MARKETING

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 PRODUCT & BRAND
STRATEGY

1. Products/Services

07
2. Branding
3. Brand Strategies
4. Branding Elements

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law technology economy society

customer

competitor supplier

analysis information
Situation analysis

forecast forecast

goal setting strategic marketing

philosophy mission overall objectives

markets programm competition

strategy segments instruments trade

detailed planning operative marketing

marketing sub objectives

Marketing mix
promot
product price place
ion

marketing implementation
realisation
and control organization system culture

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Starting point

Analysis of external
environmental forces

Customer needs, Organizational

expectations, goals/objectives,
perceptions capabilities, resources

Product and brand strategy

Plan to provide value through:
-Features, benefits, related services
-Quality and design
-Packaging and labeling
-Product develiopment/management
-Branding

Source: Wood (2014) The Marketing Plan Handbook

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What will your product be?

It can consist of any of the following:

Tangible Services Places Ideas Organizati People

goods ons

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Product benefit

Core benefit

Product benefit
= Design

Social prestige/recognition

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Core benefit

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Design

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Social Prestige

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Quality and Design

• Quality:
How well do products satisfy consumer needs?
• Good quality is no guarantee of success but helpful
• Word of Mouth/Mouse can easily sink a product or make it interesting
• When good quality is the minimum that customers will accept, the emotional
quality of design is the marketing battleground that more companies are choosing
• A good design means that the product can perform as it should, can be repaired
easily, is aesthetically pleasing and meets other needs

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Product features

• Features are specific attributes that enable a product to perform its function
• Features deliver benefits
• Don’t add so many features that customers become confused, frustrated or
dissatisfied (“feature bloat”)
• Understand your target segment is the key

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Mass Customization
• Mass customization means creating products on a large
scale with features or attributes tailored to needs of
individual customers
• Products can be modulated by the customers
(fabric/color/lining etc.)
• Creates more customer loyalty but requires
special capabilities
• Examples: Nike, Dell, M&Ms …

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Planning for Services

Think about how customers and employees will deal with this characteristics
You can use marketing to emphasize the positive aspects and minimize the potential downsize

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Product Development/Strategy
1. Idea 2. Initial Concept 3. Business 4.Design 5. Market Testing 6. Commerciali
Generation and Testing Analysis Prototype zation
Screening
• Based on • Research • Estimate • Design and • Test customer • Plan targeting
customers customer value development, produce reaction through and timing of
needs and of product production and working limited market relaunch
wants, identify concepts marketing mix prototypes trials or
new product costs simulated
ideas testing

• Screen out • Refine concept • Compare costs • Test prototype • Test different • Plan
unprofitable or bases on with potential functionality, marketing-mix production and
unsuitable ideas research shares, sales, customer combinations marketing-mix
profitability to appeal for support support for
identify good launch
candidates

Source: Wood (2014) The Marketing Plan Handbook

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Product Lifecycle

Can be influenced by:

• Technology
• Competition
• Consumer Lifestyles
• Societal Attitudes
• …
 For tech products nowadays the
period between introduction and
decline is shorter than ever

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Product Development/Strategy through the Lifecycle

1. Introduction 2. Grwoth
• Launch the new product • Enhance product (new
features, improved
quality, added services,
new packaging)
• Support launch with
marketing-mix programs • Support rising sales with
to build customer expanded channel
awareness, make product coverage, pricing for
available and encourage market penetration and
trial communications to start
and reinforce customer
relationships
3. Maturity 4.Decline
• Add brand or line • Reposition, reformulate
extensions or cut struggling
products
• Defend market share • Manage profitability
through competitive through careful pricing,
pricing, channel pruning channel outlets
expansion, and minimal pr highly
communicating targeted communications
differentiation and
promotion to reinforce
customer loyalty

Source: Wood (2014) The Marketing Plan Handbook

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Checklist: Planning Product Strategy
Current Offerings
 What products are being offered, at what price points and for what customer
segments or channels?
 What are the unit sales, revenues, shares and profit trends of each product over
year?
 How are newer products faring in relation to older products?
 How does each product contribute to the company’s performance and goals?

