategy statement
– States planned strategy & intended target market
– Outlines planned price, distribution, & marketing budget
for 1st year
– Describes planned long-term sales, profit goals, &
marketing mix strategy
– Brand manager/product manager’s role: pricing &
promotion
– Category managers: like brand/product managers,
but have profit/loss responsibility
New Product Development
Process (Cont.)
• Product development
– Prototypes developed
– Product testing carried out
• Test marketing
– Three approaches:
• Standard test markets
• Controlled test markets
• Simulated test markets
• Commercialization
– Rollout