chapter 4.2 product management
TRANSCRIPT
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Chapter 4: product
Powerpoint: chapter 4.1
Powerpoint: chapter 4.2 Powerpoint: chapter 4.3
Powerpoint: chapter 4.4
Chapter 5: place
Powerpoint: chapter 5.1
Powerpoint: chapter 5.2
Chapter 6: price
Chapter 7: promotion
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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
4.1
4.2
4.3
4.4
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Turner & Duckworth case
Brand symbols
Branding
What is a brand
The functions of a brand
The value of a brand – brand equity
ABC (D)… ?
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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?
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Even when all our production plants would burn to the ground, it wouldn’t be half
as bad as loosing our brand equity
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Name (FANTA)
Logo
Tag line (CONNECTING PEOPLE)
URL (website address)
Symbols and signs
Jingles
Wrapping/packaging
Price
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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
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Brand name
Non-verbal
Logo, colour, font
Baseline
Music
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Identification
Distinguish
Communicate
Association
Emotions and attitude
Protection
Dream
scenario:
communities
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Guaranteeing quality
Making life easier/nicer for consumer
Supporting the consumer’s lifestyle
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Oops… blind and other tests
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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?)
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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 ?
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Belgium’s top brands
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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
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Strong geographic distribution
High awareness and knowledge
Strong perception of price-quality ratio
Lot of marketing support
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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
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Manufacturer’s brand
Very limited geographic distribution
Perception of price-quality ratio is often low
Hardly any or no marketing support
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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
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Private labels (home made)
Different types
Premium private
labels
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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
4.1
4.2
4.3
4.4
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D.
Brand orientation
Building a strong brand: pull & push
Motivation of consumers when buying strond brands
Private labels & the reaction
Brand identity & image
Image builders
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4 types
Strong brand orientation
Brand interest
Brand opportunity
Brand scepticism
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Strong brand orientation
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Brand interest
Events, bands, …
Subtop
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Brand opportunity
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Brand scepticism
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Based on forecast demand Based on actual demand
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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.
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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
Pull:
Consumers want your product, are looking for it
Good position to negotiate
Good place on the shelves
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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
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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
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A ‘must’ in the case of push:
Quality/unique concept of the product
Staff and training of staff
Service-after-sale
Flexibility
Financial conditions
Advertisements
POS
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What are the factors consumers take into account when they consider buying a branded product (A)?
Purchasing power
Brand awareness
Social risks involved when (not) buying the product
Presence or lack of private label
Presence of other strong brands
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Birth of private labels
Seventies; economic crisis
Aldi & Lidl
Introduction of private labels
Successful: less money, good quality
Power shift in retail
Premium private labels
Weapon to fight off competition
Also for non-food in the mean time
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Pull effect: make sure the consumer wants you
Product innovations
Introduce ‘guerrilla brand’ to fight of private label
Assortment selection; focus on the ‘fittest’ brands only
Bridge the price gap
Communicate your USP
Make emotional connection with target audience
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Identity: reality
Image: desired position
Perception
In the mind of the consumer
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Brand name
Brand personality
Packaging
Flagship store
Marketing: sensory, guerrilla, experience, …
Events
Testimonials
Brand ambassadors
…
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Mentos & Coca Cola
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Types/personas
The Rubberband Man
Old Spice
Celebrities
Gifting or ‘celebrity seeding’ (product placement)
Telephone (Lady Gaga)