MKTG 350 1st Edition Lecture 12 Product, Branding and Packaging continued Cannibalism- introduction of new products steals sales from existing products in that same line - Cheerios to honey nut cheerios - Bad if you are just replacing products because you spent money on the old product (theywanted more people to buy the new product from new users who weren’t currently using the product) - Need to see if the new product will benefit the company What makes a brand?Branding- a name, a logo, symbols, characters, slogans, jingles, and even packaging- anything that distinguishes from another - Bottled water- branded, taste, packaging, electrolytes, - Brand name- the part that we say out loud – J. Crew- URL- ebay.com, google.com, - Logos and symbols- target, Starbucks, Godiva - Characters- Tony the tiger- Slogans- just do it - Jingles and songs- law and order svu- dun dun Value of branding 1. Facilitate purchasing- makes it easier to purchase (you know what it tastes like already) same thing every time2. Establish loyalty- we know it and we like it so we get the same thing every time3. Protect from competition- because of the loyalty – don’t have to win your business all the time 4. Reduce market cost- don’t have to advertise to you anymore- can introduce new brands/styles easily 5. Are assets- legally protected by law 6. Impact market value – brand reputation impacts the market value of your company Brand equity- the brands reputation in the marketplace – how well customers know your brand and how they favor it. 1. Brand awareness- must recognize and remember the brand – done by repetitive advertisement a. Negative- Exon, Samsung, 2. Perceived value- you feel like you are getting what the product is worth – are they getting something of valueThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.3. Brand associations- McDonalds- golden arches, cheap, unhealthy, Ronald, -Kristen Davis (charlotte- classy) 4. Brand loyalty- less sensitive to prices, marketing costs are lower, firm insulated from the competition – don’t care if its on sale or not because you are buying it anyway (coke) – sometimes even leaving the store if they don’t have the brand Brand ownership- Manufacture brands (responsible for the quality, reputation and the marketing) or national brands (same name where ever it is sold) - Private-label brands or store brands (have to do all of the marketing)- Premium, generic, copycat, exclusive co-branded - Premium- owned by retailer, designed to compete with the highest level - Generic- lowest of the low – chips, beer, no brand just beer- pharmaceutical (ibuprofen- Advil) - Copy cats- trying to make the packaging and the name look like the national brand- placenext to the national brand - Exclusive co-branded- partnered with a national or international designer- borrowing their name (only in your store) lily in target – made exclusively for Naming brands and product lines - Corporate or family brand – the Gap- Corporate and product line brands- Kellogg’s Corn Flakes- Individual lines- Mr. Clean (Procter and Gamble) tampons and pet food and tooth paste –keep brands separate (if they introduce a new brand it doesn’t hurt company reputation,but good brands cant play off of company either) Brand extension- use brand equity to springboard into a new area- ketchup to salad dressing (Heinz) use the same name for a new productLine extension- within that same product line- new cereal flavor Brand dilution Evaluate the fit between the product class of the core brans and the extensionEvaluate the consumer perceptions attributes of the core brand and seek out extensions with similar attributesRefrain from the extending brand the brand name to too many productsIs the brand extension distanced enough from the core