MARKETING II: UNIT 2

PRODUCT, BRAND AND PACKAGING DECISIONS

1. Product decisions
1.1. Product definition

According to Kotler, a product is more than a tangible "thing". A product satisfies the needs of a
consumer, and not only provides tangible value, but also abstract value.

It is for this reason that the different product dimensions appear in order to give shape to this
abstract value.

1.2. Product dimensions

The concept of product dimensions emerged during the last century, mainly through two authors.
On the one hand, Kotler defined 3 product levels, observed from the product point of view;
whereas, Levitt identified 4 dimensions, observed from the consumer's point of view. We can say
that Levitt's vision is an extension of that proposed by Kotler.

4 dimensions, viewed from the consumer benefit side.

Basic benefit: It is the product in itself, with its most basic functionality, that is the main need it
satisfies.
Flying by plane from one geographical point to another.

Expected benefit: We must then turn to the competition and try to match the minimum expected
by a customer.
In this case, we could consider the correct attention at the boarding gate, the welcome and
indications of the cabin crew, as well as offering the service at the agreed times (within the delays
associated with air transport).

Incremental benefit: The incremental product would be the offer of complementary products or
services and the dimension that allows me to differentiate myself .
In this case, could be products or services on board that differentiate me from the competition,
such as flight cancellation insurance, seat selection services or the live animal transport service.

Potential benefit: We find the future perspectives, those extensions, increases or variations that
the product or service may undergo in the future in order to satisfy possible needs that have not
been explored so far.
The luggage transport service from the residence to the destination accommodation, so that the
customer does not have to carry it with him/her at any point of the air transport.
3 dimensions, viewed from product point of view.

Basic product: The set of tangible attributes of the product or service such as quality, materials,
design, packaging...

Extended product: The basic product + an added value such as guarantee, purchase facilities,
after-sales service...

Symbolic product: This is the personal or psychological satisfaction that our customer expects to
obtain together with the tangible attributes. This will depend to a large extent on the prestige of the
brand.

1.3. Product Classification

Classification according to nature of product

Classification by product use

Consumption:

Routine Impulsive Sporadic Specialty Unsought

Industrial:

Raw materials and components. Capital goods. Supplies and services

1.4. Phases of the product lifecycle

PHASES OF THE PRODUCT LIFECYCLE

1.5. Product mix

Product Mix, product assortment, or product portfolio is the categories of products that a firm
offers. In other words, the product mix is the number of product lines a firm has under its umbrella.
There could be one or more products under a product line. All the product lines together constitute
a product mix.

What ́ s product lines?

A group of products that perform similar functions, are sold to the same group of consumers,
through the same distribution channels and in a similar price range.

What is the difference with the Range?

The range can be said to be the same, but it encompasses larger groups of products that perform
similar functions but ....! they do not necessarily have to be sold to the same consumer, nor
through the same channels, nor at similar prices.

What is the optimal length of a product portfolio?

A line is short if profits can be increased by adding new products. On the contrary, it is long if
profits can be made by reducing the number of products. The length depends on the company's
objectives.

How to extend a product line.

From the brand's perspective. Not the distributor. (get more depth)

Downstream: Spreading to the lower level market.

Upstream: Focusing on the higher-end market.

Dimensions of product mix

Width

The number of product lines that a firm has suggested is what is called the width of a product mix.
For example, If Coca-Cola sells only juices and soft drinks, it means it has two product lines. And, if
it also sells mineral water, it would mean it has three product lines.

Depth

It is the total number of variations of a product in a product line. The differences can be in the form
of size, flavor, or any other product characteristic. For example, Colgate, in its toothpaste product
line, sells different flavors of toothpaste, such as Colgate advanced, Colgate active salt, and more.
Moreover, if it sells in various sizes, that will also count as depth. Suppose Colgate sells toothpaste
in three sizes and two flavors; it would mean a depth of six.
Length

The length refers to the products in a product mix. For instance, if a company has 4 product lines,
and under each product line, it has four products each, then the length of the company’s product is
16.

Consistency

It means the relationship between the products in a product mix. The relation is mainly about the
production and distribution channels. More consistency is advantageous for a company as it would
mean lower costs and better distribution. Moreover, more compatibility also means brand image
aligning with the products that a company makes. Nestle, for example, has more consistency in its
product line.

