Chapter 11 02 23 2016 Product Branding and Packaging Decisions How To make a name for the brand with out appearing to do so Product anything that is of value to a consumer and can be offered through a voluntary marketing exchange Complexity and Types of Products Complexity of Products o When developing or changing a product marketers start with the core customer value to determine what their potential customers are seeking Then they make the actual physical product and add associated services to round out the offering o Core Customer Value basic problem solving benefits a customer is seeking in a product What are the consumers looking for o Actual Product the physical attributes of a product including the brand name features designs quality level and packaging o Associated services augmented product the nonphysical attributes of the product such as product warranties financing product support and after sales service o Consumer Products products and services used by people for their personal use Types of Products Specialty Products Services the customer shows a strong preference and for which he she will expend considerable effort to search for the best suppliers Ex Luxury cars legal medical professionals Shopping Products Service consumers will spend a fair amount of time comparing alternatives Ex apparel fragrances and appliances Convenience Products Services consumer is not willing to spend any effort to evaluate prior to purchase Ex Beverages bread Soap Unsought Products Services consumers either do not normally think of buying or do not know about at all Require a lot of marketing effort and various forms of promotion Require a lot of marketing effort Product Mix and Product Line Decisions Product Mix the complete set of all product and services offered by a firm o Product Line are group of associated items that consumers tend to use together or think of as part of a group of similar products services Breadth a count of the number of different product lines offered by a firm Decrease Breath to address changing marketing condition or meet internal strategic priorities Increase Breadth to capture new evolving markets and increase sales Depth the number of categories with a product line Increase depth to addresses changing consumer preferences or to preempt competitors while boosting sales Decrease Depth to realign the firms resources Firm often must prune their product lines to eliminate unprofitable or low margin items and refocus their marketing efforts on their more profitable items Branding Provides a away for firm to differentiates its product offering from those of it competitors Brands Facilitate Purchases o They signify a certain quality level and contain familiar attributes brand help consumer make quick decisions especially about their purchases Brands Establish Loyalty o Over time and with continued uses consumers learn to trust certain brand and create a strong affinity to certain brands Brands Protect from Competition and Price Competition o Because such brand are established in the market and have a more loyal customer base neither competitive pressure on price nor retail level competition is as threatening to the firm Brands Are Assets o Can be legally protected through trademarks and copyrights and thus constitute a unique form of ownership Brands Affect Market Value o The value of the brand just one asset refers to the earning potential of a brand over the net 12 months Brand Equity for the Owner Brand Equity the set of assets and liabilities linked to a brand that add to or subtract from the value provided product or service 4 Aspects Used to Determine Brand Equity o Brand Awareness how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it Created through repeated exposure of various brand elements in the firms communication to consumers through advertising publicity or other various methods o Perceived Values the relationship between a products or services benefits and costs o Brand Associations reflect the mental and emotion links that consumer make between brand and its key product attributes such as logo and its color slogan or famous personality Often result from a firms advertising and promotional o Brand Loyalty when a consumer buys the same brand s product or service repeatedly over time rather than buy from multiple suppliers within the same category Marketing cost or reaching loyal customers is much efforts lower Loyal customers praise the virtues positive word of mouth Insulate a firm from competition o Manufacturer National Brands Brands owned and managed by the manufacturer Branding Strategies Brand Ownership Ex Nike o Retailer Store Brands Private Label Brands Brands developed and marketed by a retailer and available only from that retailer Naming Brands and Product Lines o the more the products vary in their usage or performance the more likely it is that the firm should individual brand names o Family Brand A firms owns corporate name used to brand its product lines and products Individual brands benefit from the overall awareness associated with the family name o Individual Brand the use of individual brand names for each of a firms products Brand and Line Extensions o Brand Extension refer to the use of the same brand name in a different product line o Line Extension the use of the same brand name within the same product line and represents an increase in a product line s depth Advantages Less time developing consumer brand awareness and brand associations for a new product Introduce new products quicker and more easily For complementary products a synergy exists between the products that can increase over all sales Brand Dilution when the brand extension adversely affects consumer perception about the attributes the core brand is believed to hold o Brand Licensing a contractual arrangement between firm whereby one firm allows another to use its brand name logo symbols and or characters in exchange for a negotiated fee Brand Licensing Brand Repositioning o Brand Repositioning Rebranding refers to a strategy in which marketers change a brands focus to target new markets or realign the brands core emphasis with changing market preferences Packaging paste tube Primary Package the one the consumer uses such as a tooth Secondary Package the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners Product Labeling Information required on