chapter 10 - developing and managing brand and product.docx
Premium

8 Pages
92 Views
Unlock Document

Department
Commerce
Course
COMMERCE 2MA3
Professor
Grant B Mc Clelland
Semester
Fall

Description
Chapter 10 – Developing and Managing Brand and Product Strategies Managing Brands for Competitive Advantage  We become loyal to certain brands for many reasons, including quality, price, and habit.  brand  is a name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating these products from competitors’ offerings.  Marketers recognize the powerful influence of brands on consumer behaviour, and they work to create and protect strong identities for products and product lines.  Building a brand is costly; a category manager is often responsible for an entire product line, nurturing new and existing brands.  Branding is the process of creating that identity.  Satisfied buyers respond to branding by making repeat purchases of the same product because they identify the item with the name of its producer Brand Loyalty  Brands achieve widely varying consumer familiarity and acceptance, often weighed by the concept of brand loyalty.  Measured in 3 stages:  Brand recognition  is a firm’s first objective for newly introduced products.  Marketers begin the promotion by trying to make items familiar to the public.  Advertising is one effective method for increasing consumer awareness.  Brand preference  is the second level of brand loyalty.  Buyers rely on previous experiences with the product when choosing it, if available, over competitors’ products.  Brand insistence  is the ultimate stage in brand loyalty.  Consumers refuse alternatives and search extensively for the desired merchandise.  A product at this stage has achieved a monopoly position with its consumers. Types of Brands  Companies that practice branding classify brands in several ways: private, manufacturers' or national, family, and individual brands.  Some firms make no effort toward branding, selling generic products that are characterized by plain labels, little or no advertising, and no brand names.  Generic products are often seen in food and household staples.  Market share for generic products increases during economic downturns, but subsides when the economy improves.  Generic products  Manufacturer’s brand  Private brands  Captive brands  Family brands  Individual brands Manufacturers’ Brands vs. Private Brands  Manufacturer’s brand (national brands) — Brand name owned by a manufacturer or other producer  They define the image that most people form when they think of a brand.  These include the well-known brands of large and established corporations that many people recognize.  Private brands (private labels) – brands offered by wholesalers or retailers  Most manufacturers regard the production of private-label goods as a way to reach additional market segments.  They expand the number of alternatives available to consumers and their growth has coincided with the growth of large chain stores.  Manufacturers sell their well-known brands to stores, and also put the store’s own label on similar products, thus increasing profits by marketing one product in two ways. Captive Brands  National products that are sold exclusively by a retail chain  They’re spin-offs to the private label idea.  They typically provide better profit margins than private labels.  They often feature exclusively offered lines of apparel, home décor items, furniture, clothing, or small appliances. Family and Individual Brands  Family brand — Single brand name that identifies several related products  It may be a full line of food, healthcare, beauty, or home appliance goods.  Promotional outlays benefit all items in the line—their familiarity helps in introducing new products within the line.  Family brands should identify products of similar quality or the firms are risking the overall product image.  Individual brand — uniquely identifies the item itself.  It is not promoted under the company or other umbrella name, but instead is given its own unique name.  Individual brands cost more than family brands to market, but they’re very effective aids in implementing market segmentation strategies.  Individual brand names should distinguish dissimilar products. Brand Equity  Added value that a respected, well-known brand name gives to a product in the marketplace  A brand with strong equity has the power to increase a company’s sales and earnings.  In global operations, high brand equity often leads to expansion into new markets.  Research shows that a firm builds brand equity sequentially on four dimensions of brand personality: (brand asset valuator).  Differentiation, Relevance, Esteem, Knowledge The Role of Category and Brand Management  Brand management — Traditionally, companies have assigned the task of managing a brand’s marketing strategies to a brand manager.  Today, because the companies can sell as much as 80 percent of their products to national retail chains, many firms have adopted a strategy called category management, with this responsibility assigned to a category manager.  Category management — Product management system in which a category manager — with profit and loss responsibility — oversees a product line  Category managers assisted by analysts maximize sales for the retailer by overseeing the entire product line.  They track sales history, data from retailers and the entire category (obtained from third-party vendors), and qualitative data such as results from customer surveys.  they have profit responsibility and help retail buyers maximize sales for the whole category Product Identification  Almost every product that is distinguishable from another gives buyers some unique way of identifying it.  Labeling products, including tricky goods such as produce, represents another way of identifying them.  Brand name  is the words or letters forming a name that identifies and distinguishes the firm’s offerings from those of its competitors.  It’s the part of the brand that people can vocalize.  An effective brand name should be easy to pronounce, recognize, and remember.  A short name meets these requirements.  It should give buyers the correct connotation of the product’s image.  It must qualify for legal protection, so it can’t contain generally used words that describe types or categories.  Brand mark is a symbol or pictorial design that distinguishes a product. Packaging  A firm’s product strategy must address questions about packaging  Like its brand name, a product’s package can powerfully influence buyers’ purchase decisions.  Firms use scientific methods and virtual simulations in making packaging decisions, creating three-dimensional images with thousands of colors, shapes, and typefaces.  They conduct marketing research to evaluate current packages and test new designs.  Protection against damage, spoilage, and pilferage  The original objective of packaging was to offer physical protection for the merchandise.  Assistance in marketing the product  The importance of packaging as a promotional tool has increased in recent years.  Cost-effective packaging  Packaging must perform a number of functions but must do so at a reasonable cost.  Simple design changes can often make packages both cheaper and better for the environment. Trademarks  Brand for which the owner claims exclusive legal protection  should not be confused with a “trade name,” which identifies a company—The Coca Cola Company is a trade name, but Coke is a trademark of the company’s product (though some trade names duplicate brand names).  Protecting Trademarks  Trademark protection confers exclusive legal right to use a brand name, brand mark, and any slogan or product name abbreviation.  It designates the origin or source of a good or service.  Trademark protection can be obtained for words or phrases, abbreviations or nicknames for a product, packaging elements, or even product features such as shape, design, or typeface.  Trade Dress  refers to the visual cues used in branding to create an overall look. Developing Global Brand Names and Trademarks  Can be difficult due to cultural an
More Less

Related notes for COMMERCE 2MA3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit