Chapter 11 - Product, Branding and Packaging Flashcards
Product/Offering
a product or service that delivers value to satisfy a need or want
Complexity of Products
Actual Product - Brand name, packaging, quality level, features/design
(Core customer value)
Associated Services - financing, product warranty, product support
Types of Product
Specialty
Shopping
Convenience
Unsought
Product mix (breadth and depth)
- Breadth is the number of product lines
- Depth is the number of categories within a product line
Product Life cycle
- Introduction (growing customer base & brand building)
- growth (gaining profit, growing demand for product)
- maturity (sales peak, growth stabilizes, need to innovate new ideas)
- decline (decline in sales, reinvent or ramp down)
Product Mix
The complete set of all products and services offered by a firm
Product line
Groups of associated products that consumers tend to use together or think of as part of a group of similar products or services
Why do firms create new products?
- changing customer needs
- improving business relationships
- market saturation
- managing risk through diversity
- fashion cycles
Branding
Using name, logo symbols, characters, slogans, jingles and even distinctive packages
Value of Branding
o Facilitate Purchasing
o Establish loyalty
o Protect from competition
o Are assets
o Impact market value
Brand Personality
o Sets of traits people attribute to a brand as if it was a person
Diffusion of Innovation
- The process by which the use of an innovation spreads throughout a market group over time and across categories of adopters
- Pioneers or breakthroughs establish completely new markets or radically change competition and consumer preferences.
- Pioneers have the advantage of being first movers
Branding
brands using Name, logo symbols, characters, slogans, jingles and
even distinctive packages
Value of Branding (why is it so important to branding)
- to facilitate purchasing
- establish loyalty
- protect from competition
- are assets
- impact market value
Brand Personality (and types)
- Set of traits people attribute to a brand as ifit were a person
1. Sincerity (down to earth, honest, wholesome)
2. Excitement (daring, spirited, imaginative)
3. Competence (reliable, intelligent)
4. Sophistication (upper class and charming)
5. Ruggedness (outdoorsy and tough)
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.
- Brand assets represent from about 15% to more than 75% of the value of the firm
Brand equity includes …
1) Perceived value
2) Brand awareness
3) Brand associations
4) Brand Loyalty
Brand awareness
- Provides a sense of familiarity, relevance, and credibility
- If the name is recognized = there must be a reason
- Salience = can’t name another brand (Kleenex to buy your tissues)
Perceived Value
Relationship between the product or service’s benefits and costs.
Brand Associations
Anything that is directly or indirectly linked in the consumer’s memory to a brand
Brand Loyalty
- Enduring asset for businesses is the loyalty of the installed customer base
- Resistance to switching
Brand extensions
- refers to the use of the same brand name for new products being introduced to the same or new markets
- Example: Tostitos chips, Tostitos Dips
Brand Dilution
- Evaluate the fit between the product class of the core brand and the extension
- Evaluate consumer perceptions of the attributes of the core brand and seek out extensions with similar attributes.
- Refrain from extending the brand name to too many products.
