SDSU Mktg 370 Ch. 11 Learnsmart

When Frito-Lay decided to introduce a salsa product line, it used the existing Tostitos brand (under which it sells taco chips). What advantages did this strategy provide Frito-Lay?

- the Tostitos brand had brand associations that helped to sell salsa - they could spend less on developing consumer brand awareness - they could introduce the product sooner and more easily

One of Taco Bell's most successful new products has been its "Doritos Locos Tacos" tacos with shells in the flavors of Doritos taco chip varieties. This is an example of:

Co-branding

Some brands become so predominant in a particular product market that they become synonymous with the product itself over time. What is an example of this?

Kleenex

Brands are most commonly owned by:

Manufacturers

Example of brand extension

Ritz, in addition to its crackers, begins to sell ritz in a can cheeses. This is a brand extension since cheese would be a new product line.

Cobranding can enhance consumer perceptions of product quality by linking:

a brand to an existing well-known quality brand

Brand Licensing

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee

Brand Dilution

a risk companies race when adding a new product to an existing brand

Examples of communication media that firms use to create brand awareness include:

advertising and publicity

National brands

aka Manufacturer brands

Manufacturer's Brand

also known as national brands, have famous manufacturers such as: coca-cola and Nike

Retailer/Store Brand

also known as private-label brands, sold exclusively by the retailer

Convenience products/services

are exemplified by products such as sodas and candy bars because most consumers who purchase them usually use limited decision making

Specialty products/services

are those such as Apple iPod, a Harley-Davidson motorcycle, or a Starbucks latte for which the consumer shows a fairly strong preference and loyalty and will go out of the way to find that specific brand

Shopping products/services

are typically consumer durables like a dryer or a refrigerator. buyers spend a fair amount of effort and time to make the comparisons b4 purchasing and usually do not know which one they will buy in advance of the process

When a company goes out of business, it is sometimes able to sell its brand names to another company, based on the value of name recognition. This demonstrates that brands are:

assets

Products are complex, with multiple components. ___________ refers to the nonphysical aspects of the product, such as financing and support.

associated services

Elements of a "product"

associated services actual product

If a brand has a high degree of brand _______, it means that most consumers are familiar with the brand and what it stands for.

awareness

the label is used for:

branding and promotion

Consumer packaged goods companies sell products across many diff product lines. these companies have significant ______ in their product mixes

breadth

To capture new or evolving markets, a firm may increase _______ to compete in new product areas

breadth

Firms are willing to spend lots of money on marketing a brand, such as expensive Super Bowl ads, in order to:

build brand awareness

Manufacturers tend to own their own brands because it allows them to:

build the brand and create their own brand equity, retain control over their marketing strategy, choose the right segments and positioning

Brand identities are built to help establish

buyer loyalty

Brand Licensing:

can be an effective way to attract visibility for a brand is a way to generate additional rev.

Strong brand acceptance among consumers will ______ another product

carry over to

Because they include info like ingredients, dietary info, and the product benefits to a consumer, labels are ______ tools

communication

Shopping Good

compares alternatives and consumer spends moderate amounts of time and effort deciding among products, features, and brands

Specialty Good

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

Brand extensions for _______ products, such as the Barbie car sold to be used with a Barbie doll, can increase sales

complementary

The goal behind spending millions on promotion, advertising, and other marketing efforts is:

consumer loyalty, more brand awareness, greater brand recognition

Firms reward loyal customers through ______ programs

customer relationship management

Who usually determines the product's or service's value in relationship to that of its close competitors

customers

Firms should seek out the same perceptions for the extension as they do the core brand because:

customers expect the same attributes from products

Risks of Co-Branding

customers for 2 brands are diff may also fail when there are conflicts of interest between the 2 brands

Decreasing breadth

deleting entire product lines to address changing market conditions

Branding provides a way for a firm to ______ its product offerings to those of its competitors

differentiate

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. This is an example of brand ______, a risk companies face when adding a new product to an existing brand.

dilution

Firms decrease depth to:

eliminate unprofitable items refocus on profitable items

The sets of assets and liabilities linked to a brand that add or subtract from the value provided by a product or service is brand ________

equity

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.

family brand

product lines

groups of associated items

Because brands are easily recognized by consumers and because they signify a certain quality level and contain familiar attributes, brands, they:

help consumers make quick decisions

Risks with Repositioning:

high costs to change the packaging losing many of the loyal customers the brand has

Firms add items to their product lines to address changing consumer preferences. For example, an ice cream company might add low-fat offerings to its existing ice cream flavors. This is an example of _______

increasing depth

Some firms use ________ for each of their products, as opposed to the same name or brand for all their product lines and products.

individual brands

Brand loyalty tends to be an advantage to the firm because it will _______ the competition

insulate a firm from

A firm's product line depth is the number of _____ within a product line, as opposed to a firm's product mix breadth, which refers to a firm's number of product lines

items

Branding includes:

jingles, logos, slogans, naming

The component of the product package that provides the info consumers need to make their purchase decisions and for proper consumption of the product is known as the:

label

B/c a brand name is already well established, a firm can spend _____ to develop consumer brand awareness when introducing a brand extension

less

Firms tend to spend _____ to market to loyal customers compared to marketing to new customers

less

Firms should make sure the fit between the core brand and the extension

makes sense and is credible

The majority of the brands marketing in the US are ______ brands

manufacturer

Manufacturer brands are also known as ______ brands

national

components of the actual product

packaging, features/design, brand name

Good marketing increases ________ by raising customers' quality perceptions relative to price

perceived value

Firms attempt to create associations with _______ emotions

positive

A product mix typically consists of ______, or groups of associated items

product lines

Brand repositioning is also known as

rebranding

Product packaging offers a variety of benefits to:

retailers and consumers

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

secondary

Susan has been to several stores looking for a prom gown and has not found one that is suitable. She has a vague idea of what she wants, but doesn't have a specific style or brand in mind. In her search for the gown, which is a _______ good for Susan, she will comparison shop, try on dresses, and ask for input from friends and store employees.

shopping good

The choices manufacturers have in making products

sometimes produce store brands make merchandise for other brands prefer to make only private-label merchandise

Core customer value of a product:

the basic benefits consumers are seeking

Competitive pressures on price or retail-level competition can be less threatening to a brand if:

the brand is strong and the brand is well established in the market

Product Mix

the complete set of all products and product lines offered by a firm is called product assortment, or product mix

Brands have value as corporate asset. The "value of the brand" refers to:

the earning potential of the brand over the next year

Secondary package

the exterior wrapper is the exterior carton and sometimes contains additional product info.

Brand Association

the mental link customers make between a brand and its key product attributes

Associated Services

the nonphysical aspects of the product, such as financing and support

The packaging that the consumer uses is known as:

the primary package

Brand Equity

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

Brand extension

the use of an existing brand name in a diff product line

Line extension

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

Risks with Brand Licensing

undervaluing the brand in a licensing agreement, diluting brand equity through overexposure, entering into a licensing arrangement and brand and characters are used inappropriately

E-book readers existed for many years before Amazon introduced the Kindle, but few consumers were aware of the devices, and sales stayed at very low levels. In the days before the Kindle, e-book reading devices were ______ products for most consumers.

unsought

Brand-loyal consumers provide an important source of ______ for firms

value

Labels must comply with laws and regulations and can include:

where the product was made ingredients how to use the product

Firms find that loyal customers help market their product or service through

word of mouth

Brand ownership is a type of branding strategy

yeah

Used BOTH to protect and to market the item, PACKAGING is an important element of the brand that has significant tangible or physical benefits that influence how buyers perceive it.

yeah