1. Using PollEV - text: Text UWMBUSINESS to 37607
Backup number: (747)
Remember to text LEAVE at the end

2. The First ‘P’: Product, Branding, and Packaging Decisions
Ref: Text, chapter 11

4. “Augmented Product” A Product
Marketers involved with the development, design, and sale of products think of them in an interrelated fashion. At the center is the core customer value, next is the actual product, followed by associated services.

7. $0.40
$ $3.50!
The power of branding

8. What Makes a Brand? “Brand elements”
Branding
Brand name
URLs
Logos and symbols
Characters
Slogans
Jingles/Sounds
Group activity: Identify a brand that you recognize primarily by each of these elements.
Brand Name: Most brands.
Jingles: Be all you can be – Army.
URLs:
Logos & Symbols: Nike Swoosh.
Slogans Nike- Just Do It.:
Characters: Quaker, KFC, McDonalds.

9. The Value of Branding for the Customer and the Marketer
Brands Facilitate Purchases:
Brands help consumers make quick decisions
Brands Establish Loyalty:
Over time and with continued use, consumers learn to trust certain brands.

11. The Value of Branding for the Customer and the Marketer
Brands Protect from Competition and Price Competition:
Because strong brands are more established, and have a more loyal customer base, neither competitive pressures on price nor retail-level competition is as threatening to the firm

12. A sustainable
competitive
advantage

13. The Value of Branding for the Customer and the Marketer
Brands Can Reduce Marketing Costs:
Firms with well-known brands can spend less on marketing because the brand sells itself. A loyal Starbucks customer
Brands Are Assets:
Brands constitute a unique form of ownership: they are assets that can be legally protected through trademarks and copyrights. This is why well-known brands try hard to protect against counterfeit items

14. Real

15. The Value of Branding for the Customer and the Marketer
Brands Impact Market Value:
The value of a company is its overall monetary worth, comprising a vast number of assets. Having well-known brands can have a direct in pact on the company’s bottom line. The value of a brand, (an asset), refers to the earning potential of the brand over the next 12 months. The value of a brand is its brand equity
Interbrand Rankings

17. Brand Equity
Brand equity, representing the value of the brand, is the set of assets and liabilities linked to the brand
How do we know how “good” a brand is, or how much equity it has? Experts look at four aspects of a brand to determine its equity: brand awareness, perceived value, brand associations, and brand loyalty

18. Components of Brand Equity
Brand Awareness:
Brand awareness measures how many consumers in a market are familiar with the brand and what it stands for. The greater the awareness, the easier it decision-making process will be for them.

20. U-R-E Attribute Sets e.g., Every coffee shop in the marketplace
Universal
Retrieval
Evoked
Starbucks
Dunkin Donuts
McDonald’s
Stone Creek
Collectivo
Peet’s Coffee
Caribou Coffee
Starbucks
Peet’s
Research has shown that a consumer’s mind organizes and categorizes alternatives to aid his or her decision-making process.
Universal sets include all possible choices for a product category. A subset of the universal set is the retrieval set, which are those brands or stores that can be readily brought forth from memory. Another is an evoked set, which comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.
Ask students to name cookie brands – this is their retrieval set. They may be surprised at how few brands they retrieve.

21. Components of Brand Equity
Perceived Value:
The perceived value of a brand is the relationship between a product’s benefits and its cost. Customers perceive the value of a brand in relationship to that of its close competitors

22. Components of Brand Equity
Brand Associations:
Brand associations reflect the mental links that consumers make between a brand and its key product attributes, such as a slogan, logo, or famous personality. Example: Prius = good for the environment, stylish, good value, fuel-efficient

23. Foxconn

24. Components of Brand Equity
Brand Loyalty:
Brand loyalty occurs when a consumer buys the same brand repeatedly over time rather than buying from multiple suppliers within the same category. Therefore, loyal customers are an important source of value for firms.

26. So: Brand Equity = Brand awareness + Perceived value +
Brand associations +
Brand loyalty

27. Branding Strategies:
Who owns the brand?
How do you name your brand?

29. Manufacturer Brands

30. Private label brands

31. Branding Strategies: Who owns the brand? How do you name your brand?
Same name  “Family brands”
Different names for brands  “Individual brands”

33. Branding Strategies Brand and Line Extensions
A “brand extension” refers to the use of the same brand name in a different product line.
A “line extension” is the use of the same brand name within the same product line.

35. Product Mix and Product Lines
Product Mix Breadth
Product Line Depth
This chapter uses Kellogg’s brands as examples. Many students may be familiar with the name Kellogg’s with breakfast cereal, but not know they have so many other products.
Students should understand that each item is called a stock keeping unit (SKU) and the category depth is the number of SKUs within a category.
Breadth
Number of product lines
Depth
Number of products in a product line

36. Branding Strategies Brand and Line Extensions
Not all brand extensions are successful, however. Some can dilute brand equity. Brand dilution occurs when the brand extension adversely affect consumer perceptions about the original brand. Example:

37. Dilution example:

38. Dilution:
Frozen entrees
Dental products

39. Branding Strategies Co-branding
This is the practice of branding two or more products together, in marketing them. Co-branding can enhance consumers’ perceptions of product quality by signaling “unobservable” product quality through links between the firm’s brand and a well-known quality brand.

41. Branding Strategies Brand Licensing
This is a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbol, and/or characters in exchange for a negotiated fee. Common for toys, apparel, video games
Licensing is a great way to generate additional revenue while building brand equity, but it does risk dilution of brand equity through overexposure of the brand.

43. Branding Strategies Brand Repositioning
Also known as rebranding. This 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

45. Hypothetical Perceptual Map of the soft drink industry
Small circles: Denote the position of each brand
This perceptual map was created by the process on the previous page. It was for Gatorade which was seeking a positioning of healthy and sweet taste.
Asterisks:
Denote consumers’ ideal points (where a segment’s ideal product would lie)

46. Packaging An extremely important brand element.
It attracts the consumers’ attention
It enables the products to stand out from their competitors
It offers a promotional tool (e.g., “NEW” or “IMPROVED” on the label)
It allows for the same product to appeal to different markets with different sizes

48. Package Changes A subtle way of repositioning the product
Convey the perception of being a new product
More eco-friendly
Can backfire though, such as Tropicana’s re-designed packaging, which met consumer resistance

50. Product Labeling Labels are communication tools
An important element of branding and can be used for promotion. Labels can be used to communicate the benefits of a product (e.g., “sugar free”)
Labels must comply with laws and regulations:
The Federal Trade Commission Act of 1914
The Fair Packaging and Labeling Act of 1967
The Nutrition Labeling Act of 1990
The FDA ( Food and Drug Administration)

52. PRIZM

54. Key concepts/ terms to know
Product: core customer value, the actual product, attributes, associated services ( augmented product)
Consumer product types: specialty products, shopping products, convenience products, unsought products
Product mix, product line, breadth of the product mix, depth of the product line
Changing breadth of product mix and depth of product line
Branding, brand awareness, brand elements
Brand equity: its value to both marketers and consumers
Components of brand equity: brand awareness, perceived value, brand associations, brand loyalty
Manufacturer brands, private-label brands (premium brands, generic brands, copycat brands, exclusive co-brands)
Family brands, individual brands
Brand extension, line extension
Brand dilution
Co-branding
Brand licensing
Brand repositioning
Packaging
Product labeling and its uses, especially in branding