2. Brand decisions

2.1. Definition and evolution

Branding is a fundamental aspect of product strategy. A strong and recognised brand requires
heavy long-term investment, but it allows differentiation from competitors and customer loyalty.

The power of a brand lies in its ability to influence consumer perceptions, attitudes and purchasing
behaviour.

BRANDING

To understand what branding menas and to put it into practice, we must begin by explaining and
understanding what a brand is.

Old definition: "A name, sign, symbol or design, or a combination of these, intended to identify the
goods or services of a seller or group of sellers and differentiate them from their competition".

Current definition: "A catalyst of affect, i.e. as the sum of any and all sensations, perceptions and
experiences that a person has as a result of contact with an organisation, its products and
services".

This current definition gives rise to what we know today as branding.

The essence of a brand is something intangible. After all, it is an emotion. It is what creates
connections, or friction, with the consumer. The essence is that which makes interaction with the
customer flourish, which lights the fuse of emotional marketing and which makes word of mouth
flow.

2.2. Brand characteristics

FIRMNESS

The essence of a brand should be condensed into one or two words. More than two words
suggests that the brand is not really focused. And not being focused is synonymous with being a
weak brand.
INTANGIBILITY

A person is not more independent for riding a Harley-Davinson, but somehow feels that way. It is
an intangible asset.

EXCLUSIVITY

To define its essence, the brand must be very clear about what makes it different from its rivals in
the market. What makes the brand unique.

EXPERIENCE

The essence of the brand must capture the customer's feelings as they "experience" the company.

CONSISTENCY

If a brand tries to position itself as "fun" and then does not behave as such, fun is not really part of
its essence. Essence manifests itself not only in words but also in actions.

AUTHENTICITY

If the essence of the brand is not credible, consumers will end up rejecting it.
To check whether the brand is credible or not, it is best to ask the customer directly, and never
make empty promises.

SUSTAINABILITY

Once baked, the essence of a brand remains unchanged.

RELEVANCE

If you want to really connect with the consumer, the essence of the brand must be relevant to
them.

SCALABILITY

The essence must be suitable for possible extensions of the brand and its growth in the future.

2.3. Decisions on brand names

SINGLE TRADEMARK

The company will decide to use the same name for all the products it markets. This name may or
may not coincide with its company name.

Advantages:

Cost savings.
Less effort when promoting the products.
The customer already knows the brand name when launching a new product, so he/she will
associate it with the characteristics with which he/she already associates the brand name.

Disadvantages: If we have any problems with the new product we associate with it, the overall
brand image would be affected.

Recommendations: Use this strategy when our products are similar and form part of the same
sector.

-BRAND EXTENSION STRATEGY: An existing brand works to launch a new product that will be
under the same brand but different from the brand's original offering. Essentially, it is about building
on the established status of the brand.

MULTIPLE OR MULTI-BRANDING:

This strategy consists of having more than one brand within the same company, which we will
assign in different ways depending on our objectives.

-INDIVIDUAL BRAND STRATEGY:

We will assign a different brand to each of the company's products.

Advantages:

The company is not dependent on the acceptance of one product. Can innovate/take risks without
compromising.
Can give each product the best name.

-BRANDING STRATEGY FOR PRODUCT LINES:

We will group products into different brands. Either by product line, typology or any other attribute
that we consider relevant to our product portfolio.
SECOND BRAND STRATEGY:

-This type of strategy is usually applied when a brand, which already has a certain prestige in the
market, decides to target another public and produces similar products but at a lower price.

UMBRELLA BRANDING:

Company name next to the individual product name.

2.4. Trademark registration

The trademark, in terms of name and accompanying symbol, must be registered at the Spanish
Patent and Trademark Office. This will guarantee that the use is exclusive to us.

Registration is really easy and can be done online, paying a fee of around €100. We will also need
to select the heading under which our trademark will operate.

At the moment we register, although we can start using our trademark, we must take into account
that if the resolution is not favourable (a period that can last around 6 months), we will be forced to
modify the trademark or withdraw it. This is why it is advisable to register the trademark a few
months before starting to use it.

Can you imagine developing a whole branding strategy for a trademark, starting to sell, and having
to withdraw it from the market after 6 months?

