Chp 9: product, branding, packaging decisions Flashcards
(101 cards)
1
Q
what does packaging and labelling need to send out from shelf
A
must send out a strong message from the shelf: buy me
2
Q
3 components of product
A
core customer value, actual product, associated services/augmented product
3
Q
explain core customer value
A
center
4
Q
explain actual product
A
(more than 50% of circle): brand name, quality level, packaging, features/design
5
Q
explain associated services/augmented product
A
financing, product warranty, product support, after sales service
6
Q
define core customer value
A
basic problem solving benefits that consumers are seeking
7
Q
what is the core question and give example
A
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?
8
Q
what do marketers convert from core customer value
A
into actual product
9
Q
explain importance of actual product attributes
A
vary depending on product
10
Q
define associated services/augmented product
A
the nonphysical attributes of the product
11
Q
process of marketers as they develop/change a product
A
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
12
Q
what about product impacts 4PS
A
type of product
13
Q
2 primary categories for products and further classification
A
based on who is buying them: consumers or business. Consumer products are further classified by the way they are used and purchased
14
Q
define consumer products
A
products and services used by people for their personal use
15
Q
list 4 types of consumer products
A
1) speciality products/services
2) shopping products/services
3) convenience products/services
4) unsought products/services
16
Q
define speciality products/services
A
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
17
Q
2 points to speciality product/services
A
Examples: luxury cars, legal or medical professionals, designer apparel.
Extensive process used to approve authorized retailers helps maintain a premium image
18
Q
define shopping product/services
A
products or services for which consumers will spend time comparing alternatives
19
Q
2 points to shopping product/services
A
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
20
Q
define convenience product/service
A
products or services for which consumer is not willing to spend any effort to evaluate prior to purchase
21
Q
1 point to convenience product/service
A
Frequently purchased commodity items, usually bought with very little thought, like common beverages, bread, soap
22
Q
2 points to unsought product/service
A
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
23
Q
define product mix
A
complete set of all products offered by a firm
24
Q
2 points to product mix
A
1) Typically consists of various product lines
2) Reflects breadth and depth of product lines
25
define product line
groups of associated items, such as those consumers use together or think of as a group of similar products
26
2 points to product line
1) Example: oral care, personal care, pet nutrition
| 2) Within each product line, there are often multiple product categories
27
define product categories
an assortment of items that the consumer sees as reasonable substitutes for one another
28
3 points to product category
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)
29
define brand
the names, terms, designs, symbols or any other features that identify one seller’s good or service as distinct from those of other sellers
30
example of brand
firm may offer several brands of toothbrushes
31
define product mix breadth
number of product lines, or variety, offered by firm
32
1 point to product mix breadth
Too much variety in product mix is often costly to maintain and too many brands may dilute overall reputation
33
define product line depth
number of products within a product line
34
define stock keeping units (SKUs)
individual items within each product category, the smallest unit available for inventory control
35
3 points to SKUs
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
36
4 ways firms change product mix breadth
1) increase breadth (adding to product line)
2) decrease breadth (deleting from product line)
3) increase product line depth
4) decrease product line depth
37
1 point to increase breadth
Firms often add new product lines to capture new or evolving markets, increase sales and compete in new venues
38
1 point to decrease breadth
Sometimes it may be necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities
39
1 point to increase depth
Firms may add new products within a line to address changing consumer preferences or preempt competitors while boating sales
40
3 points to decrease depth
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
41
6 points to branding
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
42
7 brand elements
1) brand name
2) URL or domain name
3) logos and symbols
4) characters
5) slogans
6) jingles
7) distinctive packages
43
explain brand name
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
44
explain URL/domain name
location of pages on internet, which often substitutes for the firm’s name
45
explain logos and symbols
logos are visual branding elements that stand for corporate names or trademarks, symbols are logos without words
46
explain characters
brand symbols that could be human, animal or animated like pillsbury doughboy
47
explain symbols
short phrases used to describe the brand or persuade consumers about some characteristic of the brand like tim hortons always fresh
48
explain jingles
audio messages about brand that are composed of words or distinctive music
49
6 values of branding
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
50
2 points to brands facilitate purchasing
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
51
4 points to brands establish loyalty
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
52
3 points to brands protect from competition
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
53
3 points to brands reduce marketing costs
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
54
2 points to brands are assets
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
55
4 points to brands impact market value
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
56
define brand equity
set of assets + liabilities linked to a brand that adds to or subtracts from the value provided by the product or service
57
what translates to brand equity
value of brand
58
3 parts of brand
1) brand equity
2) brand ownership strategies
3) brand name strategies
59
4 points in brand equity
Brand awareness
Perceived value
Brand associations
Brand loyalty
60
3 points in brand ownership strategies
Manufacturer or national brand
Store or private label
Generic
61
3 points in brand name strategies
Corporate or family brand
Corporate and product line brand
Individual
62
define brand awareness
measures how many consumers in a market are familiar with the brand and what it stands for
63
5 points to brand awareness
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
64
define perceived value
relationship between product or service’s benefits and its cost
65
3 points to perceived value
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
66
define brand associations
mental links that consumers make between a brand and its key product attributes, can involve logo, slogan, famous personality
67
4 points to brand associations
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
68
define brand personality
refers to set of human characteristics associated with a brand, which as symbolic or self expressive meanings for consumers
69
example of brand personality
youth, fun personality of mcdonalds with golden arches, brightly lit and coloured restaurants, exciting + youthful packaging
70
what can brand personality include
Can include male, female, old, young, fresh, smooth, round, clear, floral
71
define brand loyalty
occurs when a consumer buys the same brand’s products or service repeatedly over time rather than buying from multiple suppliers within same category
72
2 points to brand loyalty
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
73
4 reasons brand loyal consumers important source of value
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
74
define manufacturing brand
brands owned and managed by manufacturer
75
3 points to manufacturing brand
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
76
define private label/store brands
brands developed and marketed by a retailer and available only from that retailer
77
3 points to private label/store brands
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
78
define generic brand
product sold without brand name, typically in commodities markets
79
4 points to generic brand
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
80
when should firms use individual brands
The more products vary in usage or performance, the more likely it is that firm should use individual brands
81
2 types of naming brands + product lines
1) family brands
| 2) individual brands
82
define family brands
use of combination of company brand name and individual brand name to distinguish firm’s products
83
2 points to family brands
1) Example: Kelloggs (rice krispies, froot loops, eggos)
| 2) Individual brands benefit from overall awareness associated with family name
84
define individual brands
use of individual brand names for each of firm’s products
85
2 points to individual brands
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
86
4 things to consider when choosing a brand name
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
87
when would a company change its name
Sometimes a change of name is in order to be more memorable and receptive to consumers
88
define brand extensions
use of same brand name for new products being introduced to same or new markets
89
where are brand extensions common
common in global expansions
90
3 advantages to using same brand name for new products
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
91
are brand extensions always good
Some brand extensions are not good and can dilute brand equity
92
define brand dilution
occurs when brand extension adversely affects consumer perceptions about attributes the core brand is believed to hold
93
4 things to consider to prevent brand dilution
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)
94
define cobranding
practice of marketing 2+ brands together on same package or promotion
95
3 points to cobranding
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
96
define brand licensing
contractual arrangement between firms, where one firm allows another to use its brand name, logo, symbols or characters in exchange for negotiated fee
97
3 points to brand licensing
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
98
what is packaging
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
99
8 points to how packaging contributes to strategy
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
100
2 points to packaging
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
101
4 points to labelling
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
