Ch. 9 Product, Branding, and Packaging Decisions

core customer value

the basic problem-solving benefits that consumers are seeking

associated services

the non-physical attributes of the product

complexity of products and types of products

consumer products

products and services used by people for their personal use

specialty goods and services

towards which customers show a strong preference and for which they will expand considerable effort to search for the best supplier

shopping goods and services

for which consumer will spend time comparing alternatives

convenience goods and services

for which the consumer is not willing to spend any effort to evaluate prior to purchase

unsought goods and services

consumers don’t search out or don’t know about

product mix

the complete set of all products offered by a firm

product lines

groups of associated items, such as those that consumers use together or think of as part of a group of similar products

product category

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

brands

names, terms, designs, symbols, or any other features that identify that one seller’s good or service as distinct from those of other sellers

breadth

number of products lines. increased by adding more product lines

depth

number of products within a product line

branding

can use:

• names

• logos

• symbols

• characters

• slogans

• jingles

• distinctive packages

value of branding

• establish loyalty

• protect from competition

• reduce marketing costs

• brands are assets

• impact market value

• facilitate purchasing

brand equity

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

brand awareness

measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about that brand

perceived value

the relationship between a product or service’s benefits and its cost

brand association

the mental links that consumers make between a brand and its key product attributes: can involve a logo, slogan, or famous personality

brand loyalty

occurs when a consumer buys the same product or service repeatedly over time

brand ownership strategies

manufacturer brands: brands owned and managed by manufacturers

generic: product sold without a brand name, typically in commodities markets

private label brands: brands developed and marketed by a retailer and available only from that retailer

family brands

the use of a combination of the company brand name and individual brand name to distinguish a firm’s products

individual brands

the use of individual brand names for each of the firm’s products

brand extension

the use of the same brand name for new products

brand dillution

occurs when a brand extension adversely affects the consumer perceptions about the attributes the core brand is believed to hild

cobranding

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

brand licensing

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbol, or characters in exchange for a negotiated fee

packaging

• important brand element with physical benefits

• packaging attracts the consumer’s attention, enables products to stand out from their competitors, and offers a promotional tool

labelling

provide info the consumer needs for their purchase decision and consumption of the product