Chapter 9: Product, Branding, and Packaging Decisions

Component of a Product

• Actual Product: The tangible aspects of a product, such as brand name, quality level, packaging, and features/design.
• Core Customer Value: The essential benefit that consumers receive from the product.
• Associated Services: Additional services like financing, product warranty, and product support that enhance the product's value.

Types of Consumer Products

• Specialty Products: Items that consumers specifically seek and are willing to make considerable effort to purchase.
• Shopping Products: Products that consumers compare on criteria such as quality, price, and style before making a purchase.
• Convenience Products: Items that are frequently purchased with minimal effort, requiring little comparison.
• Unsought Products: Products that consumers do not actively seek, often including insurance or funeral services.

Product Mix and Product Line

• Product Mix: The complete set of all products offered by a firm.
• Product Line: A group of associated items that consumers use together or see as similar.
• Product Category: A subset of a product line that consumers view as reasonable substitutes.

Product Mix's Breadth and Product Line's Depth

• Breadth: Refers to the number of product lines offered by a company.
• Depth: The number of products within a specific product line.

Brand Value and Branding Strategies

• Importance of Branding:
  • Brands are assets that can impact market value and reduce marketing costs.
  • They help facilitate purchasing and establish brand loyalty.
• Brand Equity: The differential effect that brand knowledge has on consumer response to brand marketing.
  • Brand Awareness: Familiarity that consumers have with the brand and its characteristics.
  • Perceived Value: Benefits that consumers associate with a brand compared to competitors.
• Brand Association: Mental links that customers make between a brand and its attributes, like logos or slogans.

Branding Elements

• Brand Name: The spoken component of branding.
• Logos & Symbols: Visual elements representing the brand.
• Characters: Brand symbols, whether human or animated.
• Slogans & Jingles: Short phrases or tunes used in marketing to enhance brand recognition.

Brand Strategies and Extensions

• Extending Brands: Using an established brand name to launch new products.
  • Benefits: Can lower marketing costs and carry quality perception.
  • Consequences: Poor fit between core brand and extension; brand dilution can occur with too many extensions or unsuccessful ones.

Brand Licensing and Cobranding

• Cobranding: Occurs when two brands collaborate on a product or promotion.
• Brand Licensing: A contractual arrangement allowing one firm to use another's brand elements for a fee.

Importance of Packaging

• Packaging: Enhances product recognition, consumer attraction, and acts as a promotional tool.
• Labelling: Provides vital information regarding the product, influencing consumer purchasing decisions.