Chapter 10 Product Branding and Packaging Decision o Product anything that is of value to a consumer and can be offered through a voluntary marketing exchange Can be goods services places ideas organizations people and communities o Product assortment or product mix complete set of all products offered by a firm o Product lines groups of associated items such as items that consumers use together or think of as part of a group of similar products o Product category an assortment of items that the customer sees as reasonable substitutes for one another or aroused under similar circumstances o Brands names terms designs symbols or any other features that identify one seller s good or service as distinct from those of other sellers o Breadth number of product lines offered by the firm o Depth number of categories within a product line o Stock Keeping Units SKUs smallest unit available for inventory control o Category depth number of SKU s within a category o Brand equity set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service o Licensed brand there is a contractual arrangement between firms whereby one firm allows another to use its brand name logo symbols and or characters in exchange for a negotiated fee o Brand awareness measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about that brand o Perceived Value relationship between a product or service s benefits and it s cost o Brand associations reflect the mental links that consumer make between a brand and it key product attributes such as a logo slogan or famous personality o Brand personality set of human characteristics associated with a brand which has symbolic or self expressive meaning for consumers Should include personal issues such as gender age or personality and or physical traits o Brand loyalty occurs when a consumer buys the same brand s product or service repeatedly over time rather than buy from multiple supplier within the same category Important source of value for firms o Manufacturer brands or national brands owned and managed by the manufacturer o Private label brands or store brands house brands or own brands products developed by retailers Four types Premium brands offer the consumer a private label that is comparable to or even superior to a manufacture s brand quality sometimes with modest price savings Generic brands target a price sensitive segment by offering a no frills product at a discount price Copycat brands imitate the manufacture s brand in appearance and packaging generally are perceived as lower quality and are offered at lower prices Exclusive cobrand brand that is developed by a national brand vendor often in conjunction with a retailer and is sold exclusively by the retailer o Corporate or family brand when all products are sold stamped with corporate o Corporate and product line brands combo of corporate and product line name on name packaging o Individual brand different names for each of its products o brand extension use of the same brand name for new products being introduced to the same or new markets o Brand dilution occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold o Cobranding The practice of marketing two or more brands together on the same package or promotion o Brand licensing contractual arrangement between firms whereby one firm allows another to use its brand name logo symbols and or characters in exchange for a negotiated fee Common for toys apparel accessories and entertainment products o Brand repositioning or rebranding strategies in which marketers change a brand s focus to target new markets or realign the brand s core emphasis with changing market preferences Although can improve the brand s fit with its target segment or boost the vitality of old brands it is not without costs and risks May ben to spend a lot of money and intangible changes to image o Primary package the one the consumer uses such as the toothpaste tube o Secondary package wrapper or exterior cartoon that contains the primary package and provides the UPC label used by retail scanners can contain additional product information
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