Wednesday 19 April 2017

PRODUCT STRATEGIES

Branding
A few years ago a man named John Adams won the Republican nomination in New Hampshire's
First Congressional District. Mr. Adams was an unemployed taxi driver who did almost no
campaigning. He made no speeches, issued no press releases, spent no money. He figured that with
a name like his he didn't need to. People choose products, including political candidates, based on
the familiarity of the name (Newsweek, September 27, 1976
The motivating objective in branding strategy is the creation of habitual purchase of the product
by consumers. A brand name, once remembered, vastly facilitates repeat purchase because the
product and its name become closely associated with each other. In fact, successful branding
strategy results in a name that becomes virtually synonymous with the product and often carries
more status than the product itself. Thus one is more likely to contribute to campaigns of The United
Way than to just any program of combined charities. People quickly develop confidence in a
branded product and enjoy peace of mind from the perceived assurance that a "good buy" was made.
They also perceive higher degrees of quality and reliability in a brand, all of which increases
familarity and automatic and loyal devotion to the brand. While many Americans abide by the 55
mile per hour speed limit, the state of Connecticut developed a particular reputation for diligence in
policing speed laws. It's campaign assumed the status of a respected brand, the Connecticut Speed
Laws, which stood out among those of neighboring areas. Upon entering Connecticut's highways,
drivers became especially aware of their speedometers.


A brand name should be promoted with the goal of making it well known, respected and even
generic. At the same time the assignment of a brand to a concept serves as an incentive to the
sponsoring organization to create and maintain high standards. For long-term welfare of the firm,
the producer of a branded item tolerates nothing but high-quality output.
The very name of the sponsoring organization or movement serves as an appropriate brand for an
idea. Examples are Boy Scouts, Christian Dior, Goodwill Industries, ERA, Gay Rights, NORMAL
(National Organization for Repeal of Marijuana Laws), I Love New York, WIN (Whip Inflation
Now), Boys Town, Red Cross, New Deal and CIA. The appropriateness of the brand name cannot
be overemphasized. Thus an organization promoting education for Hispanics is called Aspira,
Spanish for "aspire," and a museum in San Francisco calls itself The Exploratorium.
Criticizing institutions for neglecting the socio-linguistics of innovations, Rogers and LeonardBarton (1978) pointed out that "what an innovation is called often is an important factor in its
acceptability" 


They offered as an example government family planning programs in India, where contraceptives
are taboo because they are believed to be associated with prostitution. Marketers applied a theory
from the field of anthropological linguistics to the problem and changed the name of condoms from
"F.L.," or "French Letters," to "Nirodh," a Sanskrit word for "protection.” As a result of the name
change, audience perceptions were altered and acceptance improved appreciably, according to postpromotion research.


Packaging
How are ideas packaged? In the context of the promotion of nutrition information, the question
was put to a public health official of a third world country. He replied, "You can't sell sound
nutrition practice in a vacuum; you must package it together with such ideas as clean water,
sanitation and preventive medical care.” The implication is one that is common in conventional
marketing, for example, the idea of "accessorizing" in the sale of clothing. The salesperson suggests
a handbag and gloves while completing the sale of a pair of shoes.


Yet one rarely sees joint campaigns for such related causes as gun con trol and support the police,
responsible pet ownership and antivivisection, or scouting and forest fire prevention. One might
propose to the "I Love New York" promoters a package of traffic amelioration through carpooling or
mass transit for visiting several points of interest, centers of performing arts, museums and so on -the
possibilities are endless. Energy conservation can be wrapped up in the same "box" as pollution
control, shop by bicycle and physical fitness (Fine 1980b). A good deal of synergy derives from
combining the efforts of organizations espousing innovations that can be linked together in some
manner.


The words of a great poem are no more beautiful when set in fancy type and printed in a
handsomely bound volume than when the poet first scrawled them on scratch paper. Yet, until the
poem was attractively packaged, few could appreciate it. A scholar presents a new theory by
packaging carefully written sentences into an article, which is delivered to a consuming audience.
Indeed, the term "vehicle" is used to mean a journal said to "carry" the article. Abstract products
need the application of correspondingly intangible packaging principles.


