Product & Branding — Quizlet

Product Line: What is it?

A group of closely related products sold by a company. Example: Colgate's different toothpaste varieties.

Line Extension: What is it?

Introducing a new product in the SAME category using the SAME brand name. Example: Coca-Cola introducing Cherry Coke. TRIGGER: Same brand + same category → Line Extension.

Brand Extension: What is it?

Using an EXISTING brand name to introduce a product in a DIFFERENT category. Example: Dove expanding from soap into deodorant. TRIGGER: Same brand + different category → Brand Extension.

Product Modification: What is it?

Changing an existing product's features, quality, design, or performance. Example: Improving a shampoo's formula.

Individual Product Decisions: What are the five?

Product attributes, packaging, labeling, support services, and branding.

Brand: What is a brand?

A name, symbol, design, or combination that identifies a seller's products and differentiates them from competitors.

Brand Functions: What does a brand do?

identifies products, signals quality, reassures customers, and encourages loyalty.

Building a Brand: What are the two steps?

1. Create a recognizable label or identity. 2. Give that label meaning through customer experiences and associations.

Manufacturer's Brand: What is it?

A brand owned and marketed by the product's manufacturer. Example: Nike.

Private Label Brand: What is it?

A brand owned by a retailer rather than the manufacturer. Example: Publix-branded products.

Captive Brand: What is it?

A brand sold exclusively through one retailer. TRIGGER: Only one retailer carries it → Captive Brand.

Brand Equity: What is it?

The VALUE a brand adds to a company through customer perceptions, loyalty, recognition, and financial benefits. TRIGGER: Value of the brand → Brand Equity.

Brand Equity: What are its four key intangible components?

Brand awareness, perceived quality, brand associations, and brand loyalty.

Brand Awareness: What is it?

How easily customers recognize or remember a brand. TRIGGER: Customers recognize the brand → Awareness.

Perceived Quality: What is it?

How customers judge a brand's quality, regardless of its actual quality. TRIGGER: Customers BELIEVE one brand is better → Perceived Quality.

Brand Associations: What are they?

Ideas, feelings, or images customers connect with a brand. Example: Volvo → Safety.

Brand Loyalty: What is it?

Customers repeatedly choosing the same brand over competitors. TRIGGER: Repeat purchases due to brand preference → Loyalty.

Brand Identity vs. Positioning: What's the difference?

Identity = What the brand stands for over time. Positioning = How the brand is presented and perceived relative to competitors.

Product Life Cycle: What are the five stages?

Product Development → Introduction → Growth → Maturity → Decline.

Product Life Cycle: Introduction Stage

Product enters the market. Sales are initially low, promotion costs are high, and profits may be negative.

Product Life Cycle: Growth Stage

Sales increase rapidly, profits often rise, and competitors enter. TRIGGER: Rapidly increasing sales → Growth.

Product Life Cycle: Maturity Stage

Sales growth slows or levels off, competition is intense, and companies defend market share. TRIGGER: Sales plateau → Maturity.

Product Life Cycle: Decline Stage

Sales decrease as demand shifts or products become outdated. TRIGGER: Falling sales → Decline.

Diffusion of Innovation: What is the adoption order?

Innovators → Early Adopters → Early Majority → Late Majority → Laggards. Innovators → Early Adopters → Early Majority → Late Majority → Laggards.

Crossing the Chasm: What does it mean?

The challenge of moving a new technology product from early adopters to the mainstream early majority. TRIGGER: Difficulty reaching mainstream customers → Crossing the Chasm.