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oduct assortment) ? The set of all product lines and items that a particular seller makes available to buyers ? Brand mix (brand assortment) ? The set of all brand lines that a particular seller makes available to buyers 6 Breadth of a Branding Strategy ? Breadth of product mix ? Aggregate market factors ? Category factors ? Environmental factors ? Depth of product mix ? Examining the percentage of sales and profits contributed by each item in the product line ? Deciding to increase the length of the product line by adding new variants or items typically expands market coverage and therefore market share but also increases costs 7 Depth of a Branding Strategy ? The number and nature of different brands marketed in the product class sold by a firm ? Referred to as brand portfolio ? The reason is to pursue different market segments, different channels of distribution, or different geographic boundaries ? Maximize market coverage and minimize brand overlap 8 Ford Brand Portfolio 9 Designing a Brand Portfolio ? Basic principles: ? Maximize market coverage so that no potential customers are being ignored ? Minimize brand overlap so that brands aren’t peting among themselves to gain the same customer’s approval 10 Brand Roles in the Portfolio ? Flankers ? Cash cows ? Lowend entrylevel ? Highend prestige brands 11 Brand Hierarchy ? A means of summarizing the branding strategy by displaying the number and nature of mon and distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements ? A useful means of graphically portraying a firm’s branding strategy 12 Brand Hierarchy Tree: Toyota Toyota Corporation Toyota (Trucks) Toyota (SUV/vans) Lexus Toyota Financial Services Toyota (Cars) Corolla Prius Avalon Celi