Document

Report
Chapter Seven
Product Positioning,
Branding, and Product
Line Strategies
Product Positioning, Branding, and
Product Line Strategies
• Product positioning
• Product positioning and differentiation
• Branding and brand management
strategies
• Brand equity
• Brand and product line strategies
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-2
Branding
A BRAND is a name or symbol used to
identify the source of a product.
• Benefits of branding:
– High brand awareness
– Emotional connection
– Brand loyalty
– Price premiums
– Product line extensions
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-3
Product Positioning
• What is product positioning?
• Why is it important to determine a product
positioning strategy?
• What is the goal of a positioning strategy?
• How does the positioning strategy affect
market share?
Market
Share
=
Product
Position
X
Marketing
Efforts
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-4
Product Positioning and Market Share
Figure 7-5 Product-Price Position, Marketing Efforts,
and Market Share
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-5
Product Positioning Strategies
Figure 7-7 Product Positioning Strategies
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-6
Product Positioning Strategies
• Price Leadership vs.
Product Differentiation
• When is price leadership
appropriate?
• When is differentiation
appropriate?
• Types of differentiation
Product
Differentiation
Service
Differentiation
Product
Benefits
Customer
Value
Service
Benefits
Price
Brand
Benefits
Transaction
Costs
Brand
Differentiation
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-7
Brand Differentiation
• What is brand identity?
• How do firms develop brand identity?
• What is brand encoding?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-8
Brand Assets and Liabilities
• Brand Assets
–
–
–
–
Brand awareness
Emotional connection
Brand loyalty
Product line
extensions
– Price premium
• Brand Liabilities
– Customer
dissatisfaction
– Product or service
failures
– Questionable practices
– Poor record on social
issues
– Negative associations
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-9
Brand Equity
Figure 7-15 Brand Balance Sheet and Brand Equity
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-10
Broad vs. Narrow Product Line
Figure 7-16 Breadth of Product Line and
Return on Invested Assets
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-11
Product Line Development
• How do firms expand
their product line?
– Flanker brands
– Umbrella brands
– New brands
• How do flanker
brands benefit from
umbrella brands?
– Brand awareness
– Known quality
– Market reach
– Product mix
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-12
Product Line Extensions and
Enhancements
•
•
•
•
Vertical brand-line extensions
Horizontal brand-line extensions
New product-market brand extensions
Co-branding
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-13
Bundling and Unbundling Strategies
• Product bundling
– Pure product bundling
– Mixed bundling
• Product unbundling
• Effects of all product-line
enhancements
–Scale
–Substitution
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-14
Review
• Product positioning
• Product positioning and differentiation
• Branding and brand management
strategies
• Brand equity
• Brand and product line strategies
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-15
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
7-16

similar documents