1. Section 31.1 Branding Elements and Strategies
Marketing Essentials
n Chapter 31 Branding, Packaging, and Labeling
Section Branding Elements and Strategies

2. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
What You'll Learn
The nature, scope, and importance of branding in product planning
The various branding elements
The different types of brands
How to classify branding strategies

3. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Why It's Important
The right name is an important part of every successful business. The name and symbols of a business or a product project the personality of the company, product, or service.

4. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Key Terms
brand
brand name
brand mark
trade name
trade character
trademark
manufacturer brand
private distributor brand
generic brand
brand extension
brand licensing
mixed-brand strategy
co-branding strategy

5. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
A brand is a name, term, design, or symbol (or combinations of them) that identifies a business or organization and the products that they offer. Brands are divided into two categories:
corporate brands
product brands
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6. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
Corporate brands identify the business and reflect quality, value, and reliability.
Example: Coca-Cola, Disney, McDonald's, and Citibank
Product brands connote quality and reliability for a particular product.
Example: Pepsi, Coke, Barbie, Whopper, and Big Mac
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7. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
A brand name is the word, group of words, letters, or numbers of a brand that can be spoken.
Example: PT Cruiser, Mountain Dew, SnackWells, and K2
A brand mark is a symbol, design, or distinctive coloring or lettering that identifies a brand.
Example: U.S. Postal Service's eagle, Apple Computer's apple
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8. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
A trade name is the legal name under which a company or division of a corporation does business.
Example: Amex, Dell, Kellogg's, and Xerox
A trade character is a brand mark with human form or characteristics.
Example: The Jolly Green Giant, the Pillsbury Doughboy
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9. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
A trademark is a brand name, brand mark, trade name, trade character, or a combination of these given legal protection by the federal government and noted by the trademark symbol ().
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10. Branding Elements and Strategies
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Branding Elements and Strategies
Branding
Brand names, brand marks, trade names, trade characters, and trademarks are often combined to form a firm's corporate symbol or name.
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11. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Top Ten Brands
Rank Brand Company Advertising
(in millions of dollars)
Brands are often a company’s most valuable asset. What is the total 1999 advertising spending for these top ten brands? Do you think these brands would continue to be valuable if the companies reduced or eliminated their advertising?
1 Chevrolet General 762.4
vehicles Motors Corp.
2 AT&T AT&T Corp
telephone services
3 Dodge Daimler
vehicles Chrysler
4 Ford Ford Motor 629.5
vehicles Company
5 McDonald's McDonald's
restaurants Corp.
6 Toyota Toyota Motor
vehicles Corp.
7 Sears Sears,
department stores Roebuck & Co.
8 Sprint Sprint Corp
telephone services
9 Chrysler Daimler
vehicles Chrysler
10 Nissan Nissan Motor
vehicles Co.

12. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Importance of Brands in Product Planning
The use of brands is important in product planning for several reasons. Branding:
builds customer loyalty
assures customers that products carrying the same brand are of a consistent quality
addresses new target markets
establishes an image for a product or company

13. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Generating Brands
Seventy-five percent of companies introduce a new product name each year. Brand names are generated by:
company employees
specialized computer software programs
branding agencies, naming consultants, and public relations agencies
Half of all corporate name changes occur because of company mergers and acquisitions.

14. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Types of Brands
Three classifications of brands are:
manufacturer brands
private distributor brands
generic brands
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15. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Types of Brands
Manufacturer brands, also called producer brands, are owned and initiated by manufacturers.
Example: General Electric, Heinz, Motorola
Private distributor brands, also called private brands, store brands, or dealer brands, are owned and initiated by wholesalers and retailers.
Example: Radio Shack, Kmart
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16. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Types of Brands
Generic brands represent a general product category and do not carry a company or brand name. The packaging carries only a description of the product, such as “pancake mix” or “paper towels.” They are usually much cheaper than brand-name products.
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17. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Brand Strategies
Branding strategies are the ways companies use brands to meet sales and company objectives. Strategies include:
brand extensions
brand licensing
mixed branding
co-branding

18. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Brand Extension
Brand extension is a branding strategy that uses an existing brand name for an improved or new product in the product line.
Example: Ocean Spray Cranberry Juice extended to Cran-Apple, Cran-Raspberry, etc.
Advantages: Reduces risk of new product failure
Disadvantages: Over-extending a product line can cause brand dilution

19. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Brand Licensing
Brand licensing is the legal authorization by a trademarked brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee.
Advantages: Enhance company image, sell more products

20. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Mixed Brands
A mixed-brand strategy involves simultaneously offering a combination of manufacturer, private distributor, and generic brands.
Example: Union Carbide sells Glad brand garbage bags and generic brand garbage bags.

21. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Co-Branding
A co-branding strategy combines one or more brands to increase customer loyalty and sales for each individual brand.
Example: Kellogg’s Pop-Tarts are made only with Smucker’s fruit filling. Starbucks Coffee Co. opens coffee shops inside Barnes & Noble bookstores.

22. Reviewing Key Terms and Concepts
ASSESSMENT
31.1
Reviewing Key Terms and Concepts
1. What is the difference between a brand name and a brand mark?
2. Why is branding important to product planning?
3. Name three types of brands.
4. List four different branding strategies.

23. ASSESSMENT Thinking Critically 31.1
Internet service providers are teaming with airlines, financial institutions, media outlets, celebrities, and non-profit groups to offer private-label Web access. Do you think that individuals want to receive their Internet access from the New York Yankees, David Bowie, Pepsi, or their local bank? Why or why not?

24. Graphic Organizer 31.1 Types of Brands TYPES OF BRANDS Manufacturer
Private
Distributor
Brands
Generic
Brands

25. Marketing Essentials
End of Section 31.1

26. Section 31.2 Packaging and Labeling
Marketing Essentials
n Chapter 31 Branding, Packaging, and Labeling
Section Packaging and Labeling

27. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
What You'll Learn
The principal functions of product packaging
The main functions of labels

28. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Why It's Important
While branding gives a specific brand personality, packaging puts a face on a product. Effective packaging creates a good impression, helps to sell the product, and communicates benefits to customers.

29. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Key Terms
package
label

30. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Packaging
A package is the physical container or wrapping for a product.
10 percent of a product's retail price is spent on package development and design and the package itself.

31. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Functions of Packaging
A package is a selling tool. Its functions include:
promoting and selling the product
defining product identity
providing information
meeting customer needs
ensuring safe use
protecting the product

32. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Functions of Packaging
Promoting and Selling the Product Customer reaction to a package and brand name is an important factor in determining marketplace success or failure.
Defining Product Identity Packages can invoke prestige, convenience, status, or other positive attributes.
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33. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Functions of Packaging
Providing Information Packages give directions for product use, information about contents, guarantees, nutritional information, and potential hazards.
Meeting Customer Needs Various sizes meet the needs of different market segments: family packs meet the needs of larger families; smaller packages are made for individuals.
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34. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Functions of Packaging
Ensuring Safe Use Plastic packaging, tamper-resistant packaging, and childproof containers protect customers.
Protecting the Product Packages protect a product during shipping, storage, and display, prevent tampering, and sometimes help prevent shoplifting of the product.
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35. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Contemporary Packaging Issues
Product packaging offers companies unique opportunities to address lifestyle changes as well as social and political concerns. Companies often consider using:
environmentally friendly packaging
packaging that makes social and political statements
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36. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Contemporary Packaging Issues
Environmental Packaging Some customers are willing to pay more for products with packages that are reusable, recyclable, less wasteful, and safer for the environment.
Cause Packaging Some companies use packages to promote social issues.
Example: Ben & Jerry’s Homemade ice cream cartons promote saving the rain forest.
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37. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Labeling
A label is an information tag, wrapper, seal, or imprinted message that is attached to a product or its package. A label’s purpose is to:
inform about a product’s contents and direction for use
protect companies from legal liability
contain a brand name, logo, ingredients, special promotional messages, and other useful information

38. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Labeling Laws
Many package labels must meet local, state, and federal standards to prevent manufacturers from misleading consumers.

39. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
The Federal Food and Drug Administration
The FDA administers the Federal Nutrition Labeling and Education Act passed in 1990, which protects consumers from deceptive labeling and establishes standards for use of terms and health warnings.

40. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
The Federal Trade Commission
The FTC passed the Care Labeling Rule in 1972 to require that care labels be placed in clothing.
The FTC also released guidelines for making environmental claims on labels, such as made from recycled materials or recyclable.

41. Reviewing Key Terms and Concepts
ASSESSMENT
31.2
Reviewing Key Terms and Concepts
1. What is a package?
2. List the principal functions of product packaging.
3. What is a product label?
4. What are the main functions of labels?

42. ASSESSMENT Thinking Critically 31.2
Many popular products have symbols on their packages telling consumers how to cook, clean, and wash the products. Why have symbols and graphic directions been placed on many packaged products?

43. Marketing Essentials
End of Section 31.2