5 product and service strategy and brand management (positioning…
5 product and service strategy and brand management
the benefits or satisfaction provided to target markets by an organisation
tangible product or service
delivery and setup
warranties or guarantees
developing a new offering
1 idea generation
is the idea congruent with business definition mission, and goals?
do the offering have a relative advantage over existing offerings?
is the offering compatible with buyers use och consumption behavior?
is the offering simple enough for customers to buy and use?
can the offering be tested by prospective buyers?
are there immediate benefits to a buyer from the offering, once used?
a scale down implementation of one or more alternative marketing strategies for introducing a new offering
generate benchmark data for assessing sales volume when the product is introduced over a wider area
impacts of marketing programs can be assessed under actual market conditions
two major factors that contribute to the success of new offerings
a fit with market needs
a fit with organizational strengths and resources
modifying, harvesting, and eliminating offerings
improving offering by adding new features or higher quality materials or augmenting the offering with services and raising the price
reducing the value and the price
what is the future sales potential of the offering?
how much is the offering contribute to offering mix profitability?
how much is the offering contributing to the sale of other offerings in the mix?
how much could be gained by modifying the offering?
what would be the effect on channel members and buyers?
reducing investment in hope of reducing cost and increasing cash flow
criteria for this to be a viable tactic
market for the offering is stable
the offering is not producing good profits
the offering has a market share that is becoming harder and more costly to defend
the offering provide some non financial value justifying it to be continued even though future prospect is faint
the offering mix/portfolio
number of offerings in each line
number of offering lines
merging two bundles into one
value meals fast food
modifying the offering mix
additions to the offering mix
does the organization have the resources to introduce and sustain the offering?
is there a viable market for the offering?
does the new offering have a relative advantage over competitive offerings at a price buyers are willing and able to pay?
is there a distinct segment for which no offering is satisfactory?
how consistent is the new offering with existing offerings?
2 more items...
will it fit
1 more item...
plots sales of an offering or a product class over a period of time
increase in portion of buyer who are repeat purchases (few new buyers)
increase in the standardization of product operations and product/service offerings
an increase in aggressive pricing activities by competitors
attribute or benefit
use or application
product or brand user
product or service class
price and quality
crafting a position statement
making the positioning decision
who are the likely competitors, what positions have they stalked out, how strong are they?
what are the preferences of the target consumer sought and how do these consumers perceive the offerings of competitors?
what position, if any, do we already have in the target segment?
what position do we want to own?
what competitors must be outperformed if we are to establish the position?
do we have the marketing resources to occupy and hold the position?
Brand equity and brand management
the added value a brand name bestows on a product or service beyond the functional benefits provided
provides competitive advantage
allows owner to charge a premium
creating brand equity
1 develop positive brand awareness and an association with a product class or need to give the brand an identity
establish brand meaning (what the brand stands for)
functional performance related
elicit the proper consumer responses to the brands identity and meaning
create a consumer-brand resonance, where the consumer derives social and psychological value from associating and being associated with the brand
valuing brand equity
a company uses one name for all its products in a product class
transfer brand equity between products
raising overall branding awareness, without having to advertise each product
allows for creating a global brand
can delude the meaning of the brand
intent is to build on favorable associations that consumers have towards the family brand while differentiating the new offering
giving each product or product line a distinct name
useful when each brand is intended for a different market segment uniquely positioned
reduced risk that an individual brand failure will transfer and create bad associations toward the family brand
higher promotional costs, there is no established brand equity to get drag from
when a manufacturer spply a reseller with a product bearing a brand name choosen by the reseller
avoid price competition
goodwill attributed to offering will transfer onto the re-seller brand raising brand equity and loyalty
can be a way of using excess manufacturing capacity
will lead to cannibalism, better us than someone else
can lead to over dependence on private label revenue, which can be removed if the re-seller changes manufacturer or vertical integration
brand growth strategies
introduction of additional offerings with the same brand in a product class that it currently serves
high brand awareness at a relative low cost since the same brand is used on all products
many products are more expensive to produce and distribute than fewer, and the total sales has to be higher to make up for that
brand extension strategy
the practis of using a current brand name to enter a completely diffrent product class
reducing risk by leveraging brand awareness, brand familiarity and positive brand association when entering a new product category
new brand strategy
the development of a new brand and offering for a product class not previously served
costly and challenging
akin to diversification
allows to enter promising product class even if current brands cant be extended
flanker/fighting brand strategy
new brand for a product class already served by the company
tap into specific consumer segment not attracted to an organizations existing products/brands
way of counteract competition
flanker brand strategy
adding new brand on the high or low end of price-quality continuum
fighting brand strategy
a brand which sole purpose is to combat competitive brands
circumstances that calls out for a fighting brand
1) high relative share in product class
2) its dominant brand is in danger of having its high share sliced by aggressive pricing/promotion
3) the organization wishes to preserve its profit margins in its existing brand(s)
presumptive cannibalism is better than losing share to competitor