Components of the
Market Offering
Value-based prices
Attractiveness of
the market offering
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
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
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
Product Category
Existing New
Brand Name
Existing
Line Brand
Extension Extension
New
Multibrands New
Brands