MANAGING PRODUCT

LINES AND BRANDS

THE DEFINITION OF PRODUCT

aA product is anything that can be offered

to a market to satisfy a want or need.
Products include physical goods,
services, experiences, events, persons,
places, properties, organizations, ideas
and information.
Levels
Levels of
of Product
Product
Augmented
Augmented
Product
Product

Installation

Packaging
Brand Features
Name Core
Core After-
Delivery Benefit
Benefit Sale
& Credit or
or
Quality Service Service
Service Design
Level

Warranty

Actual
Actual Core
Core
Product
Product Product
Product
THE CLASSIFICATION OF PRODUCT

aDurability and Tangibility

Durable Goods

Nondurable Goods

Services
THE CLASSIFICATION OF PRODUCT

Services

Durable Nondurable
Goods Goods
THE CLASSIFICATION OF PRODUCT

aConsumer Products

aIndustrial Goods
THE CLASSIFICATION OF PRODUCT

aConsumer Products
Staple Goods
Convenience Goods Impulse Goods
Emergency Goods
• Uniform Goods
Shopping Goods
• Nonuniform Goods
Specialty Goods

Unsought Goods
Product
Product Classifications
Classifications Consumer
Consumer Products
Products

Convenience Products Shopping Products

> Buy frequently & immediately > Buy less frequently
> Low priced > Higher price
> Mass advertising > Fewer purchase locations
> Many purchase locations > Comparison shop

Fast Food, Candy, Newspapers Clothing, cars, appliances

Specialty Products Unsought Products

> Special purchase efforts > New innovations

> High price > Products consumers don’t
> Unique characteristics want to think about
> Brand identification > Require much advertising &
> Few purchase locations personal selling

Lamborghini, Rolex Life insurance, blood donation

 THE CLASSIFICATION OF PRODUCT

aConsumer Products aIndustrial Goods

Convenience Goods Materials and Parts

Shopping Goods Capital Items

Specialty Goods Supplies and

Unsought Goods Business Services

 THE DEFINITION OF BRAND

aA brand is 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.
 THE MEANING OF BRAND

aBranding aBrand Equity

Six Levels of Meaning
Attributes
Benefits
Values
Culture
Personality
User
 Consistency
Consistency Quality
Quality&&Value
Value

Attributes
Attributes Advantages
Advantages Identification
Identification
of
of
Brand
BrandNames
Names
Defense
DefenseAgainst
Against Brand
Brand
Competition Equity Loyalty
Loyalty
Competition Equity

Credibility
Credibility Awareness
Awareness
To Brand or Not to Brand
The Major Four Branding Decisions

aBrand Sponsor Decision

Manufacturer’s Brand

Private Brand (Distributor Brand)

Co-Branding

Licensing
The Major Four Branding Decisions

aBrand Sponsor Decision

aBrand Name Decision
好記：乖乖、斯斯

有意義：穩潔、康師傅、來一客

響亮：SONY、YAHOO!
The Major Four Branding Decisions

aBrand Sponsor Decision

aBrand Name Decision
Individual names
Family names
Separate family names for all products
Company trade name combined with individual
product names
The Major Four Branding Decisions

aBrand Sponsor Decision

aBrand Name Decision

aBrand Strategy
Line Extensions
Brand Extensions
Multibrands
New Brands
Cobrands
Brand
Brand Strategies
Strategies

Product Category
Existing New

Existing Line Extension Brand Extension

Brand Name

(產品線延伸) (品牌延伸)

New Multibrands New Brands

(多品牌) (新品牌)
The Major Four Branding Decisions

aBrand Sponsor Decision

aBrand Name Decision

aBrand Strategy

aBrand Repositioning
Packaging
Packaging and
and Labeling
Labeling Products
Products

Competitive
Competitive
Advantages
Advantages
Sales
SalesTasks
Tasks Product
ProductSafety
Safety
Packaging
Packaging

Labeling
Labeling
Identifies
Identifies Promotes
Promotes
Describes
Describes
 PACKAGING

aPackaging includes the activities of

designing and producing the container
for a product.
Primary package (主要包裝)
Secondary package (次要包裝)
Shipping package (運送包裝)
 LABELING

aThe Function of Label:

To Identify (辨識)
To Describe (描述)
To Grade (分級)
To Promote (促銷)
 PRODUCT-LINE

aA product line is a group of products that

are closely related because they function
in a similar manner, are sold to the same
customer groups, are marketed through
the same types of outlets, or fall within
given price ranges.
PRODUCT-LINE DECISIONS

aProduct-Line Analysis

aProduct Line Length

aProduct Line-Modernization

aProduct Line-Featuring
PRODUCT-LINE DECISIONS

aProduct-Line Analysis
Sales and Profits

Market Profile
 PRODUCT-LINE DECISIONS

aProduct Line Length

Line Stretching
Stretching Downward (向下延伸)
Stretching Upward (向上延伸)
Stretching Both Ways (雙向延伸)

Filling in the Product Line

 請討論

a採取向上延伸品牌的 a採取向下延伸品牌的
理由，以及進行時所 理由，以及進行時所
需注意的事項 需注意的事項
Product
Product Line
Line Decisions
Decisions
Product
Product Line
Line Length
Length
Number
Numberof
ofItems
Itemsin
inthe
theProduct
ProductLine
Line

Stretching Filling
Lengthen beyond Lengthen within
current range current range

Downward

Upward
PRODUCT-LINE DECISIONS

aProduct Line-Modernization
更新
調整
刪減

aProduct Line-Featuring
 PRODUCT MIX
aA product mix is the set of all products and
items that a particular seller offers for sale.

