© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 1

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories Objectives 1.Determine how to define a brand. 2.Identify the different types of brands. 3.Explain the strategic value of brand equity. 4.Explain the benefits of category and brand management. 5.Discuss how companies develop strong identity for their product or brand. 2

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories Objectives 6.Identify and briefly describe each of the new- product development strategies. 7.Describe the consumer adoption process. 8.List the stages in the new-product development process. 9.Explain the relationship between product safety and product liability.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories Table Selected Brands, Brand Names, and Brand Marks

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories Types of Brands Manufacturer’s brands Private brands Captive brands Family brands Individual brands

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories Packaging Serves three major objectives: – Protection against damage, spoilage, and pilferage – Assistance in marketing the product – Cost effectiveness

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories Figure Alternative Product Development Strategies

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories Figure Categories of Adopters Based on Relative Times of Adoption

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories Figure Steps in the New-Product Development Process

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Developing and Managing Brand and Product Categories 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