BUS343 Lecture 9 Chapter 8 & 9: Products and Branding

core customer value

basic problem-solving benefits consumers are seeking

associated services (augmented product)

non-physical attributes of the product

• includes warranties, financing, product support, and after sale services

consumer products

products and services used by the people for their personal use

speciality goods/services

products or services which customers show a strong preference and for which they will expend considerable effort to search

ie. designer apparel like canada goose

shopping goods/services

products or services which consumers will spend time comparing alternatives

• ie. furniture, fragrances, applicances

convenience goods/services

products or services that consumers are not willing to spend any effort to evaluate prior to the purchase to

• bought frequently and quickly

• ie. gas, snacks, grocceries

unsought products/services

products or services consumers do not normally think of buying or do not know about

• ie. funeral services, accident insurance

product mix

complete set of products offered by a firm

product lines

groups of associated products

• either considered similar or used together

• ie. iphone, airpods, ipad, mac

• ie. shampoo, conditioner, body wash

product category

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

• ie. different apple watch versions

brands

names, terms, designs, symbols, or any other features that identify on sellers goods as distinct from others

product mix breadth

number of product lines, or variety, offered by the firm

ie. various apple products like iphone, ipad, airpods, etc.

product line depth

number of products within a product line

ie. different kids of iphone versions

stock keeping units

individual items within each product category; smallest unit available for inventory control

branding

• the way a firm differentiates its product offerings from competitors

• builds awareness, attracts new customers and extends loyalty

brand identity elements

• brand name

• URLS

• logos and symbols

• characters

• slogans

• jingles

brand equity

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

• brand awareness

• perceived value

• brand associations

• brand loyalty

brand awareness

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

• created through repeated exposure of brand elements by the firms communication to consumers (ie. name, logo, slogans)

perceived value

relationship between a product or services benefits and its costs

brand association

mental links consumers make between a brand and its key product attributes

ie. logo, slogan, famous personality

brand loyalty

occurs when a consumer buys the same brands product or service repeatedly overtime rather than buying from multiple suppliers in the same category

manufactuer brands

brands owned and managed by the manufacturer

ie. KitchenAid, Nike

private-label brands (store brands)

brands developed and marketed by a retailer and available only from that retailer

ie. kirkland from costco, greatvalue from walmart

generic

products sold without a brand name, typically in commodities markets

ie. household stapes, medications or painkillers

family brand

using a combination of the company brand name and individual brand name to distinguish a firms products

ie. kellogs rice krispies, kraft mac n cheese

individual brand

use of an individual brand names for each of a firms products

ie. febreeze, jell-o

cobranding

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

• ie. oreo mcflurry

brand extension

use of the same brand name for new products being introduced to the same or new markets

• ie. dove soap, shampoo, conditioner, etc.

brand licensing

• contractural arrangement between firms

• one firms allows another to use its brand name, logo, and symbols for a negotiated fee

• ie. car toys using hondas name/logo, using coca-cola logo on a shirt

what role does packaging play for brands?

communicates brands identity, values, and affects consumers emotions

what role does packaging play for manufacturers?

• product storage

• protection

• simplified transportation

what role does packaging play for consumers?

• informs consumers

• functionality

• practical, easy to use

• adds convenience

• improves overall experience with product

what role does packaging play for retailers?

promotes product to consumers on the floor of the store and at the ‘point of purchase’