Product Positioning
The strategy by which the marketer attempts to carve a unique niche for a product within a
marketplace of competing products is called product positioning. It is employed with the objective
of finding differential advantage for the product. Comparison is made on the basis of those
characteristics or attributes (taste, color, texture, durability) deemed most relevant. The use of
product attributes as a basis is rooted in the mathematical concept of space such as the twodimensional space depicted by an x-y plane. The point (3,2) for example, is positioned by counting
off three units along the x axis (dimension) and two units along the y. If the variables x and y are
specified to represent respectively, power and fuel economy, then an automobile, may similarly be
positioned in that "product space.” Of course, automobiles like all other products, possess more than
just two attributes, but only two may be drawn on a two-dimensional sheet of paper.
One could draw a three-dimensional product space and include another attribute, say, length,
legroom, or some other pertinent attribute. More attributes yield a more thorough positioning
process. Marketing researchers have a procedure called multidimensional scaling for statistically
exploring virtually any number of attributes. This analytic technique makes it possible to
simultaneously compare competing products on the basis of many dimensions.


To translate the idea of product positioning from the realm of tangibles to that of concepts, one
need consider the set of attributes appropriate to ideas and social issues as defined in Chapter 1 --
relative advantage, compatibility, complexity, trialability and observability. In addition to these
universal attributes, specific products may be identified by some unique attributes. Thus the idea of
using motorcycle helmets ranks high on the attribute of trialability, because one is not forced to buy
"all or nothing," as with the adoption of vasectomy. Trialability is a universal attribute; that is,
virtually all concepts can be measured along a trialability dimension. But helmet use advocacy can

also be rated, for example, on a convenience continuum, which is applicable to only some concepts.
A comprehensive program of product positioning takes into account both the universal and the
product specific attributes. But it is not an easy task to operationalize attributes of concepts:
In the marketing context, it is very difficult to define the attributes of brands that give rise to
differences in the worth of those brands. Describing the value-generating attributes of social
alternatives is even more difficult....
While attributes are objective descriptors inherent the design of the product, they may or may
not constitute the precise criteria on which consumers make the purchase decision. Individuals make
subjective perceptions or interpretations about attributes. These are called choice criteria: It is
essential to distinguish between the attributes per se and consumers' perceptions of these attributes,
because consumers differ in their perceptions. It is the perception that affects behavior, not the
attribute itself
It is tempting for a marketer to specify attributes and to construct a "product space" containing
those attributes as dimensions. But that is a producer-oriented view. More meaningful, although
more difficult to conceive, is a preference map the dimensions of which are not attributes but choice
criteria. Ideally, positioning should be based on consumer perceptions.


  Product Differentiation

Product differentiation is the practice of rendering one product different from another. The
difference might be real, for example, in design, color, package, or it could be a difference perceived
by the consumer, as when high quality is attributed to something because a high price was paid for it,
or because it was purchased from a prestigious merchant. A strategy of product differentiation may
enable the marketer to position a new product (or reposition an existing one) as distinctly different
from other products already on the market. This strategy may have two underlying objectives: 1.
To justify a difference in pricing or method of promotion and 2. to cater to unique needs of some
particular market segment.


Clearly, product differentiation strategy follows logically from that of market segmentation. If
segmentation research reveals the existence of sub-markets having unique needs or tastes and if
those markets are large enough so as to be worthwhile to cultivate, then it makes sense to offer a
product to match the unique needs of each group. Writing about knowledge considered as an
innovation, Zaltman (1979) states: An innovation-related guideline is: If discernibly different user
groups exist, consideration should be given to the need for correspondingly differentiated
knowledge. It may be necessary to design different versions of an item of knowledge to maximally
satisfy different user characteristics.

The strategy of product differentiation or what might in this book be called concept
differentiation is implemented by adding a unique twist to the product offering. .For example
proponents of minimum wage laws might think of codicil ensuring some level of productivity to
employers. The school prayer issue might have been presented with a provision permitting
individual prayers. The "Save Chrysler" campaign planners, aware of differences in various
audiences, beamed different messages to labor, to business interests and to government officialdom.
Sometimes a product is differentiated to so large a degree that it assumes an entirely new form -the
subject of the next section.
 

