Upload
kpatric
View
107
Download
5
Tags:
Embed Size (px)
DESCRIPTION
Marketing (4th Edition) by Grewal & Levy, McGraw-Hill - Irwin, 2014.
Citation preview
Principles of MarketingMKT3010
Chapter 11Product, Branding, and Packaging Decisions
Patricia Knowles, Ph.D.
Associate ProfessorClemson University 1
2Principles of MarketingMKT3010 2
Product, Branding, and Packaging DecisionsThese are the learning objectives guiding the chapter and will be explored in more detail in the following slides.
Describe the components of a product.Identify the types of consumer products.Explain the difference between a product mix’s breath and a product line’s depth,Identify the advantages that brands provide firms and consumers.Explain the various components of brand equity. Determine the various types of branding strategies used by firms.Distinguish between brand extension and line extension. Indicate the advantages of a product’s packaging and labeling strategy.
LO1
LO2
LO3
LO4
LO5
LO6
LO7
LO8
33
Types of ProductsConsumer products are products and services used by people for their personal use. Marketers further classify these products by the way they are used and purchased.
Principles of MarketingMKT3010
Specialty Shopping
Convenience Unsought
44
Check Yourself
Principles of MarketingMKT3010
1. Explain the three components of a product.
2. What are the four types of consumer products?
55
Product Mix and Product Line Decisions
Principles of MarketingMKT3010
Each item is called a Stock Keeping Unit (SKU) and the category depth is the number of SKUs within a category.
Breadth
• Number of product lines
Depth
• Number of categories within a product line
Courtesy Pepsi Cola Company
66
Check Yourself
Principles of MarketingMKT3010
1. What is the difference between product line breadth versus depth?
2. Why change product line breadth?
3. Why change product line depth?
77
What Makes a Brand?
Principles of MarketingMKT3010
Identify a brand that you recognize primarily by each of these elements.
BrandingBrand name
URLs
www.eBay.com
Logos and symbols
Characters
Slogans
Jingles/Sounds“Law & Order”
McG
raw
-Hill
Co
mpa
nies
, Inc
.
©M. Hruby.
88
Value of Branding for the Customer
Principles of MarketingMKT3010
Facilitate Purchasing
Establish Loyalty
Protect from Competition
Reduce Marketing Costs
Are Assets
Impact Market Value
99Principles of MarketingMKT3010
Brand Equity: Brand AwarenessBrand equity cuts both ways; customers dislike some brands because of the firm’s actions or their negative perceptions. Nike has been the target of many labor activists, which causes some consumers to refuse to purchase or wear Nike products. Remember what you have learned about consumer behavior. When consumers recognize a need, they begin with an internal search, during which they consider any brand they already know. If consumers are not aware of the brand, they simply will not purchase it.
Source: http://www.interbrand.com/best_global_brands.aspx
1010Principles of MarketingMKT3010
Brand Equity: Perceived ValueThese retailers offer designer products at reduced prices. In some cases, they use well known designers for their lines of clothing.
• How do discount retailers like Target, T.J. Maxx, and H&M create value for customers?
Photo by Peter Kramer/Getty Images
1111
Brand Equity: Brand Associations
Principles of MarketingMKT3010
In this billboard ad Kristen Davis, Charlotte from “Sex in the City”, offers her classical good looks to reflect the brand personality of Weatherproof outerwear. Firms sometimes develop a personality for the brand – as if it were human.
©McGraw-Hill Companies Inc/Gary He, photographer
What brands have personalities – they might mention McDonald’s and Pepsi (young).
Consumers develop links between brands and their own identity. Some brands are just “not for them.”
Did you ever proudly wear Abercrombie & Fitch clothing?
How many choose never to wear this brand?
How do you perceive this brand’s message?
1212
Brand Equity: Brand Loyalty
Principles of MarketingMKT3010
Brand loyalty provides the firm with high value. State Farm has built their brand equity by having loyal customers. Once you have chosen an insurance company or a bank, how likely is it that you will switch? How likely is it that you will switch due to an increase in price? Is it important for the firm to spend a lot of money marketing to you, a loyal customer? Do you pay much attention to ads or direct mail pieces from competition? To further illustrate brand loyalty, think - would you leave a store if your particular brand were not in stock? When you order a Sprite in a restaurant and the server asks, “Is 7-Up okay?” do you say no?
• Consumers are often less sensitive to price• Marketing costs are much lower• Firm insulated from the competition
Copyright State Farm Mutual Automobile Insurance Company 2005 Used by permission
1313Principles of MarketingMKT3010
Check Yourself
1. How do brands create value for the customer and the firm?
2. What are the components of brand equity?
1414
Brand Ownership
Principles of MarketingMKT3010
Unlike Europe, where store brands such as Tesco (U.K. grocery chain) were extremely popular, in the United States, few store brands had achieved such status and were often considered inferior to manufacturer or national brands. Today, many store brands are well established, such as Kenmore, Charter Club, and Presidents’ Choice.
