Download Foundations of Marketing

of
MARKETING
Chapter
10
Marketing the
Total Product:
Brand, Image,
Warranty, and
Packaging
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Marketing the Total Product: Brand, Image, Warranty,
and Packaging
Chapter
10
Objectives
1. Explain the concept of a total product and of product
management.
2. Discuss the role of brands, brand names, and
trademarks.
3. Elaborate on basic approaches to brand management.
4. Understand brand equity and what contributes to it.
5. Explain the importance, role, and functions of packaging.
6. Identify the classifications for consumer products and
briefly describe each category.
7. Classify the types of industrial products.
10-1
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Marketing the Total Product: Brand, Image, Warranty,
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Chapter
10
Total Product
• A total bundle of physical, service, and
symbolic characteristics designed to
produce customer want satisfaction.
10-2
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Marketing the Total Product: Brand, Image, Warranty,
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Chapter
10
Figure 10.1
The Total Product Concept
Product
image
Brand
Warranty
and
service
Physical or
Functional
Characteristics
of a Good
or Service
Package
and
label
10-3
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Chapter
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Warranty
• A guarantee to the buyer that the
supplier will replace a defective product
(or part of a product) or refund its
purchases price during a specified
period of time.
10-4
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Brand
• A name, term, sign, symbol, or design
(or some combination of these) used to
identify the products of one firm and to
differentiate them from competitive
offerings.
10-5
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Brand Name
• Words, letters, or symbols that make
up a name used to identify and
distinguish the firm’s offerings from
those of its competitors.
10-6
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A Good Brand Name
1.
2.
3.
4.
Easy to pronounce
Recognize
Remember
Legally protectable
10-7
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Trademark
• A brand that has been given legal
protection and has been granted solely
to its owner.
10-8
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Chapter
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Generic Name
• A brand over which the original owner
has lost exclusive claim because all
offerings in the associated class of
products have become generally
known by the brand name (usually that
of the first or leading brand in that
product class).
10-9
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Chapter
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Brand Equity
• Represents the value customers (and
the stock markets) place on the sum of
the history the customer has had with a
brand.
10-10
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Figure 10.2
Components of Brand Equity
Brand
Equity
Brand
awareness
10-11
Perceived
quality
Brand
association
Brand
loyalty
Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Brand Leadership, by
David A. Aaker and Erich Joachimsthaler, p. 17. Copyright © 2000 by David A. Aaker andErich Joachimsthaler.
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Chapter
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Brand Loyalty Categories
1. Familiarity
2. Preference
3. Insistence
10-12
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Brand Familiarity
• The first stage of brand loyalty, when a
firm has developed enough publicity for
a brand that its name is familiar to
consumers.
10-13
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Brand Preference
• The second stage of brand loyalty,
when based on previous experience,
consumers will choose a product rather
than one of its competitors -- if it is
available.
10-14
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Brand Insistence
• The ultimate stage of brand loyalty,
when consumers will accept no
alternatives and will search extensively
for the product.
10-15
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Brand Architecture
• The relationship between a company’s
products, brands and sub-brands.
10-16
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Figure 10.3
Brand Leadership
Organizational Structure
and Processes
• Responsibility for brand
strategy
• Management processes
Brand Architecture
• Brands/subbrands/endorsed
brands
• Roles of brands/subbrands
Brand
Leadership
Brand-Building Program
• Accessing multiple media
• Achieving brilliance
• Integrating the
communication
• Measuring the results
10-17
Brand Identity/Position
• Aspirational image
• Positioning the brand
Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Brand Leadership, by
David A. Aaker and Erich Joachimsthaler, p. 25. Copyright © 2000 by David A. Aaker andErich Joachimsthaler.
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Chapter
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Family Brand
• Brand name used for several related
products.
Individual Brand
• Brand that is known by its own brand
name rather than by the name of the
company producing it or an umbrella
covering similar items.
10-18
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Brand Extension
• The decision to use a popular brand
name for a new product entry in an
unrelated product category.
10-19
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Brand Strategy
1. The decision to use a popular brand
name for a new product entry in an
unrelated product category.
a) Family
b) Individual
2. Private
10-20
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National Brand
(Manufacturer’s Brand)
• A brand promoted and distributed by a
manufacturer.
Private
• A brand promoted and distributed by a
wholesaler or retailer.
10-21
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Generic Products
• Food and household staples
characterized by plan labels, little or no
advertising, and no brand names.
10-22
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Purposes for Packaging
1. Protection against damage, spoilage,
and pilferage
2. Assistance in marketing the product
3. Cost-effectiveness
10-23
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Label
The part of the package that contains:
1. The brand name or symbol
2. The name and address of the
manufacturer or distributor
3. Information about product
composition and size
4. Information about recommended uses
of the product.
10-24
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Universal Product Code
• A code readable by optical scanners
that can print the name of the item and
the price on the cash register receipt.
10-25
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Consumer Goods Classification:
1. Convenience
2. Preference
3. Shopping
4. Specialty
5. Unsought
10-26
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Convenience Products
• Products that are lowest in terms of
both effort and risk.
10-27
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Preference Products
• Products that are slightly higher on the
effort dimension and much higher on
risk than convenience products.
10-28
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Shopping Products
• Products that are usually purchased
only after the consumer has compared
competing products.
10-29
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Specialty Products
• Products that are highest in both effort
and risk, due to some unique
characteristics that cause the buyer to
prize that particular brand.
10-30
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Unsought Products
• Products that people may know about
but normally do not purchase.
10-31
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Figure 10.4
10
A Strategic Classification of Products
10-32
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Table 10.1
Managerial Implications of Classifying Products Strategically (1 of 2)
10-33a
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Table 10.1
10
Managerial Implications of Classifying Products Strategically (1 of 2)
10-33b
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Chapter
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Classifying Business-to-Business
Products:
1. Installations
2. Accessory Equipment
3. Component Parts and Materials
4. Raw Materials
5. Supplies and MRO Items
10-34
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Installations
• Major capital assets that are used to
produce products and services.
10-35
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Accessory Equipment
• Second-level capital items that are
used in the production of products and
services but are usually less expensive
and shorter-lived than installations.
10-36
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Industrial Distributor
• A wholesaler that operates in the
business-to-business goods market
and typically handles small accessory
equipment and operating supplies.
10-37
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Component Parts and Materials
• Finished business-to-business goods
that actually become part of the final
product.
10-38
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Raw Materials
• Farm products (such as cattle, wool,
eggs, milk, pigs, and canola) and
natural products (such as coal,copper,
iron ore, and lumber).
10-39
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Supplies and MRO Items
Supplies
• Regular expense items necessary in the
daily operation of a firm, but not part of its
final product.
MRO Items
• Business-to-business supplies, so called
because they can be categorized as
maintenance items, repair items, and
operating supplies.
10-40
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