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Product Lines, Brands and Packaging

Components of the
Market Offering

Value-based prices

Attractiveness of
the market offering

Product features Services mix


and quality and quality
Five Product Levels

Potential product
Augmented product
Expected product
Basic product
Core benefit
Consumer-Goods
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
> Unique characteristics New innovations
> Brand identification > Products consumers don’t
> Few purchase locations want to think about.
>Require much advertising &
personal selling
Product Mix

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

Length
Length -- total
total Product
Product MixMix --
number
number of of items
items all
all the
the product
product
within
within the
the lines
lines lines
lines offered
offered
Depth
Depth -- number
number of
of
versions
versions of
of each
each
product
product
Product-Line Length

• Line Stretching
– Downmarket
– Upmarket
– Two-way
• Line Filling
• Line Modernization
• Line Featuring & Line Pruning
What is a Brand?

User

Culture Personality

Attributes Benefits Values


Brand Equity

Devoted
Devoted
toBrand
to Brand

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

Satisfied &&Switching
Satisfied Switching Cost
Cost

SatisfiedCustomer
Satisfied Customer
(no reason
(no reasonto
tochange)
change)
NoBrand
No Brand Loyalty
Loyalty
(customer will
(customer will change)
change)
An Overview of
Branding Decisions

Brand- Brand- Brand- Brand-


Branding Sponsor Name Strategy Repositioning
Decision Decision Decision Decision Decision
•Manu- •Individual •Line
facturer brand extension
brand names
•Blanket •Brand •Reposi-
family extension tioning
•Brand •Distribu-
tor name •Multi-
•No brand •Separate •No
(private) family brands
brand reposi-
names •New tioning
•Licensed •Company- brands
brand individual
names •Cobrands
Brand Strategies

Product Category
Existing New
Brand Name

Existing
Line Brand
Extension Extension

New
Multibrands New
Brands

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