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Checklist: Planning Product Strategy
Product Plans
 How does each product support the organization’s objectives and goals
 What opportunities for adding value through product modifications or
introductions exist?
 How do each product’s features and benefits, quality, packing, services and
branding provide value for customer? What enhancements would add value and
improve competitive position?
 Where is each product in life cycle? How can each be aligned with plan
objectives?
 What changes to product lines and product mixes will help the company pursue
its goals?

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The value of brands

https://www.interbrand.com/best-brands/best-global-brands/methodology/

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Branding definition
Branding refers to all measures for the design of an offer, which are
suitable for highlighting an product/service from the mass of similar offers
and which allow a clear assignment of the product/service to a specific
brand.
>
>
>
>
>

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Dimensions of brand management

Strategies Appearance
Business strategy Logo
Brand strategy Website
Brand architecture Letters, forms
Communication strategy Products
Marketing strategy Labeling
… Buildings
Vehicles
…

Behaviour (culture) Communication

External: External:
Costumers Public
Public Costumers
Internal: Investors
Daily business Job market
Decisions *Company’s identity as Internal
Rituals and Celebrations Brand identity Employees
… Visions, goals, …
Skills, core products
Norms, values and patterns,
Past, needs

Based on Vogler/Egloff (2001): Marken schaffen mehr Wert

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Brand perception & brand equity

Brand perception is a process of decoding absorbed environmental stimuli
and inner signals and can be done via all sense organs - seeing, hearing,
touching, tasting, smelling, feeling

Brand Assumed quality Brand

awareness associations

Brand Other brand

loyalty benefits

Source: Aaker 1991

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Brand strategy
• Brand strategy is a long-term plan for the successful development of a brand in
order to achieve certain organisational goals.

• A well-defined and comprehensive brand strategy is aware of both consumer

needs, competitive environment and macroeconomic realities within the space
that is operates.

• A successful brand strategy will enable the brand not just endure during the bust
phases of the economy but also create a high awareness and loyalty among its
customers

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Single brand strategy

Brand strategies
Products
v
(width)

Single brand
strategies
Brands
(depth)

Single-brand strategy:
Every product/service of a company is
offered with its own single brand

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Umbrella brand strategy

Umbrella
Brand strategies brand
Hierarchy strategy
(height)

Umbrella
Single brand
brand
strategies
strategies
Brands Products
(depth) (width)
Umbrella brand strategy:
All products/services of a company
are offered with one consistent brand

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Family brand strategy

Riegel, Ü-Ei, bueno…
Family
Brand strategies brand
Products strategy
(width)

Single- Family Umbrella

brand brand brand
strategies strategies strategies
Brands
Family brand strategy: (depth)

Several related products/services of a

company are managed under one brand. Several
brand families can be run side by side in one
Page company
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Multi brand strategy

Brand strategies
Products
(width)

Single- Family Multi Umbrella

brand brand brand brand
Brands
strategies strategies strategies strategies (depth) Multi
brand
strategy
Multi brand strategy:
Several brands of a company are each in a special
performance area and all products/services are
aligned parallel to the overall market
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Advantages & disadvantages of the strategies

Single Family Umbrella Multiple
brand brand brand brand
strategies strategies strategies strategies

Positive image transfer - + ++ -

Negative spillover - + ++ -
Differentiated positioning ++ + - ++
Market exploitation / addressing - - - ++
different segments
Cannibalization - - - ++

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Brand strategies in the “real world”

• Pure brand strategies are not often found in the „real world“
• Often a combination of different strategies is applied
• E.g. Ferrero has single brands and family brands
• There is a trend to endorse brands with the corporate brand
(e.g. big players like P&G or Unilever do that in their
advertisements, see coupon campaign of Henkel on the
slide of multi brand strategy )

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Brand architectures

• Arrangement of all brands of a company for definition of positioning

• Determines the role of the brands and their relationships among
themselves
• Sets the brand-product-relationship from a strategic point of view
• Widely known is the brand relationship spectrum by Aaker and
Joachimsthaler (2002)

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Brand architectures Brand Relationship Spectrum

Master brand
Modification of the Single brands not
dominates, sub- Endorsement of single
master brand by sub connected to master
brands do not brands by master brand
brands brand
matter

one identity equal endorse

corporate name clear endorse
Identity variations importance endorse ment covert
brand implies endorse ment covert
of the ment but
dominates endorse ment but known
e.g. e.g. brands implied unknown
ment
Virgin, GE, Capital e.g. Dell e.g. e.g. P&G,
Nike e.g. Sony e.g. Henkel e.g. Mars
e.g. Nescafé Courtyard Unilever
Triniton (Pedigree)
by Marriott

