What is a product?
Anything of value offered through voluntary market exchange
-a good, service, idea, experience
-ex: American Girl Dolls–> store in NY with a salon, the theater, etc
What are the components/levels of a product/service?
Core customer value–> how a product makes you feel (What are customers looking for?)
Actual product–> what you buy
Augmented product–>additional benefit (delivery, $ back)
What is branding and what elements make a brand?
Distinguishes goods, makes them easy to recognize and remember
-Brand name, domain names, logos and symbols, characters, slogans, jingles, distinctive packaging
What is the value of branding for the customer?
Brands facilitate purchases
Brands establish loyalty
Brands protect from competition and price competition
Brand are assets
Brands affect market value
What is evaluated to determine brand equity?
How a company is recognized by consumer’s value; brands are assets that a firm can build, manage and harness over time to increase its revenue, profitability and overall value
-Brand awareness- different levels
-Perceived value- how much consumers value a product; value in relationship to that of close competitors
-Brand associations- things we think of with a brand
-Brand loyalty- how many customers are loyal to the brand
-Net promoter’s score–> degree to which you would recommend a brand to someone else
Who can own a brand? What are the two basic strategies of brand ownership and what does each entail?
Brands can be owned by any firm in the supply chain
-Manufacturer brands= owned and managed by manufacturer
-Retail/store brands= aka private-label; developed by retailers
~premium brands- have label, same-higher quality than top manufacturers
~generic brands- inexpensive, commodities
~copycat brands- similar to popular products
~exclusive co-brands- special line only at one retailer
What must be considered when choosing a name for brands/product lines?
-Corporate or Family brands-brand awareness
-Individual brands- makes consumer feel like there’s more choices
*Choosing a Name*
What’s the brand’s role? Are you planning a line of products? Long-term position in the market? Insulting or irritating to anyone?
What are the advantages of brand and line extensions?
Cost effective, image transfer, complementary products *synergy*
What must marketers consider when trying to avoid brand dilution?
Evaluate the fit between the product class of the core brand and that of the extension; evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension; refrain from extending the brand name to too many product categories; consider whether extension will be distanced from the core brand
What are the benefits and risks associated with co-branding? Brand licensing?
Make it seem like more value, increase market share, enhances perceptions of quality, prelude to acquisition strategy; can create risks if customers of each brand turn out to be vastly different
3rd party pays for rights to another company’s brand name: effective form of attracting visibility for brand and building brand equity while also generating additional revenue; risk is dilution of brand equity through overexposure of brand, esp if brand name is used inappropriately
Why is packaging important?
Important brand element with more tangible or physical benefits than other brand elements
-Reinforce brand message, protect contents, ensure product safety, address environmental concerns, cost reduction
-Primary package v. secondary package
Packaging can play what key roles? Examples of innovation in packaging?
Attracts consumers’ attention, enables products to stand out from their competitors, offers a promotional tool and allows for the same product to appeal to different markets with different sizes
What is the role of product labeling?
information-promotion, people understand what it is
What information must be included on a product label?
must include ingredients, location it was made, directions for use and safety precautions
Which laws and federal agencies pertain to product labeling? What does each entail?
Federal Food and Drug Act
Fair Packaging and Labeling Act
Nutrition Labeling Act
Socially responsible labeling–> clearly defined- certified human raised and handled, animal welfare approved; grass fed, fair trade certified, organic
What are some clearly defined and unclear terms used in labeling?
Antibiotic-free, free range/roaming, low sugar, natural (GMO labeling)
What is greenwashing?
Appearing green but really only trying to gain consumers w/out regard to the environment
Product Mix and Product Lines
-Product assortment (aka mix)- all products and services a company offers
-Product lines-associated items
-Product line breadth- number of product lines
-Product line depth- how many products within a product line
-Product cannibalization- don’t stretch yourself too thin