Basic chap011

11-1© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

C H A P T E R

Product, Branding,

and Packaging Decisions

11

McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.

11-2

L E A R N I N G O B J E C T I V E S

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Describe the components of a product.

Identify the types of consumer products.

Explain the difference between a product mix’s breath and a product line’s depth,

Identify the advantages that brands provide firms and consumers.

Explain the various components of brand equity.

Determine the various types of branding strategies used by firms.

Distinguish between brand extension and line extension.

Indicate the advantages of a product’s packaging and labeling strategy.

Product, Branding, and Packaging Decisions

LO1

LO2

LO3

LO4

LO5

LO6

LO7

LO8


Types of Products

Specialty Shopping

Convenience Unsought


CHECK YOURSELF

1. Explain the three components of a product.

2. What are the four types of consumer products?


Product Mix and Product Line Decisions

Breadth

• Number of product lines

Depth

• Number of categories within a product line

Courtesy Pepsi Cola Company


CHECK YOURSELF

1. What is the difference between product line breadth versus depth?

2. Why change product line breadth?

3. Why change product line depth?


What Makes a Brand?

BrandingBrand name

URLs

www.eBay.com

Logos and symbols

Characters

Slogans

Jingles/Sounds

“Law & Order”

McG

raw

-Hill

C

ompa

nies

, In

c.

©M. Hruby.

http://www.ebay.com/

http://www.youtube.com/watch?v=-8lDYrvTILc


Value of Branding for the Customer

Facilitate Purchasing

Establish Loyalty

Protect from Competition

Reduce Marketing Costs

Are Assets

Impact Market Value


Brand Equity: Brand Awareness

Source: http://www.interbrand.com/best_global_brands.aspx

http://www.interbrand.com/best_global_brands.aspx


Brand Equity: Perceived Value

How do discount retailers like Target, T.J. Maxx, and H&M create value for customers?

Photo by Peter Kramer/Getty Images


Brand Equity: Brand Associations

©McGraw-Hill Companies Inc/Gary He, photographer


Brand Equity: Brand Loyalty

Consumers are often less sensitive to price

Marketing costs are much lower

Firm insulated from the competition

Copyright State Farm Mutual Automobile Insurance Company 2005 Used by permission


1. How do brands create value for the customer and the firm?

2. What are the components of brand equity?

CHECK YOURSELF


Brand Ownership

Manufacturer brands or national brands

Private-label brands or Store Brands• Premium• Generic• Copycat• Exclusive co-branded


Naming Brands and Product Lines

Corporate or family brand The Gap

Corporate and product line brands Kellogg’s Corn Flakes

Individual lines Mr. Clean (Proctor & Gamble)

©M. Hruby.


Brand Extension

State Farm Website

©M Hruby

http://www.statefarm.com/


Brand Dilution

Evaluate the fit betweenthe product classof the core brand

and the extension.

Evaluate consumer perceptions of the

attributes of the core brand and seek out extensions

with similar attributes.

Refrain from extending the brand name to too many

products.

Is the brand extension distanced

enough from the core brand?


Zite: Personalized Magazine

Co-branding

©M Hruby

http://online.wsj.com/video/zite-teams-up-with-bergdorf-goodman/FC002FF4-BE0F-4FDF-BED1-F51BEE51DD7D.html


Brand Licensing

Photo by D. larke Evans/NBAE via Getty Images.


Brand Repositioning

How is this repositioning?

Courtesy The Procter & Gamble Company


CHECK YOURSELF

1. What are the differences among manufacturer and private-label brands?

2. What is co-branding?

3. What is the difference between brand extension and line extension?

4. What is brand repositioning?


Packaging

What other packaging do you as a consumer find useful?

©M. Hruby.


Product Labeling

©The McGraw-Hill Companies, Inc/Elite Images

C Sherburne/PhotoLink/Getty Images

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A brand association reflects the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality.

Glossary

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Brand dilution occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

Glossary

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Brand equity is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

Glossary

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A brand extension refers to the use of the same brand name for new products being introduced to the same or new markets.

Glossary

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Brand licensing is a contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.

Glossary

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Brand loyalty occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buy from multiple suppliers within the same category.

Glossary

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Brand repositioning or rebranding refers to a strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences.

Glossary

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Co-branding is the practice of marketing two or more brands together, on the same package or promotion.

Glossary

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Perceived value of a brand is the relationship between a product or service’s benefits and its cost.

Glossary

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Product assortment or product mix is the complete set of all products offered by a firm.

Glossary

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Product lines are groups of associated items, such as items that consumers use together or think of as part of a group of similar products.

Glossary

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Product mix or product assortment is the complete set of all products offered by a firm.

Glossary

Basic chap011

Marketing

Transcript of Basic chap011