Chp 9: product, branding, packaging decisions

Question 1

what does packaging and labelling need to send out from shelf

Answer 1

must send out a strong message from the shelf: buy me

Question 2

3 components of product

Answer 2

core customer value, actual product, associated services/augmented product

Question 3

explain core customer value

Answer 3

center

Question 4

explain actual product

Answer 4

(more than 50% of circle): brand name, quality level, packaging, features/design

Question 5

explain associated services/augmented product

Answer 5

financing, product warranty, product support, after sales service

Question 6

define core customer value

Answer 6

basic problem solving benefits that consumers are seeking

Question 7

what is the core question and give example

Answer 7

what are customers looking for?

Example: do people buy canada goose because they want extreme cold weather defence or want to make a fashion statement?

Question 8

what do marketers convert from core customer value

Answer 8

into actual product

Question 9

explain importance of actual product attributes

Answer 9

vary depending on product

Question 10

define associated services/augmented product

Answer 10

the nonphysical attributes of the product

Question 11

process of marketers as they develop/change a product

Answer 11

marketers start with core customer value to determine what their potential customers are seeking. Then they make the actual physical product and add associated services to round out the offering

Question 12

what about product impacts 4PS

Answer 12

type of product

Question 13

2 primary categories for products and further classification

Answer 13

based on who is buying them: consumers or business. Consumer products are further classified by the way they are used and purchased

Question 14

define consumer products

Answer 14

products and services used by people for their personal use

Question 15

list 4 types of consumer products

Answer 15

1) speciality products/services
2) shopping products/services
3) convenience products/services
4) unsought products/services

Question 16

define speciality products/services

Answer 16

products or services toward which the customer shows a strong preference and for which he/she will expend considerable effort to search for the best suppliers

Question 17

2 points to speciality product/services

Answer 17

Examples: luxury cars, legal or medical professionals, designer apparel.
Extensive process used to approve authorized retailers helps maintain a premium image

Question 18

define shopping product/services

Answer 18

products or services for which consumers will spend time comparing alternatives

Question 19

2 points to shopping product/services

Answer 19

1) Examples: apparel, fragrances, appliances
2) Examples: when people need new sneakers, they will go from store to store shopping, trying shoes on, comparing alternatives, talking to salespeople

Question 20

define convenience product/service

Answer 20

products or services for which consumer is not willing to spend any effort to evaluate prior to purchase

Question 21

1 point to convenience product/service

Answer 21

Frequently purchased commodity items, usually bought with very little thought, like common beverages, bread, soap

Question 22

2 points to unsought product/service

Answer 22

1) Products consumers either do not normally think of buying (funeral services, fire extinguishers) or do not know about
2) Products require lots of marketing efforts and various forms of promotion

Question 23

define product mix

Answer 23

complete set of all products offered by a firm

Question 24

2 points to product mix

Answer 24

1) Typically consists of various product lines

2) Reflects breadth and depth of product lines

Question 25

define product line

Answer 25

groups of associated items, such as those consumers use together or think of as a group of similar products

Question 26

2 points to product line

Answer 26

1) Example: oral care, personal care, pet nutrition

2) Within each product line, there are often multiple product categories

Question 27

define product categories

Answer 27

an assortment of items that the consumer sees as reasonable substitutes for one another

Question 28

3 points to product category

Answer 28

1) Example: in oral care, there may be toothpaste, whitening products, toothbrushes
2) Each category may use the same or different brands
3) Within each category are a number of individual items called stock keeping units (SKUS)

Question 29

define brand

Answer 29

the names, terms, designs, symbols or any other features that identify one seller’s good or service as distinct from those of other sellers

Question 30

example of brand

Answer 30

firm may offer several brands of toothbrushes

Question 31

define product mix breadth

Answer 31

number of product lines, or variety, offered by firm

Question 32

1 point to product mix breadth

Answer 32

Too much variety in product mix is often costly to maintain and too many brands may dilute overall reputation

Question 33

define product line depth

Answer 33

number of products within a product line

Question 34

define stock keeping units (SKUs)

Answer 34

individual items within each product category, the smallest unit available for inventory control

Question 35

3 points to SKUs

Answer 35

1) Each individual product is a unique SKU
2) Category depth is the number of SKUs within a category
3) Each SKU has its own unique universal product code (UPC) as well

Question 36

4 ways firms change product mix breadth

Answer 36

1) increase breadth (adding to product line)
2) decrease breadth (deleting from product line)
3) increase product line depth
4) decrease product line depth

