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Part 4: Product DecisionsPart 4: Product Decisions
11.11. Product and Service Product and Service StrategiesStrategies
12.12. Category and Brand Category and Brand Management, Product Management, Product Identification, and New-Identification, and New-Product DevelopmentProduct Development
Managing Brands for Competitive Managing Brands for Competitive AdvantageAdvantage
Branding is the process of creating that identity. Buyers respond to branding by making repeat
purchases because they identify the item with the name of its producer.
Brand:Brand: name, term, sign, symbol, design, or some combination that identifies the products of a firm while differentiating them from the competition’s
Captive brandsCaptive brands: national brands that are sold exclusively by a retail chain
Family brandFamily brand: brand name that identifies several related products
Individual brandIndividual brand: unique brand name that identifies a specific offering within a firm’s product line and that is not grouped under a family brand
Brand equityBrand equity: added value that a respected, well-known brand name gives to a product in the marketplace.Brand equity increases the likelihood that
consumers will recognize the firm’s product when they make purchase decisions
A strong brand equity can contribute to buyers’ perceptions of product quality
Branding can also reinforce customer loyalty and repeat purchases
The Role of Category and Brand ManagersThe Role of Category and Brand ManagersBrand managerBrand manager: Marketing professional
charged with planning and implementing marketing strategies and tactics for a brand
Category managementCategory management: Product management system in which a category manager—with profit and loss responsibility—oversees a product line.
Brand nameBrand name: part of a brand consisting of words or letters that form a name that identifies and distinguishes a firm’s offering from those of its competitors
Brand markBrand mark: symbol or pictorial design that identifies a product
Generic nameGeneric name: branded name that has become a generically descriptive term for a class of products (e.g., nylon, aspirin, kerosene, and zipper)
As a firm’s offerings enter the maturity and decline stages of the product life cycle, it must add new items to continue to prosperAlternative Product Development Strategies
The Consumer Adoption ProcessThe Consumer Adoption Process
Adoption process: Stages that consumers go through in learning about a new product, trying it, and deciding whether to purchase it again.AwarenessInterestEvaluationTrialAdoption or rejection
Idea GenerationIdea GenerationNew product ideas come from many sources including:Sales force, Customers, Employees, R&D
specialists, The competition, Suppliers, Retailers, Independent inventors
ScreeningScreeningScreening separates ideas with commercial potential from those that cannot meet company objectivesChecklists of development standards can
Business AnalysisBusiness AnalysisThe business analysis consists of assessing the new product’s market potential, growth rate, likely competitive strengths, and compatibility of the proposed product with organizational resources Concept testing
DevelopmentDevelopmentConverting an idea into a physical productRequires interaction among many of the firm’s
Test MarketingTest MarketingTest marketing: Introduction of a trial version of a new product supported by a complete marketing campaign to a selected city of television coverage areaSome firms skip this stage, moving directly to
full-scale commercialization
CommercializationCommercializationIn this stage, the firm establishes marketing strategies, and funds outlays for production and marketingThe sales force, marketing intermediaries and
potential customers are acquainted with the new product