Chapter 11Product, Branding, and
Packaging Decisions
What is a product?
Productis anything that is of value to a
consumer and can be offered through a
voluntary marketing exchange.
Goods
Services
Places
Ideas
Organizations
People
Communities
Types of Products
Consumer products are products and
services used by people for their personal
use.
Types of Products
Specialty
Shopping
Convenience
Unsought
Types of Products
Specialty products/services
Those for which customers express such a strong
preference that they will expend considerable effort to
search for the best suppliers.
Types of Products
Shopping products/services
Products or services for which consumers will spend a fair
amount of time comparing alternatives.
Types of Products
Convenience products/services
Those products or services for which the consumer is not
willing to spend any effort to evaluate prior to purchase.
Types of Products
Unsought products/services
Products consumer either do not normally think of buying
or do not know about at all.
Product Mix and Product Line Decisions
Product Mix is the complete set of all products and
services offered by a firm.
Product Mix consists of various product lines, which are
groups of associated items that consumer tend to use
together or think of as part of a group of similar
products or services.
Product Mix reflects the breadthand depthof the
company’s product lines.
Colgate –Palmolive
Product Mix
Product Lines
Oral Care
Personal
Care
Household
Care
Fabric Care
Pet Nutrition
Toothpaste
Toothbrush
Kid’s Product
Whitening
Products
Deodorants
Body Wash
Bar Soap
Hand Wash
DishwashingLiquid
Automatic
Dishwashing
Liquid
Household
Cleaner
Fabric
Softener
Fabric Dryer
Sheets
Laundry
Detergents
Hill’s Pet
Nutrition
Cat food
Dog food
Product
line
Product Mix and Product Line Decisions
Breadth
Number of product lines
Depth
Number of categories
within a product line
Oral Care
Personal Care
Household Care
Pet Nutrition
Fabric Care
Personal Care
What makes a brand?
Brand Element
Description
Brand Name
The spoken component of branding, it can describe the product
or service/product characteristics and/or be composed of words
invented or derived from colloquial or contemporary language.
URLs ( Uniform
resourcelocators)
or domain name
The location of pages on the Internet, which often substitutes for
the firm’s name.
Logos and symbols
Logos are visual branding elements that stand for corporate
names or trademarks.Symbols are logos without words.
Characters
Brand symbols that could be human, animal, or animated.
Slogans
Short phrasesused to describe the brand or persuade consumers
about some characteristics of the brand.
Jingles/sounds
Audio message about the brand that are composed of words or
distinctive music.
What makes a brand?
Brand name
URLs
www.eBay.com
Logos and
symbols
Characters
Slogans
Jingles/Sounds
“Law & Order”
McGraw-Hill
Companies,
Inc.
.M. Hruby.
Branding
Components of Brand Equity
Brand Awareness
•Measures how many
consumers in a market are
familiar with the brand and
what it stands for and have
an opinion about it.
•Some brand names are
used as generic product
category.
Perceived Value
•The relationship between
a product or service’s
benefits and its cost.
Components of Brand Equity
Brand Associations
•Reflects the mental links
that consumers make
between a brand and its
key product attributes,
such as a logo, slogan, or
famous personality.
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.
•Consumers are often less
sensitive to price
•Marketing costs are much lower
•Firm insulated from the
competition
Branding Strategies
Brand Ownership
Manufacturer brands or National brands
Are owned and managed by the manufacturer.
Branding Strategies
Brand Ownership
Retailer/Store brands or Private-label brands
Are products developed by retailers.
Branding Strategies
Naming Brands and Product Lines
Family Brands
A firm can use its own
corporate name to
brand all its product
lines and product. The
individual brands
benefit from the overall
brand awareness
associated with the
family name.
Branding Strategies
Naming Brands and Product Lines
Individual Brands
A firm can use individual
brand names for each of
its products.
Branding Strategies
Brand and Line Extensions
Brand extension
Refers to the use of the same brand name for new
products being introduced to the same or new markets.
Branding Strategies
Brand and Line Extensions
Line extension
Refers to the use of the same brand name within the
same product line, and represents an increase in a
product line’s depth.
Branding Strategies
Brand and Line Extensions
Advantages to using the same brand name for new products
Because the brandname is already well established, the firm can spend
less in developing consumer brand awareness and brand associations for
the new product.
If either the original brand or the brand extension has strong consumer
acceptance, that perception will carry over to the other product.
When brand extensions are used for complementary products, a synergy
exists between the two products can increase overall sales.
Branding Strategies
Brand dilution
Occurs when the brand extension adversely affects
consumer perceptions about the attributes the core brand
is believed to hold.
Branding Strategies
To prevent Brand dilution:
Evaluate the fit betweenthe product classof the core brandand 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?
Branding Strategies
Co-branding
The practice of marketing two or more brands together,
on the same package , promotion or store.
Branding Strategies
Brand Licensing
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.
Branding Strategies
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.
Packaging
Packaging is an important brand element with more
tangible or physical benefits than other brand elements.
Primary Package
The one the consumer
uses. The consumers can
typically seek convenience
in terms of storage, use,
and consumption.
Secondary Package
The wrapper or exterior
carton that contains the
primary package and
provides the UPC label
used by retail scanners.
Packaging
Packaging
Labels on products and packages
•Provide information the consumer needs for his or her
purchase decision and consumption of the product.
•Identity the product and brand.
•Can be used for promotion.
•Use as a communication tool.
(ingredients, fat content, sodium content,
serving size, calories)
Product Labeling
Skipped & Self-Study Topics
Skipped Topics
•Complexity of products (p.334-335)
•Brand equity for the owner (p.342)
Self-study Topics
•Increase depth (p.338)
•Decrease depth (p.338)
•Increase breadth (p.338)
•Decrease breadth (p.338)
•Value of branding for the customer (p.340-342)