MGCR 352 - Chapter 9 Product, Branding, Packaging Decisions

why new products/services succeed or fail

• incomplete market/product definitions

• poor execution

• poor product quality

• bad timing

product mix

complete set of all products offered by a firm

product category

assortment of items that customer sees as reasonable substitutes for one another

brands

names, terms, designs, symbols → identify seller’s good/service as distinct from competitors

breadth

number of product lines

depth

number of products within given product line

change product mix and breadth

increased breadth = more product lines

decreased breadth = less product lines

increased product mix = more products offered

decreased product mix = less products offered

what does branding involve?

managing positive brand experience for increasing consumer satisfaction

brand personality

human characteristics associated with brand name

brand equity

commercial value of brand

what is the value of branding

• facilitate purchasing

• establish loyalty

• protect from competition

• reduce marketing costs

• are assets

• market value

brand awareness

how many consumers in market are familiar with the brand and what it stands for

what are the types of branding strategies

• multiproduct branding strategy

• multibranding strategy

• private branding strategy

• mixed branding strategy

• cobranding

multiproduct branding

one name for all firms products family or corporate branding

co-branding

combining a pair or more recognized brands on a product

multibranding

giving each product distinct name

private branding

manufactured by supplier and sold under own sole brand

mixed branding

same kind of product, different brand, same company

what are the benefits of packaging

• attracts consumers attention

• enables products to stand out

• offers promotional tool

what is brand extension and what how does it help?

• perception of high quality carries over

• lower marketing costs

• boost sales of core brand

communication

information communicated on packages is one benefit

functional

packages play functional role

perceptual

packages also help create impressions in consumers mind

what should labelling provide?

• information consumer needs for purchase decision and consumption

what is brand dilution and what are negative consequences?

• use of same brand w new products

• ensure brands can be distanced if needed

• core brand may not fit with extension

• old and new product not similar

cobranding

practice of marketing two or more brands together on same package/promotion

brand licesning

contractual agreement between firms whereby one firm allows use of brand