Mkt 190 Exam 3 (Branding/Packaging)

Brand

A name, term, design, symbol, or other feature that identifies one seller’s product as distinct from those of other sellers

Brand name

The part of a brand that can be spoken, including letters, words, and numbers

Brand mark

The part of a brand that is not made up of words, such as a symbol or design

Trademark

A legal designation of exclusive use of a brand

Trade name

The full legal name of an organization

Values of branding to buyers

• Identifies specific products

• Reduces purchase time

• Provides a form of self-expression

• Helps evaluate quality

Values of branding to sellers

• Identifies the firm’s products

• Makes repeat purchasing easier

• Assists in new product introduction

• Assists in promotional efforts

• Fosters brand loyalty

Cultural branding

A term that been used to explain how a brand conveys a powerful myth that consumers find useful in cementing their identifies

Brand loyalty

A customer’s favorable attitude toward a specific brand

Degrees of brand loyalty

• Brand Recognition

• Brand Preference

• Brand Insistence

Brand recognition

Buyer is aware that the brand exists and considers it as an alternative if the preferred brand unavailable

Brand preference

Buyer prefers the product over competitive offerings and will purchase if available

Brand insistence

Product is strongly preferred; buyer will accept no substitute

Brand equity

The marketing and financial value associated with a brand’s strength in a market

Elements of brand equity

• Brand-name awareness

• Brand loyalty

• Perceived brand quality

• Brand associations

Types of brands

• Manufacturer brands

• Private distributor brands

• Generics

Manufacturer brands

Initiated by producers to ensure that producers are identified with their products at the point of purchase

Private distributor brands

Initiated and owned by a reseller; manufacturers are not identified

Generics

Indicate only the product category and do not include the company name or other identifying terms; usually sold at lower prices

Selecting a brand name for a product

• Be easy for customers to say, spell, and recall

• Indicate the product’s major benefits and product’s use

• Be distinctive

• Be designed so that it can be used and recognized in all types of media

Brand names for services

• Usually the same as the company name

• Must be flexible enough to encompass a variety of services

• Symbols are often used with a brand name to make the brand distinctive

Protecting a brand

• Some brands are more easily infringed upon because of their designs

• A company must make sure that its brand does not infringe on any existing brands

• Generic names are not protected

What types of products are most commonly counterfeited?

Mass market products or products with high profitability (high fashion and electronics)

Branding strategies

• Individual branding

• Family branding

• Brand extension

Individual branding

Each product is given a different name product category

Family branding

All of the firm’s products are branded with the same name or part of the name

Brand extension

An organization uses one of its existing brands to brand a new product in a different product category

Co-branding

Using two or more brands on one product

Brand licensing

An agreement in which a company permits another organization to use its brand on other products for a licensing fee

Packaging

The development of a container and a graphic design for a product

Functions of packaging

• Protect the product and maintain its functional form

• Provide customer convenience

• Promote the product’s features and uses

• Communicate quality through symbols

Packaging considerations

• Cost

• Tamper resistance

• FDA packaging regulations

• Consistency with other package designs

• Promotion role

• Meet reseller needs

• Environmentally responsible

Ways to use packaging strategically

• Altering the package

• Secondary-use packaging

• Category-consistent packaging

• Innovate packaging

• Multiple packaging

• Handling-improved packaging

Altering the package

Update style, highlight new product features, & new packaging materials

Secondary-use packaging

Reused for purposes other than its initial function & can add to the perception of value

Category-consistent packaging

Product is packaged in line with a particular category & traditional designs or colors are used

Innovate packaging

Unique features are used to make a product distinctive & uniquely shaped packages can attract attention

Multiple packaging

May increase demand because it increases amount of product available at point of consumption & may take products easier to handle and store

Handling-improved packaging

Changing the outer carton, special bundling, shrink wrap, easier in the distribution channel, & may help the product to proceed more easily through automated warehousing systems

Criticisms of packaging

• Functional issues

• Packaging costs

• Safety issues

• Deceptive packaging

Labeling

Used for identification, promotional, informational, and legal purposes