Based on Aaker and Joachimsthaler (2002)

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Name
Name

Packaging
Packaging Logo
Logo

Branding
Branding
Characters
Characters Elements
Elements Slogan
Slogan
Symbols
Symbols Claim
Claim

Soundlogo
Soundlogo
Key
Key Visual
Visual Jingle
Jingle

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Requirements of a brand name
Autonomy
 Differentiation of competing brands
 Unique position and individuality
 Building a brand personality

 Name should generate trust

Reliability  Name should trigger positive associations
 Name should match the product type
 No negative meanings in other languages

Innovational  Only 26 letters are available for the name

strength  Originality, unusualness, variety, news

 Indispensable requirement;
Memorability  Regardless of the length of the name
 Empirical: the more pictorial, the more memorable
 Increase memorability through eye-catching morphology
Legal  Brand name must be able to defend against imitation
protectability  Requirement is the distinctive character

Source: Kircher (2005): Gestaltung von Markennamen

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Types of brand names

. Five options for brand name selection:

• Descriptive brand names describe the core benefits of the brand

• Person-Based Brands identify the service/products with the name of the owner
or partner
• Associative brands using words to which a specific identity needs to be
conferred by the communication policy
• Geographic Brand Names that relate to national or regional business
priorities
• Alpha-Numeric Brand Names which consist of a combination of letters and
numbers

Source: Turley/Moore (1995): Brand name strategies in the service sector

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Examples of descriptive brand

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Examples of Person-based brands

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Example of Associative Brands

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Example of Geographic Brand Names

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Examples of Alpha-Numeric Names

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Interchangeable brand names

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Meaning of brand names

Latin for „listen“

Initials of the founding family : Carl, Heinz & Irmgard von Opel

The "Fabulous", the first soap that not only cleanses but also
cares

Initials of the company Hans Riegel Bonn

Initials of the founder Ingavar Kamprad + Elmtaryd (his farm,

Agunnaryd (his village)

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Name
Name

Packaging
Packaging Logo
Logo

Branding
Branding
Characters
Characters Elements
Elements Slogan
Slogan
Symbols
Symbols Claim
Claim

Soundlogo
Soundlogo
Key
Key Visual
Visual Jingle
Jingle

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Brand logo

• Visual (or acoustic) representation of a brand, often the brand name

• Factors of memory strength:

> vitality
> concreteness
> conciseness
> autonomy

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Types of brand logos

Brand logos

Image logos Font logos

What do you think of?

Abstract image logos Specific image logos

Source: Esch/Langner (2005): Gestaltung von Markenlogos

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Brand logos: Integration of brand image and brand name

forms of
integration

Formal integration Content integration

Linking through the use Link through
of shape and color semantic meaning

Source: Langner (2003): Integriertes Branding: Baupläne zur Gestaltung erfolgreicher Marken
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Design factors of brand logos: Shape

• Symmetry: symmetrical shapes are processed faster, appeal better and
are better remembered.
• Complexity: a stimulus that has too much complexity is less well
remembered than less complex stimuli.
• Figure-ground-contrast: a clear lifting of the logo from the respective
background promotes the perception of the same.
• Geometric basic structure: abstract shapes that can easily be broken
down into simple geometric basic forms are processed faster and are
better remembered.
• Shape Quality: acute-angled shapes are active and powerful
rectangular shapes rather passive powerful and round shapes convey
rather passive and weak associations
Source: Esch/Langner (2005): Gestaltung von Markenlogos
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Autonomy of brand logos

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Trend towards simplification of brand logos

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Design factors of brand logos: Effect of colors

yellow red blue green

Optimistic & young energetic Trust & Security health
Often used in shop activating Often used by banks Used for relaxation
windows signal color areas

orange pink black violet

Aggressive romantic Powerful and well Reassuring & spiritual
Activating Feminine maintained Commonly used for
Often used for luxury cosmetic products
products
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Design factors: colors

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Developments of brand logos

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Name
Name

Packaging
Packaging Logo
Logo

Branding
Branding
Characters
Characters Elements
Elements Slogan
Slogan
Symbols
Symbols Claim
Claim

