Chapter 14 Branding and Packaging 14 1Branding Brand a name term design symbol or any other feature that identifies one seller s product as distinct from those of other sellers A brand may identify a single item a family of items or all of a seller s items Brand Name the part of a brand that can be spoken including letters words and numbers like 7Up Often a product s only distinguishing characteristic Brand Mark the element of a brand that is not made up of words but is rather a symbol or design ie McDonald s golden arches Nike s swoosh Trademark a legal designation indicating that the owner has exclusive use of a brand or a part of a brand and others are prohibited by law from using it Trade Name the full legal name of an organization such as Ford Motor Company 14 1A Value Branding 14 1B Brand Loyalty Brands help customers identify specific products that they do or do not like A brand may represent a certain quality level ie McDonald s quality vs Chicfila quality Branding is good for sellers because it helps consumers make quick repeat purchases Changing brand names is difficult because the seller risks existing value in the current name for the potential to have greater value in a new name Brand Loyalty a customer s favorable attitude toward a specific brand o If brand loyalty is strong enough customers may consistently purchase this brand when they need a product in that product category Three degrees of brand loyalty exist 1 Brand Recognition occurs when a customer is aware that the brand exists and views it as an alternative purchase I the preferred brand is unavailable or if the other available brands are unfamiliar 2 Brand Preference a stronger degree of brand loyalty A customer definitely prefers one brand over competitive offerings and will purchase this brand if available However if the brand is not available the customer will accept a substitute brand rather than expending additional effort finding and purchasing the preferred brand 3 Brand Insistence when a customer strongly prefers a specific brand will accept no substitute and is willing to spend a great deal of time and effort to acquire that brand 14 1C Brand Equity Brand Equity the marketing and financial value associated with a brand s strength in the market Four elements of brand equity exist o Brand name awareness o Brand Loyalty o Perceived Brand Quality o Brand Associations A familiar brand is more likely to be in a customer s consideration set Brand loyalty allows an organization to keep its existing customers and avoid spending an enormous amount of resources gaining new ones A brand name may be used as a substitute for judgement of quality At times a marketer will connect a particular lifestyle or a certain personality type with a specific brand Brand equity represents the value of a brand to an organization 14 1D Types of Brands Manufacturer Brands initiated by producers and ensure that producers are identified with their products at the point of purchase Usually requires a producer to become involved in distribution promotion and pricing decisions Private Distributor Brands initiated and owned by resellers wholesalers or retailers The manufacturers are not identified on the product Generic Brands indicate only the product category ie aluminum foil and do not include the company name or other identifying terms 14 1E Selecting a Brand Name Should be easy to spell pronounce and recall The name should indicate the product s major benefits and possibly suggest the product s uses The brand should be distinctive 14 1F Protecting a Brand Brand types from most protectable to least protectable are o Fanciful Exxon o Arbitrary Dr Pepper o Suggestive Spray n Wash o Descriptive Minute Mice o Generic Aluminum Foil Generic names cannot be protected ie aspirin escalator and shredded wheat all used to be brand names at one time are now generic names 14 1G Branding Strategies Individual Branding a strategy in which each product is given a different name The advantage is that if a poor product is introduced the negative images associated with it do not contaminate the company s other products Family Branding all of a firm s products are branded with the same name or part of the name ie Kellogg s Frosted Flakes Kellogg s Corn Flakes Kellogg s Rice Crispies The promotion of one item with the family brand promotes the firm s other products Brand Extension a firm uses one o its existing brands to brand a new product in a different product category ie Velveeta cheese launched a new brand extension called Cheesy Skillets which are one skillet meals that compete with Hamburger Helper 14 1H Co Branding 14 1I Brand Licensing Co Branding the use of two or more brands on one product Used to capitalize on the brand equity of multiple brands The brands should not lose their identity and it should be clear to customers which brand is the main brand Cobranding can help an organization differentiate its products from those of competitors Brand Licensing an agreement in which a company permits another organization to use its brand on other products for a licensing fee Advantages range from extra revenues and low cost or free publicity to new images and trademark protection The major disadvantage are a lack of manufacturing control which could hurt the company s name and bombarding consumers with too many unrelated products bearing the same name 14 2 Packaging 4 2A Packaging Functions A package can influence customers attitudes toward a product and thus affect their purchase decisions Some containers have a functional use ie shampoo bottles soap dispensers ketchup bottles Protect the product and maintain its functionality Offer convenience to consumers Promote the product by communicating its features uses benefits and image Can be used to communicate symbolically the quality or premium nature of a product 4 2B Major Packaging Considerations Better quality and protective packages often cost more Must comply with Food and Drug Administration s FDA packaging regulations Family Packaging promotes an overall company image when a firm decides that all packages should be similar to include one major element of design ie Campbell s soups Through verbal and nonverbal symbols the package can inform potential buyers about the product s content features uses advantages and hazards Light colored packaging may make a package appear larger whereas darker colors may minimize the perceived size Marketers must judge whether a particular color will evoke
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