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