Chapter

Chapter 13:
13:
Managing
Managing Product
Product Lines,
Lines,
Brands,
Brands, &
& Packaging
Packaging

Otterbein
Otterbein
College
College
Winter
Winter Quarter
Quarter
2000
2000
 Chapter
Chapter Content
Content
• Product Characteristics

• Building & Managing the Product Mix

• Brand Decisions

• Packaging & Labeling

11/12/20 13-2
 Components
Components of
of the
the Market
Market Offering
Offering
Value-based prices

Attractiveness of
the market offering

Product features Services mix

and quality and quality
11/12/20 13-3
 Five
Five Product
Product Levels
Levels

Potential product
Augmented product
Expected product
Basic product
Core benefit

11/12/20 13-4
 Consumer
Consumer Goods
Goods
Classification
Classification
Convenience Products Shopping Products
Buy frequently & immediately Buy less frequently
> Low priced > Gather product information
> Many purchase locations > Fewer purchase locations
> Includes: > Compare for:
• Staple goods • Suitability & Quality
• Impulse goods • Price & Style
• Emergency goods

Specialty Products Unsought Products

Special purchase efforts New innovations
> Unique characteristics > Products consumers don’t
> Brand identification want to think about.
> Few purchase locations >Require much advertising &
personal selling

11/12/20 13-5
 Product
Product Mix
Mix

Width
Width-- number
numberof
of
different
differentproduct
product
lines
lines
Consistency

Length
Length --total
total Product
ProductMix
Mix--
number
number ofofitems
items all
allthe
theproduct
product
within
withinthe
the lines
lines lines
linesoffered
offered

Depth
Depth-- number
number of
of
versions
versionsof
ofeach
each
product
product

11/12/20 13-6
 Product
Product Line
Line Length
Length
• Line Stretching
• Downmarket
• Upmarket
• Two-way
• Line Filling
• Line Modernization
• Line Featuring & Line Pruning

11/12/20 13-7
 Two-Way
Two-Way Product-Line
Product-Line Stretch:
Stretch: Marriott
Marriott
Hotels
Hotels
Quality
Price Economy Standard Good Superior
Marriott
High Marquis
(Top
executives)
Above Marriott
average (Middle
managers)

Average Courtyard
(Salespeople)

Low Fairfield Inn

(Vacationers)
11/12/20 13-8
 What
What is
is aa Brand?
Brand?

User

Culture Personality

Attributes Benefits Values

11/12/20 13-9
 Brand
Brand Equity
Equity

Devoted
Devoted
toBrand
to Brand

Valuesthe
Values theBrand
Brand
(brandas
(brand asfriend)
friend)

Satisfied&&Switching
Satisfied SwitchingCost
Cost

SatisfiedCustomer
Satisfied Customer
(noreason
(no reasontotochange)
change)
NoBrand
No BrandLoyalty
Loyalty
(customerwill
(customer willchange)
change)

11/12/20 13-10
 An
An Overview
Overview of
of Branding
Branding
Decisions
Decisions
Brand- Brand- Brand-
Sponsor Brand-
Branding Name Strategy Repositioning
Decision Decisio Decision Decision
n Decision
•Individual
brand •Line
•Manu- names
facturer extension
brand •Blanket •Brand •Reposi-
family extension tioning
•Brand •Distribu- name
tor •Multi- •No
•No brand (private) •Separate brands
brand family reposi-
names •New tioning
•Licensed brands
brand •Company- •Cobrands
individual
names

11/12/20 13-11
 Brand
Brand Strategies
Strategies

Product Category
Existing New

Line Brand
Brand Name

Existing
Extension Extension

New Multibrands New

Brands

11/12/20 13-12
 Good
Good Brand
Brand Names:
Names:

Lack Poor
Foreign
Distinctive
Language
Meanings

Easy to:
Suggest Suggest
Pronounce
Product Product
Recognize
Qualities Benefits
Remember

11/12/20 13-13
 Package
Package Crucial
Crucial as
as Marketing
Marketing Tool
Tool
• Self-service

• Consumer affluence

• Company & brand image

• Opportunity for innovation

11/12/20 13-14
 Labels
Labels

Promote
Promote

Describe
Describe

Identify
Identify

11/12/20 13-15
 Next..
Next..
..

Designing & Managing

Services

11/12/20 13-16