Many attributes are difficult to assess, so 

       consumers rely on limited cues

     To Assess….consumers use …….……
•...
What is a quot;brandquot;? 


•	 Brand: name, term, sign, symbol, or design intended to identify the
     products or serv...
What images do these brand names evoke?

Mercedes – Benz: 

Harley Davidson:

Apple:

PC jr.:

Smart & Final:

Listerine:
...
Name the major brands:

Oatmeal: 

Dog food:

Beer:

Running Shoes:

Tuna:

Bananas:

Lobsters:

Peaches:
(some of) Procter & Gamble's products

                              Mix Width

Detergent          Bar Soap          Tooth...
4 types of new products


                       Product Category

                     Old             New

        Old  ...
price/quality line extensions




                                   Marriot
                                   Marquis


...
4 types of new products


                       Product Category

                     Old             New

        Old  ...
A good name should….

(1) Suggest something about the product's qualities or benefits
    •    Huggies, Beautyrest, Diehar...
*Some brand names are quot;too successfulquot;*

Linoleum ⇒ linoleum
Nylon ⇒ nylon
Trampoline ⇒ trampoline
Escalator ⇒ esc...
Microwave Mexican Food


Mom's old fashioned Tex-Mex

Burrito Bandit

Aunt Jemima's Mexican Classics

Ice to Rice

Speedy ...
How long can a brand survive? 


Category        Leading Brand 1925   Leading Brand 1985


 Soap                Ivory     ...
The death of a brand: Schlitz beer


•	 1872 quot;The beer that made Milwaukee
   famousquot;
• 1947 leading brand in U.S....
The death of a brand: Schlitz beer

•	 1974 To cut cost, they reduced         18

   brewing time from 12 days to 4;      ...
Brand Equity: Can it be measured?
• Price premiums
     Which would you prefer?:

     _X_Bayer for $3.75 ___Generic at $3...
How to measure brand equity?

  • Stock Prices relative to tangible assets


                   70%

                   60...
In 1988, Sunkist earned 10.8 Million for

(1) Sunkist Fruit Gems (produced by Ben Myerson)
(2) Sunkist Orange Soda (produc...
Do Names Matter?

quot;What's in a name? …a rose by any other name would smell as sweetquot;
                             ...
Reality, perception, and the power of brands





                  Image


                 technical
                  q...
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Product Design

