Chapter 17

Managing Product Lines, Brands, and Packaging

What Is a Product? A Product is anything that can be offered to a

market for attention, acquisition, use, or consumption that might satisfy a want or need.

Five Levels of a Product

Potensial Product Augmented Product Expected Product

Generic Product

Core Benefit

Product Hierarchy
1. Need Family
The core need that underlies the product family. Example: security.

2. Product Family
All the product classes that can satisfy a core need with reasonable effectiveness. Example : Saving and income.

3. Product Class
A Group of products within the product family recognized as having a certain functional coherence. Example: Financial instrument.

4. Product Line
A Group of products within a product class that are closely related because they function in a similar manner or are sold to the same customer groups or are marketed through the same types of outlets or fall within given price ranges. Example : Life insurance

5. Product Type
the Those items within a product line that share one of several possible forms of product. Example : Term life The name associated with one or more items in the product line that is used to identify the source or character of the item(s). Example : Prudential.

6. Brand

7. Item
A distinct unit within a brand or product line that is distinguishable by size, price, appearance, or some other attribute. The item is calleda stockkeeping unit, or product variant. Example : Prudential renewable term life insurance.

Product Classification Product Mix Decisions

A product mix (also called product assortment), is the the set of all product lines and items that a particular seller offers for sale to buyers

Product Line Decisions

A product line is a group of products that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels, or make up a particular price range.

What is a Brand ?
A Brand Is a name , term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Attributes :
A brand first brings to mind certain attributes. Thus, Mercedes suggests expensive, well built, well engineered, durable, high prestige, high resale value, fast, and so on. The company may use one or more of these attributes to advestise the car. For years Mercedes advertised, Engineered like no other car in the world. This served as the positioning platform for projecting other attributes of the car.

Benefits:
A brand is more than a set of attributes. Customers are not buying attributes, they are buying benefits. Attributes need to be transleted into functional and/or emotional benefits. The attributes durable could translate into the functional benefits, I wont have to buy a new car every few years. The attribute expensive might translate into emotional benefit, The car helps me feel important and admired. The attribute well-built might translate into the functional and emotional benefits, I am safe in case of an accident.

Values:
The brand alsosays something about the producers values. Thus, Mercedes stands for high performance, safety, prestige, and so on. The brand marketer must fighure out the specific groups of car buyers who would be seeking these values.

Culture:
The brand may additionally represent a certain culture. The Mercedes represents German culture: organized, efficient, high quality.

Personality:
The brand can also project a certain personality. If the brand were a person, an animal, or an object, what would come to mind? Mercedes may suggest a no-nonsense boss (person), a reigning lion (animal), or an austere palace (object). Sometimes it might take on the personality of an actual well-known person or spokesman.

User:
The brand suggests the kind of consumer who buys or uses the product. We would be surprised to see a 20-year-old secretary driving a Mercedes. We would expet instead to see a 55-year-old top excecutive behind the wheel. The users will be those who respect the values, culture, and personality of the product.

Brand-Name Decision
Manufacturers who brand their products face further choices. Four brand-name strategies are used:
1. Individual Brand Names: This policy is followed by General Mills (Bisquick, Gold Medal, Betty Crocker, Nature Valley). A Blanket Family Name for All Products: This Policy is followed by Heinz and General Electric. Separate Family Names for All Products: This policy followed by Sears (Kenmore for appliances, Craftsman for tools, and Homart for major home installations). Company Trade Name Combined with Individual Product Names This Policy is followed by Kelloggs (Kellogs Rice Krispies, Kellogs Raisin Bran, and Kelloggs Corn Flakes).

2. 3.

4.

FIGURE 17-6
Four Brand Strategies

Product Category
Existing
Line extension MultiBrand

New
Brand extension New Brands

Existing Brand Name New