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M e ch_31

  1. 1. Chapter 31 Branding, Packaging, and Labeling• Section 31.1 Branding Elements and Strategies• Section 31.2 Packaging and Labeling
  2. 2. Branding Elements and StrategiesKey Termsbrandbrand name Objectivestrade namebrand mark • Discuss the nature, scope, and importance oftrade character branding in product planningtrademark • Identify the various branding elementsnational brands • List three different types of brandsprivatedistributor • Explain how branding strategies are used tobrands meet sales and company goalsgeneric brandsbrandextensionbrand licensingmixed brandco-branding Marketing Essentials Chapter 31, Section 31.1
  3. 3. Branding Elements and StrategiesGraphic OrganizerIn a chart like the following, take notes on thebranding process.Marketing Essentials Chapter 31, Section 31.1
  4. 4. Elements of BrandingbrandA name, term,design, symbol,or combination of A brand  is a name, term, design, symbol, orthese elements combination of these elements that identifies athat identifies a product or service and distinguishes it from itsbusiness, competitors. Brands include elements such as:product, orservice and • Brand and trade namesdistinguishes itfrom its • Trade and brand marks, and trade characterscompetitors. Marketing Essentials Chapter 31, Section 31.1
  5. 5. Elements of Brandingbrand nameA word, group ofwords, letters, or A brand name , also called a product brand, is anumbers thatrepresent a word, group of words, letters, or numbers thatproduct or represent a product or service.service; alsoknown as aproduct brand. Marketing Essentials Chapter 31, Section 31.1
  6. 6. Elements of Brandingtrade nameA phrase orsymbol that A trade name , or corporate brand, identifies andidentifies andpromotes a promotes a company or a division of a particularcompany or a corporation.division of aparticularcorporation; alsoknown as acorporate brand. Marketing Essentials Chapter 31, Section 31.1
  7. 7. Elements of Brandingbrand markA unique symbol,coloring, A brand mark  is a unique symbol, coloring,lettering, orother design lettering, or other design element. It is recognizableelements. visually and does not need to be pronounced. Marketing Essentials Chapter 31, Section 31.1
  8. 8. Elements of BrandingtradecharacterA brand mark A trade character  is brand mark that has humanthat has humanform or form or characteristics.characteristics. Marketing Essentials Chapter 31, Section 31.1
  9. 9. Elements of BrandingtrademarkA brand name,brand mark, A trademark  is a word, name, symbol, device, ortrade name,trade character, combination of these elements that is given legalor a combination protection by the federal government. Trademarksof these are used to prevent other companies from using aelements that is similar element that might be confused with thegiven legal trademarked one.protection by thefederalgovernment. Marketing Essentials Chapter 31, Section 31.1
  10. 10. Importance of Brands in ProductPlanningThe use of brands is important in product planningfor several reasons: • To build product recognition and customer loyalty • To ensure quality and consistency • To capitalize on brand exposureMarketing Essentials Chapter 31, Section 31.1
  11. 11. Generating Brand Names Companies will generate brand names by using specialized computer software, or by hiring: • Branding agencies • Naming consultants • Public relations firms Levi Strauss is the name of a specific brand of jeans.Marketing Essentials Chapter 31, Section 31.1
  12. 12. Types of BrandsThere are three classifications of brands, one for eachtype of company that brands its products: • National brands (manufacturers) • Private distributor brands (wholesalers and retailers) • Generic brandsMarketing Essentials Chapter 31, Section 31.1
  13. 13. Types of BrandsnationalbrandsBrands that National brands  are owned and initiated byare owned andinitiated by national manufacturers or by companies that providenational services, such as:manufacturers orservice • Hersheycompanies; also • Whirlpoolknownas producer • Fordbrands. Marketing Essentials Chapter 31, Section 31.1
  14. 14. Types of BrandsprivatedistributorbrandsBrands that are Private distributor brands  are developeddeveloped and and owned by wholesalers and retailers. Theowned by manufacturer’s name does not appear on thewholesalers and product, for example:retailers; alsoknown as private • Wal-Mart’s Georgebrands, storebrands, dealer • Radio Shackbrands, orprivate labels. Marketing Essentials Chapter 31, Section 31.1
  15. 15. Types of BrandsgenericbrandsProducts that do Generic brands  are products that do not carry anot carry acompany company identity. They are generally sold inidentity. supermarkets and discount stores. Companies that manufacture and sell generic brands do not heavily advertise or promote these products, and therefore they can pass on savings to customers. Marketing Essentials Chapter 31, Section 31.1
