1. PRODUCT, BRANDING, AND PACKAGING DECISIONS11
PRODUCT, BRANDING, AND PACKAGING DECISIONS

2. Product, Branding, and Packaging Decisions
Describe the components of a product.
Identify the types of consumer products.
Explain the difference between a product mix’s breath and a product line’s depth,
Identify the advantages that brands provide firms and consumers.
Explain the various components of brand equity.
Determine the various types of branding strategies used by firms.
Distinguish between brand extension and line extension.
Indicate the advantages of a product’s packaging and labeling strategy.
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3. Types of Products
Specialty
Shopping
Convenience
Unsought

4. CHECK YOURSELF Explain the three components of a product.
What are the four types of consumer products?

5. Product Mix and Product Line Decisions
Abbreviated List of BMW Product Mix
Product Lines
BMW
MINI
Rolls-Royce
Motorrad
2 Series
3 Series
4 Series
5 Series
6 Series
7 Series
X Series
Z4 Series
M Series
BMW i
Hybrid
Clubman
Convertible
Countryman
Coupe
Hardtop
John Cooper Works
Paceman
Roadster
Ghost
Phantom
Wraith
C Series
F Series
G Series
K Series
R Series
S Series
Source: Kellogg’s 2010 annual report,

6. Product Mix and Product Line Decisions
Breadth
Number of product lines
Depth
Number of categories within a product line
Courtesy Pepsi Cola Company

7. CHECK YOURSELF
What is the difference between product line breadth versus depth?
Why change product line breadth?
Why change product line depth?

8. McGraw-Hill Companies, Inc.
What Makes a Brand?
McGraw-Hill Companies, Inc.
Logos and symbols
Characters
URLs
Slogans
©M. Hruby.
Branding
Brand name
Jingles/Sounds
“Law & Order”

9. Value of Branding for the Customer
Facilitate Purchasing
Establish Loyalty
Protect from Competition
Are Assets
Impact Market Value
Apple wins in the
Apple vs Samsung patent lawsuit

10. Brand Equity: Brand Awareness
Source: Interbrand’s Best Global Brands 2013 report is a look at financial performance of the brand, role of brand in the purchase decision process, and the brand strength. Go to for more information. Reprinted with permission.

11. Brand Equity: Perceived Value
How do discount retailers like Target, T.J. Maxx, and H&M create value for customers?
Photo by Peter Kramer/Getty Images

12. Brand Equity: Brand Associations
Vince Talotta/Toronto Star/Getty Images

13. Brand Equity: Brand Loyalty
Consumers are often less sensitive to price
Marketing costs are much lower
Firm insulated from the competition
Copyright State Farm Mutual Automobile Insurance
Company 2005 Used by permission

14. CHECK YOURSELF
How do brands create value for the customer and the firm?
What are the components of brand equity?

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

16. 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)
©M. Hruby.

17. Brand Extension
©M Hruby
State Farm

18. 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?

19. Zite Personalized Magazine
Co-branding
©M Hruby
Zite Personalized Magazine

20. Brand Licensing
Photo by D. larke Evans/NBAE via Getty Images.

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

22. CHECK YOURSELF
What are the differences among manufacturer and private-label brands?
What is co-branding?
What is the difference between brand extension and line extension?
What is brand repositioning?

23. Packaging What other packaging do you as a consumer find useful?
©M. Hruby.

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

25. Glossary
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.

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

27. Glossary
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.

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

29. Glossary
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.

30. Glossary
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.

31. Glossary
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.

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

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

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

35. Glossary
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.

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