Ch 11

brand equity

the added value a brand name gives to a product beyond the functional benefits provided

brand licensing

a contractual agreement whereby one company (the licensor) allows its brand name or trademark to be used with products or services offered by another company (the licensee) for a royalty or fee

brand name

any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller’s products or services

brand personality

a set of human characteristics associated with a brand name

brand purpose

the reason why a brand exists, its place in consumers’ lives, the solution it provides, and its role in making the society better off

branding

a marketing decision in which an organization uses a name, phrase, design, symbols, or a combination of these to identify its products and distinguish them from those of competitors

label

an integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients

market modification

strategies by which a company tries to find new customers, increase a product’s use among existing customers, or create new use situations

mixed branding

a branding strategy where a firm markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own marker

multibranding

a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment

multiproduct branding

a branding strategy in which a company uses one name for all its products in a product class

packaging

component of a product that refers to any container in which it is offered for sale and on which label information is conveyed

private branding

branding strategy in which a company manufacturers products but sells them under the brand name of a wholesaler or retailer; also called private labeling or seller (store) branding

product class

refers to the entire product category or industry

product form

pertains to variations of a product within the product class

product life cycle

describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline

product modification

strategies that alter one or more of a product’s characteristics, such as its quality, performance, or appearance, to increase the product’s value to customers and increase sales

trading down

reducing the number of features, quality, or price of a product

trading up

adding value to the product (or line) through additional features or higher-quality materials

product item

a specific product that has a unique brand, size, or price

product mix

consists of all of the product lines offered by an organization

product line

a group of product items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range