Chapter 11 - Product, Branding and Packaging

Question 1

Product/Offering

Answer 1

a product or service that delivers value to satisfy a need or want

Question 2

Complexity of Products

Answer 2

Actual Product - Brand name, packaging, quality level, features/design
(Core customer value)
Associated Services - financing, product warranty, product support

Question 3

Types of Product

Answer 3

Specialty
Shopping
Convenience
Unsought

Question 4

Product mix (breadth and depth)

Answer 4

• Breadth is the number of product lines
• Depth is the number of categories within a product line

Question 5

Product Life cycle

Answer 5

• 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)

Question 6

Product Mix

Answer 6

The complete set of all products and services offered by a firm

Question 7

Product line

Answer 7

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

Question 8

Why do firms create new products?

Answer 8

• changing customer needs
• improving business relationships
• market saturation
• managing risk through diversity
• fashion cycles

Question 9

Branding

Answer 9

Using name, logo symbols, characters, slogans, jingles and even distinctive packages

Question 10

Value of Branding

Answer 10

o Facilitate Purchasing
o Establish loyalty
o Protect from competition
o Are assets
o Impact market value

Question 11

Brand Personality

Answer 11

o Sets of traits people attribute to a brand as if it was a person

Question 12

Diffusion of Innovation

Answer 12

• 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

Question 13

Branding

Answer 13

brands using Name, logo symbols, characters, slogans, jingles and
even distinctive packages

Question 14

Value of Branding (why is it so important to branding)

Answer 14

• to facilitate purchasing
• establish loyalty
• protect from competition
• are assets
• impact market value

Question 15

Brand Personality (and types)

Answer 15

• 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)

Question 16

Brand equity

Answer 16

• 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

Question 17

Brand equity includes …

Answer 17

1) Perceived value
2) Brand awareness
3) Brand associations
4) Brand Loyalty

Question 18

Brand awareness

Answer 18

• 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)

Question 19

Perceived Value

Answer 19

Relationship between the product or service’s benefits and costs.

Question 20

Brand Associations

Answer 20

Anything that is directly or indirectly linked in the consumer’s memory to a brand

Question 21

Brand Loyalty

Answer 21

• Enduring asset for businesses is the loyalty of the installed customer base
• Resistance to switching

Question 22

Brand extensions

Answer 22

• 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

Question 23

Brand Dilution

Answer 23

• 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.