Transcript
Chapter 4: product
Powerpoint: chapter 4.1
Powerpoint: chapter 4.2
Powerpoint: chapter 4.3 Powerpoint: chapter 4.4
Chapter 5: place
Powerpoint: chapter 5.1
Powerpoint: chapter 5.2
Chapter 6: price
Chapter 7: promotion
A.What is a product
B. Product categories
C. Product mix
D. Brand decisions
E. Product features
F. Product development
G. Product life cycle
4 classes:
4.1, 4.2, 4.3 and 4.4
4.1
4.2
4.3
4.4
Brand name strategies Mono and multi branding
Brand extensions
Choosing a brand name
Co-branding
E. product features Quality
Guarantee/ Warranty
Service
Concept/product design
Packaging
= continue 4.2: D. Brand decisions
Monobranding Multibranding (umbrella branding)
Mondelez (Kraft Snacking)
Advantages:
Expansion by means of market segmentation
Mondelez: Mignonette versus Oreo
Stimulate internal competition
Improve negotiation position
More brands = more shelf space
Variety seeking of consumer
Disadvantages of monobranding
Up to you
Think of at least 3 disadvantages
In pairs
5’
Advantages:
Launch of many new products
Halo-effect in marketing
Disadvantages:
Damaged reputation for one product => whole company can be ‘hurt’
Mono-multibranding Multi-monobranding
Fox, Golf, Lupo, …
Strong brand name? Extensions can become successful!
But they can fail too…: Bic perfume
Up to you
Think of 5 products that have extended their brand
Successfully or unsuccessfully
FMCG, car industry, entertainment industry, …
In pairs
5’
Basically 2 choices
Descriptive
Associative
Or combination of both
What makes a brand name really good?
Pronunciation, easy to remember, short, logical, elastic (in case of brand extension), …
International?
More in 2nd year marketing
What do you think of
Up to you.
Think of brand names whereby the following elements were used to compose the name:
Founder of the company
Location
Reference to the basic features of the product (eg. Ingredients)
A symbolic meaning
Many companies have already experienced the consequences of a badly chosenbrand name
Rolls Royce Silver Mist
Fiat Uno: ‘loser’ in Finnish
Lada Nova: ‘doesn’t go’ in Spanish
Mercedes 400: 4 symbolizes death in many Asian countries
Nissan Serena: ‘serena’ is also brand of monthly towel
Spunk biscuits
Crap spread
The Joyce principle: spontaneous brand name associations
The Juliet principle: associations made because of education
Competition:
Innovation
Me-too
Think of potential internationalisation
Relationship between product and brand name
Positioning based on
Instrumental features: Belolive
Expressive features: Vitalinea, Dove, Danette
Depends on brand extension plans
Not easy with every brand name
Tomorrowland => Tomorrow world
Maes Pils => ?
Watch out: me-too names can be dangerous
Confusion
Legal consequences
Conduct market research to check appropriateness
Exampes:
WE radio station versus
Radio station MNM versus
Example:
Strategy whereby two/more brand names are used to market a product
2 completely different products complement each other and have the samepositioning
Co-branding: when?
On product level
On distribution level
On communication level
On product level:
On distribution level:
On communication level:
Advantages
More efficient
‘surprise’ effect
Competitive power
Meets consumers’ needs of laziness
Spread costs and risks
Disadvantages
Up to you
Many trials and errors: Philips
At last… :
A.What is a product
B. Product categories
C. Product mix
D. Brand decisions
E. Product features
F. Product development
G. Product life cycle
4 classes:
4.1, 4.2, 4.3 and 4.4
4.1
4.2
4.3
4.4
E.
Quality
Guarantee/warranty
Service
Concept/product design
Packaging
Quality management:
Look for quality improvements on all company levels and for all stakeholders
Consumer satisfaction is key here:
Especially in services marketing
Product quality: life expectation, easiness to use, …
Happy consumer? WOM and repeated purchase
Unhappy consumer?
Product quality
Sustainable consumption goods
Food products
Other
Consumer quality
Way in which quality is perceived byconsumer
Depends on situation
Depends on expectations
Earlier experiences, marketing, price, quality labels, …
Up to you: depict situation when yourquality demands were not met
Quality labels = a promise
• “Champagne”
• “Delft” pottery
Quality management for products =
Choose the quality level that supports the positioning of your product
Written statement containing a clause
Actions (to be) taken if a product does not meet the quality requirements within a giventime span
Conditions: time, parts, functionality
Function: reduce (financial) risk
FMCG: trial and reimbursements
In general
Before, during and after sales
Before becoming an actual product, product first have a concept design
Actual design:
Must be of good quality
Must be practical
Must be attractive
Must be beautiful
Technical function:
Protection/use and re-use
Management and logistical function
Bar codes
Commercial and communicative function
‘silent’ sales agent
Communicative function:
Mentions type of product
Carries brand name
Mentions product information
Sales promotions carrier
Can lead to cross-selling
Mentions differences in future design
Think of examples whereby the packaging can lead to cross-selling:
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