Product strategy

Product EquityAdvanced Marketing Management

Maribel C. TuberaDBA Student

What is a product?• It is anything that can be offered to a market

for attention, acquisition, use or consumption that might satisfy a want or a need.

Service• An activity, benefit, or satisfaction offered for

sale that is essentially intangible and does not result in the ownership of anything.

2 categories of products1. Consumer products2. Industrial products or Business products

Product and Service Classifications1. Consumer products

a) Convenience productsb) Shopping productsc) Specialty productsd) Unsought products

2. Industrial Products or business productsa) Materials and partsb) Capital itemsc) Supplies and services

Nature of a service1. Service intangibility2. Service variability3. Service perishability

Service Characteristics• Intangibility• Simultaneous production and consumption• Perishability• Heterogeneity• Client-based relationship

3 Levels of Product and Services1. Core customer value2. Actual product3. Augmented product

Other market offerings• Organizations• Persons• Places• ideas

Individual Product Decisions

Product Attributes Branding Packaging

Labeling Product support services

4 ways to increase a business1. Add new product line2. Lengthen its existing product lines 3. Add more versions of each product4. Pursue more product line consistency

Service profit chain• Internal service quality• Satisfied and productive service employees• Greater service value• Satisfied and loyal customers• Healthy service profits and growth

3 types of service marketing1. Internal marketing2. External marketing3. Interactive marketing

Stages in new product development

1. Idea generations2. Idea screening3. Concept development and testing4. Marketing strategy development5. Business analysis6. Product development7. Test marketing8. Commercialization

6 strategic options related to the newness of products

1. New-to-the World products2. New product lines3. Product line extensions4. Improvements or revisions of existing products5. Repositioning6. Cost reductions

• Customer-centered new product development

• Team-based new product development• Systematic new-product development• new-product development in turbulent times

Brand Strategy

Brand • A combination of name, symbol, term, and or

design that identifies a specific product.

2 parts of a brand1. Brand name2. Brand mark

Issues in branding strategy• Manufacturer versus private label brands• Brand loyalty – has 3 degrees– Brand recognition– Brand preference– Brand insistence

• Brand equity – the value of a brand• Brand alliances

Advantages of BrandingOverall advantages of branding• Product identification• Comparison shopping• Shopping efficiency• Risk reduction• Product acceptance• Enhanced self-image• Enhanced product loyalty

Unique advantages of selling manufacturer ( Name) brands

• Reduced costs• Built-in loyalty• Enhanced image• Lower inventory• Less risk

Unique advantages of selling private label (store) brands•Less competition•Total control•Merchant loyalty

Major brand strategy decisionsBrand Positioning

AttributesBenefitsBeliefs and values

Brand name selection

SelectionProtection

Brand sponsorship

Manufacturer’s brandPrivate brand LicensingCo-branding

Brand development

Line extensionBrand extensionMulti brandsNew brands

Brand Development1. Line extensions2. Brand extensions3. Multibrands4. New brands

Product life-cycle strategies1. Product development 2. Introduction3. Growth4. Maturity5. Decline

END