Using PollEV - text: Text UWMBUSINESS to 37607 Backup number: (747) 444 3548 Remember to text LEAVE at the end

The First ‘P’: Product, Branding, and Packaging Decisions Ref: Text, chapter 11

https://www.polleverywhere.com/multiple_choice_polls/CGflntnvzm8Gfv6

“Augmented Product” A Product Marketers involved with the development, design, and sale of products think of them in an interrelated fashion. At the center is the core customer value, next is the actual product, followed by associated services.

https://www.polleverywhere.com/multiple_choice_polls/DBLkAg3QIrz03er

$0.40 $2.50 - $3.50! The power of branding

What Makes a Brand? “Brand elements” Branding Brand name URLs Logos and symbols Characters Slogans Jingles/Sounds Group activity: Identify a brand that you recognize primarily by each of these elements. Brand Name: Most brands. Jingles: Be all you can be – Army. URLs: www.eBay.com Logos & Symbols: Nike Swoosh. Slogans Nike- Just Do It.: Characters: Quaker, KFC, McDonalds.

The Value of Branding for the Customer and the Marketer Brands Facilitate Purchases: Brands help consumers make quick decisions Brands Establish Loyalty: Over time and with continued use, consumers learn to trust certain brands.

The Value of Branding for the Customer and the Marketer Brands Protect from Competition and Price Competition: Because strong brands are more established, and have a more loyal customer base, neither competitive pressures on price nor retail-level competition is as threatening to the firm

A sustainable competitive advantage

The Value of Branding for the Customer and the Marketer Brands Can Reduce Marketing Costs: Firms with well-known brands can spend less on marketing because the brand sells itself. A loyal Starbucks customer Brands Are Assets: Brands constitute a unique form of ownership: they are assets that can be legally protected through trademarks and copyrights. This is why well-known brands try hard to protect against counterfeit items

Real

The Value of Branding for the Customer and the Marketer Brands Impact Market Value: The value of a company is its overall monetary worth, comprising a vast number of assets. Having well-known brands can have a direct in pact on the company’s bottom line. The value of a brand, (an asset), refers to the earning potential of the brand over the next 12 months. The value of a brand is its brand equity Interbrand Rankings

Brand Equity Brand equity, representing the value of the brand, is the set of assets and liabilities linked to the brand How do we know how “good” a brand is, or how much equity it has? Experts look at four aspects of a brand to determine its equity: brand awareness, perceived value, brand associations, and brand loyalty

Components of Brand Equity Brand Awareness: Brand awareness measures how many consumers in a market are familiar with the brand and what it stands for. The greater the awareness, the easier it decision-making process will be for them.

https://www.polleverywhere.com/multiple_choice_polls/kaCRTwIBRuAIiHx

U-R-E Attribute Sets e.g., Every coffee shop in the marketplace Universal Retrieval Evoked Starbucks Dunkin Donuts McDonald’s Stone Creek Collectivo Peet’s Coffee Caribou Coffee Starbucks Peet’s Research has shown that a consumer’s mind organizes and categorizes alternatives to aid his or her decision-making process. Universal sets include all possible choices for a product category. A subset of the universal set is the retrieval set, which are those brands or stores that can be readily brought forth from memory. Another is an evoked set, which comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision. Ask students to name cookie brands – this is their retrieval set. They may be surprised at how few brands they retrieve.

Components of Brand Equity Perceived Value: The perceived value of a brand is the relationship between a product’s benefits and its cost. Customers perceive the value of a brand in relationship to that of its close competitors

Components of Brand Equity Brand Associations: Brand associations reflect the mental links that consumers make between a brand and its key product attributes, such as a slogan, logo, or famous personality. Example: Prius = good for the environment, stylish, good value, fuel-efficient

Foxconn

Components of Brand Equity Brand Loyalty: Brand loyalty occurs when a consumer buys the same brand repeatedly over time rather than buying from multiple suppliers within the same category. Therefore, loyal customers are an important source of value for firms.

