chp 9 - products, branding & packaging decisions

core customer value

the basic problem solving benefits that consumers are seeking  

product complexity

• actual product

  • brand-name

  • quality level

  • packaging

  • features/design

• associated services

  • financing

  • product warranty

  • product support

associated services

The non-physical attributes of the product, including product warranties, financing, product support and after-sale services 

types of products

• specialty

• shopping

• convenience

• unsought

consumer products

Products & Services used by people for their personal use  

speciality products

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

ex → canadian goose

shopping products

Products or services—such as apparel, fragrances, and appliances—for which consumers will spend time comparing alternatives. 

ex → perfumes

convenience products

Products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase. 

ex → bread & soup

unsought products/services

Products/services consumers do not search out or do not know about. 

ex → coffins, insurance

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 another  

brands

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

product mix breadth

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

product line depth

The number of products within a product line. 

changing breadth

INCREASE	DECREASE
add new product lines to capture new or evolving markets	Bc delete product lines 4 changing market/firm need

changing depth

INCREASE	DECREASE
add products w/in a line for changing consumer pref/ comp to boost sales	delete product categories to realign resources / Not taken lightly decision

branding

• Company lives or dies based on brand awareness  

• Consumers can't buy products that they don't know exist  

• Even if the overall brand name is familiar it won't help sales of individual products unless consumers know what products are available under that that name 

what makes a brand

• brand name → facilitate purchasing

• URL → establish loyalty

• logos and symbols → protect from competition

• characters → reduce marketing costs

• slogans → are assets

• jingles → impact market value

value of branding

• brands facilitating purchasing

• brands establish loyalty

• brands protect from competition

• brands reduce marketing costs

• brands are assets

• brands impact market value

brands facilitate purchasing

Brands are often easily recognized by consumers and bc they signify a certain quality level and contain familiar attributes, brands help consumers make quick decisions  

Ex → Pepsi is familiar and easy to purchase 

brands establish loyalty

ex → band-aid always perform the same way

brands protect from competition & price competition

strong brands are somewhat protected fr competition & price completion 

Ex → Lacoste, Golf shirts, perceived as higher quality and can command a premium price  

brands reduce marketing costs

Firms well-known brands can spend relatively less on marketing costs than firms w little known brands  

Ex → Lululemon, Stylized "A" logo, very recognizable  

brands are assets

Must be legally protected through trademarks, and copyrights & constitute unique ownership  

Ex → Rolex & Canada Goose, watch market for counterfeits that dilute brand 

brands impact market value

Having well-known brands can have direct impact on the company's bottom line  

Ex. RadioShack -> Seeking a Walkman 

brand overview

• brand equity

• brand awareness

• perceived value

• brand associations

• brand personality

• brand loyalty

manufacturer brands

Brands owned and managed by the manufacturer. 

private label brands

Brands developed and marketed by a retailer and available only from that retailer. 

generic

A product sold without a brand name, typically in commodities markets. 

brand ownership strategies

• manufacturer

• private label/store brand

• generic

types of brand names

• individual brands

• family brands

family brands

Firm can use its corporate name to brand similar product lines and products  

Ex. Kellogs → Kellogg Corn Flakes, Kellogg Froot Loops, Kellogg Rice Krispies 

 

individual brands

The use of individual brand names for each of a firm’s products. 

how to choose a brand name

1. The brand name should be descriptive & suggestive of benefits and qualities associated w the product  

2. The brand name should be easy to pronounce, recognize, and remember  

   Ex. Tide, Crest, Kodak  

3. The company should be able to register the brand name as a trademark and legally protect it  

4. For companies looking to global markets, the brand name should be easy to translate into other languages  

brand extension

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

advantages of using same name for product

1. Bc brand name is already well-established, less money on developing consumer brand awareness  

2. Brand is known for high quality, will carry to new product 

3. When brand extensions are used for complementary products, synergy exists b/w two products that can increase overall sales   

brand dilution

Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold. 

cobranding

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

brand licensing

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

branding awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm’s communications to consumers. 

perceived value

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

brand associations

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

brand personality

refers to a set of human characteristics associated with a brand, which has symbolic or self-expressive meanings for consumers

brand loyalty

occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buying from multiple suppliers within the same category

purpose of packaging

• serves to protect products

• can aid in sustainability

• help suppliers save costs

labelling

Labels on products and packages provide information the consumer needs for his or her purchase decision and consumption of the product