Chapter 11: Managing Successful Products, Services, and Brands

What are the 4 steps of building brand equity?

1. Develop positive brand awareness and an association of the brand in consumers minds with a product class 2. Establish a brand's meaning in the minds of consumers (do with functional, performance-related dimension and an abstract, imagery related dimension 3. Get the proper consumer responses to a brand's identity and meaning: think and feel about brand-quality and credibility, superiority 4. Create a consumer- brand connection evident in an intense, active loyalty relationship between consumers and the brand

What are the 5 categories and profiles of product adopters and their descriptions

1. Innovators: venturesome; higher educated; use multiple info sources 2. Early adopter: leaders in social setting; slightly above average education 3. Early majority: deliberate; many informal social contacts 4. Late majority: skeptical; below average social status 5. Laggards: fear of debt; neighbors and friends are information sources

What is multiproduct branding?

A co uses one name for all its products in a product class; aka family branding or corporate branding

What is a trade name?

A commercial legal name under which a co. does business

What is market modification?

A company tries to find new customers, increase a product's use among existing customers, or create new situations

What is the diffusion of innovation?

A product diffuses, or spreads through the population

What is a private branding strategy?

Aka private labeling or reseller branding; when it manufactures products but sells them under the brand name of a wholesaler or retailer Produces high profits for manufacturers and resellers

What is product modification?

Alternating one or more of a product's characteristics like quality, performance, or appearance to increase the product's value to customers and increase sales

What is a label?

An integral part of package typically identifies the product or brand, who made it, where it was made, how to use it, package contents and ingredients; a part o the packaging

What is branding?

An organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors

What is a brand name?

Any word, device ( design, sound, shape, or color), or combination of these used to distinguish a seller's products or services

What is brand licensing?

Contractual agreement whereby one company(licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee

What two measures do Managers often supplement sales, market share, and profit trends?

Category development index (CDI) Brand development Index (BDIP Both help identify strong and weak market segments

What is product repositioning?

Changes the place a product occupies in a consumer's mind relative to competitive products; can do it by changing one or more of the 4Ps

What is sub branding?

Combines a corporate/family brand with a new brand to distinguish a part of its product line from the others

What are the components to packaging and labeling?

Communication, functional, and perceptual

What is brand dilution?

Consumers have no longer associate a brand with a specific product or service or start thinking less favorably about the brand

What are the challenges of package and label designers?

Continuing need to connect with the customer Envir. Concerns Health, safety, and security issues Cost reduction

What are the two strategies to handle a declining product? Def?

Deletion: dropping the product from the co's product line- most drastic Harvesting: when a Co retains the product but reduces marketing costs, sales people also do not allocate time in selling nor are advertising dollars spent

What are the types of warranties?

Express warranties: written statements of liabilities limited-coverage warranties: states the bounds of coverage and areas of noncoverage Full warranty: no limits of noncoverage Implied warranties: assign responsibility for product deficiencies to the manufacture

What is a multi branding strategy?

Giving each product a distinct name Useful when each brand is intended for a different market segment

What is the growth stage of the product life cycle?

Has rapid increase in sales, where competitors appear increases sales because of new people trying or using the product and growing proportion of repeat purchasers Changes to the product may also appear to differentiate from competitors

What are the different types of products that make up the 4 different shapes of a life-cycle?

High learning product: require and extended intro period low learning product: begins immediately Fashion product: is a style of times, introduced and decline, and them seem to return Fad products: experience rapid sales on intro and then equally rapid on decline

What is a brand personality?

Set of human characteristics associated with a brand name

What is a trademark?

Identifies a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it

What is a mixed branding strategy?

Where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reselle is different from its own market

What is the role of a product/brand manager?

Manages the marketing efforts for a close knit family of products or brands; may be responsible for developing and executing a marketing program for the product line

What is co-branding?

Pairing two or more strong brands to facilitate the marketing of a joint product or service for their mutual benefit (hershey's and betty crocker's)

What is product form?

Pertains to variations of a product within the product class Ex. for music= cassette tapes, compact discs, digital music downloading and streaming

What is a product line extension?

Practice of using a current brand name to enter a new market segment in its product class Risk that the sale of an extension may come at the expense of other items in the companies product line

What is product class?

Refers to the entire product category or industry like a prerecorded music

What is product bundling?

Sale of two or more separate products in one package, common way to increase product value

What is the maturity stage of the product life cycle?

Slowing of total industry sales or product class revenue; marginal competitors also start to leave the market; profit declines due to fierce price competition among many sellers and the cost of gaining new buyers at this stage rises

What is a warranty?

Statement indicating the liability of the manufacturer for product deficiencies

What is a brand equity?

The added value a brand name gives to a product beyond the functional benefits provided; financial advantage Advantages: provides a competitive advantage, consumers are often willing to pay a higher price for a product with brand equity

What is primary demand?

The desire for the product class rather than for a specific brand Different from selective demand- the preference for a specific brand

What are the 6 criteria mentioned most often when selecting a good brand name

The name should suggest the products benefits Be memorable distinctive and positive Should fit the company or product image Have no legal or regulatory restrictions Simple and emotional Have favorable phonetic and semantic associations in other languages

What is a product life cycle?

The stages of a new product goes through in the marketplace: introduction, growth, maturity, and decline

What are 3 important aspects of the product life cycle?

Their length, the shape of their sales curves, and the rate at which consumers adopt products

What is a fighting brand?

Their main purpose is to confront competitor brands; defensive moves to counteract competition

What is trading up vs trading down?

Up: Adding value to the product (or line) through additional features or higher quality materials Down: Reducing a product's number of features, quality, or price; can happen with downsizing (reducing package content)

What is brand extension?

Using a current brand name to enter a diff product class

What is the introduction stage of the product life cycle?

When a product is introduced to its intended target market Sales grow slowly and profit is minimal

What is the decline stage of the product life cycle?

When sales drop Tend to consume a disproportionate share of management and financial resource relative to their future worth