https://www.polleverywhere.com/multiple_choice_polls/Su8HEVwLbgQtLMs

So: Brand Equity = Brand awareness + Perceived value + Brand associations + Brand loyalty

Branding Strategies: Who owns the brand? How do you name your brand?

https://www.polleverywhere.com/multiple_choice_polls/lTrnQfQ9aXALinu

Manufacturer Brands

Private label brands

Branding Strategies: Who owns the brand? How do you name your brand? Same name  “Family brands” Different names for brands  “Individual brands”

Branding Strategies Brand and Line Extensions A “brand extension” refers to the use of the same brand name in a different product line. A “line extension” is the use of the same brand name within the same product line.

https://www.polleverywhere.com/multiple_choice_polls/yrXhA6GGc9Ba382

Product Mix and Product Lines Product Mix Breadth Product Line Depth This chapter uses Kellogg’s brands as examples. Many students may be familiar with the name Kellogg’s with breakfast cereal, but not know they have so many other products. Students should understand that 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 products in a product line

Branding Strategies Brand and Line Extensions Not all brand extensions are successful, however. Some can dilute brand equity. Brand dilution occurs when the brand extension adversely affect consumer perceptions about the original brand. Example:

Dilution example:

Dilution: Frozen entrees Dental products

Branding Strategies Co-branding This is the practice of branding two or more products together, in marketing them. Co-branding can enhance consumers’ perceptions of product quality by signaling “unobservable” product quality through links between the firm’s brand and a well-known quality brand.

Branding Strategies Brand Licensing This is a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbol, and/or characters in exchange for a negotiated fee. Common for toys, apparel, video games Licensing is a great way to generate additional revenue while building brand equity, but it does risk dilution of brand equity through overexposure of the brand.

Branding Strategies Brand Repositioning Also known as rebranding. This 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

https://www.polleverywhere.com/multiple_choice_polls/In3xlxneO4dCfjg

Hypothetical Perceptual Map of the soft drink industry Small circles: Denote the position of each brand This perceptual map was created by the process on the previous page. It was for Gatorade which was seeking a positioning of healthy and sweet taste. Asterisks: Denote consumers’ ideal points (where a segment’s ideal product would lie)

Packaging An extremely important brand element. It attracts the consumers’ attention It enables the products to stand out from their competitors It offers a promotional tool (e.g., “NEW” or “IMPROVED” on the label) It allows for the same product to appeal to different markets with different sizes

Package Changes A subtle way of repositioning the product Convey the perception of being a new product More eco-friendly Can backfire though, such as Tropicana’s re-designed packaging, which met consumer resistance

Product Labeling Labels are communication tools An important element of branding and can be used for promotion. Labels can be used to communicate the benefits of a product (e.g., “sugar free”) Labels must comply with laws and regulations: The Federal Trade Commission Act of 1914 The Fair Packaging and Labeling Act of 1967 The Nutrition Labeling Act of 1990 The FDA ( Food and Drug Administration)

PRIZM

https://www.polleverywhere.com/multiple_choice_polls/hYjJdu4Hrsc0BOF

Key concepts/ terms to know Product: core customer value, the actual product, attributes, associated services ( augmented product) Consumer product types: specialty products, shopping products, convenience products, unsought products Product mix, product line, breadth of the product mix, depth of the product line Changing breadth of product mix and depth of product line Branding, brand awareness, brand elements Brand equity: its value to both marketers and consumers Components of brand equity: brand awareness, perceived value, brand associations, brand loyalty Manufacturer brands, private-label brands (premium brands, generic brands, copycat brands, exclusive co-brands) Family brands, individual brands Brand extension, line extension Brand dilution Co-branding Brand licensing Brand repositioning Packaging Product labeling and its uses, especially in branding

https://www.polleverywhere.com/multiple_choice_polls/lZXtUHM3i0GcgLq

https://www.polleverywhere.com/multiple_choice_polls/tG69BzBpM1eY22D