12. Developing & Managing Products & Brands. Product Decisions Product attributes –Quality,...
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Transcript of 12. Developing & Managing Products & Brands. Product Decisions Product attributes –Quality,...
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