Chapter 11: Branding

To prevent the potentially negative consequences of brand extensions, firms should consider the following:

1) Marketers should evaluate the fit between the product class of the core brand and that of the extension. If the fit between the product categories is high, consumers will consider the extension credible, and the brand association will be stronger for the extension 2)Firms should evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension because brand-specific associations are very important for extensions 3) To avoid diluting the brand and damaging brand equity, firms should refrain from extending the brand name to too many products and product categories

Packaging plays several key roles

It attracts consumers attention. It enables products to stand out from their competitors. It offers promotional tools "new and improved!" Promises on the label. It allows for the same product to appeal to different markets with different sizes such that convenience stores stock little packages that travelers can buy last minute, whereas Costco sells extra large versions of products.

If the products are too similar, sales of one brand may:

cannibalize the sales of other brands

After determining the core value a product will create for potential customers, they then make the actual physical product and add:

associated services to round out the offering.

Licensing is an effective form of:

attracting visibility for the brand and thereby building brand equity while also generating additional revenue

Experts look at four aspects of a brand to determine its equity:

brand awareness, perceived value, brand associations, and brand loyalty.

brand awareness is also critical for infrequently purchased items or those the consumer has never purchased before

infrequently purchased items or those the consumer has never purchased before

Convenience products/services are those products or services for which the consumer

is not willing to expend any effort to evaluate prior to purchase.

symbols

logos Without words.

Examples of specialty products/services include

luxury cars, legal or medical professionals, or designer apparel.

The majority of the brands marketed in the United States are:

manufacturer brands

There are two basic brand ownership strategies:

manufacturer brands and retailer/store brands

Brand awareness

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

Consumer products are products and services used by __________ for their _________ use.

people; personal

Customers usually determine the offering's value in relation to the value of:

its close competitors

With more products and product lines, the firm must:

keep track of trends and developments in various industries, which might tax its resources

Brand associations reflect the mental and emotional links that consumers make between a brand and its :

key product attributes, such as a logo and its color, slogan, or famous personality.

Co-branding can enhance consumers' perceptions of product quality by:

signaling unobservable product quality through links between the firm's brand and a well-known quality brand.

Increased breadth

when a firm adds a new product lines to capture new or evolving markets and increase sales

Decreased Breadth

when a firms deletes an entire product lines to address changing market conditions or meet internal strategic priorities

increased depth

when firms add items to address changing consumer preferences or to preempt competitors while boosting sales

Jingles can establish particularly strong associations, especially:

when they are catchy and get stuck in consumers' heads.

characters

Brand symbols that could be human, animal, or animated.

logos

Visual branding elements that stand for corporate names or trademarks.

Each company's core question is:

What are customers looking for?

there are several advantages to using the same brand name for new products:

(1) the brand name is already well established, the firm can spend less in developing consumer brand awareness and brand associations for the new product, (2) if either the original brand or the brand extension has strong consumer acceptance, that perception will carry over to the other product. (3) when brand extensions are used for complementary products, a synergy exists between the two products that can increase overall sales

associated services

(also called augmented product) The non-physical attributes of the product including product warranties, financing, product support, and after-sale service.

Jingles and sounds

Audio messages about the brand that are composed of words or distinctive music.

customer benefits of branding

Brands identify company ownership Brands allow for predictable quality; thus, decreasing risk Brands make customer decision making easier Brands serve as status symbols

Company Benefits of Branding

Brands induce loyalty - increasing repeat purchasing Brands allow for premium prices Brands allow a single firm to pursue multiple targets

manufacturer brands (national brands)

Brands owned and managed by the manufacturer (Nike, Coca-Cola, Sony)

socially responsible labeling

Clearly Defined: Certified Humane Raised and Handled, Animal Welfare Approved, Grass-Fed, Fair Trade Certified (No Forced Child Labor), Organic (95% ingredients approved organic)

components of brand positioning

Competitive frames of reference, Points of difference, Points of parity

cannibalize

From a marketing perspective, it is the negative impact on a firm's sales, profits, or market share when one product competes closely with a similar product offered by the same company.

examples of predominant products

Kleenex tissues, Clorox bleach, Band-Aid adhesive bandages, and the Google search engine

URL

Locations of pages on the Internet, which often substitute for the firm·s name

Slogans

Short phrases used to describe the brand or persuade consumers about some characteristics of the brand.

brand name

The spoken component of branding, It can describe the product or service characteristics and/or be composed of words Invented or derived from a colloquial or contemporary language

USDA Organic

a certification for products that contain at least 95% organically produced ingredients (excluding water and salt).

