12. Developing & Managing Products & Brands

Product Decisions

• Product attributes– Quality, features (performance), design (appearance)

• Branding– Brand name, mark; trademark– Brand loyalty (awareness, preference, insistence)– Brand equity (Y&R: differentiation, relevance, esteem,

knowledge)– Brand sponsorship

• Manufacturer’s brand/national brand– Captive brand

• Private brand/store brand• Licensed brand• Co-branding

Product Decisions (Cont.)

• Brand strategy– Line extensions, brand extensions, multiproduct

(blanket/family) brands, multibrands (individual brands), mixed brands, generics

– Corporate brands, sub-brands, brand variants

• Packaging– Primary container, secondary package, shipping

package– Packaging concept– Labeling– Product support services

Growth Strategy

• Market-Product Growth Grid

• Strategies include:– Market penetration

– Market development

– Product development

– Diversification

New Product Development Process

• Steps to consider:– Idea generation– Idea screening and evaluation– Business analysis

• Concept development & testing• Marketing strategy development

– Product development– Test marketing– Commercialization

New Product Development Process (Cont.)

• Idea generation– New product ideas must align with firm’s strategic

objectives– Market(s) for new product ideas must be accurately

identified– Sources of ideas

• Internal sources– Cross-functional new product departments– Cross functional venture teams

• Competitors• Marketing channel members• Customers

New Product Development Process (Cont.)

• Idea screening and evaluation– Focus on rating & evaluating ideas

• Internal evaluation– I.e., technical & cost feasibility

– Frequently performed by new product department– Sometimes performed by new product committee

New Product Development Process (Cont.)

• Business analysis– Review & assessment of sales, costs, & profit

projections re. firm’s objectives– Concept development

• Product idea• Product concept• Product image

– Concept testing• External evaluation of new product concept• Products presented symbolically to consumers

New Product Development Process (Cont.)

• Business analysis (cont.)– Marketing strategy development

• Marketing strategy statement– States planned strategy & intended target market– Outlines planned price, distribution, & marketing budget

for 1st year– Describes planned long-term sales, profit goals, &

marketing mix strategy

– Brand manager/product manager’s role: pricing & promotion

– Category managers: like brand/product managers, but have profit/loss responsibility

New Product Development Process (Cont.)

• Product development– Prototypes developed– Product testing carried out

• Test marketing– Three approaches:

• Standard test markets• Controlled test markets• Simulated test markets

• Commercialization– Rollout