Product Form
A social product is available in various forms just as, for example, an automobile may be had in
the form of a sedan, compact and so forth and health services might be obtained in preventive, or
ambulatory form or by recorded phone call (Tel-Med). Summer school is one form of the class of
products called education. The form in which a product is to be marketed depends upon the nature
of the need to be satisfied by the particular offering. An example is seen in the concept of nutrition.
The form taken by a nutrition program depends on the type of malnutrition it is to relieve. Nutrition
researchers at an eastern medical college have found that certain maladies of the elderly are vitamin
based and have developed a malnourishment preventive package for the aged. Where the problem is
inefficient overconsumption of meat (three to six pounds of grain are needed to yield one pound of
most meats), the idea is to espouse mitigation of such waste. This is the situation in many
postindustrial societies such as the United States. Other types of over-nourishment similarly call for
demarketing. The lifestyle of the sit-down family dinner is giving way in America to rushed
overstuffing:

"And no sooner is the table cleared and dishes washed, then the eating starts again. Someone makes a
sandwich. Older kids go out for a while, come back with friends, fix food and do homework together,
or sit in front of the TV and snack.” A bedtime snack is the rule, not the exception, says Dr. Fine and
even then it doesn't end "People can't sleep, they are restless, they are hungry. They get up and raid
the 'fridge,' the pantry for cereal, eat apples and cheese, raid the leftovers they would not eat at dinner"
Griff and Mead suggest replacing the "Good for you and good tasting concept" of marketing
themes with the idea of "pleasure in moderation," an idea already provided by the alcoholic beverage
industry
In most other parts of the world, of course, the problem is undernourishment. There programs
must assume the form of a scheme to assist the household in operating within the limits of its
nutritional resources in order to maximize for all members the benefits to be obtained from these
resources. The actual formulation of each particular malnourishment prescription in a given locale
will depend on which foods are most readily available, which are most compatible with current tastes
and preferences and to some extent, physiological tolerance to certain foods. For example, milk is an
excellent source of calories for all people but has differing tolerance response across racial types:
About 60% of Ashkenazi Jews have low tolerance for milk, while for Anglo-Saxons that figure is
10%. The U.S. recommended daily allowance (RDA) of calcium for a pregnant or lactating mother
is 1.3 grams, but whether this amount is obtained from milk, leafy vegetables, or citrus fruits will
depend on ethnic factors, among other things. One prominent nutritionist, David Call, attests to the
"complete lack of scientific consensus (on the particular prescription) among nutritionists in many
countries" (in Berg, Scrimshaw and Call 1973, p. 204).
The concept of product form suggests a strategy enabling the consumer to distinguish among
several types of product offerings. The aim is to make a unique type available to suit distinct needs
of each market segment.
  

The Product Life Cycle (PLC)
As with living organisms, most products follow a cycle from their inception, through periods of
growth and to eventual demise. Marketers are interested in knowing just where along the product
life cycle a given offering resides at a given point in time. Each stage could require a specific
marketing mix with different combinations of promotion, pricing (not necessarily dollar pricing -see
Chapter 5) and distribution components. Social products similarly follow stages analogous to the
pattern hypothetically assumed for ordinary products and in fact insights into the life cycle of social
movements are covered in sociological writings. Calling these "stages in the life cycle of a cause,"
Kotler (1971a) presented a scheme reproduced

In the crusading stage, a primary goal is to enlist followers. A large number of supporters is
crucial because early adopters are known to comprise an important word-of-mouth channel.
Furthermore, idea marketers need a large following if only so that later promotion messages can
boast of having many advocates. For example, the idea of carpooling is being touted by mass transit
organizations and various interstate transportation authorities. That idea is likely to become more
popular, as will the use of solar energy, with continued increases in fuel costs. On the other hand,
nudism seems destined to remain within an early stage for a variety of reasons, including societal
reactions to nudism and nudists' feelings about those reactions. Similarly, adoption of the metric
system must overcome deeply rooted habits. The crusade of the idea of nuclear power by utilities is
also meeting with popular resistance. Such ideas remain in the crusading stage for a long time.
  

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