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Product Design

  1. 1. Many attributes are difficult to assess, so consumers rely on limited cues To Assess….consumers use …….…… • Speaker Quality • Speaker Size • Window Cleaning efficacy • Blueness • Dish soaps power • Amount of Suds • Strength of Cleaners • Intensity of smell • Workmanship of a car • The sound of closing door • Airline Safety • Cleanliness of the seats • Quality • Brand Name
  2. 2. What is a quot;brandquot;? • Brand: name, term, sign, symbol, or design intended to identify the products or services and to differentiate them from the products offered by competitors. • Brand: a psychological concept (or set of associations) • Brand(ing): The art of taking something common and improving on it in ways that make it more valuable and meaningful. • quot;A product is no more than an artifact around which consumers have experiences….Nike could have spent millions preaching the value of encapsulated gas trapped within a thin pliable membrane. Instead it communicated what the product meant…it transcended the product…quot;Just Do Itquot; was not about sneakers, it was about values… it tapped into the wide range of emotional rewards that are uniquely Scott Bedbury relevant to sports and fitness.quot;
  3. 3. What images do these brand names evoke? Mercedes – Benz: Harley Davidson: Apple: PC jr.: Smart & Final: Listerine: Marlboro: Calvin Klein:
  4. 4. Name the major brands: Oatmeal: Dog food: Beer: Running Shoes: Tuna: Bananas: Lobsters: Peaches:
  5. 5. (some of) Procter & Gamble's products Mix Width Detergent Bar Soap Toothpaste Fruit Juice Ivory Snow Ivory Gleem Sunny Delight Tide Camay Crest Line Liquid Tide Lava Complete Length Joy Zest Denquel Cheer Safeguard Crest (with quot;Xquot;) Oxydol Coast Bold Oil of Olay Gain Bold II Dawn Sunny Delight
  6. 6. 4 types of new products Product Category Old New Old line extension brand extension Brand Name New subbrand new brands
  7. 7. price/quality line extensions Marriot Marquis Price Marriot Fairfield Inn Quality
  8. 8. 4 types of new products Product Category Old New Old line extension brand extension Brand ..by Marriot Name New subbrand new brands
  9. 9. A good name should…. (1) Suggest something about the product's qualities or benefits • Huggies, Beautyrest, Diehard, Easy-Off, Instant Ocean, Finale (2) Be short, easily pronounced, recognized, & remembered • Tide, Aim, Zest (3) Be distinctive • Kodak, Toys quot; quot; Us, Charlie (4) Be consistent with the image of the product (or other products) • Arm & Hammer Carpet Deodorizer • Chocolate Frosted Wheaties???? (5) Have no undesirable associations (in english or other languages) • Chevy Nova (No Va = Does not work) (6) Be legally available & legally protectable
  10. 10. *Some brand names are quot;too successfulquot;* Linoleum ⇒ linoleum Nylon ⇒ nylon Trampoline ⇒ trampoline Escalator ⇒ escalator Xerox ⇒ Kleenex ⇒ Not yet legally generic Vaseline ⇒ Frisbee ⇒
  11. 11. Microwave Mexican Food Mom's old fashioned Tex-Mex Burrito Bandit Aunt Jemima's Mexican Classics Ice to Rice Speedy Gonzalez
  12. 12. How long can a brand survive? Category Leading Brand 1925 Leading Brand 1985 Soap Ivory Ivory Razors Gillette Gillette Soft Drinks Coca Cola Coca Cola Gold Medal Flour Gold Medal Tires Goodyear Goodyear Toothpaste Colgate Crest
  13. 13. The death of a brand: Schlitz beer • 1872 quot;The beer that made Milwaukee famousquot; • 1947 leading brand in U.S. • 1972 Close 2nd quot;You only go around once in life – so grab all the gusto you canquot;
  14. 14. The death of a brand: Schlitz beer • 1974 To cut cost, they reduced 18 brewing time from 12 days to 4; 16 began using corn syrup instead of 14 barley malt. 12 10 • Image problem caused a slight 8 decline in sales 6 • 1976 To combat declining sales 4 2 began aggressive discounting 0 • Caused people to think of it as cheap 1972 1974 1976 1978 1980 1982 1984 1986 1988 beer, and sales dropped more Reputation, Reputation, Reputation! I have • In a panic, they changed ad lost the immortal part of myself. campaign to quot;There's just one word Shakespeare for Beer: Schlitz! And you know it!quot; A good name is better than riches! • 1978, restored formula and former ad Don Quixote campaign, but…….
  15. 15. Brand Equity: Can it be measured? • Price premiums Which would you prefer?: _X_Bayer for $3.75 ___Generic at $3.75 _X_Bayer for $3.75 ___Generic at $3.50 _X_Bayer for $3.75 ___Generic at $3.25 ___ Bayer for $3.75 _X_Generic at $3.00 ___ Bayer for $3.75 _X_Generic at $2.75 • Preference Which box of cornflakes would you prefer? Brand X Brand Y [47%] [53%] Kelloggs Brand Y [59%] [41%]
  16. 16. How to measure brand equity? • Stock Prices relative to tangible assets 70% 60% 50% Value of 40% Brand Name 30% Value of 20% Tangible Assets 10% 0%
  17. 17. In 1988, Sunkist earned 10.8 Million for (1) Sunkist Fruit Gems (produced by Ben Myerson) (2) Sunkist Orange Soda (produced by Cadbury-Schweppes) (3) Sunkist Fruit Roll ups (produced by Lipton) (4) Sunkist Vitamin C (produced by Ciba –Geigy)
  18. 18. Do Names Matter? quot;What's in a name? …a rose by any other name would smell as sweetquot; Shakespeare quot;Shakespeare was wrong. A rose by any other name would not smell as sweet … which is why the single most important decision in the marketing of perfume is the name.quot; Al Ries & Jack Trout
  19. 19. Reality, perception, and the power of brands Image technical quot;corequot;

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