Chapter 7: Product positioning, branding and product line strategies

What is product positioning?
A product or service as it relates to their perception of the competition. In the mind of the consumer.
What are 3 product positioning strategies?
Differentiation strategies, brand management strategies, product line strategies
What are the differentiation strategies that can be implemented?
Low cost, product performance, and service quality differentiation strategies
What makes up a low cost differentiation strategy?
low price is used as a basis for product positioning.
Differentiation strategies – product performance: which are the requirement features that can serve as a basis for product differentiation?
Reliability (time to malfunctions)
Conformance (incidence of defects that should not have occurred)
Necessary if a customer is even going to consider purchasing a product
Differentiation strategies – product performance: which are the differentiation features?
Improvements (product differentiation and competitive advantage)
Durability (expectations on how long a product should last)
will see position improve with these two strategies
Differentiation strategies – product performance: which are the enhancement features that can serve as a basis for product differentiation?
Features (number and types of features that can be added, product or service features. Important when serving affluent clientele)
Serviceability (ease, speed and cost of repair. Can lower cost of total ownership)
Differentiation strategies – product performance: which are the emotional enhancement features that can serve as a basis for product differentiation?
Appearance (package, design and finish. Projected brand image)
Reputation (image created by brand or company)
Differentiation strategies – service quality: which are the requirement features that can serve as a basis for differentiation?
Service reliability (ability to deliver promised service dependably and accurately)
Service assurance (competence and courtesy of personnel)
Differentiation strategies – service quality: which are the differentiator features that can serve as a basis for differentiation?
Performance (ability to outperform competitors and customers’ service expectations)
Responsiveness (service commitment to get it right when things go wrong. IE MEC return policy)
Differentiation strategies – service quality: which are the enhancement features that can serve as a basis for differentiation?
Extended services (additional services, cater to customer needs and preferences)
Customer empathy (creating an individual feel)
Differentiation strategies – service quality: which are the emotional enhancement features that can serve as a basis for differentiation?
Appearance (Facility decor and appearance of employees)
Reputation (built by service oriented business)
What is branding?
Providing a way to quickly understand the brand’s primary benefits (rational and emotional)
What is a brand management strategy?
communicating the intended positioning of the brand.
Brand encoding
encoding system = hierarchy of possible naming components.
Company & product name
Company & brand name
Umbrella brands & subbrands
Brand name only
Naming strategies
Founder brand name
Functional brand name
Invented brand names
Experiential brand names
Evocative brand names
Brand equity = _______ – _______
brand assets-brand liabilities
Brand assets
brand awareness
emotional connection (reputation)
brand loyalty
product line extensions
price premiums
Brand liabilities
customer dissatisfaction
product/service failures
questionable practices
poor record on social issues
negative associations
what are the different ways in which you can protect your intellectual property?
Copyright
trademark
patent
licensing
assignment
What are the product line strategies what can lead to greater marketing efficiency?
Product line development
Umbrella branding
Co-branding
Product line extensions
Product bundling/unbundling
Product line development
expansion from one market segment into an adjacent segment. Anheuser Busch and all of their beer varieties
Umbrella branding
Umbrella brand= core product (emphasized). works to transfer perceptions over for product line extensions. Frito-lay (benefits: awareness, known quality, market reach, product experience)
Co-Branding
leverage a strong brand by entering another product market with cobranding rather than extension. Yoplait Trix Yogurt. Takes advantage of potential synergy of 2 brands that share a common market space.
Product line extensions
existing brand name extended within the category
Vertical: new version of a product (ie lean cuisine casual cuisine line has pizza, sandwiches…)
Horizontal: complementary products (lean cuisine simple favourites, dinner time cuisine, and cafe cuisine lines)
Product bundling/unbundling
pure product bundling strategy (sale of 2 or more products at overall lower price that would be paid separately)
mixed bundling strategy (can purchase separately or bundled. more profitable strategy)
Sometimes unbundling satisfies customers as needs become more tailored (more players enter market)