Download Ingredient Branding

Chapter 12
Category and Brand Management,
Product Identification, and NewProduct Planning
Figure
Types of Brands
Generic Products
No name cigarettes
Manufacturer
Brand
Kodak, Heinz
Family Brand
KitchenAid
Appliances, Johnson
& Johnson products
Private Brand
Kenmore, DieHard
Cragmont
Individual
Brand
Lever’s Aim, CloseUp & Pepsodent
Toothpastes
Definition of Brand Equity
Brand Equity
A brand possesses equity to the extent that
consumers are familiar with the brand and
have stored in their memory warehouses
favorable, strong and unique brand
associations
Two forms of Brand Knowledge
Brand Awareness
An issue of whether a brand name comes to
mind when consumers think about a
particular product category and the ease
with which the name is evoked
Two forms of Brand Knowledge
Brand Image
The types of associations that come to
the consumer’s mind when
contemplating a particular brand
Consumer-Based Brand Equity
Framework
Non-Product-Related
(e.g., Price, Packaging,
User and Usage Imagery)
Brand
Recognition
Brand
Awareness
Brand
Recall
Attributes
Types of
Brand Associations
Benefits
Product-Related
(e.g., color, size,
design features)
Brand
Knowledge
Brand
Image
Favorability,
Strength, and
Uniqueness of
Brand Association
Functional
Symbolic
Overall
Evaluation
(Attitude)
Experiential
Brand Equity Enhancement
Brand equity enhanced by:
• Name awareness
• Positive associations
• Perceived quality
• Strong brand loyalty
The Marketing Communications
Decision Process
A
B
C
The Marketing Communications
Decision Process
A
B
C
Monitoring and Managing
Environmental Influences
Economic
Environment
Product
Decisions
Competitive
Environment
Technological
Environment
Distribution
Decisions
Social-Cultural
Demographic
Environment
Promotion
Decisions
Advertising
Personal
Selling
Sales
Promotion
Public
Point-of-purchase
Relations&
Direct Communications
Sponsorship
Marketing
Marketing
Communications
Regulatory
Environment
Pricing
Decisions
The Marketing Communications
Decision Process
A
B
C
Interdependencies among
Target Market, Objective, and Budget
The Marketing Communications
Decision Process
A
B
C
The Concept of Brand Equity
“Gardenburger’s
ad on last episode
of Seinfeld
pays off big!”
The Marketing Communications
Decision Process
A
B
C
The Marketing Communications
Decision Process
A
B
C
Enhancing Brand Equity
Consumers become familiar with
the brand and hold:
Favorable
associations
Strong
associations
Unique
associations
Co-Branding and Ingredient Branding
Co-Branding
• Two or more brands enter into a
partnership that potentially serves to
enhance both brands’ equity and
profitability
• An important requirement for successful
co-branding : “logical fit between the two
brands…”
Co-Branding and
Ingredient Branding
Ingredient Branding
• A special type of alliance between
branding partners
• e.g., “Intel Inside”
Figure 12.8 Alternative Product Development Strategies
Old Product
New Product
Old Market
Market
Penetration
Product
Development
New Market
Market
Development
Product
Diversification
Cannibalization
A loss of sales of a current product due to
competition from a new product in the same line.
Adoption Process
A series of stages through which consumers decide
whether or not to become regular users of a new
product, including awareness, interest, evaluation,
trial, and rejection or adoption.
Stages in the adoption process
1. Awareness. Individuals first learn of the new product, but they lack
full information about it.
2. Interest. Potential buyers begin to seek information about it.
3. Evaluation. They consider the likely benefits of the product.
4. Trial. They make trial purchases to determine its usefulness.
5. Adoption/Rejection. If the trial purchase produces satisfactory
results, they decide to use the product regularly.*
Integrated Marketing Communications
(IMC)
Integrated Marketing Communications
(IMC)
The process of developing and implementing
various forms of persuasive communication
programs with customers and prospects over
time
Key Features of IMC
1. Affect behavior
2. Start with the customer work to
company
3. Use all message channels
4. Achieve synergy
5. Build relationships between the
brand and the consumer
Elements of Marketing Communications
Changes in
Marketing Communication Practices
• Reduced faith in mass media advertising
• Increased reliance on highly targeted
communication methods
• Greater demands imposed on marketing
communications suppliers
• Increased efforts to assess communications’
return on investment