Developing & Managing Brand & Product Categories

Intro to Marketing Ch.12

Managing Brands How are products identified?

brand, logo, song, color creating and protecting a strong

identity for products and product lines is very important.

What is a Brand? Name, term, sign, symbol design, or

some combination of these used to identify the products of one firm from another.

Consumers respond to branding by making repeat purchases of the same product.

Brand loyalty measured in three ways: Brand Recognition

Consumer awareness & identification of a brand

Stage of brand acceptance where consumer knows of a brand but doesn’t prefer it to competing brands.

The first objective for new products Brand Preference

- it will be chosen over competitors’ brand

Brand Insistence- substitutes will not be accepted

Types of brands

Generic product

- black & white plain label; no advertising and no brand names

pharmaceuticals Manufacture’s

brand (National Brands)- owned by a manufacturer- HP, Sony, Pepsi-Cola, Dell

Corn

Flakes

Cereal

Private brands (Labels) - brand name placed on products marked by a wholesaler or retailer - usually lower priced

Captive Brands National Brands sold exclusively

by a retail chain

Conair Produces the Hairdryers and Curling Irons for Wal-Mart’s Captive Brand

Family brand- a brand name that identifies several products

Individual brand- brand name that identifies a specific product line- more expensive than family brands to market

P rocter & Gamble

Both

Types of brands

Product Identification Brand Names

Part of the brand consisting of words or letters that can distinguish it from the competitor

Must be carefully chosen for in order to avoid embarrassing translations.

Should communicate a correct connotation.

Should qualify for legal protection.

Brand Marks

A firm’s distinguishing symbol or pictorial design.

Generic names fail the test of uniqueness

Developing Global Brand Names & Trademarks

An excellent brand name or symbol in one country may prove disastrous in another.

A Trademark

Brand for which the owner claims exclusive legal protection.-Trademark Protection

Ensures the differentiation of a brand in consumers’ mind.

Allows a brand name, brand mark, or slogan to be used legally

Trade Dress Visual cues used in branding an

overall look that may be related to color selections, sizes, package, label shapes

Trademarks

Packaging

Three goals:

Protect against damage, spoilage, and pilferage.

Assist in marketing the product.

Be cost-effective

Labeling Contains brand name or symbol, name

and address of manufacture or distributor, composition and size, recommended use for the product.

Nutrition Labeling and Education Act of 1990.- Requires detailed nutritional information.

Promotional and informational, very important part of the package

Unsubstantiated or misleading claims on product labels risk fines or lawsuits

UPC code RFID Tags may replace UPC

New Product Planning

A steady flow of new product entries must be available if the firm is to survive.

Product Failures

Product Positioning Consumers perception of a products

attributes, uses, quality, & benefits. Cannibalization

Loss of sales of a current product due to competition from a new product in the same line.

Consumer Adoption Process - Adopter Categories

Based on Relative Times of Adoption

New Product Development Process Idea Screening Business Analysis Development Test Marketing Commercialization

Product Safety Growth in the number of product liability

lawsuits. Safety warnings appear on labels

True examples: Sears hair dryer: Do not use while sleeping Fritos bag: You could be a winner! No purchase

necessary. Details inside Sainsbury’s Peanut bag: Warning: Contains nuts Nytol Sleep Aid: Warning: May cause drowsiness Boot’s Children’s Cough Medicine: Do not drive or

operate heavy machinery