Chapter 11 Product Branding and Packaging Decisions Mc

Chapter 11 Product, Branding, and Packaging Decisions ©Mc. Graw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of Mc. Graw-Hill Education.

Learning Objectives (1 of 2) Learning Objective 11. 1 Describe the components of a product. Learning Objective 11. 2 Identify the types of consumer products. Learning Objective 11. 3 Explain the difference between a product mix’s breath and a product line’s depth. Learning Objective 11. 4 Identify the advantages that brands provide firms and consumers. 2 © Mc. Graw-Hill Education

Learning Objectives (2 of 2) Learning Objective 11. 5 Explain the various components of brand equity. Learning Objective 11. 6 Determine the various types of branding strategies used by firms. Learning Objective 11. 7 Distinguish between brand extension and line extension. Learning Objective 11. 8 Indicate the advantages of a product’s packaging and labeling strategy. 3 © Mc. Graw-Hill Education

Types of Products Specialty Shopping Convenience Unsought 4 © Mc. Graw-Hill Education

PROGRESS CHECK (1 of 5) 1. Explain the three components of a product. 2. What are the four types of consumer products? 5 © Mc. Graw-Hill Education

Product Mix and Product Line Decisions (1 of 2) Product Lines Mercedes-Benz Cars Mercedes-AMG cars Smart Cars Mercedes-Benz Vans A-Class C 63 Smart For. Two Sprinter Worker B-Class CLS 63 Smart For. Two Cabrio Sprinter Cargo Van C-Class GLE 450 Smart For. Four Sprinter Crew Van CLA SL Convertible Smart For. Two Electric Drive Sprinter Passenger Van CLS GT Metro Passenger Van G-Class Metro Cargo Van E-Class Marco Polo Camper Van GLA R-Class S-Class V-Class 6 © Mc. Graw-Hill Education

Product Mix and Product Line Decisions (2 of 2) Breadth Depth • Number of product lines • Number of categories within a product line 7 © Mc. Graw-Hill Education Courtesy Pepsi Cola Company

PROGRESS CHECK (2 of 5) 1. What is the difference between product line breadth versus depth? 2. Why change product line breadth? 3. Why change product line depth? 8 © Mc. Graw-Hill Education

What Makes a Brand? Logos and symbols Characters URLs Slogans www. e. Bay. com Brand name Branding Jingles/ Sounds 9 © Mc. Graw-Hill Education

Value of Branding for the Customer Facilitate Purchasing Establish Loyalty Protect from Competition Are Assets https: //www. youtube. com/watch? v=MX 8 O 7 z 4 Nto. U Impact Market Value 10 © Mc. Graw-Hill Education

Brand Equity for the Owner Country Sector Brand Value (in $ Billions) Apple United States Technology $170. 3 2 Google United States Technology $120. 3 3 3 Coca-Cola United States Beverages $78. 4 4 5 Microsoft United States Technology $67. 7 5 4 IBM United States Business Services $65. 1 6 10 Toyota Japan Automotive $49. 0 7 8 Samsung South Korea Technology $45. 3 8 6 GE United States Diversified $42. 3 9 7 Mc. Donald's United States Restaurants $39. 8 10 n. a. Amazon United States Retail $37. 9 2015 Rank 2013 Rank 1 1 2 Brand 11 © Mc. Graw-Hill Education Source: From Interbrand. com, http: //interbrand. com/best-brands/best-global-brands/2015/ranking/#? list. Format=ls.

Brand Equity: Brand Awareness The more aware of or familiar with an offering, the easier the consumer’s decisionmaking process is, which improves the chances of purchase. 12 © Mc. Graw-Hill Education

Brand Equity: Perceived Value How do discount retailers like Target, T. J. Maxx, and H&M create value for customers? 13 © Mc. Graw-Hill Education

Brand Equity: Brand Associations Brand associations often result from a firm’s advertising and promotional efforts. Prius • • Economical Good value Stylish Good for the environment 14 © Mc. Graw-Hill Education

Brand Equity: Brand Loyalty Consumers are often less sensitive to price. Marketing costs are much lower. Firm are insulated from the competition. 15 © Mc. Graw-Hill Education

PROGRESS CHECK (3 of 5) 1. How do brands create value for the customer and the firm? 2. What are the components of brand equity? 16 © Mc. Graw-Hill Education

Brand Ownership Private-label brands or Store Brands Manufacturer brands or national brands • • Premium Generic Copycat Exclusive co-branded 17 © Mc. Graw-Hill Education

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) 18 © Mc. Graw-Hill Education All photos: ©M. Hruby.

Brand Line Extensions © Mc. Graw-Hill Education Jump to Appendix 1 long image description 19 ©M. Hruby.

Brand Dilution Evaluate the fit between the product class of the core brand the extension. Evaluate consumer perceptions of the attributes of the core brand 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? 20 © Mc. Graw-Hill Education Gf. K Custom Research

Co-Branding Can enhance perceptions of quality through links between brands Yum! Brands • Combines two or more of its restaurant chains (A&W, KFC, Long John Silver’s, Pizza Hunt, and Taco Bell) into one store space 21 © Mc. Graw-Hill Education

Brand Licensing 22 © Mc. Graw-Hill Education © Stacy Revere/Getty Images

Brand Repositioning Can improve the brand’s fit with its target segment Can boost vitality of old brands Not without costs and risks 23 © Mc. Graw-Hill Education

PROGRESS CHECK (4 of 5) 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? 24 © Mc. Graw-Hill Education

Packaging What other packaging do you as a consumer find useful? 25 © Mc. Graw-Hill Education

Product Labeling 26 © Mc. Graw-Hill Education Photo 1: ©The Mc. Graw-Hill Companies, Inc/Elite Images, Photo 2: C Sherburne/Photo. Link/Getty Images

PROGRESS CHECK (5 of 5) 1. Why do firms change packaging? 2. What objectives do product labels fulfill? 27 © Mc. Graw-Hill Education

Marketing Chapter 11 The End ©Mc. Graw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of Mc. Graw-Hill Education.