CONTEMPORARY MARKETING Seventeenth Edition PART 4 Product Decisions Chapter 13 Developing and Managing Brand and Product Categories Copyright © 2016 Cengage Learning. All Rights Reserved.  May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Objectives (1 of 2) Discuss how to define a brand. Identify the five different types of brands. Explain the strategic value of brand equity. Explain the benefits of category and brand management. Discuss how companies develop strong identities for their product or brand.

Objectives (2 of 2) Describe the four new-product development strategies. Describe the five steps in the consumer adoption process. Explain the six steps in the new-product development process. Explain the relationship between product safety and product liability.

Managing Brands for Competitive Advantage Brands have a powerful influence on consumer behavior Brand - Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from those of the competition

Table 13.1 - Selected Brands, Brand Names, and Brand Marks Brand type Dr Pepper or Mountain Dew Private brand Craftsman tools (Sears) or Trader José's Chunky Salsa (Trader Joe's) Family brand RAID insect sprays or Progresso soups Individual brand Purex or Clorox Brand name Kleenex or Cheetos Brand mark Colonel Sanders for KFC or the Geico Insurance gecko

Brand Loyalty Measured in three stages Brand recognition - Consumer awareness and identification of a brand Brand preference - Consumer choice of a product on the basis of a previous experience Brand insistence - Consumer refusal of alternatives and extensive search for desired merchandise

Types of Brands Manufacturer’s (or national) brands Private brands Captive brands Family brands Individual brands

Brand Equity Added value that a respected, well-known brand name gives to a product in the marketplace Built sequentially on four dimensions Differentiation Relevance Esteem Knowledge

The Role of Category and Brand Management Brand manager - Marketer responsible for a single brand Category management - Product management system in which a category manager—with profit and loss responsibility—oversees a product line

Product Identification Products identified in the marketplace by brand names, symbols, and distinctive packaging Choosing how to identify a firm’s output represents a major strategic decision for marketers

Brand Names and Brand Marks Brand name - Part of a brand that can be spoken Brand mark - Symbol or pictorial design that distinguishes a product Trademark - Brand for which the owner claims exclusive legal protection Trade dress - Visual components that contribute to the overall look of a brand

Developing Global Brand Names and Trademarks An excellent name or symbol in one country may be a poor choice in another A firm marketing a product in multiple countries has two choices Use a single brand name for universal promotions Tailor names to individual countries

Packaging Serves three major objectives: Protection against damage, spoilage, and pilferage Assistance in marketing the product Cost effectiveness

Brand Extensions and Brand Licensing Brand extension - Strategy of attaching a popular brand name to a new product in an unrelated product category Brand licensing - Practice that expands a firm’s exposure in the marketplace

Alternative Product Development Strategies Old Product New Product Old Market Market Penetration Product Development New Market Market Development Product Diversification

The Consumer Adoption Process Adoption process - Stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again Awareness Interest Evaluation Trial Adoption/Rejection

Figure 13.2 - Categories of Adopters Based on Relative Times of Adoption

Organizing for New Product Development New-product committees New-product departments Product manager - Marketer responsible for an individual product or product line Venture team - Associates from different areas of an organization who work together in developing new products

Steps in the New-Product Development Process (1 of 2) Idea Generation Step 2: Screening Step 3: Business Analysis Step 4: Development

Steps in the New-Product Development Process (2 of 2) Test Marketing Step 6: Commercialization

Product Safety and Liability (1 of 2) The Consumer Product Safety Commission has jurisdiction over most consumer product categories The Food and Drug Administration approves food, medications, and health-related devices Liability lawsuits are increasing domestically and internationally

Product Safety and Liability (2 of 2) To counter increased litigation and legislation, some companies sponsor voluntary improvements in safety standards Safety planning and testing can be an effective marketing tool