Marketing Chapter 11

product lines

groups of associated items within the product mix that consumers tend to use together or think of as part of a group of similar products or services

labels

important element of branding and can be used for promotion

associated services

include the nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service

brand licensing

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, etc. in exchange for a negotiated fee

brand repositioning

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

brand awareness

A company lives or dies based on _____.

increases depth

A firm _____ by adding items to address changing consumer preferences or to preempt competitors while boosting sales.

increases breadth

A firm _____ by adding new product lines to capture new or evolving markets and increase sales.

decreases breadth

A firm _____ by deleting entire product lines to address changing market conditions or meet internal strategic priorities.

decreases depth

A firm _____ by deleting products within a product line to realign the firm's resources.

individual brand

A firm can use _____ names for each of its products.

established, carry over, complementary

Advantages for Using the Same Brand Name for New Products: 1. the brand name is already well _____, so the firm can spend less in developing consumer brand awareness. 2. if either the original brand or the brand extension has strong consumer acceptance, that perception will _____ to the other product. 3. when brand extensions are used for _____ products, a synergy exists between the two products that can increase overall sales.

loyalty, CRM, costs, praise, insulates

Brand Loyalty: 1. firms reward loyal consumers with _____ or _____ programs, such as discounts. 2. Marketing _____ of reaching loyal customers is much lower. 3. Loyal customers tend to _____ the virtues of their favorite product to others. 4. A high level of brand loyalty ______ the firm from competition.

purchases, loyalty, competition, market value, assets

Brands facilitate _____, establish _____, protect from ______, impact ______, and are ______.

actual product

Marketers convert core customer value into an _____.

way, specialty, shopping, convenience, unsought

Marketers further classify *consumer products* by the way they are _____. The four categories are _____, _____, _____, and _____.

perceived value

The _____ of a brand is the relationship between a product's or service's benefits and its cost.

breadth, depth, breadth

The product mix reflects the _____ and _____ of the company's product lines. Note that too much _____ in the product mix becomes costly to maintain, and too many brands may weaken the firm's reputation.

fit, attributes, too many, distanced

To avoid *brand dilution*: evaluate the _____ between the product class of the core brand and that of the extension. 2. evaluate consumer perceptions of the _____ of the core brand and seek out similar ones for the extension since brand-specific associations are crucial for extensions. 3. refrain from extending the brand name to _____ products. 4. consider whether the brand extension will be _____ from the core brand

family brand

When all products are sold under one _____, the individual brands benefit from the overall brand awareness associated with the family name.

unsought

_____ products and services require the most marketing effort as well as various forms of promotion.

augmented product

another term for "associated services"

rebranding

another term for "brand repositioning"

national brands

another term for "manufacturer brands"

retailer/store brands

another term for "private-label brands"

product

anything that is of value to a consumer and can be offered through a voluntary marketing exchange

brands

assets a firm can build, manage, and harness over time to increase revenue, profitability, and overall value

core customer value

defines the basic-problem solving benefits that customers are seeking

depth

equals the number of products within a product line

brand awareness

measures how many consumers in a market are familiar with the brand and hat it stands for and have an opinion about it

brand loyalty

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

brand dilution

occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

manufacturer brands

owned and managed by the manufacturer

consumer products

products and services used by people for their personal use

retailer/store brands

products developed by retailers

shopping

products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel alternatives

convenience

products/services for which the consumer is not willing to spend any effort to evaluate prior to purchase (usually things like common beverages, bread, or soap)

brand extension

refers to the use of the same brand name in a different product line

brand associations

reflect the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality

breadth

represents a count of the number of product lines offered by the firm

product mix

the complete set of all products and services offered by a firm

primary package

the package the consumer uses, such as the toothpaste tube

co=branding

the practice of marketing two or more brands together, on the same package, promotion, or store

FDA

the primary federal agency that review food and package labels to ensure they are true

brand equity

the set of assets and liabilities linked to a brand that add or subtract from the value provided by the product or service

line extension

the use of the same brand name within the same product line

secondary package

the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners

unsought

those product or services that consumers either do not normally think of buying or do not know about at all

specialty

those products/services for which customers express such a strong preference that they will expend considerable effort to search for the best suppliers (bikes, designer apparel)

manufacturer and retailer/store

two brand ownership strategies