1. Chapter 12 Developing and Managing Brand and Product Categories
Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 12 Developing and Managing Brand and Product Categories

2. Chapter Objectives Determine how to define a brand.
Identify the different types of brands.
Explain the strategic value of brand equity.
Explain the benefits of category and brand management.
Discuss how companies develop strong identities for their products and brand.
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3. Chapter Objectives
Identify and briefly describe each of the new-product development strategies.
Describe the consumer adoption process.
List the stages in the new-product development process.
Explain the relationship between product safety and product liability.
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4. Managing Brands for Competitive Advantage
Brand - Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from the competition’s
Brands have a powerful influence on consumer behavior
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6. Brand Loyalty Measured in three stages:
Brand recognition - Consumer awareness and identification of a brand
Brand preference - Consumer reliance on previous experiences with a product to choose that product again
Brand insistence - Consumer refusal of alternatives and extensive search for desired merchandise
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7. Types of Brands Manufacturer’s brand Private brands Captive brands
Individual brand
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8. Brand Equity
Added value that a respected, well-known brand name gives to a product in the marketplace
It is built sequentially on four dimensions:
Differentiation
Relevance
Esteem
Knowledge
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9. 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
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10. 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
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11. 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
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12. 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
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13. Packaging Serves three major objectives:
Protection against damage, spoilage, and pilferage
Assistance in marketing the product
Cost effectiveness
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14. 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
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17. 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
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19. 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
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20. 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
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