  16. 16. Branding StrategiesSome branding strategies used to meet sales andcompany objectives are: • Brand extensions • Brand licensing • Mixed branding • Co-brandingMarketing Essentials Chapter 31, Section 31.1
  17. 17. Brand Extensionbrandextension Brand extension  is a branding strategy that usesA branding an existing brand name to promote a new orstrategy that improved product in a company’s product line.uses an existingbrand name to This strategy’s risk is overextending a product linepromote a new and diluting the brand with too many products.or improvedproduct in acompany’sproduct line. Marketing Essentials Chapter 31, Section 31.1
  18. 18. Brand LicensingbrandlicensingA legal Brand licensing  involves a legal licensingauthorization bya trademarked agreement for which the licensing company receivesbrand owner to a fee, such as a royalty, in return for allowingallow another another company to use its brand/brand mark/tradecompany (the character.licensee) to useits brand, brandmark, or tradecharacter for afee. Marketing Essentials Chapter 31, Section 31.1
  19. 19. Mixed Brandsmixed-brandSelling acombination of Some manufacturers and retailers use a mixed-manufacturer,private brand  strategy to sell products. They offer adistributor, and combination of manufacturer, private distributor, andgeneric brands. generic brands. For example, a manufacturer of a national brand might agree to make a product for sale under another company’s brand. Marketing Essentials Chapter 31, Section 31.1
  20. 20. Co-Brandingco-brandingA combination ofone or more A co-branding  strategy combines one or morebrands in themanufacture of a brands in the manufacture of a product or in theproduct or in the delivery of a service. It can also happen when two ordelivery of a more retailers share the same location.service. Marketing Essentials Chapter 31, Section 31.1
  21. 21. SECTION 31.1 REVIEW
  22. 22. SECTION 31.1 REVIEW - click twice to continue -
  23. 23. Packaging and LabelingKey Termspackagemixedbundling Objectivesprice bundling • Explain the functions of product packagingblisterpacks • Identify the functions of labelsasepticpackagingcausepackaginglabelbrand labeldescriptivelabelgrade label Marketing Essentials Chapter 31, Section 31.2
  24. 24. Factors Involved In Price PlanningGraphic OrganizerIn a chart like this one, take notes about thefunctions of packaging.Marketing Essentials Chapter 31, Section 31.2
  25. 25. PackagingpackageThe physicalcontainer or A package  is the physical container or wrappingwrapping for aproduct. for a product. Developing a product’s package is an integral part of product planning and promotion because the package is a selling tool. Marketing Essentials Chapter 31, Section 31.2
  26. 26. Functions of PackagingPackaging fulfills several functions, including: • Promoting and selling the product • Defining product identity • Providing information • Expressing benefits and features • Ensuring safe useMarketing Essentials Chapter 31, Section 31.2
  27. 27. Functions of PackagingmixedbundlingThe practice of Sometimes multiple complementary items arepackagingdifferent bundled together in one package. The practice ofproducts and packaging different products and services togetherservices is known as mixed bundling .together. Price bundling  occurs when two or moreprice products are placed on sale for one package price.bundlingTwo or moresimilar productsare placed onsale for onepackage price. Marketing Essentials Chapter 31, Section 31.2
  28. 28. Functions of PackagingAttractive, colorful, and visually appealingpackages have promotional value and can carryimportant messages about the product’sperformance, features, and benefits.Marketing Essentials Chapter 31, Section 31.2
  29. 29. Functions of PackagingPackages often promote an image such asprestige, convenience, or status. They also givedirections for using the product and informationabout: • Contents and nutritional value • Product guarantees • Potential hazardsMarketing Essentials Chapter 31, Section 31.2
  30. 30. Functions of Packaging Packaging comes in different sizes to meet the needs of different market segments, from individuals to families.Marketing Essentials Chapter 31, Section 31.2
  31. 31. Functions of PackagingPackaging can help improve product safety for thecustomer. Many products formerly packaged inglass now come in plastic containers. Toencourage customer safety, goods such as non-prescription drugs, cosmetics, and food items aresold in tamper-resistant blisterpacks.Marketing Essentials Chapter 31, Section 31.2
  32. 32. Functions of PackagingblisterpackPackaging withpreformed plastic Blisterpacks  are packages with preformedmoldssurrounding plastic molds surrounding individual itemsindividual items arranged on a backing.arranged on acardboardbacking. Marketing Essentials Chapter 31, Section 31.2
