Download Ch 11

CHAPTER 11
PRODUCT,
BRANDING,
AND PACKAGING
DECISIONS
11-1
Product, Branding,
and Packaging Decisions
LEARNING OBJECTIVES
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
LO7
LO8
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.
11-2
Types of Products
Specialty
Shopping
Convenience
Unsought
11-3
CHECK YOURSELF
1. Explain the three components of a product.
2. What are the four types of consumer products?
11-4
Product Mix and
Product Line Decisions
Abbreviated List of BMW Product Mix
Product Lines
BMW
2 Series
3 Series
4 Series
5 Series
6 Series
7 Series
X Series
Z4 Series
M Series
BMW i
Hybrid
MINI
Clubman
Convertible
Countryman
Coupe
Hardtop
John Cooper Works
Paceman
Roadster
Rolls-Royce
Ghost
Phantom
Wraith
Motorrad
C Series
F Series
G Series
K Series
R Series
S Series
Source: Kellogg’s 2010 annual report, http://annualreport2010.kelloggcompany.com/innovation.htm.
11-5
Product Mix and
Product Line Decisions
Breadth
• Number of product
lines
Depth
• Number of categories
within a product line
Courtesy Pepsi Cola Company
11-6
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?
11-7
McGraw-Hill
Companies, Inc.
What Makes a Brand?
Logos and
symbols
Characters
URLs
Slogans
www.eBay.com
©M. Hruby.
Brand name
Branding
Jingles/Sounds
“Law & Order”
11-8
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
11-9
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 http://www.bestglobalbrands.com for more information. Reprinted with permission.
11-10
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
11-11
Brand Equity: Brand Associations
Vince Talotta/Toronto Star/Getty Images
11-12
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
11-13
CHECK YOURSELF
1. How do brands create value for the customer
and the firm?
2. What are the components of brand equity?
11-14
Brand Ownership
Manufacturer brands or
national brands
Private-label brands or
Store Brands
•
•
•
•
Premium
Generic
Copycat
Exclusive co-branded
11-15
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.
11-16
Brand Extension
©M Hruby
State Farm
11-17
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?
11-18
Co-branding
©M Hruby
Zite
Personalized
Magazine
11-19
Brand Licensing
Photo by D. larke Evans/NBAE via Getty Images.
11-20
Brand Repositioning
 How is this
repositioning?
Courtesy The Procter & Gamble Company
11-21
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?
11-22
Packaging
 What other packaging
do you as a consumer
find useful?
©M. Hruby.
11-23
Product Labeling
C Sherburne/PhotoLink/Getty Images
©The McGraw-Hill Companies, Inc/Elite Images
11-24