chapter Product, Branding, and Packaging Decisions ten Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

LEARNING OBJECTIVES LO1Describe the components of a product. LO2Identify the types of consumer products. LO3Explain the difference between a product mix’s breath and a product line’s depth. LO4Identify the advantages that brands provide firms and consumers. LO5Explain the various components of brand equity. LO6Determine 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. Product, Branding, and Package Decisions 10-2

Complexity of Products Michael Blann/Digital Vision/Getty Images 10-3

Types of Products SpecialtyShoppingConvenienceUnsought 10-4

Product MixProduct Mix and Product Line Decisions Product Line Breadth Number of product lines Depth Number of categories within a product line Courtesy Pepsi Cola Company 10-5

Change Product Mix Breadth Increase Breadth – True Religion Brand Jeans now are a lifestyle brand with apparel, belts, swimwear and fragrances Decrease Breadth – Due to competitive changes, TCBY is now focusing on Yogurt. ©Procter & Gamble 10-6

Change Product Mix Depth Increase Depth – Band-Aid now has over 40 products to heal cuts. Decrease Depth – McCormick spices eliminates dozens of products each year. ©M Hruby 10-7

A brand can use: Name, logo symbols, characters, slogans, jingles and even distinctive packages. Branding Oscar Meyer Commercial Courtesy Mercedes-Benz USA, LLC; Merkley & Partners/New York 10-8

What Makes a Brand? Branding Brand nameURLs Logos and symbols CharactersSlogansJingles/Sounds 10-9

Value of Branding for the Customer and the Marketer Facilitate PurchasingEstablish LoyaltyProtect from CompetitionReduce Marketing CostsAre AssetsImpact Market Value 10-10

Brand Equity Brand Awareness Perceived Value Brand Associations Brand Loyalty 10-11

Brand Ownership Manufacturer brands or national brands Private-label brands or Store Brands Premium Generic Copycat Exclusive co-branded 10-12

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) 10-13

Brand Extension State Farm Website ©M Hruby 10-14

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? 10-15

Brand Licensing LaCoste SA 10-16

Brand Repositioning How is this repositioning? Courtesy The Procter & Gamble Company 10-17

Packaging What other packaging do you as a consumer find useful? 10-18

Product Labeling ©The McGraw-Hill Companies, Inc/Elite Images C Sherburne/PhotoLink/Getty Images 10-19

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 10-20

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 10-21

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 10-22

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 10-23

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 10-24

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 10-25

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 10-26

Return to slide Co-branding is the practice of marketing two or more brands together, on the same package or promotion. Glossary 10-27

Return to slide Perceived value of a brand is the relationship between a product or service’s benefits and its cost. Glossary 10-28

Return to slide Product assortment or product mix is the complete set of all products offered by a firm. Glossary 10-29

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 10-30

Return to slide Product mix or product assortment is the complete set of all products offered by a firm. Glossary 10-31