MKtg quiz 12

Branded vs. Generic Brands

Generics were popular in the 70s and 80s for their low price but have since been replaced by store (private label) brands.

Advantages of Branding

Ability to charge a premium price and control aspects of product marketing.

Manufacturers Brand

A brand owned by the producer, examples include Apple and Nike.

Store Brand

Also known as private label brands, examples include Trader Joe’s and Kirkland.

Economies of Scale

Cost advantages gained by producing more units, benefiting store/private label brands.

Individual Branding

A branding strategy where each product has its own brand name, like Proctor and Gamble's various brands.

Blanket Branding

Also known as umbrella branding, it involves using a single brand name for multiple products (e.g., Virgin Group).

Line Extension

Extending the current product line with a modified product under the existing brand, like Coke and Coke Zero.

Brand Extension

Introducing a new product category under an existing brand, e.g., Dove soap branching into Dove deodorant.

Multiple Branding

Selling multiple brands within one product category, allowing targeting of diverse market segments.

Selecting a Good Brand Name

A good brand name should be easy, distinctive, and capable of global registration.

Product Life Cycle (PLC)

Stages a product goes through: development, introduction, growth, maturity, and decline.

Introduction Stage

The product is launched with low sales and high investment costs, often resulting in negative profits.

Growth Stage

Sales grow quickly, competition enters, new features are added, and profits begin to increase.

Maturity Stage

Sales stabilize, market saturation occurs, and companies may offer discounts to maintain customers.

Decline Stage

Sales and profits decline, leading to reduced support and the possibility of maintaining, harvesting, or divesting the product.