Chapter 12 Developing and Managing Brand and Product Categories Principles of Contemporary Marketing Kurtz & Boone Chapter 12 Developing and Managing Brand and Product Categories
Chapter Objectives Determine how to define a brand. Identify the 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 products and brand. Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Chapter Objectives Identify and briefly describe each of the new-product development strategies. Describe the consumer adoption process. List the stages in the new-product development process. Explain the relationship between product safety and product liability. Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Managing Brands for Competitive Advantage Brand - Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from the competition’s Brands have a powerful influence on consumer behavior Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Copyright © 2012 by South Western, a division of Cengage Learning Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Brand Loyalty Measured in three stages: Brand recognition - Consumer awareness and identification of a brand Brand preference - Consumer reliance on previous experiences with a product to choose that product again Brand insistence - Consumer refusal of alternatives and extensive search for desired merchandise Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Types of Brands Manufacturer’s brand Private brands Captive brands Individual brand Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Brand Equity Added value that a respected, well-known brand name gives to a product in the marketplace It is built sequentially on four dimensions: Differentiation Relevance Esteem Knowledge Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
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 Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
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 Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
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 Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
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 Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Packaging Serves three major objectives: Protection against damage, spoilage, and pilferage Assistance in marketing the product Cost effectiveness Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
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 Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Copyright © 2012 by South Western, a division of Cengage Learning Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Copyright © 2012 by South Western, a division of Cengage Learning Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
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 Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Copyright © 2012 by South Western, a division of Cengage Learning Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Product Safety and Liability 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 Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Product Safety and Liability To counter increased litigation and legislation, some companies sponsor voluntary improvements in safety standards Safety planning and testing can be an effective marketing tool Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.