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MKT - CH9 - Product, Branding, and Packaging Decisions - Coggle Diagram
MKT - CH9 - Product, Branding, and Packaging Decisions
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Branding
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branding provides a way for a firm to differentiate its product offerings from those of its competitors, and can be used to represent the name of a firm and its entire product mix, one product line, or a single item
The value of Branding
Brands facilitate purchasing, brands are often easily recognized, by consumers and, because they signify a certain quality level and contain familiar attributes, brand help consumers make quick decisions
Brands establish loyalty, over time and with continued use, consumers learn to trust certain brands
Brands protect from Competition and Price Competition, because some brands are more established in the market and have a more loyal customer base, neither competitive pressures on price nor retail-level competition is as threatening to a firm.
Brand Reduce marketing Costs, forms with well-known brands can spend relatively less on marketing costs than firms with little-known brands because the brand sells itself.
Brands are assets, brands can be legally protected through trademarks and copyrights, and thus constitute a unique ownership for the firm
firms sometimes have to fight to keep their brands pure, looking out for counterfeit merch, which could dilute the brands image
Brands impact market value, having well known brands can have a direct impact on the company's bottom line. The value of a brand can be calculated by assessing the earning potential of the brand over the next 12 months.
Brand Equity, the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the products or service
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Brand awareness, measures how many consumers in a market are familiar with the brand and what it stands for, and have an opinion about that brand.
familiarity matters most with products that are bought without much though, such as soap or chewing gum
It is also important for infrequently purchased items or items the customer has never purchased before.
if the consumer recognizes the brand, it probably has attributes that make it valuable
marketers create brand awareness through repeated exposures of the various brand elements, in the firm's communications to consumer
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Perceived value, the relationship between a product or service's benefits and its cost
consumers could be aware of a brand but have a negative opinion of its value or the firm's reputation
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if they feel an inexpensive brand is about the same quality as a premium brand, the perceived value of the cheaper choice is high.
Brand associations, reflect the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality.
associations with specific attributes help create differentiation between the brand and its competitors.
firms sometimes even develop a personality for their brands, as if the brand were human.
Brand personality, refers to a set of human characteristics associated with a brand that has symbolic or self-expressive meanings for consumers.
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Brand loyalty, occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category.
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such consumers are often less sensitive to price,
firms sometimes reward loyal consumers with loyalty or CRM progams for extra discounts, free services, etc.
the marketing costs of reaching loyal consumers are much lower because the firm does not have to spend money on advertising and promotion campaigns
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loyal consumers praise the brand, and generate positive word of mouth
high level of brand loyalty insulates the firm from competition because brand-loyal consumers do not switch easily to competitors brands even when provided with a variety of incentives.
Branding Strategies
Brand ownership
manufacturer brands, brands owned and manufactured by the manufacturer, such as Nike
by owning their brands, manufacturers retain more control over their marketing strategy, are able to choose the appropriate market segments and positioning for the brand, and can build the brand and thereby create their own brand equity
private-label brands, brands developed and marketed by a retailer and available only from that retailer, such as Kirkland
private-label brands are very common in supermarkets, discount stores and drugstores, their popularity depends on several factors, including consumer preferences, for a lower -cost brand and the trust consumers have in the store and its brand.
Generic products are those sold without brand names, typically in commodities markets, such as unbranded salt.
consumers question the quality and origin of the products, and retailers have found better profit potential and the ability to build brand equity with manufacturer and store brands.
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Choosing a name
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brand name should be easy to pronounce, recognize, and remember, such as Tide,
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for international markets, the brand name should be easy to translate into other languages.
Brand extension,
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because the brand name is already well established, the firm can spend less in developing consumer brand awareness and brand associations for the new product
if the brand is known for its high qualuty, the perception will carry over to the new product.
when brand extensions are used for complementary products, a synergy exists bewtween the two products that can increase overall sales.
Brand dilution might happen also, when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.
to prevent potentially negative cnsequences of brand extensions, firms must consider the following cafgeats.
evaluate the fit between the product class of the core brand and threat of the extension, if the fit is high, consumer will consider the extension credible, and the brand association will be stronger.
evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension because brand specific associations are very important for extensions.
refrain from extending the brand name to too many products and product categories to a void diluting the brand and damaging brand equity.
consider whether the brand extension will be distanced from the core brand, especially if the firm wants to use some but not all of the existing brand associations.
Cobranding, the practice of marketing two or more brands together, on the same package or promotion
it enhances consumer's perceptions of product quality by signaling otherwise unobservable product quality through links between the firm's brand and a well0known quality brand.
risks, when cobranding happens with brands that are vastly different, the cobranding strategy can fail because consumers are very distinct. (burger king and haagen dazs)
Brand licensing,
contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characteristics in exchange for a negotiated fee.
the firm that provides the right to use its brand (licensor) obtains revenues through royalty payments from the firm that has obtained the right to use the brand (licensee)
royalty payments sometimes take the form of an upfront, lump-sum licensing fee or may b e based on the dollar value of sales of the licensed merch.
licensing is an effective form of attracting visibility for the brand and thereby building brand equity while also generating additional revenue.
risks, dilution of brand equity through overexposure of the brand, especially if the brand name and characters are used inappropriately
Packaging
an important brand element with more tangible or physical benefits than the other brand elements because packages come in different types and ofer a variety of benefits to consumers, manufacturers, and retailersç.
packaging attarcts the consumers attention,
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provides the UPC label used by retail scanners as well as contents, directions, and other additional product information
can also be an important marketing tool for the manufacturer if it used to convey the brands positioning.
is considered by many marketers to be the last fornteier in advertising because of its role in promoting products to consumers on the floor of the store at the point of purchase
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designed to be more ecological, reduce waste, etc
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items may be often packed into larger cartons, pallets or containers to facilitate shipment and storage from the manufacturer to the retailer.
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Labelling
labels on products and packages provide information the consumer needs for his or her purchase decision and consumption of the product
they identify the product and brand, labels are important because they can be used for promotion
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claims need also to be checked, you cannot say "fat free" and add fat to the product
product label is a communication tool, many elements are required by laws, others remain on the control of the manufacturer to communicate the benefits to their consumers.