Product and Brand Strategy - Chapter 13
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Questions and Answers

Which of the following is NOT a source for product development opportunities?

  • Marketing
  • Research and Development (R&D)
  • Competitor analysis
  • Sales performance (correct)

    • What type of product development opportunity is classified as a completely new offering?

  • Fundamentally new products (correct)
  • New product platforms
  • Derivatives of existing platforms
  • Incremental improvements to existing products

    • Which strategy involves adapting product lines to cover gaps in the market to prevent new competitors from entering?

  • Reactive strategy (correct)
  • Proactive strategy
  • Long-term strategy
  • Dynamic strategy

    • Which of the following factors is NOT considered part of the external competitive environment?

    <p>Consumer buying behavior</p> Signup and view all the answers

    According to Levitt, which level of product differentiation includes the basic features necessary to compete?

    <p>Core product</p> Signup and view all the answers

    What does the 'augmented product' refer to in Levitt's differentiation framework?

    <p>Additional services or features beyond expectations</p> Signup and view all the answers

    Which of the following types of products implies an extension of an existing product platform?

    <p>Derivatives of existing platforms</p> Signup and view all the answers

    What matrix is used to plot the positions of products based on market share and growth?

    <p>Share-Growth Matrix</p> Signup and view all the answers

    What should companies evaluate to assess their core capabilities?

    <p>The network of relationships within or around the firm</p> Signup and view all the answers

    What is crucial for effective network leadership?

    <p>Choosing appropriate partners and keeping them focused</p> Signup and view all the answers

    Which of the following is NOT a benefit of using product platforms?

    <p>Increased production downtime</p> Signup and view all the answers

    What factors can influence a product platform?

    <p>Changes in manufacturing technology, customer need, and competitors’ efforts</p> Signup and view all the answers

    What is one of the key questions in product planning?

    <p>What product development projects will be undertaken?</p> Signup and view all the answers

    Why is coordination necessary among networks in modern competition?

    <p>Because networks, rather than individual firms, are competing</p> Signup and view all the answers

    How does using the product platform approach benefit R&D processes?

    <p>By reducing R&amp;D lead times</p> Signup and view all the answers

    What is meant by a 'product family' in the context of product platforms?

    <p>A set of products linked to a product development strategy</p> Signup and view all the answers

    What does product positioning refer to?

    <p>The perceptions customers have about the product’s position in the market.</p> Signup and view all the answers

    What is indicated by the research on consumer brand recognition?

    <p>Consumers often cannot recognize their usual brands from essential attributes.</p> Signup and view all the answers

    Why do consumers still pay a premium for certain brands according to the findings?

    <p>They trust the brand's reputation more than alternatives.</p> Signup and view all the answers

    Which of the following is NOT a strategy for branding?

    <p>Creating standardized branding across all products.</p> Signup and view all the answers

    What is included in the potential product?

    <p>All features and services predicted to be beneficial to customers.</p> Signup and view all the answers

    How do customers make judgments between products in the market?

    <p>By considering multiple factors.</p> Signup and view all the answers

    Which of the following statements about brand strategy is true?

    <p>Products can be branded differently depending on market needs.</p> Signup and view all the answers

    Which factor influences consumer perceptions of a product's position in the market?

    <p>Alternative products and their attributes.</p> Signup and view all the answers

    Study Notes

    Chapter 13: Product and Brand Strategy

    • Innovation Management and New Product Development, 6th edition, by Paul Trott
    • This chapter focuses on product and brand strategy within new product development.

    Learning Objectives

    • Understand how product strategies impact a firm's performance.
    • Recognize the various strategic purposes new products can serve.
    • Explore the concept of platforms in new product development.
    • Evaluate the role of brand strategy in product development.
    • Analyze how differentiation and positioning impact product success.
    • Understand the importance of marketing research in effective new product development.

    Capabilities, Networks, and Platforms

    • Companies must evaluate their core capabilities by examining the network of relationships within and around the firm.
    • These relationships include customers, suppliers, distributors, and other related firms.
    • Nowadays, networks are competing against each other, so internal coordination across the network is crucial.
    • Choosing appropriate partners and ensuring their focus are crucial attributes for network leadership.

    Product Platforms

    • A product platform refers to a product family that is linked to a product development strategy.

    • Product platforms may change due to factors like manufacturing technology changes, customer needs, and competitor actions.

    • Companies use platform concepts to differentiate the visible components while sharing production processes across models.

    • The benefits of using product platforms include reduced production costs, shared components, shorter R&D times, reduced systemic complexity, better learning across projects, and enhanced product update capabilities.

    Product Planning

    • Key considerations in product planning include:
      • Identifying potential product development projects.
      • Determining the mix of projects (new products, improvements, etc.).
      • Establishing the timing and sequence of projects.
    • Product planning considers various sources, including marketing, R&D, customer feedback, and competitor analysis.
    • Product development opportunities categorized as: new platforms, incremental improvements to existing products, fundamentally new/discontinuous products, and derivatives of existing platforms.

    Product Strategy (Competitive Strategy)

    • Competitive pressures shape short-term and long-term new product planning.
    • Reactive strategies can involve filling out product lines to counter competitors. Companies avoid leaving segments open to competitor entry.

    Product Portfolios

    • Product portfolios are often based on the share-growth matrix (Boston Box), plotting products based on market share and market growth.

    The Competitive Environment

    • The external environment impacts product planning.
      • Technology changes.
      • Industry competitive structures change.
      • New regulations emerge.
      • Customer needs evolve.

    Differentiation and Positioning

    • Levitt (1986) details four levels of product differentiation:
      • Core product: essential features needed to compete. (e.g., car needs wheels)
      • Expected product: what customers expect (e.g., comfortable car interior)
      • Augmented product: features, services, or benefits exceeding expectations.
      • Potential product: predicted future benefits for customers.
    • Product positioning reflects customer perceptions of a product relative to competitors. Understanding how customers differentiate between different products is important.

    Product Performance Criteria

    • Criteria for evaluating product performance include a list of attributes and measures.

    Managing Brands

    • Research indicates consumers often struggle to distinguish brands based on fundamental attributes (e.g., tasting differences between brands).

    • Despite this, customers often pay a premium for established brands.

    • Brand strategies help explain brand loyalty and premium pricing.

    • Possible strategies include no brand name (commodity), unique brand name, licensing to another party, or company branding of components.

    • Historical brand introductions (e.g., Twining, Coca-Cola).

    • Website examples provide further information.

    Brand Extensions

    • Brand extensions involve applying established brand names to new products.

    • These extensions can be in the same product field or related/unrelated fields.

    Withdrawing Products

    • Factors that may lead to product withdrawal:
      • Poor sales performance.
      • Future trends.
      • Cost-benefit analysis of continuing vs. withdrawing.

    Branding System (Figure 13.3):

    • Visual representation of the interplay between brand strategy, branding systems, and buyer behaviors.

    Additional Resources

    • Specific website links for further research and understanding are provided.

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    Related Documents

    Innovation Management and New Product Development 6th Edition Chapter 13 PDF

    Description

    This quiz covers key concepts from Chapter 13 of 'Innovation Management and New Product Development' by Paul Trott. It focuses on how product strategies and brand management influence new product development and overall firm performance. Explore the roles of differentiation, positioning, and marketing research in crafting effective product strategies.

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