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Marketing 310 Chapter 11: Product, Branding, and Packaging Decisions
Terms in this set (49)
Describe the components of a product.
The product itself is important, but so are its associated services, such as support or financing. Other elements combine to produce the core customer value of a product; the brand name, quality level, packaging, and additional features.
Anything that is of value to a consumer and can be offered through a voluntary marketing exchange.
core customer value
The basic problem solving benefits that consumers are seeking.
The physical attributes of a product including the brand name, features/design, quality level, and packaging.
associated services(augmented product)
The non-physical attributes of a product including product warranties, financing, product support, and after-sale service.
Identify the types of consumer products.
These products tend to be classified into four groups: specialty, shopping, convenience, and unsought products. Each classification involves a different purchase situation and consumer goal.
Products and services used by people for their personal use.
Products or services toward which the customer shows a strong preference and for which he will expend considerable effort to search for the best suppliers.
Those for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances.
Those for which the consumer is not willing to spend any effort to evaluate prior to purchase.
Products or services consumers either do not normally think of buying or do not know about.
Explain the three components of a product?
Core customer value, actual product, and associated services.
What are the four types of consumer products?
Specialty, shopping, convenience, and unsought.
Explain the difference between a product mix's breadth and a product line's depth.
Breadth, or variety, entails the number of product lines that a company offers. Depth involves the number of categories within one specific product line.
The complete set of all products offered by a firm.
Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
Number of product lines offered by a firm; also known as variety.
The number of categories within a product line.
What is the difference between product mix breadth and product line depth?
Breadth (sometimes also referred to as variety) represents the number of product lines offered by the firm; Product line depth, in contrast, is the number of categories within a product line.
Why change product mix breadth?
To capture new or evolving markets, increase sales, and compete in new venues, address changing market conditions, or meet internal strategic priorities.
Why change product line depth?
To address changing consumer preferences or preempt competitors while boosting sales, to realign resources.
Identify the advantages that brands provide firms and consumers.
Brands play important roles in enabling people to make purchase decisions more easily and encouraging customer loyalty. for firms specifically, they also constitute valuable assets and improve a company's bottom line and help protect against competition.
Explain the various components of brand equity.
Brand equity summarizes the value that a brand adds, or subtracts, from the offering's value. It comprises brand awareness, or how many consumers in the market are familiar with the brand; brand associations, which are the links consumers make between the brand and its image; and brand loyalty, which occurs when a consumer will only buy that brand's offer. Brand equity also encompasses the concept of perceived value, which is a subjective measure that consumers develop to assess the costs of obtaining the brand.
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.
Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.
The relationship between a products's or service's benefits and its cost.
The mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality.
Occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category.
How do brands create value for the customer and the firm?
Brands facilitate the consumer search process, are valuable in a legal sense, can lead to lower marketing costs because the brand and its associations help sell the product and brands have real market value as a company asset.
What are the components of brand equity?
Brand awareness, perceived value, brand associations, and brand loyalty.
Determine the various types of branding strategies used by firms.
Firms use a variety of strategies to manage their brands. First, they decide whether to offer manufacturer and/or private-label brands. Second, they have a choice of using an overall corporate brand or a collection of product line or individual brands. Third, to reach new markets or extend their current market, they can extend their current brands to new products. Fourth, firms can co-brand with another brand to create sales and profit synergies for both. Fifth, firms with strong brands have the opportunity to license their brands to other firms. Finally, as the marketplace changes, it is often necessary to reposition a brand
manufacturer brands (national brands)
Brands owned and managed by the manufacturer
retailer/store brands (private-label brands)
Products developed and marketed by retailers.
A firm's own corporate name used to brand its product lines and products.
The use of individual brand names for each of a firm's products.
Distinguish between brand extension and line extension.
Whereas a brand extension uses the same brand name for a new product that is introduced into new or the same markets, a line extension is simply an increase of an existing product line by the brand.
The use of the same brand name for new products being introduced to the same or new markets.
The use of the same brand name within the same product line and represents an increase in a product line's depth.
Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to have.
The practice of marketing two or more brands together, on the same package or promotion.
A contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee.
brand repositioning (rebranding)
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.
What are the differences between manufacturer and private-label brands?
Manufacturer brands are owned and managed by the manufacturer. The manufacturer develops the merchandise, produces it to ensure consistent quality, and invests in a marketing program to establish an appealing brand image. Private-label brands are products developed by retailers.
What is co-branding?
The practice of marketing two or more brands together, on the same package or promotion.
What is the difference between brand extension and line extension?
Whereas a brand extension uses the same brand name for a new product that gets introduced into new or the same markets, a line extension is simply an increase of an existing product line by the brand.
What is brand repositioning?
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.
Indicate the advantages of a product's packaging and labeling strategy.
Similar to brands, packaging and labels help sell the product and facilitate its use. The primary package hold the product, and its label provides product information. The secondary package provides additional consumer information on its label and facilitates transportation and storage for both retailers and their customers. Labels have become increasingly important to consumers because they supply important safety, nutritional, and product usage information.
The packaging the consumer uses, such as the toothpaste tube, from which he typically seeks convenience in terms of storage, use, and consumption.
The wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package.
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