Chapter 9 - Product, Branding, and Packing Decisions

Question 1

Complexity of Products

Answer 1

There is more to a product than its physical characteristics or its basic service function

Question 2

In the complexity -
Core customer value -

Answer 2

the basic problem-solving benefits that consumers are seeking

Question 3

Associated services (or augmented product) -

Answer 3

• include the non-physical aspects of the product, such as product warranties, financing, product support, and after-sale service
• When developing or changing their product, marketers start with the core customer value to determine what their potential customers are seeking

Question 4

Types of Products
- consumer products

Answer 4

are products and services used by people for their personal use

Question 5

Speciality products/ services

Answer 5

• are products or services toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers
• Luxury cars, legal or medical professionals, or designer apparel

Question 6

Shopping products/ services

Answer 6

products/ services - such as furniture, apparel fragrances, appliances, and travel alternatives - for which consumers will spend a fair amount of time comparing alternatives

• Buying new shoes/ clothes

Question 7

Convenience goods/ services -

Answer 7

consumer is not willing to spend any effort to evaluate prior to purchase. They are frequently purchased commodity items, usually bought with little thought

• Common beverages, bread, soap

Question 8

Unsought products/ services

Answer 8

consumers do not usually think of buying or do not know about. Due to their nature, these products require a lot of marketing effort and various forms of promotion
Funeral services, fire extinguishers

Question 9

Product mix

Answer 9

the complete set of all products offered by a firm

Product mix typically consists of various product lines - which are groups of associated items, such as items that consumers use together or think of as part of a group similar products

Question 10

Product category

Answer 10

an assortment of items that the customer sees as reasonable substitutes for one another

Question 11

Brands

Answer 11

the names, terms, designs, symbols, or any other features that identify one seller’s good or service as distinct from those of other sellers

Question 11

Product mix breadth -

Answer 11

(variety) represents the number of product lines offered by the firm

Question 12

Product line depth

Answer 12

the number of product categories within a product line
Canada goose - offers parkas, vests, hoodies, etc

Question 13

Stock keeping units (SKUs) -

Answer 13

• the smallest unit available for inventory control
• Adding unlimited numbers of new products can have adverse consequences - too much variety in the product mix can be too costly to maintain, and having too many brands may dilute the overall reputation

Question 14

Increase Breadth -

Answer 14

• Firms often add new product lines to capture new or evolving markets, increase sales, and compete in new venues

Question 15

Decrease Breadth

Answer 15

sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities

Question 16

Increase Depth -

Answer 16

firms may add new products within a line to address changing consumer preferences or pre-empt competitors while boosting sales

Question 17

Decrease Depth -

Answer 17

sometimes it is necessary to delete product categories to realign resources - eliamite unprofitable items and refocus their marketing efforts on more profitable items

Question 18

Branding

Answer 18

A company lives or dies based on brand awareness - Branding provides a way for a firm to differentiate its product offerings from those of its competitors -

brand names, characters, slogans, jingles, and even distinctive packages constitute the various brand elements firms use, which they usually choose to be easy for consumers to recognize and remember

Question 19

Brand name

Answer 19

the spoken component of branding, it can either describe the product or service/ product characteristics and/ or be composed of words invented or derived from the colloquial or contemporary language

Question 20

Urls

Answer 20

uniform resource locators or domain names, the location of pages on the internet

Question 21

logos/ symbols -

Answer 21

s - logos are visual branding elements that stand for corporate names or trademarks. Symbols are logos without words
Nike swoosh, mercedes star

Question 22

Characters

Answer 22

brand symbols that can be human, animal, or animates
Pillsbury doughboy

Question 23

Slogans

Answer 23

short phrases used to describe the brand or persuade consumes about some characteristics of the brand

Question 24

Jingles

Answer 24

audio messages about the brand that are composed of words or distinctive music

Question 25

Value of Branding

Answer 25

• brands faciliate purchasing
• establish loyalty
• protect from competition and price competition
• reduce marketing costs
• brands are assets
• impact market value

Question 26

Brands Facilitate Purchasing

Answer 26

Brands are often easily recognized by consumers and, because they signify a certain quality level and contain familiar attributes, brands help consumers make quick decisions

