Terms in this set (44)
What are elements of a "product"?
Also known as national brands, have famous manufacturers such as: Coca-Cola and Nike
Also known as private-label brands, sold exclusively by the retailer
Ritz, in addition to its crackers, begins to sell Ritz-in-a-Can cheeses (brand extension since cheese would be a new product line)
An example of brand extension
Used BOTH to protect and to market the item
-An important element of the brand that has significant tangible or physical benefits that influence how buyers perceive it
-Goods such as shoes
-Online communities such as Facebook
-Organizations such as the Boy Scouts
These actually constitute a product and can be valued by the consumer so he is willing to make an exchange
Components of the actual product
-Typically consumer durables like a dryer or a refrigerator
-Buyers spend a fair amount of effort and time to make the comparisons before purchasing and usually do not know which one or which brand they will buy in advance of the process
-Compares alternatives and consumer spends moderate amounts of time and effort deciding among products, features, and brands
Components of the augmented product
Components of Associated services
A product mix
Product lines are a part of:
-Signifying a distinct level of quality
-Identifying unique features and attributes that are easy to distinguish
Competitive brands add value for the consumer by:
Compares many alternatives, lots of time and effort involved in searching, and consumer has a good idea of the brand he or she will buy in advance
-A risk companies face when adding a new product to an existing brand
-Occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold
Ex: suppose that Toyota introduced a small, inexpensive car under its Lexus brand. This action might harm consumers' current luxury-oriented brand associations for the Lexus brand
When a firm sells all its products under one ________ such as Pepperidge Farm, the individual brands benefit from the overall brand awareness associated with it
-Convenience (Gasoline-->most consumers do not shop around or go out of their way to buy gas)
Types of products
The complete set of all products and product lines offered by a firm
Product mix (or product assortment)
Groups of associated items, such as items that consumers use together or think of as part of a group of similar products
-Breadth-->Number of product lines
-Depth-->Number of categories within a product line
-Number of product lines (sell products across many different product lines)
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.
-Number of categories within a product line
-The number of products within a product line is a firm's product line
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.
-Brand name (Asset)
-Logos and symbols
What makes a brand?
-Protect from competition
-Impact market value
Value of branding for the customer
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service
The relationship between a product or service's benefits and its cost.
Reflects the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality.
Occurs when a consumer buys the same brand's product or service repeatedly over time rather than buy from multiple suppliers within the same category.
-Consumers are often less sensitive to price
-Marketing costs are much lower
-Firm insulated from the competition
-Manufacturer brands or national brands
-Private-label brands or store brands (premium, generic, copycat, exclusive co-branded)
-Corporate or family brand-->The Gap
-Corporate and product line brands-->Kellogg's Corn Flakes
-Individual lines-->Mr. Clean (Proctor & Gamble)
Naming brands and product lines
Refers to the use of the same brand name for new products being introduced to the same or new markets.
-Acme chips and Acme dips
-Acme BBQ potato chips and Acme salt and vinegar potato chips (line extension b/c the two types of potato chips are in the same product line)
The practice of marketing two or more brands together, on the same package or promotion.
A contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.
-Can be an effective way to attract visibility for a brand
-A way to generate additional revenue
Refers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences.
-Losing many of the loyal customers the brand has
-High costs to change the packaging
Brand repositioning (or rebranding)
Label is used for:
Communication media that firms use to create brand awareness
Firms should make sure the fit between the core brand and the extension
Ex: Toyota sells cars under several brands: Lexus, for luxury cars, Scion, for targeted at young consumers, and Toyota for its mid-market cars. Toyota is using an ________ naming strategy to target different market segments
-Undervaluing the brand in a licensing agreement
-Diluting brand equity through overexposure
Risk associated with brand licensing:
The basic benefits consumers are seeking
Describes the core customer value of a product
Determines the product's or service's value in a relationship to that of its close competitors
-Sometimes prefer to make only private-label merchandise
-Sometimes produce store brands
-Sometimes make merchandise for other brands
Choices manufacturers have in making products
Brand ownership is a type of:
-Differentiate its product offerings
-Fairly easily make consumers aware of available products
-Introduce new products with less expensive marketing
****NOT to eliminate advertising spending
Branding enables a firm to:
-Co-branding may also fail when there are conflicts of interest between the co-brands
-Customers for the two brands being too different
Risks in co-branding:
A product of which consumers are unaware or are not that interested in actively pursuing for purchase. A high degree of marketing, including heavy advertising and aggressive sales techniques, is often necessary due to consumer unawareness of the product or no real desire to purchase it. Another serious hurdle with an unsought product is that there is often no immediate tangible benefit obtained at purchase, and so, no incentive to make the purchase.
EX: Life insurance
Prepaid funeral plans
Long-term or short-term disability insurance
Nursing home insurance