Soundlogo
Soundlogo
Key
Key Visual
Visual Jingle
Jingle

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Slogans

• Support brand positioning

• Limited effectiveness
> Commerzbank slogan: "The bank by your side“
> Only 20% of the customers were able to assign the slogan correctly
• Problematic use of English slogans in the German market (Endmark
study in 2009)
> Only 26% of respondents understood the slogan in the sense of the
sender

Source: Endmark (2009): Endmark Claim Studie

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Slogans

Slogans work especially when…

• they are communicated in electronic media  associated with visual and
acoustic stimuli
• are underlaid with memorable jingles
(for example McDonald's "I love it")
• are short, concise and pictorially formulated (for example "you can build
on these stones")

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Name
Name

Packaging
Packaging Logo
Logo

Branding
Branding
Characters
Characters Elements
Elements Slogan
Slogan
Symbols
Symbols Claim
Claim

Soundlogo
Soundlogo
Key
Key Visual
Visual Jingle
Jingle

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Audio branding
• Audiologo / Soundlogo = short, concise, memorable, in the widest sense noises
to melodic, instrumental, spoken or sung
• Jingle = melodic piece that contains text and is mostly sung
• Brand voice = specific speaking voice that is consistently and long-term used for
the verbal communication of a company
• Brand song = self-developed composition developed according to the guidelines
of acoustic identity or already popular foreign composition
• Soundscape = designed, atmospheric sound space that is used in real
environments such as sales rooms or in media such as the Internet

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Name
Name

Packaging
Packaging Logo
Logo

Branding
Branding
Characters
Characters Elements
Elements Slogan
Slogan
Symbols
Symbols Claim
Claim

Soundlogo
Soundlogo
Key
Key Visual
Visual Jingle
Jingle

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Key visual

Reassuring to know
someone on whom
you can rely on
(rock-solid)

„Der Fels in der Brandung“

"The Rock in the Surf"
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Requirements for key visuals

• The visual key features must be clearly recognizable

• The key visual should be lively

• The variability of the image for implementation in different media and

modalities has to be considered in time

• The key visual should be continuously usable while allowing for

adjustments to changes over time

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Name
Name

Packaging
Packaging Logo
Logo

Branding
Branding
Characters
Characters Elements
Elements Slogan
Slogan
Symbols
Symbols Claim
Claim

Soundlogo
Soundlogo
Key
Key Visual
Visual Jingle
Jingle

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Brand characters / symbols

Brand characters

Celebrities / testimonials "Invented" characters

Mascots Humans

Animals Things Humanoids

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Brand characters: Self-congruence research

• The self-congruence research examines the consequences of a

consistency of the personality of consumers with corresponding image
components of labeled products (the brand personality)
• Consumers prefer a brand all the more, the more their brand personality
resembles their own personality
• The meta-analytical evaluation of 165 effect size measures from 32
studies provides a highly significant mean self-congruence effect of r =
0.34 (varying in the individual studies)

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Name
Name

Packaging
Packaging Logo
Logo

Branding
Branding
Characters
Characters Elements
Elements Slogan
Slogan
Symbols
Symbols Claim
Claim

Soundlogo
Soundlogo
Key
Key Visual
Visual Jingle
Jingle

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Packaging

Seems familiar?

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Packaging and Labeling
• Packaging adds value by keeping products safe and in convenient
containers when
• Labeling adds value by communicating product contents, uses and
warnings
• Packaging and labeling play an important marketing role by
> Highlighting points of differentiation
> Explaining the products features and benefits
> Reinforcing what the brand stands for
> Attracting attention among customers and
channel partners
> Should support “sell” from the shelf

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Integrated Branding

• Describes the harmonious interaction between different branding

elements

Name (Rocher): Logo:

„ exclusive, „exclusive, noble
noble royal“ royal“

Slogan:
Packaging „… time for gold“
(gold, brown paper backing):
"exclusive, pearl in a shell"

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Integrated Branding: example

• Stands out clearly from the

environment,
• conveys positioning-
relevant associations,
• is pleasingly designed and
easy to learn.

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Now it‘s your turn

• Please present the branding elements of one chosen brand

 10-15 minutes to prepare

 5 minutes presentation

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 THANKS FOR YOUR ATTENTION!

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