Brand Sponsorship, Product Strategy, and Marketing Mix

Brand Sponsorship

1. Manufacturer and Private Brands

Manufacturers have historically dominated the retail scene. Today, retailers are creating their own private brands to set their own prices and fend off manufacturer competition. To succeed, retailers must invest in research and development (R&D), manage the high costs of stock, and effectively promote their products, which can be difficult to establish.

2. Licensing Brands

Creating a brand from scratch takes years and significant capital. Some companies choose to license names or symbols created by other manufacturers. For a fee, this provides an instant and proven brand identity.

3. Co-Branding

Co-branding occurs when two established brands from different companies create a new product to enter new markets and expand their reach. It is a win-win strategy. However, co-branding has limitations regarding contracts and licensing, and it requires mutual trust to ensure both parties protect the integrity of their respective brands.

Product Strategy

A product is anything that can be offered for attention, acquisition, or consumption to satisfy a need or a want.

Levels of Product and Service

• Core product: The basic benefits or what the buyer is really seeking.
• Actual product: Attributes such as brand, color, and packaging.
• Augmented product: Additional services like instructions, warranties, and support.

Product Classification

Consumer Products

• Shopping products: Computers, tablets, phones.
• Convenience products: Gasoline, bread, water, gas.
• Specialty products: Luxury yachts, sports clubs.
• Unsought products: Items like blood donations or products requiring heavy advertising.

Industrial Products

• Raw materials and process materials.
• Accessory equipment.
• Major equipment and business services.
• Components.

Merchandising

Merchandising is a method used to influence consumer behavior. By utilizing room layout, presentation, and decor, businesses aim to increase sales, capture consumer interest, and enhance the subjective value of goods in the eyes of the customer.

Product Life Cycle

1. Development: Sales are zero; the company focuses on product creation.
2. Introduction: The product is launched into the market.
3. Growth: Market acceptance leads to an increase in sales.
4. Maturity: Sales growth slows; the company focuses on modifications and improvements.
5. Decline: Sales fall as customers stop buying or switch to alternatives.

Promotion Mix

The promotion mix is a specific blend of tools that a company uses to improve the relationship between the company and the customer and to communicate effectively.

Promotion Tools

• Advertising: Non-personal communication paid for by an identified sponsor.
• Sales Promotion.
• Public Relations.
• Personal Selling.
• Direct Marketing.