Question 37

1 point to increase breadth

Answer 37

Firms often add new product lines to capture new or evolving markets, increase sales and compete in new venues

Question 38

1 point to decrease breadth

Answer 38

Sometimes it may be necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities

Question 39

1 point to increase depth

Answer 39

Firms may add new products within a line to address changing consumer preferences or preempt competitors while boating sales

Question 40

3 points to decrease depth

Answer 40

1) It may be necessary to delete product categories to realign resources
2) May be done to eliminate unprofitable items and refocus marketing efforts on more profitable items
3) Example: firm that has rep as innovative, high end might delete a product category if the inexpensive, less effective version undermines brand

Question 41

6 points to branding

Answer 41

1) Firm lives or dies based on brand awareness
2) Consumers can’t buy products they don’t know exist
3) Even if overall brand name is familiar, it won’t help sales of individual products unless consumes know what products are available under that name
4) Branding provides way for firm to differentiate its product offering from those of its competition
5) Consumer may choose one product over the other because of the associations the brand evokes
6) Brand elements are chosen to be easy for consumers to recognize and remember
Example: nike swoosh easy to recognize and remember

Question 42

7 brand elements

Answer 42

1) brand name
2) URL or domain name
3) logos and symbols
4) characters
5) slogans
6) jingles
7) distinctive packages

Question 43

explain brand name

Answer 43

spoken component of branding. Can either describe product/service characteristics and/or be composed of words invented or derived from common language. Ex, Apple, Comfort Inn

Question 44

explain URL/domain name

Answer 44

location of pages on internet, which often substitutes for the firm’s name

Question 45

explain logos and symbols

Answer 45

logos are visual branding elements that stand for corporate names or trademarks, symbols are logos without words

Question 46

explain characters

Answer 46

brand symbols that could be human, animal or animated like pillsbury doughboy

Question 47

explain symbols

Answer 47

short phrases used to describe the brand or persuade consumers about some characteristic of the brand like tim hortons always fresh

Question 48

explain jingles

Answer 48

audio messages about brand that are composed of words or distinctive music

Question 49

6 values of branding

Answer 49

1) brands facilitate purchasing
2) brands establish loyalty
3) brands protect from competition
4) brands reduce marketing costs
5) brands are assets
6) brands impact market value

Question 50

2 points to brands facilitate purchasing

Answer 50

1) Brands are often easily recognized by consumers and because they signify a certain level of quality and contain familiar attributes, brands help consumers make quick decisions
2) From promotions, past purchases, info from family and friends, consumers recognize offerings before they even read any text on label and likely possess perception of brand’s level of quality, how it tastes, whether it is good value, and whether they like it and want to buy it

Question 51

4 points to brands establish loyalty

Answer 51

1) Over time and with continued used, consumers learn to trust certain brands
2) They know a product always performs in the exact same way
3) Loyal fans build buzz
4) From this loyalty, companies can maintain great depth in product lines since customers will buy other brands within their product mix

Question 52

3 points to brands protect from competition

Answer 52

1) Strong brands are protected from competition + price competition
2) Such brands are more established in market and have more loyal customer base, neither competitive pressures on price nor retail level competition is as threatening to firm
3) Strong brands, like those perceived as high quality and certain status among its users, can command a premium price

Question 53

3 points to brands reduce marketing costs

Answer 53

1) Firms with well known brands can spend less on marketing costs because the brand sells itself
2) People become familiar with brand so ads don’t need to explain what company is or what it does. People already know.
3) Brands supported by word of mouth and partnerships + sponsorships are included

Question 54

2 points to brands are assets

Answer 54

1) Brands are assets that can be legally protected through trademarks + copyrights and are unique ownership for the firm
2) Firms may have to fight to keep brands pure, to ensure value of brand is not diluted with fake products or sales through unauthorized dealers

Question 55

4 points to brands impact market value

Answer 55

1) Having well known brands can have direct impact on bottom line
2) Value of firm is its overall monetary worth, comprising many assets
3) When brand loses value, it also threatens other assets
4) Value of brand can be calculated by assessing earning potential of the brand over the next 12 months

Question 56

define brand equity

Answer 56

set of assets + liabilities linked to a brand that adds to or subtracts from the value provided by the product or service

