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