Notes on Managing Products & Brands

Today's Agenda

• Housekeeping
  • Marketing ethics assignment due at the start of class, Week 10 (Worth 10%)
  • Submission requirements include examples from the last 5 years.
  • Refer to Blackboard for images that won’t be accepted.

Midterm Results

• Midterm results indicate many students need improvement on:
  • Calculating metrics
  • Writing objectives
  • Identifying positioning strategies used to communicate benefits.
• Office hours available for midterm review.

Writing SMART Objectives

• What is a SMART Objective?: It should be a single statement of what will be accomplished.
• Example: "To achieve a sales revenue of C$750,000 by Nov 30, 2025."
• Not a SMART Objective Example:
  • Specific: Grow sales to $750,000
  • Measurable: Yes
  • Achievable: Yes (new product, no competition)
  • Relevant: Yes
  • Timing: By the end of March (not specific enough).

Week 9 Learning Objectives

1. Explain the concept of product in marketing
2. Describe primary product decisions companies make
3. Discuss packaging and labeling roles in product strategy
4. Explain brand equity's strategic value and branding strategies.

What Is “Product”?

• Anything of value to a consumer, offered through a marketing exchange, including:
  • Physical products (tangible)
  • Intangibles (services, causes, nonprofits)
• Examples of Products:
  • Places: Tourism (e.g., “Pure Michigan”)
  • Events: One-time (concerts) or recurring (festivals)
  • Organizations: Teams, charities
  • Ideas and Causes: e.g., campaigns like “Don’t drink and drive”.

Product & Marketing Planning

• The product is usually the starting point for the marketing mix:
  • Essential for setting price, designing communication strategy, and creating distribution channels.

Types of Consumer Products

• Convenience: Easily purchased with minimal effort
• Shopping: Requires more planning and comparison
• Specialty: Strong brand loyalty, unique offerings
• Unsought: Little awareness or interest

Marketing Considerations for Product Types

• Convenience Products:
  • Frequent purchase, low price, mass promotion.
• Shopping Products:
  • Less frequent, higher price, more promotional effort.
• Specialty Products:
  • High price, selective distribution, and strong loyalty.
• Unsought Products:
  • Little product awareness, aggressive promotion required.

Product Mix vs. Product Line

• Product Mix: Variety of products offered (e.g., Apple’s iPhone, iPad, etc.)
• Product Line: Different products in the same category (e.g., iPhone models).

Individual Product Decisions

• Key factors include:
  • Features and benefits
  • Packaging and labeling
  • Branding

Features vs. Benefits

• A Feature is a product characteristic.
• A Benefit explains how the feature provides value to the customer.
• Example:
  • Feature: All-wheel drive
  • Benefit: Provides better traction in winter conditions.

Importance of Packaging

• Serves multiple roles:
  • Contain and protect the product
  • Promote and differentiate it
  • Provide consumer information (e.g., ingredients)
  • Ensure compliance with legislation (e.g., UPCs).

The Role of Branding

• Branding simplifies consumer decisions, providing trust and familiarity.
• A brand acts as a promise of quality and signaling reliability.

Major Branding Decisions

• Brand Elements:
  • Names, slogans, logos, sounds, design marks, URLs
  • Strategies including national brands, private labels, licensed brands, etc.
• Brand Development:
  • Line extensions (new products under the same brand) vs. brand extensions (entering a new category).

Benefits of Strong Brands

• To Consumers:
  • Efficiency in shopping and quality assurance.
• To Companies:
  • Ability to command higher prices due to brand loyalty, reduced risk, and potential for greater profitability.