Question 57

what translates to brand equity

Answer 57

value of brand

Question 58

3 parts of brand

Answer 58

1) brand equity
2) brand ownership strategies
3) brand name strategies

Question 59

4 points in brand equity

Answer 59

Brand awareness
Perceived value
Brand associations
Brand loyalty

Question 60

3 points in brand ownership strategies

Answer 60

Manufacturer or national brand
Store or private label
Generic

Question 61

3 points in brand name strategies

Answer 61

Corporate or family brand
Corporate and product line brand
Individual

Question 62

define brand awareness

Answer 62

measures how many consumers in a market are familiar with the brand and what it stands for

Question 63

5 points to brand awareness

Answer 63

1) Created through repeated exposures of the various brand elements in the firm’s communication to consumers
2) The more consumers are aware of or familiar with the brand, the easier their decision making process will be
3) Brand awareness also important for infrequently purchased items or items consumer hasn’t purchased before. Just being aware of the brand can help facilitate a purchase.
4) Certain brands gain predominance in particular product market over time that they become synonymous with the product itself - the brand name starts being used as the generic product category like band aid
5) Companies must protect brand name, if they are used so generically, over time the brand can lose its trademark status

Question 64

define perceived value

Answer 64

relationship between product or service’s benefits and its cost

Question 65

3 points to perceived value

Answer 65

1) Brand awareness alone does not ensure a strong brand. Consumers could be aware of brand but have negative opinion of it
2) Customers usually determine offering’s value in relationship to that of its competitors. If an inexpensive brand is same quality as premium brand, perceived value of cheaper choice is high
3) Customers want products to do what they were designed to do and be available at a reasonable price

Question 66

define brand associations

Answer 66

mental links that consumers make between a brand and its key product attributes, can involve logo, slogan, famous personality

Question 67

4 points to brand associations

Answer 67

1) Brand associations often result from firm’s ads and promotion efforts
2) Associations with specific attributes (like economical, stylish, safe) can create differentiation between brand and competitors
3) Firms try to create specific associations with brands with positive consumer emotions
4) Firms sometimes develop personality for brand

Question 68

define brand personality

Answer 68

refers to set of human characteristics associated with a brand, which as symbolic or self expressive meanings for consumers

Question 69

example of brand personality

Answer 69

youth, fun personality of mcdonalds with golden arches, brightly lit and coloured restaurants, exciting + youthful packaging

Question 70

what can brand personality include

Answer 70

Can include male, female, old, young, fresh, smooth, round, clear, floral

Question 71

define brand loyalty

Answer 71

occurs when a consumer buys the same brand’s products or service repeatedly over time rather than buying from multiple suppliers within same category

Question 72

2 points to brand loyalty

Answer 72

1) firms reward loyal customers with loyalty or CRM programs
2) Brand loyalty often requires better quality or distinctive promise (like lifetime satisfaction guarantee), which can be expensive

Question 73

4 reasons brand loyal consumers important source of value

Answer 73

1) often less sensitive to price
2) marketing costs of reaching loyal consumers less because firm doesn’t need to spend money to attract them. They don’t need persuasion to buy brand
3) loyal customers praise virtues of favourite product. Positive word of mouth reaches potential customers and reinforces perceived value at no cost to firm
4) high brand loyalty insulates firm from competition because brand loyal customers do not switch to competitors brands

Question 74

define manufacturing brand

Answer 74

brands owned and managed by manufacturer

Question 75

3 points to manufacturing brand

Answer 75

1) Manufacturer develops merchandise, produces it to ensure consistent quality, invests in marketing program to establish appealing brand image
2) Majority of brands marketed in canada are manufacturer brands
3) By owning their brands, manufacturers retain more control over marketing strategy, are able to choose appropriate market segments and positioning for brand, can build brand therefore create own brand equity

Question 76

define private label/store brands

Answer 76

brands developed and marketed by a retailer and available only from that retailer

Question 77

3 points to private label/store brands

Answer 77

1) Retailers can use them to establish distinctive identity
2) Common in supermarkets, discount stores, drugstores
3) Popularity among consumers depends on: prefers for lower cost brand, trust consumers have in brand and store

Question 78

define generic brand

Answer 78

product sold without brand name, typically in commodities markets

Question 79

4 points to generic brand

Answer 79

1) Example: salt, grains, meat, nuts
2) Popularity + acceptance of generic products has declined
3) Consumers question quality + origin of products
4) Better profit potential and ability to build brand equity with store brand or manufacturer brand

Question 80

when should firms use individual brands

Answer 80

The more products vary in usage or performance, the more likely it is that firm should use individual brands

Question 81

2 types of naming brands + product lines

Answer 81

1) family brands

2) individual brands

Question 82

define family brands

Answer 82

use of combination of company brand name and individual brand name to distinguish firm’s products