2.5. Branding

The definition of Branding according to the Spanish Association of Branding Companies or

AEBRAND:

"Branding is the intelligent, strategic and creative management of all those differentiating elements
of a brand's identity (tangible or intangible).

differentiating elements of a brand's identity (tangible or intangible).

They contribute to building a distinctive, relevant, complete and sustainable brand promise and
brand experience. brand promise and brand experience".

In order for us to understand it quickly, we will look at other much more simplified definitions.

Definition 1: "...branding is the process of building and managing a brand", understood as "the
process of building and managing a brand". Branding in this definition is understood as the current
concept
brand in this definition as the current concept that we saw in the introduction of this course and not
as the traditional concept.

Let's remember what the current concept of brand was that we saw at the beginning of this course
"A catalyst of affections, that is to say, as the sum of each and every one of the sensations,
perceptions and experiences that we sensations, perceptions and experiences that a person has
as a result of contact with an organisation, its products and services.

contact with an organisation, its products and services".

Branding will therefore be the process of building and managing everything included in the above
definition.

Types of branding

1. Personal branding

This consists of working on personal branding.

It is therefore applied at an individual level and has gained a lot of strength in the digital
environment.

2. Corporate branding.

This is branding focused on brands. Therefore to companies of all kinds of companies.

3. Employer branding.

This is a new concept that refers to how to work on employee branding. We cannot forget that
employees must be the first standard bearers of the brand.

Branding functions

Branding must connect emotionally with the consumer, make them feel unique and special to the
brand and be able to communicate their way of life, expression, style and personality.

By implementing branding we aim to sell, but in order to sell we first have to make people fall in
love. We can get them to buy our product, not because of what it is, but because of what it means
for the buyer to acquire a product of our brand.

Branding components

MARKET ANALYSIS

Before starting the creation process, we must have done some preliminary work, without which
there would be no point in starting.

We must know in depth the market situation, the competitors, both current and potential, and the
consumer, especially our target or objective public.

Once this research has been carried out, we must, based on the information obtained, define what
our competitive advantage is.

UNIQUE SELLING POINT

That resource or capacity that we have that our competitors do not have, or that even if others
have it, we are able to exploit it better. This will help us to differentiate ourselves from our
competitors and to know what we can offer to our target or objective public, and what makes us
different and unique, but be careful, because to be a competitive advantage it must be difficult to
imitate and sustainable over time.
THE CORE OF BRANDING

Now is the time to define:

The values and attributes of the brand. The positioning we want it to occupy. The personality.
The territory.

In order to define all this in the best possible way , we will use what in marketing is called the
"Brand Wheel".

THE CORE OF BRANDING: POSITIONING

The place my brand occupies in the consumer's mind compared to my competitors. What do I
need to consider when defining my brand positioning?

TARGET PUBLIC

To define our positioning, it is necessary that we have carried out a good market analysis and that
we know our target audience to perfection in order to be clear about who we want to address.

Once we have defined all of the above, we create our positioning map and decide what will be
decisive for positioning ourselves.
THE CORE OF BRANDING: TERRITORY

Territory is defining or developing the context in which the brand is developed.

For example, if I have a clothing shop with an adventurous style for mountain routes, etc., and I
want to position myself as such, I will have to create a whole context that demonstrates it. Videos
of people doing mountain routes, climbing...

One of the clearest examples of territory is the Red Bull brand, which positions itself as the only
energy drink that gives you wings, and for this it chooses the brand territory of adrenaline. This is
where its brand is always present with extreme sports.

THE CORE OF BRANDING: BRAND PERSONALITY

Our brand will be the image we project to others. If we are not clear about our brand personality,
we will not be able to project any image and therefore we will not be able to reach our audience.

To define our brand personality, we must look at the 12 personality archetypes that the psychiatrist
Carl Jung defined more than 100 years ago.

Jung said that there are 12 types of personalities by which all human beings can be categorised
and which give us information on how the individual perceives himself and how he can react to
different situations.

Marketing adopts these archetypes to give personality to our brand and in this way show it to the
world and connect with our audience.
THE CORE OF BRANDING: VALUES

Brand values define what we believe in. They belong to the emotional area. We all have values as
people, don't we, so our brand must also have them and they must be coherent with the
positioning, the territory and the personality that we have previously defined.