Brand loyalty 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

Brand licensing

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

family brand

a firm's own corporate name used to brand its product lines and products

The perceived value of a brand is the relationship between:

a product's or service's benefits and its cost.

Brand repositioning, or rebranding, 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

Marketers convert core customer value into an:

actual product.

adding unlimited numbers of new products can have:

adverse consequences

unclear labeling terms

antibiotic free, free range/ free roaming, hormone free, natural, fresh

Marketers create brand awareness through repeated exposures of the various _________________ in the firm's communications to consumers through advertising, publicity, or other methods

brand elements (brand name, logo, symbol, character, packaging, or slogan)

The value of a brand translates into:

brand equity

Brand dilution occurs when the:

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

Brands elements used by firms to include:

brand names, logos, symbols, characters, slogans, jingles, and even distinctive packaging.

The product mix reflects the:

breadth and depth of the company's product lines.

Examples of convenience products/services are

common items such as beverages, bread, or soap.

Even if the overall brand name is familiar, it won't help sales of individual products unless:

consumers know what products are available under that name.

Too much breadth in the product mix becomes:

costly to maintain

Decreased Depth

deleting a product or products within a product line to realign the firm's resources

Branding provides a way for a firm to:

differentiate its product offerings from those of its competitors.

some risks associated with brand licensing for the licensor is the major risk of:

dilution of its brand equity through overexposure of the brand, especially if the brand name and characters are used inappropriately.

Unsought products/services are products or services that consumers

either do not normally think of buying or do not know about.;

Product line depth

equals the number of products within a product line.

Greenwashing

exploiting a consumer by disingenuously marketing products or services as environmentally friendly, with the goal of gaining public approval and sales

Specialty products/services are those for which customers

express such a strong preference that they will expend considerable effort to search for the best suppliers

brands add value for the consumer by

facilitating purchases and establishes brand loyalty.

Too many brands may weaken the:

firm's reputation

Examples of shopping products/services include

furniture, apparel, fragrances, appliances, and travel

Marketing expenditures allocated carefully can enhance the brand's overall equity thru the result of:

greater brand recognition, awareness, perceived value, and consumer loyalty for the brand

product mix

groups of associated items that consumers tend to use together or think of as part of a group of similar products or services.

a line extensions represent an:

increase in a product line's depth.

a brand extension is an:

increase in the product mix's breadth

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

product

The ___________ __________ typically consists of various product lines.

product mix

The complete set of all products and services offered by a firm is called its:

product mix

Sustainable packaging

product packaging that has less of a negative impact on the environment.

Retailer/store brands, also called private-label brands, are:

products developed by retailers.

Marketers consider the types of products they are designing and selling because these types affect how they will:

promote, price, and distribute their products

organic labeling

raw foods must be 100% organic, processed foods must be 95% organic, 70-95% can read "product made with organic ingredients"

By owning their brands, manufacturers:

retain more control over its marketing strategy, are able to choose the appropriate market segments and positioning for the brand, and can build the brand and thereby create their own brand equity.

brands are assets a firm can build, manage, and harness over time to increase its:

revenue, profitability, and overall value

the firm that provides the right to use its brand (licensor) obtains revenues through

royalty payments from the firm that has obtained the right to use the brand (licensee). These royalty payments may take the form of upfront, lump-sum licensing fees or be based on the dollar value of sales of the licensed merchandise

A line extension is the use of the:

same brand name within the same product line.

Shopping products/services are products or services for which consumers will

spend a fair amount of time comparing alternatives.

Familiarity matters most for products:

that are bought without much thought

At the center is the core customer value, which defines

the basic problem-solving benefits that consumers are seeking.

When developing or changing a product, marketers start with:

the core customer value to determine what their potential customers are seeking

co-branding creates risks when:

the customers of each of the brands turn out to be vastly different.

the more the products vary in their usage or performance:

the more likely it is that the firm should use individual brands

breadth

the number of product lines offered by a firm; also known as variety.

primary package

the packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumption

actual product

the physical attributes of a product including the brand name, features/design, quality level, and packaging

co-branding

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

brand equity

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

predictive analytics

the use of statistics on data to determine patterns and predict future outcomes and trends.

secondary package

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

When new-to-the-world products are first introduced,

they are unsought products.;

Certain brands gain such predominance in a particular product market over time that

they become synonymous with the product itself ;hat is, the brand name starts being used as the generic product category.

Brand licensing is common for:

toys, apparel, accessories, and entertainment products such as video games.

__________ products/services require lots of marketing effort and various forms of promotion.

unsought;

A brand extension refers to the:

use of the same brand name in a different product line

Marketers further classify consumer products by the way they are:

used and how they are purchased.

individual brand

using different brand names for different products