chap 0100
DESCRIPTION
Product Line DecisionsTRANSCRIPT
![Page 1: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/1.jpg)
C H A P T E R
PRODUCT, BRANDING, AND PACKAGING DECISIONS
10
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
![Page 2: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/2.jpg)
10-2
L E A R N I N G O B J E C T I V E S
Product, Branding, and Packaging Decisions
LO1 Describe the components of a product.
LO2 Identify the types of consumer products.
LO3 Explain the difference between a product mix’s breath and a product line’s depth.
LO4 Identify the advantages that brands provide firms and consumers.
LO5 Explain the various components of brand equity.
LO6 Determine the various types of branding strategies used by firms.
LO7 Distinguish between brand extension and line extension.
LO8 Indicate the advantages of a product’s packaging and labeling strategy.
![Page 3: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/3.jpg)
10-3
Polo by Ralph Lauren
Photo by Chris Trotman/Getty Images for USOC
![Page 4: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/4.jpg)
10-4
iPod Anticipation
![Page 5: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/5.jpg)
10-5
Complexity of Products
Michael Blann/Digital Vision/Getty Images
![Page 6: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/6.jpg)
10-6
Types of Products
Specialty Shopping
Convenience Unsought
![Page 7: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/7.jpg)
10-7
Check Yourself
1. Explain the three components of a product.
2. What are the four types of consumer products?
![Page 8: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/8.jpg)
10-8
Product Mix and Product Line Decisions
![Page 9: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/9.jpg)
10-9
Product Mix and Product Line Decisions
Breadth
•Number of product lines
Depth
•Number of categories within a product line
Courtesy Pepsi Cola Company
![Page 10: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/10.jpg)
10-10
Change Product Mix Breadth
• Increase Breadth – True Religion Brand
Jeans now are a lifestyle brand with apparel, belts, swimwear and fragrances
• Decrease Breadth – Due to competitive
changes, TCBY is now focusing on Yogurt.
©Procter & Gamble
![Page 11: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/11.jpg)
10-11
Change Product Mix Depth
• Increase Depth
– Band-Aid now has over 40 products to heal cuts.
• Decrease Depth
– McCormick spices eliminates dozens of products each year.
©M Hruby
![Page 12: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/12.jpg)
10-12
Check Yourself
1. What is the difference between product line breadth versus depth?
2. Why change product line breadth?
3. Why change product line depth?
![Page 13: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/13.jpg)
10-13
Product Line Decisions
• How is this changing the product mix?
• Does it increase breadth or depth?
• Is this research or advertising?
CLO
RO
X®
is a
re
gis
tere
d t
rad
em
ark
of
Th
e C
loro
x C
om
pan
y U
sed
wit
h p
erm
issi
on
![Page 14: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/14.jpg)
10-14
The same types of decisions can be used for services
Product Line Decisions for Services
Getty Images/Comstock Images
![Page 15: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/15.jpg)
10-15
A brand can use: Name, logo symbols, characters, slogans, jingles and even distinctive packages.
Branding
Oscar Meyer Commercial
Co
urt
esy
Me
rce
de
s-B
en
z U
SA
, LLC
; M
erk
ley
& P
artn
ers
/Ne
w Y
ork
![Page 16: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/16.jpg)
10-16
What Makes a Brand?
Branding Brand name
URLs
Logos and symbols
Characters
Slogans
Jingles/Sounds
![Page 17: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/17.jpg)
10-17
Value of Branding for the Customer and the Marketer
Facilitate Purchasing
Establish Loyalty
Protect from Competition
Reduce Marketing Costs
Are Assets
Impact Market Value
![Page 18: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/18.jpg)
10-18
History in Advertising
![Page 19: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/19.jpg)
10-19
Brand Equity: Brand Awareness
![Page 20: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/20.jpg)
10-20
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
![Page 21: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/21.jpg)
10-21
Brand Equity: Brand Associations
©McGraw-Hill Companies Inc/Gary He, photographer
![Page 22: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/22.jpg)
10-22
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
![Page 23: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/23.jpg)
10-23
1. How do brands create value for the customer and the firm?
2. What are the components of brand equity?
Check Yourself
![Page 24: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/24.jpg)
10-24
Brand Ownership
Manufacturer brands or national brands
Private-label brands or Store Brands
• Premium
• Generic
• Copycat
• Exclusive co-branded
![Page 25: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/25.jpg)
10-25
Brand Ownership
Private Label
McGraw-Hill Companies
![Page 26: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/26.jpg)
10-26
Brand Ownership
Exclusive Co-brands
![Page 27: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/27.jpg)
10-27
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)
![Page 29: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/29.jpg)
10-29
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?
![Page 30: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/30.jpg)
10-30
Co-branding
©M Hruby
![Page 31: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/31.jpg)
10-31
Brand Licensing
LaC
ost
e S
A
LaC
ost
e S
A
![Page 32: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/32.jpg)
10-32
Brand Repositioning
• How is this repositioning?
Courtesy The Procter & Gamble Company
![Page 33: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/33.jpg)
10-33
Check Yourself
1. What are the differences among manufacturer and private-label brands?
2. What is co-branding?
3. What is the difference between brand extension and line extension?
4. What is brand repositioning?
![Page 34: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/34.jpg)
10-34
Packaging
• What other packaging do you as a consumer find useful?
![Page 35: Chap 0100](https://reader031.vdocument.in/reader031/viewer/2022020506/56d6bf7a1a28ab3016966878/html5/thumbnails/35.jpg)
10-35
Product Labeling
©The McGraw-Hill Companies, Inc/Elite Images
C Sherburne/PhotoLink/Getty Images