Lecture M: Marketing (4/e) - Chapter 11: Product, branding, and packaging decisions

Chapter 11: Product, branding, and packaging decisions. When you finish this chapter, you should: Describe the components of a product, identify the types of consumer products, explain the difference between a product mix’s breadth and a product line’s depth, identify the advantages that brands provide firms and consumers,...

product, branding, and 

packaging decisions

eleven

LO 11-1 Describe the components of a product.

LO 11-2 Identify the types of consumer products.

LO 11-3 Explain the difference between a product mix’s

breadth and a product line’s depth.

LO 11-4 Identify the advantages that brands provide firms

and consumers.

LO 11-5 Explain the various components of brand equity.

LO 11-6 Determine the various types of branding strategies

used by firms.

LO 11-7 Distinguish between brand extension and line

extension.

LO 11-8 Indicate the advantages of a product’s packaging

and labeling strategy.

Michael Blann/Digital Vision/Getty Images

Consumers will spend a fair amount of time comparing

alternatives

Shoes Appliances Cellphones

Consumers either do not normally think

of buying or do not know about.

Fire extinguishers Dictionary Medical supplies

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products?

Product Mix and  Product Line Decisions

Source: Kellogg’s 2010 annual report, http://annualreport2010.kelloggcompany.com/innovation.htm.

Product Lines

Ready-to-Eat Cereal

Toaster Pastries and Wholesome Portable Breakfast Snacks Cookies and Crackers Natural, Organic, and Frozen

Kellogg’s Corn Flakes

Cheez-It Keebler Townhouse Club

Famous Amos Fudge Shoppe Murray

Eggo Morningstar Farms Kashi

Product Mix and  Product Line Decisions

within a product line

Courtesy Pepsi Cola Company

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line breadth versus depth?

A brand can use: Name, logo symbols, characters,

slogans, jingles and even distinctive packages.

Branding

Oscar Mayer Wiener 1965 Commercial (One of America's Best Ads)

Character s

Facilitate Purchasing Establish Loyalty Protect from Competition Reduce Marketing Costs

Are Assets Impact Market Value

Apple wins in the

Apple vs Samsung patent lawsuit

retailers like Target,

T.J Maxx, and H&M

create value for

customers?

Photo by Peter Kramer/Getty Images

©McGraw-Hill Companies Inc/Gary He, photographer

less sensitive to price

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customer and the firm?

Brand Ownership

State Farm Website

©M Hruby

Brand Dilution

Zite: Personalized Magazine

Co­branding

©M Hruby

Photo by D larke Evans/NBAE via Getty Images.

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manufacturer and private-label brands?

extension and line extension?

©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