CHAPTER Day 15 BUS 222

Ch 1 -2 Agenda Questions Assignment 4 not corrected – Next on my list of things to do Assignment 5 posted – Due March 29. – Covers Chap 12 – Marketing Assignment 5.pdf Marketing Assignment 5.pdf Finish Discussion on Product, Branding, and Packaging Decisions Quiz 3 Today – Chaps 8 & 9 – 10 M/c, 30 Min. – extra credit question on CLV (Appendix 9a)

CHAPTER PRODUCT, BRANDING, AND PACKAGING DECISIONS 10 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

LEARNING OBJECTIVES Product, Branding, and Packaging Decisions LO1LO6Determine the various types of branding strategies used by firms. LO7Distinguish between brand extension and line extension. LO8Indicate the advantages of a product’s packaging and labeling strategy.

1. How do brands create value for the customer and the firm? (6 statements) 2. What are the components of brand equity? (4 components) Check Yourself

Value of Branding for the Customer and the Marketer Facilitate PurchasingEstablish LoyaltyProtect from CompetitionReduce Marketing CostsAre AssetsImpact Market Value

Brand Equity Awareness Perceived Value AssociationsLoyalty

Brand Ownership Manufacturer brands or national brands Private-label brands or Store Brands Premium Generic Copycat Exclusive co-branded

Brand Ownership Private Label McGraw-Hill Companies Premium

CopyCat/Generic Brands

Brand Ownership Exclusive Co-brands

Naming Brands and Product Lines Corporate or family brand – The Gap Corporate and product line brands – Kellogg’s Corn Flakes Individual lines – Mr. Clean (Proctor & Gamble)

Brand Extension State Farm Website ©M Hruby

Brand Extension (English Version)

Brand Dilution Evaluate the fit between the product class of the core brand and the extension. Evaluate consumer perceptions of the attributes of the core brand and seek out extensions with similar attributes. Refrain from extending the brand name to too many products. Is the brand extension distanced enough from the core brand?

Co-branding ©M Hruby

Brand Licensing LaCoste SA

Brand Repositioning How is this repositioning? Courtesy The Procter & Gamble Company

Check Yourself 1. What are the differences among manufacturer and private-label brands? 2. What is co-branding? 3. What is the difference between brand extension and line extension? 4. What is brand repositioning?

Packaging What other packaging do you as a consumer find useful?

Product Labeling ©The McGraw-Hill Companies, Inc/Elite Images C Sherburne/PhotoLink/Getty Images US FDA Labeling Requirements

Return to slide A brand association reflects the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality. Glossary

Return to slide Brand dilution occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold. Glossary

Return to slide Brand equity is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. Glossary

Return to slide A brand extension refers to the use of the same brand name for new products being introduced to the same or new markets. Glossary

Return to slide Brand licensing is a contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee. Glossary

Return to slide Brand loyalty occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buy from multiple suppliers within the same category. Glossary

Return to slide Brand repositioning or rebranding 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. Glossary

Return to slide Co-branding is the practice of marketing two or more brands together, on the same package or promotion. Glossary

Return to slide Perceived value of a brand is the relationship between a product or service’s benefits and its cost. Glossary

Return to slide Product assortment or product mix is the complete set of all products offered by a firm. Glossary

Return to slide Product lines are groups of associated items, such as items that consumers use together or think of as part of a group of similar products. Glossary

Return to slide Product mix or product assortment is the complete set of all products offered by a firm. Glossary