Question 83

2 points to family brands

Answer 83

1) Example: Kelloggs (rice krispies, froot loops, eggos)

2) Individual brands benefit from overall awareness associated with family name

Question 84

define individual brands

Answer 84

use of individual brand names for each of firm’s products

Question 85

2 points to individual brands

Answer 85

1) Individual brands allow company to compete within 1 category, offering variety of products to different target markets
2) If one brand experiences problems, other products with unique brand names are protected from any negative association

Question 86

4 things to consider when choosing a brand name

Answer 86

1) should be descriptive + suggestive of benefits + qualities associated with product
2) should be easy to pronounce
3) should be able to register brand name as trademark and legally protect it
4) for firms looking to global markets, brand name should be easy to translate into other languages

Question 87

when would a company change its name

Answer 87

Sometimes a change of name is in order to be more memorable and receptive to consumers

Question 88

define brand extensions

Answer 88

use of same brand name for new products being introduced to same or new markets

Question 89

where are brand extensions common

Answer 89

common in global expansions

Question 90

3 advantages to using same brand name for new products

Answer 90

1) brand name already well established so firm can spend less in developing consumer brand awareness and associations for new product
2) if brand is known for its high quality, perception will carry over to new product
3) when brand extensions are used for complementary products, a synergy exists between the 2 products that can increase overall sales (like chips and dips). When people buy 1 they will likely buy the other

Question 91

are brand extensions always good

Answer 91

Some brand extensions are not good and can dilute brand equity

Question 92

define brand dilution

Answer 92

occurs when brand extension adversely affects consumer perceptions about attributes the core brand is believed to hold

Question 93

4 things to consider to prevent brand dilution

Answer 93

1) evaluate fit between product class of core brand and that of extension. If fit is high, consumers will consider extension credible and brand association will be stronger for extension
2) evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for extension because brand specific associations are important for extensions
3) avoid extending brand name to too many products and product categories to avoid diluting brand and damaging brand equity
4) consider whether brand extension will be distanced from core brand, especially if firm wants to use some but not all of existing brand associations (ex marriot budget hotels not associated with its luxury hotels like ritz-carlton)

Question 94

define cobranding

Answer 94

practice of marketing 2+ brands together on same package or promotion

Question 95

3 points to cobranding

Answer 95

1) Example: airlines and credit cards
2) Cobranding enhances consumer perceptions of product quality by signalling otherwise unobservable product quality through links between firm’s brands and well known quality brand
3) Risks to cobranding, especially when customers for each of the brands were vastly different. Can also fail when there are financial disputes or conflicts of interest

Question 96

define brand licensing

Answer 96

contractual arrangement between firms, where one firm allows another to use its brand name, logo, symbols or characters in exchange for negotiated fee

Question 97

3 points to brand licensing

Answer 97

1) Common for toys, apparel, accessories, entertainment products
2) Licensing is good at attracting visibility for the brand and so building brand equity while generating additional revenue
3) Risks: for licensor, risk is dilution of its brand equity through overexposure of the brand, especially if brand name + characters are used inappropriately

Question 98

what is packaging

Answer 98

Packaging is brand element with more tangible or physical benefits than other brand elements because they come in different types and offer variety of benefits to consumers, manufacturers, retailers

Question 99

8 points to how packaging contributes to strategy

Answer 99

1) Attracts consumers attention, enables products to stand out from competition, offers promotion tool (new and improved promises on labels)
2) Allows same product to appeal to different markets with different sizes (costco vs small store)
3) Also protects products, provides UPC label used by retail scanners, as well as contents, directions + other additional product info.
4) Package can be marketing tool if it is used to convey brand’s positioning
5) May affect consumer’s emotions + drive impulse buying
6) Shapes of packaging encourages purchase and differentiation
7) Children pressure parents to buy products because of packaging > product
8) Packaging can make consumer feel proud to own brand

Question 100

2 points to packaging

Answer 100

1) Some consumers experience wrap rage - frustration with packaging that is difficult to open
2) When costs of producing product rise, manufactures can either raise prices (which consumers don’t like) or reduce amount of product sold in package

Question 101

4 points to labelling

Answer 101

1) Labels provide info consumer needs for purchase decision + consumption of product
2) Labels identify product + brand and can be used for promotion
3) Labelling is communication tool - communicate benefits of products to consumers like zero artificial ingredients
4) Labelling also needs to comply with regulations