Basic chap011

11-1
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHAPTER
Product, Branding,
and Packaging
Decisions
11
McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.

11-2
L E A R N I N G O B J E C T I V E S
Describe the components of a product.
Identify the types of consumer products.
Explain the difference between a product mix’s breath and
a product line’s depth,
Identify the advantages that brands provide firms and
consumers.
Explain the various components of brand equity.
Determine the various types of branding strategies used by
firms.
Distinguish between brand extension and line extension.
Indicate the advantages of a product’s packaging and
labeling strategy.
Product, Branding,
and Packaging Decisions
LO1
LO2
LO3
LO4
LO5
LO6
LO7
LO8

11-3
Types of Products
Specialty Shopping
Convenience Unsought

11-4
CHECK YOURSELF
1. Explain the three components of a product.
2. What are the four types of consumer
products?

11-5
Product Mix and
Product Line Decisions
Breadth
• Number of product
lines
Depth
• Number of categories
within a product line
Courtesy Pepsi Cola Company

11-6
CHECK YOURSELF
1. What is the difference between product line
breadth versus depth?
2. Why change product line breadth?
3. Why change product line depth?

11-7
What Makes a Brand?
BrandingBrand name
URLs
www.eBay.com
Logos and
symbols
Characters
Slogans
Jingles/Sounds
“Law & Order”
McGraw-Hill
Companies,Inc.
©M. Hruby.

11-8
Value of Branding for the Customer
Facilitate Purchasing
Establish Loyalty
Protect from Competition
Reduce Marketing Costs
Are Assets
Impact Market Value

11-9
Brand Equity: Brand Awareness
Source: http://www.interbrand.com/best_global_brands.aspx

11-10
Brand Equity: Perceived Value
 How do discount
retailers like Target,
T.J. Maxx, and H&M
create value for
customers?
Photo by Peter Kramer/Getty Images

11-11
Brand Equity: Brand Associations
©McGraw-Hill Companies Inc/Gary He, photographer

11-12
Brand Equity: Brand Loyalty
 Consumers are often
less sensitive to price
 Marketing costs are
much lower
 Firm insulated from
the competition
Copyright State Farm Mutual Automobile Insurance
Company 2005 Used by permission

11-13
1. How do brands create value for the customer
and the firm?
2. What are the components of brand equity?
CHECK YOURSELF

11-14
Brand Ownership
Manufacturer brands or
national brands
Private-label brands or
Store Brands
• Premium
• Generic
• Copycat
• Exclusive co-branded

11-15
Naming Brands and Product Lines
 Corporate or family brand
 The Gap
 Corporate and product line brands
 Kellogg’s Corn Flakes
 Individual lines
 Mr. Clean (Proctor & Gamble)
©M. Hruby.

11-16
Brand Extension
State Farm Website
©M Hruby

11-17
Brand Dilution
Evaluate the fit between
the product class
of the core brand
and the extension.
Evaluate consumer
perceptions of the
attributes of the core brand
and seek out extensions
with similar attributes.
Refrain from
extending the brand
name to too many
products.
Is the brand
extension distanced
enough from the
core brand?

11-18
Zite: Personalized Magazine
Co-branding
©M Hruby

11-19
Brand Licensing
Photo by D. larke Evans/NBAE via Getty Images.

11-20
Brand Repositioning
 How is this
repositioning?
Courtesy The Procter & Gamble Company

11-21
CHECK YOURSELF
1. What are the differences among
manufacturer and private-label brands?
2. What is co-branding?
3. What is the difference between brand
extension and line extension?
4. What is brand repositioning?

11-22
Packaging
 What other packaging
do you as a consumer
find useful?
©M. Hruby.

11-23
Product Labeling
©The McGraw-Hill Companies, Inc/Elite Images
C Sherburne/PhotoLink/Getty Images

11-24
Return to slide
A brand association reflects the mental links
that consumers make between a brand and its
key product attributes, such as a logo, slogan,
or famous personality.
Glossary

11-25
Return to slide
Brand dilution occurs when the brand extension
adversely affects consumer perceptions about
the attributes the core brand is believed to hold.
Glossary

11-26
Return to slide
Brand equity is the set of assets and liabilities
linked to a brand that add to or subtract from the
value provided by the product or service.
Glossary

11-27
Return to slide
A brand extension refers to the use of the same
brand name for new products being introduced
to the same or new markets.
Glossary

11-28
Return to slide
Brand licensing is a 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.
Glossary

11-29
Return to slide
Brand loyalty occurs when a consumer buys the
same brand’s product or service repeatedly over
time rather than buy from multiple suppliers
within the same category.
Glossary

11-30
Return to slide
Brand repositioning or rebranding refers to a
strategy in which marketers change a brand’s
focus to target new markets or realign the
brand’s core emphasis with changing market
preferences.
Glossary

11-31
Return to slide
Co-branding is the practice of marketing two or
more brands together, on the same package or
promotion.
Glossary

11-32
Return to slide
Perceived value of a brand is the relationship
between a product or service’s benefits and its
cost.
Glossary

11-33
Return to slide
Product assortment or product mix is the
complete set of all products offered by a firm.
Glossary

11-34
Return to slide
Product lines are groups of associated items,
such as items that consumers use together or
think of as part of a group of similar products.
Glossary

11-35
Return to slide
Product mix or product assortment is the
complete set of all products offered by a firm.
Glossary

Basic chap011

More Related Content

Viewers also liked

Similar to Basic chap011

Recently uploaded

Basic chap011