For example byedinosaurio's values:

Professionalism
Knowledge, Team, Companionship, Integrity, Positivism, Honesty, Authenticity, Freedom, Hard
work, Constancy, Courage, Transparency, Effort, Compromise, Innovation and Sustainability.

THE CORE OF BRANDING: ATTRIBUTES

We can say that the attributes are the tangible and rational characteristics for the whole emotional
strategy to take shape. Properties, composition, performance, materials, smells... that can be
touched, seen, measured.
Things like name, logo, packaging, format and all those elements that will allow us to recognize the
brand.

Within the attributes, we will define:

Name (Naming) / Tagline
Visual identity: Logo, packaging and all graphic elements of the brand. Verbal identity: How does
our brand speak, how does it express itself?
THE CORE OF BRANDING: ATTRIBUTES - NAMING

Now it is time to choose the name of our brand. Consistent with everything previously defined.

How should the name of a brand be?

1.It should not be too long:

As far as possible the brand name should not be long and in case it is longer than 3 syllables we
can play with abbreviating it as for example the case of Cosmopolitan magazine that is abbreviated
in many occasions as cosmo.

But be careful, length is not always the determining factor. Sometimes long names are very strong
because they have a very strong meaning as for example: Byedinosaurio

2. It must be easy to pronounce

3. It must suggest something
4. It must be a name that makes our brand memorable
5. It must have a pleasant and rhythmic sound
6. It must be a name that transmits positivity
7. It must be unique
8. It must not lose strength when it moves away from the origin.

In addition, in this section we will define the Tagline that will accompany the name.

THE CORE OF BRANDING: ATTRIBUTES - VISUAL IDENTITY

They are all the graphic and tangible elements that make up a brand so that it can project its
values, personality, etc., previously defined.

Among the components of a visual identity we can find: Logo

Typographies
Chromatic range

Packaging: Containers and packaging Stationery material

Labels
...

"aroma"

THE CORE OF BRANDING: ATTRIBUTES - VERBAL IDENTITY

The verbal identity of a brand refers to the language of that brand, how it will communicate, what
words, expressions, tone... it will use, always taking into account the parameters that have been
previously defined such as values, personality, territory...

We will define:
The voice (feminine/masculine, childish/adult, high-pitched/grave,
high/low pitched/clear...)
The tone (Formal/informal, respectful/disrespectful, humorous/serious, informative/funny...). Style
(How our spelling and grammar are going to be)
Key words
LOGO

The term "logo" derives from the Greek word "logos" which means "word". Logos are graphic or
symbolic representations of brands. A logo's mission is to identify the company, never to promote it.
Your company's logo must help your customers to remember you.

When designing a logo, it must be simple, representative and original. This will help it to be
scalable, long-lasting, memorable and relevant to our project.

Translated with www.DeepL.com/Translator (free version)

3. Decisions on packaging

PACKAGING

It is the set of actions to design and produce the packaging of a product.

ESSENTIAL CONCEPTS:

Primary packaging

Secondary packaging

Packaging

Label

Importance of packaging as a marketing tool:

- Self-service
- Positive influence on the consumer
- It is the image of the company and the brand
- Can provide benefits to the consumer and profitability to the manufacturer.

Packaging development process:

1.Define the concept of the packaging, its personal function

2.Define packaging elements: size, shape, material, color, etc. Always according to the marketing
mix. Take into account the environment

3.Test the package: resistance, texture, visual presence, in distribution and consumption.
LABELS AS AN ESSENTIAL PART OF THE PACKAGING:

Characteristics of labels:

- Identifies the product

- Describes the product and its quality - Promotes the product

Reason for label change:

- Rejuvenation
- Updating of regulations (nutrition)

SUSTAINABILITY

Sustainability is a necessity for today's and tomorrow's world. Companies must adapt their
products and packaging to this new reality. Marketing must reflect these new needs.

Create, redesign, unify, reposition... a brand.

But be careful! Branding work is not always about creating a brand.

If you remember, at the beginning we also said that we had to manage it and that implies
identifying when it is obsolete and we need to rebrand it or we want to reposition our brand in the
market and for that we must go back to the beginning of the process and redefine our positioning
map.