Question 27

Brands Establish Loyalty -

Answer 27

Over time and with continued use, consumers learn to trust certain brands

Question 28

Brands Protect From Competition and Price Competition

Answer 28

Because strong brands are more established in the market and have more loyal customer base, neither competitive pressures on price nor retail- level competition is as threatening to the firm

Question 29

Brands Reduce Marketing Costs -

Answer 29

• Firms with well known brands spend relativity less on marketing costs than firms with little-known brands because the brand sells itself

Question 30

Brands are Assets

Answer 30

Brands are also assets that can be legally protected through trademarks and copyrights and thus constitute a unique ownership for the firm - firms sometimes have to fight to keep their brands pure

Question 31

Brands Impact Market Value

Answer 31

Having a well-known brand can have a direct impact on the company’s bottom line
The value of a company is its overall monetary worth, comprising a vast number of asses - when the brand loses value, it also threatens other assets

Question 32

Branding
- brand equity

Answer 32

of 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 health must be actively managed to maintain a positive image
• Brands are assets that the firm can build, manage, and harness over time to increase its revenue, profitability, and overall value

Question 33

Brand Awareness

Answer 33

measures how many consumer in a market are familiar with the brand and what it stands for, and have an opinion about that brand

Question 34

Perceived Value -

Answer 34

is the relationship between a product or service’s benefits and its costs
Customers usually determine the offerings value in relationship to that of its close competitors

Question 35

Brand Associations

Answer 35

reflect the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality

Question 36

Brand Loyalty -

Answer 36

occurs when a consumer buys the same brand’s products or service again and again over time, as a result brand-loyal customers are an important source of value for firms

Question 37

Brand Ownership Strategies

Answer 37

• manufacture brands
• private label brands (store brands)
• generic

Question 38

Manufacturer brands

Answer 38

are owned and managed by the manufacturer - By owning their brands, manufacturers retain more control over their marketing strategy, are able to choose the appropriate market segments and positioning for the brand, and can build the brand and thereby create their own brand equity

Question 39

private label brands (store brands) -

Answer 39

brands developed and marketed by a retailer and available only from that retailer

Question 40

Generic

Answer 40

products are those sold without brand names, typically in commodities markets - in these markets the popularity and acceptance of generic products has declined and consumers question the quality and origin of the products, and retailers have found better profit potential and the ability to build brand equity with manufacturer and store brand

Question 41

Brand Name Strategies

Answer 41

• family brand
• individual brand

Question 42

Family brand

Answer 42

the use of combination of the company brand name and individual brand name to distinguish a firm’s products
Ex - Kelloggs

Question 43

Individual brand

Answer 43

the use of individual brand names for each of a firm’s products

Question 44

Choosing a name

Answer 44

when it comes to naming new products, companies should consider the following - descriptive and suggestive of the benefits/qualities, easy to pronounce, recognize and remember, easy to translate into different languages

Question 45

Brand Extension

Answer 45

• refers to the use of the same brand name for new products being introduced to the same or new markers

Question 46

Brand extension pros

Answer 46

Good when brand name is already established, company spends less time developing consumer brand awareness, perception is carried to new brand, produces complementary products - synergy exists and increase overall sales

Question 47

Brand dilution

Answer 47

occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

-

Question 48

Try to avoid brand dilution

Answer 48

Carefully evaluate the fit between the product class of the core brand and that of the extension
Evaluate customer perception and seek out similar extensions
Refrain from extending the brand name to too many products - damage brand equity

Question 49

Cobranding

Answer 49

is the practice of marketing two or more brands together, on the same package or promotion
Enhances consumer perceptions of product quality

Question 50

Brand Licensing

Answer 50

• Contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee
• Effective form of attracting visibility for the brand and thereby building brand equity

Question 51

Packaging

Answer 51

• Packaging is an important brand element with more tangible or physical benefits than the other brand elements because packages come in different types and offer a variety of benefits to consumers, manufacturers, and retailers
• Packaging attracts the consumers attention, enables products to stand out from their competitors and offers a promotional tool
• Affect consumers and drive impulse buying

Question 52

Labeling

Answer 52

• Labels on products and packages provide information that consumers need for their purchase decisions and consumption of the products

They identify the product and brand, labels are also an important element of branding and can be used for promotion
Labels are communication tools - elements are how the manufacturers to communicate the benefits of the product