Chapter 4.2 product management

transcript

Chapter 4: product

Powerpoint: chapter 4.1

Powerpoint: chapter 4.2 Powerpoint: chapter 4.3

Chapter 5: place

Chapter 6: price

Chapter 7: promotion

A.What is a product

B. Product categories

C. Product mix

D. Brand decisions

E. Product features

F. Product development

G. Product life cycle

4 classes:

4.1, 4.2, 4.3 and 4.4

Turner & Duckworth case

Brand symbols

Branding

What is a brand

The functions of a brand

The value of a brand – brand equity

ABC (D)… ?

Which elements do you need to ‘brand’ a product or organisation? Look on the D&T and other websites.

What are the basic packaging rules according to Duckworth & Turner?

Have they used these rules when redesigning the Coca Cola bottle and the Metallica logo + the Death Magnetic album? Discuss the changes, the motivationand whether they have followed their own rules.

They have not drastically changed the Metallica & Coca Cola logo/packaging. Why not?

What are the differences in packaging between the USA and Europe according toD&T?

Even when all our production plants would burn to the ground, it wouldn’t be half

as bad as loosing our brand equity

Name (FANTA)

Tag line (CONNECTING PEOPLE)

URL (website address)

Symbols and signs

Jingles

Wrapping/packaging

Brand management

= a communication function that includes analysis and planning on how that brand is positioned in the market,

which target public the brand is targeted at,

and maintaining a desired reputation of the brand.

Developing a good relationship with target publics is essential for brand management.

Your job? Brand manager

Brand name

Non-verbal

Logo, colour, font

Baseline

Identification

Distinguish

Communicate

Association

Emotions and attitude

Protection

scenario:

communities

Guaranteeing quality

Making life easier/nicer for consumer

Supporting the consumer’s lifestyle

Oops… blind and other tests

Brand equity =

The strategic and financial value of the product

Based on consumer loyalty, brand awareness and knowledge, reputation, perception, relationship with stakeholders

Example: relationship with suppliers

Mc Donald’s: beef supplier

Ikea: meatballs… (horse meat?)

Brand equity also reveals how much (more) a consumer is willing to pay for yourbrand

Also indicates the financial value of a brand/organisation

iPhone ?

Belgium’s top brands

Brands are classified as A-B-C (or D) based on

Distribution: where to be found

Advertising campaigns

Brand awareness, brand knowledge

Brand loyalty, brand preference

Especially in the case of FMCG

Strong geographic distribution

High awareness and knowledge

Strong perception of price-quality ratio

Lot of marketing support

Limited geographic distribution

Moderate or lower awareness and knowledge

Perception of price-quality ratio is less good

Less marketing support

The more ‘unknown’ or lesser known brands in supermarkets

Often same quality as A-brands

You can become A: Samsung

Manufacturer’s brand

Very limited geographic distribution

Perception of price-quality ratio is often low

Hardly any or no marketing support

The ultimate goal is to move up

C => B => A

And A => top brand in the sector

Very strong brandknowledge

Very attractive

Unique product/concept, often registered

Strong marketing support

High price is no problem for consumers

Clear USP

High loyalty and satisfaction

Good position in negotiations

Private labels (home made)

Different types

Premium private

labels

A.What is a product

B. Product categories

C. Product mix

D. Brand decisions

E. Product features

F. Product development

G. Product life cycle

4 classes:

4.1, 4.2, 4.3 and 4.4

Brand orientation

Building a strong brand: pull & push

Motivation of consumers when buying strond brands

Private labels & the reaction

Brand identity & image

Image builders

4 types

Strong brand orientation

Brand interest

Brand opportunity

Brand scepticism

Strong brand orientation

Brand interest

Events, bands, …

Subtop

Brand opportunity

Brand scepticism

Based on forecast demand Based on actual demand

A push–pull system in business describes the movement of a product or information between two subjects.

On markets the consumers usually "pull" the goods or information they demand for their needs,

while the offerers or suppliers "push" them toward the consumers.

Demand is created

Consumer sees an ad, a commercial, …

Takes an interest

Takes action: looks for the product in retail/online

As of then, push takes over

Consumers want your product, are looking for it

Good position to negotiate

Good place on the shelves

In the case of pull, your brand is a very strong brand

Consequences:

Premium price; bigger margin

Strong awareness and knowledgde; market leader

Tough negotiation position

Scares off new competitors

Keep investing in the brand (marketing support)

Keep working on image and reputation and strategy

Product really needs to be good: every detail matters

Honesty

Producer invests in good relationship with retailer (= trade marketing)

Based on trustworthiness

Retailer makes sure the product has a good position on the shelves

Retailer therefore pushes this product

Consumer does not necessarily know/want this product

Demand was not there initially but is created

Strong trade marketing

A ‘must’ in the case of push:

Quality/unique concept of the product

Staff and training of staff

Service-after-sale

Flexibility

Financial conditions

Chapter 4.2 product management

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