Core Concepts of Marketing by John Burnett - HTML preview

CHAPTER 7

INTRODUCING AND MANAGING THE PRODUCT

of a product that has successfully engaged in this strategy. Minor taste changes and for-

mula changes have differentiated a basic product in the minds of many Crest users .

Market extension is a second approach available to the product manager.

entails

attracting additional types of buyers into the market or discovering and promoting new uses

of the product. Sometimes the addition of new buyers itself provides new uses for the prod-

uct. 3M's Scotch tape, for example, expanded its uses when it became popular with the gen-

eral consumer as well as the business consumer.

market extension strategies

are extremely easy for competitors to copy. Thus, the brand promoting the new use is ben-

efiting competitors as well.

Market segmentation is the final approach. As discussed in an earlier chapter, seg-

mentation is identifying a group of consumers that tend to respond to some aspect of the

market mix in a similar way. Rather than trying to appeal to the whole market, you con-

centrate your efforts and resources on a part of that market. The trend towards segmenting

markets occurs most among branded goods. Even industrial products, such as the many vari-

eties of diesel trucks, is an industry in which small firms survive by concentrating on some

special

of that heterogeneous total market. A company like Coca-Cola found that

there were pockets of consumers that, for various reasons, did not purchase Coke. Through

the introduction of Tab many years ago, followed by Diet Coke and Caffeine-Free Coke,

they feel that most of the market is now covered.

Key Product Management Decisions

With every product, regardless of where it is in its lifecycle,

are certain key decisions

that must be made, perhaps

These decisions include specifying product features,

package design, branding decisions, establishing related services, and legal considerations.

Although these decision areas are discussed separately, it should be noted that they all interact with one another, and are monitored and

when necessary, throughout the life

of the product.

Product Features

In a functional sense, the key question is, "Does the product do

what the consumer wants it to do?" Does it get clothes clean? Does it quench your thirst?

Does it save you money? Some of these questions can be answered only through product

research, but consumer research provides more answers.

While the development of ultra-high-speed photographic film was a research break-

through, how

perceives this benefit can be answered only by the consumer.

is possible that the product benefit is so great that it overwhelms the consumer or it is

not believed by the consumer. Several new toothpaste manufacturers have recently come

out with products that partially restore decayed tooth areas. They have intentionaiiy kept

this innovation very Jow-key, because they feared the consumer would not believe it.

features include such factors as form, color,

weight, odor, material, and

tactile qualities. A new car can offer thousands of alternatives when one considers the exte-

rior and interior options. The smell of fresh bakery products or a good Italian restaurant

has clearly enticed many a customer. The product must also be aesthetically pleasing . When

the entire product is put together, it must create an appealing, visually attractive and dis-

need satisfier.

Packaging

With the increased importance placed on self-service marketing, the

role of packaging is becoming quite significant. For example, in a typical supermarket a

shopper passes about 600 items per minute, or one item every tenth of a second. Thus, the

only way to get some consumers to notice the product is through displays, shelf-hangers,

tear-off coupon blocks, other point-of-purchase devices, and, last but not least, effective pack-

PRODUCT PLANNING AND STRATEGY FORMULATION

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ages. Common uses of packaging include protection ,

communication, and util-

ity/ease of use.6

Considering the importance placed on the package, it is not surprising that a great

deal of research is spent on motivational research, color testing, psychological manipula-

tion, and so forth, in order to ascertain how the majority of consumers wil1 react to a new

package. Based on the results of this research, past experience,

the current and antic-

ipated decisions of competitors, the marketer will initially determine the primary role of

the package relative to the product. Should it include quality, safety, distinction, affordability, convenience, or aesthetic beauty? For the automobile oil industry, the package has become

more important to promote than product performance. To a lesser extent, this is also true

for products such as powdered

margarine, soft drinks, perfrmes, and pet foods. In

the case of Pringles,

& Gamble had to design a package that wouid protect a very

delicate product. It also faced the uncertain response of retailers whc have

stocked

stacked potato chips before. Recall the many shapes and sizes ketchup containers have taken

during the last twenty years.

Clearly delineating the role of

lead to

actual design of the pack-

age: its color, size, texture, location of trademark, name, product information, and

tional materials. Market leaders in the dry food area, such as

mixes,

established

a tradition of recipes on the package. However, there are other package-related questions.

Do the colors compliment one another? Are you taking advantage of consumer confusion

by using a package design similar to that of the market leader? Can the product be made

for an acceptable cost? Can it be transported,

and shelved properly? Is there space

for special promotional deals? Finally, various versions of the product will be tested in the

market. How recognizable is the package? Is it distinctive? Aesthetically pleasing? Accept-

able by dealers?

Branding

Any brand name, symbol, design, or combination of these constitutes a

branding strategy. The primary function of the brand is to identify the product and to distinguish it from those of competitors. In addition, from the perspective of the buyer, it may

simply be consistent quality or satisfacLion, enhance shopping efficiency, or call attention

to new products. For the seller, selecting a brand name is one of the key new product deci-

sions, and reflects the overall position and marketing program desired by the finn. It is through a brand name that a product can: ( 1) be meaningfully advertising and distinguished fron:

substitutes, (2) make it easier for the customer to track down products, and (3) be given

legal protection. Also, branding often provides an interesting carryover

cus-

tomers will associate quality products with an established brand name.

Before going any further it is necessary to distinguish several terms:

Brand: a name, term, sign, symbol, design, or a combination of these that is intended

to identify the

or services of one seller or group of sellers and to differenti-

ate them from those of competitors.

• Brand names: that part of a brand which can be vocalized-the utterable.

• Brand mark: that part of a brand which can be

is not utterable,

as a symbol, design, or distinctive coloring or lettering.

• Trademark: a brand or part of a brand that is given legal protection because it is

capable of exclusive appropriation 7

As was the case with product design and packaging decisions, branding

a

systematic effort at generating aiternative brand names, screening them,

selecting

best alternative. However, before this process begms, a more basic decision must be made.

What is the basic branding strategy to be employed? Three viable options are availabie.

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