Manufacturer brands or national brands
Private-label brands or Store Brands• Premium• Generic• Copycat• Exclusive co-branded
1515
Naming Brands and Product Lines
Principles of MarketingMKT3010
• Corporate or family brand– The Gap
• Corporate and product line brands– Kellogg’s Corn Flakes
• Individual lines– Mr. Clean (Proctor & Gamble)
©M. Hruby.
1616
Brand Extension
Principles of MarketingMKT3010
What are the advantages of a brand extension? The firm can spend less on brand awareness. That the positive consumer acceptance will spread to the new product and a synergy exists between the two products. In the picture above one might use the crest toothpaste and floss together. This web link is to the State Farm Website. You can see from the Website that State Farm has extended their brand past insurance to include mutual funds and banking products.
©M Hruby
1717
Brand Dilution
Principles of MarketingMKT3010
A brand is only as good as its last extension. Many firms try to take their brands just one more step, only to find the extension hurts rather than helps the parent brand. For example, McDonald’s agreed to license a McKids line of clothing, but the line was not as successful as it had hoped it would be. In terms of this slide, what do you think McDonald’s did wrong? They should comment that this was not a great fit. That the perceptions might not have been of the highest quality.
Evaluate the fit betweenthe product classof the core brand
and the extension.
Evaluate consumer perceptions of the
attributes of the core brand and seek out extensions
with similar attributes.
Refrain from extending the brand name to too many
products.
Is the brand extension distanced
enough from the core brand?
1818
Co-Branding
Principles of MarketingMKT3010
Co-branding benefits the participating brands by attracting the consumers of one brand to the others. Remind students of the FedEx/Kinko’s example. The synergy between these two brands helped ensure a successful co-branding effort.
©M Hruby
1919
Brand Licensing
Principles of MarketingMKT3010
The NBA licenses products like these bobblehead figures of Dallas Mavericks and San Antonio Spurs players to a manufacturer in exchange for a negotiated fee.
Photo by D. larke Evans/NBAE via Getty Images.
2020
Brand Repositioning
Principles of MarketingMKT3010
The product is now positioned as a detergent and an air freshener.
Courtesy The Procter & Gamble Company
• How is this repositioning?
2121
Check Yourself
Principles of MarketingMKT3010
1. What are the differences among manufacturer and private-label brands?
2. What is co-branding?
3. What is the difference between brand extension and line extension?
4. What is brand repositioning?
2222
Packaging
Principles of MarketingMKT3010
Although often overlooked as a marketing tool, packaging helps determine the success of a product. The chapter covers many new packaging innovations including FlexCan, Daily Gloss, smart lids, Labatt blue, aseptic drink bottles, and snack and seal as seen in the ad above. In some instances, such as Coca-Cola or Aunt Jemima Maple Syrup, the package has become synonymous with the brand. What packages are so distinct that it helps make the brand successful? Possible answers are: Perrier, Altoids, and Tiffany’s turquoise box. See if you can bring in examples of other bottled water in unusual bottles such as Fuji and Fred.
• What other packaging do you as a consumer find useful?
©M. Hruby.
2323
Product Labeling
Principles of MarketingMKT3010
Label information is determined by regulations, and labeling rules vary from country to country. Certain terms convey specific meanings, such as “natural,” “organic,” “made in the USA,” and products must meet specific tests before placing such terms on their label. Look at the label of a snack or drink you may have brought to class. What information does it provide? How does it support the marketing of this item?
©The McGraw-Hill Companies, Inc/Elite Images
C Sherburne/PhotoLink/Getty Images
2424
Glossary
Principles of MarketingMKT3010
Brand association reflects the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality.
Brand dilution occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.
Brand equity is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.
Brand extension refers to the use of the same brand name for new products being introduced to the same or new markets.
Brand licensing is a contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.
Brand loyalty occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buy from multiple suppliers within the same category.
2525
Glossary
Principles of MarketingMKT3010
Brand repositioning or rebranding refers to a strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences.
Co-branding is the practice of marketing two or more brands together, on the same package or promotion.
Perceived value of a brand is the relationship between a product or service’s benefits and its cost.
Product assortment or product mix is the complete set of all products offered by a firm.
Product lines are groups of associated items, such as items that consumers use together or think of as part of a group of similar products.
Product mix or product assortment is the complete set of all products offered by a firm.