  33. 33. Functions of PackagingPackaging needs to protect a product duringshipping, storage, and display. The package designshould also prevent or discourage tampering,prevent shoplifting, and protect against breakageand spoilage.Marketing Essentials Chapter 31, Section 31.2
  34. 34. Contemporary Packaging IssuesPackaging gives companies the opportunity toincorporate the latest technologies and addresslifestyle changes as well as environmental, social,and political concerns.Marketing Essentials Chapter 31, Section 31.2
  35. 35. Contemporary Packaging IssuesasepticpackagingA food storage Aseptic packaging  involves separatelyprocess thatkeeps foods fresh sterilizing the package and the food product, andwithout filling and sealing the package in a sterilerefrigeration for environment. Canning and bottling are examplesup to six months. of this method, which keeps food fresh for up to six months. Marketing Essentials Chapter 31, Section 31.2
  36. 36. Contemporary Packaging IssuesCompanies are trying to develop packages thatrespond to consumer demand for environmentallysensitive designs. Many companies thatmanufacture spray products have switched topump dispensers to cut back on the release ofozone-damaging chlorofluorocarbons (CFCs).Marketing Essentials Chapter 31, Section 31.2
  37. 37. Contemporary Packaging IssuescausepackagingPackaging that is Cause packaging  involves using packages toused bycompanies to promote social and political causes. The issues onpromote social the packages may be totally unrelated to theand political products inside.causes. Marketing Essentials Chapter 31, Section 31.2
  38. 38. LabelinglabelAn informationtag, wrapper, A label  is an information tag, wrapper, seal, orseal, orimprinted imprinted message that is attached to a product ormessage that is its package. Its main function is to informattached to a customers about the product’s contents and giveproduct or its directions for its use.package. Marketing Essentials Chapter 31, Section 31.2
  39. 39. LabelingThere are three kinds of labels: • Brand • Descriptive • GradeMarketing Essentials Chapter 31, Section 31.2
  40. 40. Labelingbrand labelLabel giving thebrand name, The brand label  gives the brand name,trademark, orlogo. trademark, or logo. It does not supply sufficient product information. Marketing Essentials Chapter 31, Section 31.2
  41. 41. LabelingdescriptivelabelA label that gives A descriptive label  gives information about theinformationabout the product’s use, construction, care, performance,product’s use, and other features.construction,care,performance,and otherfeatures. Marketing Essentials Chapter 31, Section 31.2
  42. 42. Labelinggrade labelA label thatstates the quality A descriptive label includes date and storageof the product. information for food items. Instructions for proper use and product care are provided on nonfood items. A grade label  states the quality of the product. Marketing Essentials Chapter 31, Section 31.2
  43. 43. LabelingThe Fair Packaging and Labeling Act (FPLA) of1966 established mandatory labelingrequirements. The federal Nutrition Labeling andEducation Act enacted in 1994 requires that labelsgive nutritional information on how a food fits intoan overall daily diet.Marketing Essentials Chapter 31, Section 31.2
  44. 44. LabelingHealth claims on food items are monitored by theU.S. Food and Drug Administration (FDA), whichalso requires that manufacturers of certainproducts place health warnings on their packages.Marketing Essentials Chapter 31, Section 31.2
  45. 45. LabelingThe Federal Trade Commission (FTC) monitorslabels and advertising for false or misleadingclaims.The U.S. Department of Agriculture (USDA) issueslegal standards and certification requirements fororganic labels.Marketing Essentials Chapter 31, Section 31.2
  46. 46. SECTION 31.2 REVIEW
  47. 47. SECTION 31.2 REVIEW - click twice to continue -
  48. 48. Section 31.1• A brand is a name, term, design, or symbol (or combination of these elements) that identifies a product or service. Brands can include a number of elements, such as a trade name, brand name, brand mark, trade character, and trademark. continued
  49. 49. Section 31.2• The functions of packaging include promoting and selling the product, defining product identity, providing information, expressing benefits and features to customers, ensuring safe use, and protecting the product. continued
  50. 50. This chapter has helped prepare you to meet thefollowing DECA performance indicators:• Explain the nature of branding.• Describe the uses of grades and standards in marketing.• Explain the use of brand names in selling.• Describe factors used by marketers to position products/businesses.• Orient new employees.
  51. 51. CHAPTER 31 REVIEW
  52. 52. CHAPTER 31 REVIEW - click twice to continue -