Product Classification

1
Product Classification

• Core Product
• Core benefit or service
• Actual Product
• Packaging
• Brand Name
• Features
• Quality
• Styling
• Augmented Product
• Installation
• Delivery Credit
• After Sale Service
• Warranty

2
Branding

• Brand Name
• Brand Mark
• Trade Name
• Trademark

Brand Value P Gs Sale of Hires Orange
Crush Sale Price 220 million Asset Value - 20
million Brand Value 200 million
3
Branding Decisions

• General Comments
• Expensive, Time-Consuming
• Some, Manufacture Only
• Consumer Loyalty Profitability
• (Demand Curve Shift)

Brand Value/Power P1
P2
Q Quantity (sold)
4
Brand Advantages
1) To Consumers Quality Efficiency 2) To
Sellers Order processing Customer Loyalty
- - - - - - - - Negatives Less Competition,
Lower Income Disadvantage.
5
Brand Sponsor Decisions
National (Manufacturer) Brand Private (Dealer)
Brand Mixed Brand Strategy
Battle of the Brands
Traditional Promotional Spending Shifts to Trade
Allowance Brand, Loss of Power
6
Branding Decisions

• Brand-Extension Decision
• Reputation Risks
• Some extensions dont work
• Line extension trap

• Multi-brand Strategy
• More shelf space, dependence
• Capture brand switchers
• Internal Competition

7
Branding Decisions

• Brand Repositioning Decision
• Consumer confusion
• Resistance to

Selecting a Brand Name

• Benefits Qualities
• Ease to Pronounce Remember
• Distinctive
• Translate into Foreign language
• Capable of Legal Protection

Trampoline, Aspirin, Nylon, Kerosene,
Escalator, Thermos, Cellophane