aProduct Mix
Width (寬度)
Length (長度)
Depth (深度)
Consistency (一致性)
 PRODUCT MIX
a 寶僑公司產品組合的寬度與產品線深度(包括上市日期)

產品組合的寬度
清潔劑 牙膏 香皂 免洗尿布 衛生紙
產 Ivory Snow 1930 Gleem 1952 Ivory 1879 Pampers 1961 Charmin 1928
Dreft 1933 Crest 1955 Kirk’s 1885 Luvs 1976 White Cloud 1958
品 Tide 1946 Denquel 1980 Lava 1983 Puffs 1960
Cheer 1950 Camay 1926 Banner 1982
線 Oxydol 1952 Zest 1952
Dash 1954 Safequard 1963
長 Bold 1965 Coast 1974
Gain 1966
度 Era 1972
Solo 1979
Product
Product Mix
Mix Decisions
Decisions

Width
Width--number
numberof
of
different
differentproduct
product
lines
lines
Consistency

Length
Length--total
total Product
ProductMix Mix--
number
numberof ofitems
items all
allthe
theproduct
product
in
inproduct
productlines
lines lines
lines& &items
items
offered
offered

Depth
Depth--number
numberof of
versions
versionsof
ofeach
each
product
product
 Product
Product Life
Life Cycle
Cycle
Sales and Profits Over the Product’s Life From
Introduction to Decline
Sales and
Profits ($)
Sales

Profits

Time
Product Introduction Growth Maturity Decline
Developmen
t
Losses/
Investments ($)
 Introduction Stage
• Rapid skimming:
high price and high promotion level
• Slow skimming:
high price and low promotion level
• Rapid penetration:
low price and heavy promotion spending
• Slow penetration:
low price and low promotion level
Introduction
Introduction Stage
Stage of
of the
the PLC
PLC

Summary of Characteristics, Objectives, &

Strategies
Sales
Sales Low
Low sales
sales

Costs
Costs High
High cost
cost per
per customer
customer

Profits
Profits Negative
Negative or
or low
low

Marketing
Marketing Objectives
Objectives Create
Create product
product awareness
awareness and
and trial
trial

Product
Product Offer
Offer aa basic
basic product
product

Price
Price Usually
Usually is
is high;
high; use
use cost-plus
cost-plus formula
formula

Distribution
Distribution High
High distribution
distribution expenses
expenses
Build
Build product
product awareness
awareness among
among early
early
Advertising
Advertising adopters and dealers
adopters and dealers
 Growth Stage

a Goal:
to maximize market share

a More competitors

a Two options:
high market share, high current profit
Growth
Growth Stage
Stage of
of the
the PLC
PLC

Summary of Characteristics, Objectives, &

Strategies
Sales
Sales Rapidly
Rapidly rising
rising sales
sales

Costs
Costs Average
Average cost
cost per
per customer
customer

Profits
Profits Rising
Rising profits
profits

Marketing
Marketing Objectives
Objectives Maximize
Maximize market
market share
share
Offer
Offer new
new product
product features,
features, extensions,
extensions,
Product
Product service,
service, and
and warranty
warranty
Price
Price Price
Price to
to penetrate
penetrate market
market

Distribution
Distribution Increase
Increase number
number of
of distribution
distribution outlets
outlets
Build
Build awareness
awareness and
and interest
interest in
in the
the mass
mass
Advertising
Advertising market
market
 Maturity Stage
aGoal:
to maximize profit while defending market share
aThree strategy examples:
market modification
product modification
marketing-mix modification
Maturity
Maturity Stage
Stage of
of the
the PLC
PLC

Summary of Characteristics, Objectives, & Strategies

Sales
Sales Peak
Peak sales
sales

Costs
Costs Low
Low cost
cost per
per customer
customer

Profits
Profits High
High profits,
profits, then
then lower
lower profits
profits
Maximize
Maximize profits
profits while
while defending
defending market
market
Marketing
Marketing Objectives
Objectives share
share
Product
Product Diversify
Diversify brand
brand and
and models
models

Price
Price Price
Price to
to match
match or
or best
best competitors
competitors

Distribution
Distribution Build
Build more
more intensive
intensive distribution
distribution

Advertising
Advertising Stress
Stress brand
brand differences
differences and
and benefits
benefits
 Decline Stage
a Goal:
to reduce expenditure and milk the brand
a Five decision options:
Increase investment
Maintain investment
Decrease investment
Harvest
Divest
Decline
Decline Stage
Stage of
of the
the PLC
PLC

Summary of Characteristics, Objectives, &

Strategies
Sales
Sales Declining
Declining sales
sales

Costs
Costs Low
Low cost
cost per
per customer
customer

Profits
Profits Declining
Declining profits
profits
Reduce
Reduce expenditure
expenditure and
and maintain,
maintain,
Marketing
Marketing Objectives
Objectives reposition,
reposition, harvest
harvest or
or drop
drop the
the product
product
Product
Product Phase
Phase out
out weak
weak items
items

Price
Price Cut
Cut price
price
Go
Go selective:
selective: phase
phase out
out unprofitable
unprofitable
Distribution
Distribution outlets
outlets
Reduce
Reduce toto level
level needed
needed to
to retain
retain
Advertising
Advertising hard-core loyal customers
hard-core loyal customers
 Critiques of
The Product Life-Cycle Concept
 PLC of
a Product Class,
a Product Form,
or a Brand
 Varieties of PLC
Part a - Extended Part b - Fad
Aggregate

introduction stage
sales

Time in years Time in years

Part c - Indefinite
Aggregate

maturity stage
sales

Time in years
 Varieties
Varieties of
of PLC
PLC
Sales

Fad

Fashion

Style
Time