ADM 2320 Lecture Notes - Lecture 8: Freshco, No Sugar, Washing Machine
28 Jun 2018
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Department
Course
Professor
What is a Product? Product management
Core Product - core customer benefit/value e.g. raincoat keeps you dry in rain
1.
Actual Product - brand name, quality, packaging, design e.g. water
2.
Augmented Product (Associated services) - financing, warranty, support
3.
3 layers of Product Management:
Product mix - the complete set of all products offered by a firm
Groups of associated items that consumer use together or think of as part of a
group of similar products
•
Product lines - each column -> products similar in consumption
An assortment of items that the customer see as reasonable substitutes for one
another
•
Product category - each brand in the cells --> important because you have to look after the
lines
Individual items within each product category; the smallest unit available for
inventory control
•
SKU - barcode you find in barcodes
The number of product lines, or variety, offered by the firm.
•
Product mix breadth - more the product lines, more the breadth
Number of products in product line
•
Product line depth - more the characteristics, more the line depth
What is brand? Brand management
Because it offers value to Customers and Marketers.
Branding is making a promise to your consumer and keeping it. -> involves the benefits
the people should expect
The names, terms, designs, symbols, or any other features that identify one seller’s good
or service as distinct from those of other sellers.
8 & 9 - Developing New Products & Branding and
Packaging Decisions
Tuesday, 31 October, 2017
1:18 PM
Marketing Page 1
Brands facilitate purchasing
•
Brands establish loyalty - do not only mean purchasing the product, but strongly
advocating the brand too
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Brands protect from competition
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Brands reduce marketing costs
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Brands are assets
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Brands impact market value
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Value of Branding:
Brand is intangible.
Brand awareness - how many people know your brand - surveys
Brand associations - what do you associate the brand with
Why develop new products? New product management
Brand Equity = Brand Awareness + Brand Associations + Brand Loyalty + Perceived Value
Brand Equity - the set of assets and liabilities linked to a brand that add to or substract
from the value provided by the product or service
Brand awareness - measures how many consumers in a market are familiar with the brand
and what it stands for; created through repeated exposures of the various brand elements
(brand name, logo, symbol, character, packaging and slogan) in the firm's communications
to consumers
Perceived value - the relationship between a product or service's benefits and its costs
Brand associations - the mental links that consumers make between a brand and its key
product attributes; can involve a logo, slogan or famous personality
Brand personality - refers to a set of human characteristics associated with a brand, which
has symbolic or self-expressive meanings for consumers
Brand loyalty - occurs when a consumer buys the same brand's product or service
repeatedly overtime rather than buying from multiple suppliers within the same category
Owned and manufactured by manufacturers
➢
Manufacturer or national brand -
•
Brands developed and marketed by retailer and available only from that
retailer
➢
Store or Private label -
•
Generic - a product sold without a brand name, typically in commodities markets
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Brand ownership :
Corporate Brand - the use of a firm's own corporate name to brand all of its product
lines and products
•
Family Brand - the use of a combination of a company brand name and individual
brand name to distinguish a firm's products
•
Corporate and Product Line Brand
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Individual Brand - the use of individual brand names of a firm's products
•
Brand Name Strategies:
National Brands - cocacola, nike, apple
Private label brands
Generic brands - the name of the brand is the name of the product
Marketing Page 2
Document Summary
8 & 9 - developing new products & branding and. Core product - core customer benefit/value e. g. raincoat keeps you dry in rain. Actual product - brand name, quality, packaging, design e. g. water. Augmented product (associated services) - financing, warranty, support. Product mix - the complete set of all products offered by a firm. Product lines - each column -> products similar in consumption. Groups of associated items that consumer use together or think of as part of a group of similar products. Product category - each brand in the cells --> important because you have to look after the lines. An assortment of items that the customer see as reasonable substitutes for one another. Individual items within each product category; the smallest unit available for inventory control. Product mix breadth - more the product lines, more the breadth. The number of product lines, or variety, offered by the firm.
