bmgt 205 chapter_11
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BMGT 205: Principles of Marketing
Chapter 11: Product, Branding, and Packaging Decisions
Product, Branding, and Packaging Decisions
P&G - Olympic Brand Building
http://youtu.be/57e4t-fhXDs
Types of Products
Specialty Shopping
ConvenienceUnsought
Product Mix and Product Line Decisions
• Product mix or product assortment is the complete set of all products offered by a firm.
• 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.
• SKU - Stock Keeping Unit
Breadth
••Number of product lines
Depth
••Number of categories within a product line
What Makes a Brand?
BrandingBrand name
URLs
Logos and symbols Characters
Slogans
Jingles/Sounds
Value of Branding for the Customer
Facilitate Purchasing
Establish Loyalty
Protect from Competition
Reduce Marketing Costs
Are Assets
Impact Market Value
http://www.youtube.com/watch?v=MX8O7z4NtoU
Brand Equity: Brand Awareness
http://www.interbrand.com/en/best-global-brands/2013/Best-Global-Brands-2013-Brand-View.aspx
Brand Equity: Perceived Value
• Perceived value of a brand is the relationship between a product or service’s benefits and its cost.
• How do discount retailers like Target, T.J. Maxx, and H&M create value for customers?
Brand Equity: Brand Associations
• 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.
http://youtu.be/pCv-bwCqqXE
Brand Equity: Brand Loyalty
• 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.
• Consumers are often less sensitive to price
• Marketing costs are much lower
• Firm insulated from the competition
CHECK YOURSELF
1. How do brands create value for the customer and the firm? 2. What are the components of brand equity?
Brand Ownership
Manufacturer brands or national brands
Private-label brands or Store Brands • Premium • Generic • Copycat • Exclusive co-branded
Traders Joes: 100% Private Label
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)
Brand Extension
• A brand extension refers to the use of the same brand name for new products being introduced to the same or new markets.
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?
Co-branding
• Co-branding is the practice of marketing two or more brands together, on the same package or promotion.
Brand Licensing
• 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.
Brand Repositioning
• 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.
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?
Product Labeling