Category And Brand Management, Product Identification, And New Product Development

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Category And Brand Management, Product Identification, And New Product Development

Category And Brand Management, Product Identification, And New Product Development

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  • 1. Part 4: Product Decisions
    • Product and Service Strategies
    • Category and Brand Management, Product Identification, and New-Product Development
  • 2. Chapter 12 Category and Brand Management, Product Identification, and New-Product Development
  • 3. Chapter Objectives
    • Explain the benefits of category and brand management.
    • Identify the different types of brands.
    • Explain the strategic value of brand equity.
    • Discuss how companies develop strong identities for their products and brands.
    • Identify and briefly describe each of the four strategies for new-product development.
    • Describe the consumer adoption process.
    • List the stages in the process for developing new products.
    • Explain the relationship between product safety and product liability.
  • 4. Managing Brands for Competitive Advantage
    • Branding is the process of creating that identity.
    • Buyers respond to branding by making repeat purchases because they identify the item with the name of its producer.
    • Brand: name, term, sign, symbol, design, or some combination that identifies the products of a firm while differentiating them from the competition’s
  • 5.
    • Brand Loyalty
      • Brand recognition : Consumer awareness and identification of a brand.
      • Brand preference : Consumer reliance on previous experiences with a product to choose that product again.
      • Brand insistence : Consumer refusals of alternatives and extensive search for desired merchandise.
  • 6. Types of Brands
    • Generic product : item characterized by plain label, with no advertising and no brand name
    • Manufacturers’ brand or National Brand : brand name owned by a manufacturer or other producer
    • Private brands : brand name placed on products marketed by wholesalers and retailers
  • 7.
    • Captive brands : national brands that are sold exclusively by a retail chain
    • Family brand : brand name that identifies several related products
    • Individual brand : unique brand name that identifies a specific offering within a firm’s product line and that is not grouped under a family brand
  • 8.
    • Brand equity : added value that a respected, well-known brand name gives to a product in the marketplace.
      • Brand equity increases the likelihood that consumers will recognize the firm’s product when they make purchase decisions
      • A strong brand equity can contribute to buyers’ perceptions of product quality
      • Branding can also reinforce customer loyalty and repeat purchases
  • 9.
    • Brand Equity
      • The Young & Rubicam Model:
      • Brand Asset Valuator
  • 10.
    • The Role of Category and Brand Managers
      • Brand manager : Marketing professional charged with planning and implementing marketing strategies and tactics for a brand
      • Category management : Product management system in which a category manager—with profit and loss responsibility—oversees a product line.
  • 11. Product Identification
    • Brand name : part of a brand consisting of words or letters that form a name that identifies and distinguishes a firm’s offering from those of its competitors
    • Brand mark : symbol or pictorial design that identifies a product
    • Generic name : branded name that has become a generically descriptive term for a class of products (e.g., nylon, aspirin, kerosene, and zipper)
  • 12.
    • Trademark : legal protection which confers the exclusive right to user brand name, trade mark, and any slogan or product name abbreviation
    • Trade Dress : visual cues used in branding to create an overall look
      • The distinctive shape of Philips light bulbs and the McDonald’s arches provide an example of trade dress
  • 13.
    • Developing Global Brand Names and Trademarks
      • Potentially an acute problem for international marketers
      • An excellent brand name or symbol in one country may prove disastrous in another
      • Trademarks that are effective in their home countries may fare less well in other cultures
  • 14. Packaging
    • A package serves three major objectives:
      • Protection against damage, spoilage, and pilferage
      • Assistance in marketing the product
      • Cost effectiveness
    • Labeling
      • Label
      • Universal Product Code (UPC)
  • 15.
    • Brand extension : application of a popular brand name to a new product in an unrelated product category
    • Line extensions refers to new sizes, styles, or related products
    • Brand licensing : practice allowing other companies to use a brand name in exchange for a payment
  • 16. New Product Planning
    • As a firm’s offerings enter the maturity and decline stages of the product life cycle, it must add new items to continue to prosper
      • Alternative Product Development Strategies
  • 17.
    • Product Development Strategies
      • Product positioning : consumers’ perceptions of a product’s attributes, uses, quality, and advantages and disadvantages in relation to those of competing brands
      • Cannibalization : a loss of sales of the current product due to competition from a new product in the same line
  • 18. The Consumer Adoption Process
    • Adoption process : Stages that consumers go through in learning about a new product, trying it, and deciding whether to purchase it again.
      • Awareness
      • Interest
      • Evaluation
      • Trial
      • Adoption or rejection
  • 19.
    • Consumer innovator : People who purchase new products almost as soon as the products reach the market
    • Diffusion process : Process by which new goods or services are accepted in the marketplace
  • 20.
    • Figure 12.8
      • Categories of Adopters Based on Relative Times of Adoption
  • 21.
    • Identifying Early Adopters
      • Substantial benefits may be obtained by locating the likely first buyers of new products (innovators and early adopters)
      • Suggestions for modifying the product may be obtained from these individuals
      • Acceptance or rejection of the innovation by innovators and early adopters can help forecast sales
  • 22.
    • Rate of Adoption Determinants
      • Characteristics of a product innovation that influence its adoption rate include:
        • Relative advantage
        • Compatibility
        • Complexity
        • Possibility of trial use
        • Observability
  • 23.
    • Organizing for New Product Development
      • New-Product Committees
      • New-Product Departments
      • Product Managers
      • Venture Teams
        • Task forces
  • 24. New Product Development Process
    • New product development process: six stages through which new product ideas progress before being introduced to the overall market
  • 25.
    • Idea Generation New product ideas come from many sources including:
      • Sales force, Customers, Employees, R&D specialists, The competition, Suppliers, Retailers, Independent inventors
    • Screening Screening separates ideas with commercial potential from those that cannot meet company objectives
      • Checklists of development standards can be helpful at this stage
  • 26.
    • Business Analysis The business analysis consists of assessing the new product’s market potential, growth rate, likely competitive strengths, and compatibility of the proposed product with organizational resources
      • Concept testing
    • Development Converting an idea into a physical product
      • Requires interaction among many of the firm’s departments
      • Prototypes may go through many changes
  • 27.
    • Test Marketing Test marketing: Introduction of a trial version of a new product supported by a complete marketing campaign to a selected city of television coverage area
      • Some firms skip this stage, moving directly to full-scale commercialization
    • Commercialization In this stage, the firm establishes marketing strategies, and funds outlays for production and marketing
      • The sales force, marketing intermediaries and potential customers are acquainted with the new product
  • 28. Product Safety and Liability
    • Product Liability : responsibility of manufacturers and marketers for injuries and damages caused by their products