More slide notes Flashcards
Lanham Act
Protect it or lost it
You must protect your trademarks
Some countries allow counterfiting
4 branding options
Family brand
Individual (free standing) brand
Licensing
Generic
Manufacturer Brands
Also called national brands
Created/owned by producers
Attract business to stores
Dealer Brands
Also called private brands or private labels
Created/owned by intermediaries
Creates higher margins
FTC = Label rules
FTC ACT of 1914 held that false, misleading or deceptive labels or packages constitute unfair competition
Both federal and state laws regulate labeling
FDA regulates food and drug labels
Open dating (expiration codes)
Nutritional labels
Nutritional labeling and education act of 1990 - requires sellers to provide detailed nutritional info
FDA also regulates terms like low-fat, high fiber and light
Hot issues: serving sizes, nutrition and gmo labeling
Environmental packaging
Recyclable materials
Biodegradable materials
Compact packaging
Ethical issues of packaging
Display packaging
True to size packaging
3 types of convenience products
Staples
impulse
emergency
2 types of shopping products
homogeneous
heterogeneous
product
need-satisfying offering of a firm
Components of a product
Excellent service
Physical good with the right features
useful instructions
convenient package
trustworthy warranty
familiar name
service
not physical - they are intangible
Quality
A product’s ability to satisfy a customer’s needs or requirements
Consumer Product classes
Convenience products
Shopping products
Specialty products
Unsought products
Business product classes
Installations
Accessory equipment
Raw materials
Component parts and materials
Maintenance, repair, and operating supplies
Professional services
Conditions favorable to successful branding
The product is easy to label and identify by brand or trademark
The product quality is easy to maintain and the best value for the price
Dependable and widespread availabilty is possible. When customers start using a brand, they want to be able to continue using it
Demand is strong enough that the market price can be high enough to make the branding effort profitable
There are economies of scale. if the branding is really successful, costs should drop and profits should increase
Favorable shelf locations or display space in stores will help. This is something retailers can control when they brand their own products
5 levels of brand familiarity
- rejection
- non-recogniton
- recognition
- preference
- insistence
Characteristics of a good brand name
Short and simple
Easy to spell and read
Easy to recognize and remember
Easy to pronounce
Can be pronounced in only one way
Can be pronounced in all languages
Suggestive of product benefits
Adaptabele to packaging/labeling needs
No undesriable imagery
Always timely
Adaptable to any advertising medium
Legally available for use (not in use by another firm)
How do you protect a brand name?
U.S. common law and civil law protect the rights of trademark and brand name owners
Lanham act - spells out what kinds of marks can be protected and the exact method of protecting them
4 different approahces to branding
family brand
individual brand
lisecenced brand
generic products
Battle of the brands
The competition between dealer brands and manufacturer brands, is just a question of whose brands will be more popular and will be in control
Packaging can enhance the product
Can make the product easier or safer to use
Warranty
Explains what the seller promises about its product
It may actually reduce the responsibility a producer would have under common law
Must be clearly written
Warranties lessen consumer risk
product assortment
the set of all product lines and individual products that a firm sells
product line
a set of individual products that are closely related
individual product
a particular product within a product line
Branding
The use of a name, term, symbol, or design - to identify a prodcut
brand name
a word, letter, or a group of words or letters
Trademark
includes only those words, symbols, or marks that are legally registered for use by a single company
service mark
the same as a trademark except that it refers to a service offering
Brand familiarity
Means how well customers recognize and accept a company’s brand
Brand rejection
Means that potential customers wont buy a brand unless its image is changed
Brand nonrecognition
Means final consumers dont recognize a brand at all -even though intermediaries may use the brand name for identification and inventory control
Brand recognition
Means that custoemrs remember the brand
Brand preference
Which means that target customers usually choose the brand over other brands, perhaps because of habit or favorable past experience
Brand insistence
Means that customers insist on a firm’s branded product and are willing to search for it
brand equity
the value of a brand’s overall strength in the market
family brand
the same brand name for several products
licensed brand
a well-know brand that sellers pay a fee to use
individual brands
seperate brand names for each product when its important for the products to each have a seperate identity
generic products
products that have no brand at all other than identification of their contents and the manufacturer or intermediary
