Brand Marketing Managing product and brands
The Product Life Cycle Concept • Products, like people, have been viewed as having a life cycle. • The concept of theproduct life cycledescribes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.
Some Dimensions of the PLC--Length 1. Consumer products have shorter PLCs than industrial products. 2. Mass communication informs consumers faster and shortens PLCs. 3. Products affected by technological change tend to have shorter PLCs.
Some Dimensions of the PLC--Shape 1. High learning product 2. Low learning product 3. Fashion product 4. Fad product
Some Dimensions of the PLC--Product Level 1. Product brand -- the specific version of a product offered by a particular company 2. Product class -- refers to the entire product category or industry such as video games 3. Product form -- pertains to variations within the product class
The PLC’s life and Consumers 1. Usage barriers -- the product is not compatible with existing habits. 2. Value barriers -- the product provides no incentive to change…not that much better. 3. Risk barriers -- risk can be physical, social or economic/financial. 4. Psychological barriers -- which can be the result of cultural differences or image.
Managing the PLC • Product manager. Manages the marketing efforts for a close-knit family of products or brands. • Product Modification involves altering a product’s characteristic, such as its quality, performance, or appearance, to try to increase and extend the product’s sales: • new features • new package • new scents, etc.
Branding • Branding involves an organization using a name, phrase, design, symbols,or combination of these to identify its products and distinguish them from those of competitors. • Abrand name is any word, “device” (design, sound, shape, or colour), or combination of these used to distinguish a seller’s goods or services.
Branding • Atrade name is a commercial, legal name under which a company does business. For example, the Campbell Soup Company is the trade name of that firm. • Atrademark identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.
Examples of Well-Known Trademarks, Brand Names, and Trade Names Brand name that can be spoken Big Mac hamburger Levi’s jeans Teflon plastic Betty Crocker cake mix Macintosh computer Brand name that cannot be spoken Trade name/ legal name/ of organization Campbell Soup Co. Compaq Corp. Ford Motor Co. Kellogg Co. Ralston Purina Co. LOGOS Trademark, brand name, or trade name registered with the and Trademark Office
Definition of Brand Equity Brand Equityis . . . . The added value a given brand provides a product beyond the functional benefits provided.
Definition of Licensing Licensingis . . . . a contractual agreement whereby a company allows another firm to use its brand name, patent, trade secret, or other property for a royalty or a fee.
Alternative Branding Strategies Branding strategy Manufacturer branding strategy • Multiproduct branding strategy • Sunbeam makes: • Sunbeam irons • Sunbeam • toasters • Sunbeam • crockware • Toro makes: • Toro snowblowers • Toro lawn mowers • Toro garden hoses • Multibranding strategy • Pillsbury Canada makes: • Green Giant • Prima • Old El Paso • Underwood • Private branding strategy • Sears Canada has: • Kenmore • appliances • Craftsman • tools • Die Hard batteries • Mixed branding strategy • Michelin makes: • Michelin • tires • Sears tires • Epson makes printers as: • Epson • IBM Generic branding strategy Dog food Peanut butter Green beans Paper towels Aspirin Cola
Packaging • Packaging is the component of a product that refers to any container in which it is offered for sale and on which information is communicated. • To a great extent, the customer’s first exposure to a product is the package. • Packaging is expensive and an important part of marketing strategy.