Download CHAPTER TWELVE BRAND MANAGEMENT AND NEW

CHAPTER TWELVE
BRAND MANAGEMENT
AND
NEW-PRODUCT PLANNING
MANAGING BRANDS FOR
COMPETITIVE ADVANTAGE
n
Brand: name, term, sign, symbol,
design, or some combination that
identifies the products of a firm
Brand Loyalty
n
n
n
Brand recognition: stage of brand acceptance at
which the consumer knows of a brand but does
not prefer it to competing brands
Brand preference: stage of brand acceptance at
which the consumer selects one brand over
competing offerings based on previous
experiences with that brand
Brand insistence: stage of brand acceptance at
which the consumer refuses to accept
alternatives and searches extensively for the
desired good or service
Types of Brands
n
Generic product: item characterized
by plain label, with no advertising
and no brand name
Types of Brands
n
Manufacturers’ brand: brand name
owned by a manufacturer or other
producer (Dr. Pepper or IBC Root
Beer)
Types of Brands
n
Private brands: brand name placed
on products marketed by wholesalers
and retailers (Sam’s Choice beverage
(Wal-Mart) or ACE brand tools)
Types of Brands
n
Captive brands: national brands that
are sold exclusively by a retail chain
Types of Brands
n
Family brand: brand name that
identifies several related products
(Heinz 57 or the RAID insect sprays,
or Campbell’s)
Types of Brands
n
Individual brand: unique brand
name that identifies a specific
offering within a firm’s product line
and that is not grouped under a family
brand
PRODUCT
IDENTIFICATION
n
n
n
Brand name: part of a brand consisting of
words or letters that form a means to
identify and distinguish a firm’s offering
Brand mark: symbol or pictorial design
that identifies a product
Generic name: branded name that has
become a generically descriptive term for
a class of products (e.g., nylon, aspirin,
kerosene, and zipper)
PRODUCT
IDENTIFICATION
n
n
Trade mark: brand to which the owner
legally claims exclusive access
Trademark protection confers the
exclusive right to user brand name, trade
mark, and any slogan or product name
abbreviation
Developing Global Brand
Names and Trademarks
n
n
n
Potentially an acute problem for
international marketers
An excellent brand name or symbol in one
country may prove disastrous in another
Trademarks that are effective in their
home countries may fare less well and
other cultures
NEW PRODUCT PLANNING
n
n
Marketing scholar Warren Nation stated
that, “Firms must innovate or die.”
Even producers of such staples as salt
must innovate by, for example, developing
new sizes and types of packages and types
of salt
Figure 12.10: Alternative Product
Development Strategies
Product Development
Strategies
n
n
Product positioning: consumers’
perceptions of a product’s attributes, uses,
quality, and advantages and disadvantages
in relation to those of competing brands
Cannibalization: a loss of sales of the
current product due to competition from a
new product in the same line
The Consumer Adoption
Process
n
Adoption process: series
of stages for which
consumers decide
whether or not to become
a regular user of a new
product, including:
–
–
–
–
–
Awareness
Interest
Evaluation
Trial
Adoption or rejection
Figure 12.11: Categories of Adopters
Based on Relative Times of Adoption
Organizing for New Product
Development
n
n
n
n
n
New Product Committees are the most common
organizational arrangements for developing new products
Separate New Product Departments are established by a
committee companies
Product manager: marketing professional who determines
the objectives and marketing strategies for individual
product or product line
Venture team: new-product development organization that
brings together specialists from different functional areas
Task force: interdisciplinary group on temporary
assignment that works through functional departments in
examining new-product issues
THE NEW PRODUCT
DEVELOPMENT PROCESS
New product development process: six
stages through which new product ideas
progress before being introduced to the
overall market
n Helpful in reducing the high, 80%
average failure rate of new products
n
THE NEW PRODUCT
DEVELOPMENT PROCESS
n
Idea
generation
New product ideas
come from many
sources including:
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–
–
–
–
–
–
Sales force
Customers
Employees
R&D specialists
The competition
Suppliers
Retailers
Independent inventors
THE NEW PRODUCT
DEVELOPMENT PROCESS
n
Screening
n
Screening separates
ideas with commercial
potential from those
that cannot meet
company objectives
Checklists of
development standards
can be helpful at this
stage
THE NEW PRODUCT
DEVELOPMENT PROCESS
n
Business
analysis
n
The business analysis
consists of assessing the
new product’s market
potential, growth rate,
likely competitive
strengths, and
compatibility of the
proposed product with
organizational resources
Concept testing:
measuring consumer
attitudes and perceptions
of a product idea prior
to actual development
THE NEW PRODUCT
DEVELOPMENT PROCESS
n
n
n
Development
Converting an idea
into a physical product
Requires interaction
among many of the
firm’s departments
Prototypes may go
through many changes
THE NEW PRODUCT
DEVELOPMENT PROCESS
n
n
Test marketing: Introduction of a trial
version of a new product supported by a
complete marketing campaign to a selected
city of television coverage area
Some firms skip this stage, moving directly
to full-scale commercialization
Test
Marketing
THE NEW PRODUCT
DEVELOPMENT PROCESS
n
n
In this stage, the firm establishes
marketing strategies, and funds outlays for
production and marketing
The sales force, marketing intermediaries
and potential customers are acquainted
with the new product
Commercial
-ization