Manufacturer brands
brands created by producers
Dealer brands
aka private brands
Brands created by intermediaries
Packaging
involve promoting, protecting, and ehnancing the product
can be important for both sellers and customers
Universal product code (UPC)
To speed handling of fast-selling products, government and industry representatives have developed a universal product code that identifies each prouct with readable by electronic scanners
Federal Fair Packaging and Labeling Act
Requires that consumer goods be clearly labled in easy-to-understand terms to give consumers more information
Magnuson-Moss Act
Says that producers must provide a clearly written warranty if they choose to offer any warranty
Consumer products
meant for the final consumer
Business products
Products meant for use in producing other products
Convenience products
Products a consumer needs but isn’t willing to spend much time or effort shopping for
Staples
Products that are bought often, routinely, and without much thought
Impulse products
Products that are bought quickly and unplanned because of a strongly felt need
Emergency products
Products that are purchased immediately when the need is great
Shopping products
Products that a customer feels are worth the time and effort to compare with competing products
can be homogeneous or heterogeneous
Homogeneous shopping products
Shoppig products the customer sees as basically the same and wants the lowest price
Heterogeneous shopping products
Shopping products the customer sees as different and wants to inspect for quality and suitability
ex. furniture, clothing, and membership in a spa
Specialty products
Consumer products that the customer really wants and makes a special effort to find
Unsought products
Products that potential customers dont yet want or know they can buy
New unsought products
products offering really new ideas that potential customers dotn know about yet
Regular unsought products
products- like gravestones, life insurance and encyclopedias that stay unsought but not unbought forever
derived demand
the demand for business products derives from the demand for final consumer products
expense item
a product whose total ost is treated as a business expense in the year it’s purchased
capital item
a long-lasting product that can be used and depreciated for many years
installations
Such as buidlings, land rights, major equipment - important capital items
Accessories
Short-lived capital items - tools and equipment used in production or office activities
Raw materials
Unprocessed expense items - such as logs, iron, ore, and wheat - that are moved to the next productino proces with little handling
Farm products
Grown by farmers
Natural products
products that occur in nature
Components
Processe expense items that become part of a finished product
Supplies
Expense items that do not become part of a finished product
3 types: 1. maintence, 2. repair, and 3. operating supplies
Professional services
Specialized services that support a firm’s operations
usually expense items
New-Product Development Process
- Idea generation
- screening
- idea evaluation
- development
- commercialization
PSSP Hierarcy of Needs
Physiological needs
safety needs
social needs
personal needs
product life cycle
Describes the stages a really new product idea goes through from beginning to end
- market introduction
- market growth
- market maturity
- sales decline
Market introduction
Sales are low as a new idea is first introduced to a market
Market growth
Industry sales grow fast - but industry profits rise and then start falling
Market maturity
Occurs when industry sales level off and competiton gets tougher
Sales decline
New products replace the old
Fashion
The currently accepted or popular style
Fashion-related products tend to have short life cycle
Fad
An idea that is fashionable only to certain groups who are enthusaistic about it
New product
One that is new in any way for the company concerned
Federal Trade Commission (FTC)
The federal government agency that policies antimonololyy laws
Consumer Product Safety Act
Set up to encourage safety in product design and better quality control
concept testing
getting reactions from customers about how wll a new-product idea fits their needs
Product managers or brand managers
Manage specific products - often taking over the jobs formerly handled by an advertising manager
Total quality management (TQM)
The philosphy tha everyone in the organization is concerned about quality, throughout all of the firm’s actitivies, to better serve customer needs
Pareto chart
A graph that shows the number of times a problem cause occurs, with problem causes ordered from most frequent to least frequent
fishbone diagram
visual aid that helps organize cause and effect relationships for things gone wrong
empowerment
means giving employees the authority to correct a problem without first checking with management
Can a product enter in any phase of the life cycle?
A given firm may introduce or drop a specific product during any stage of the product life cycle
New Product Development Process
Idea generation
Screening
Idea evaluation
Development
Commercialization
2 things a new product development process tries to do
- move quickly
- avoid expensive new-product failures
