Journal Entry: w Think of a product that you use that has a unique or different type of package. What about this packaging do you like? What don’t you like?

Product Planning Part 3 Why are branding, packaging and labeling important to a business’ bottom line? Marketing II Mrs. Stortzum

Brand-a name, term, design, symbol or combination of these elements that identifies a product or service and distinguishes it from its competitors. w Almost every product has a brand. w It is an important component of the product planning process. w A brand can be a company’s most valuable asset, and an important tool in selling and marketing products. w Global brands appeal to consumers beyond cultural or political boundaries. Can you name some global brands?

Branding w Brand name-a word or group of words, letters or numbers that can be spoken w Brand mark-part of the brand that is a symbol, design or distinctive lettering or coloring Trade character-a brand mark given human form or characteristics, a specific type of brand mark w Trade name- or corporate brand, identifies the company or a particular division of a company w Trademark-is a brand name, brand mark, trade character or combination of these that is given legal protection

What is the difference? w Brand name-Coca-Cola w Brand mark- Disney World’s castle w Trade name-Kellogg’s w Trade character- Pillsbury Doughboy w Trademark-brand name, brand mark or trade character with a ® or TM

Why is branding important to a business’ bottom line? w To build product recognition and customer loyalty Repeat purchases w To ensure quality and consistency w To capitalize on brand exposure Extend their products into new markets, more likely to try a familiar brand name

Types of Brands w National Brands-owned and initiated by the manufacturer generate the majority of sales for most product categories (Pepsi, IBM) w Private Brands-owned and initiated by wholesalers or retailers appeal to customers who want the quality and performance of national brands at a lower price (Dierbergs) w Generic Brands-no frills products that carry no brand name (“pancake mix”, “paper towels”) cost less because they are not heavily advertised or promoted

Branding Strategies w The ways companies use brands to meet sales and company objectives Brand extensions-by using already established brand names, reduce the risk of failure Brand licensing-(allowing another company to use brand) enhance company image & sell more products Co-branding-(combining one or more brands)-works well if both brands complement each other & each receives equal billing Mixed brands-(simultaneously offering national, private and generic brands)allows a business to reach several target markets, increase loyalty & increase product mix

Examples: w Brand extension: Tylenol Cold and Sinus w Brand licensing: Co-branding:Mixed branding: Michelin makes its own brand of tires as well as Sears brand tires