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.
is a name, term, sign, symbol, design, or some combination that identifies the
products of one firm while differentiating these products from competitors’
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
Brands achieve widely varying consumer familiarity and acceptance, often weighed by
the concept of brand loyalty.
Measured in 3 stages:
is a firm’s first objective for newly introduced products.
Marketers begin the promotion by trying to make items familiar to the
Advertising is one effective method for increasing consumer awareness.
is the second level of brand loyalty.
Buyers rely on previous experiences with the product when choosing it, if
available, over competitors’ products.
is the ultimate stage in brand loyalty.
Consumers refuse alternatives and search extensively for the desired
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.
Manufacturers’ Brands vs. Private Brands
Manufacturer’s brand (national brands) — Brand name owned by a manufacturer or
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
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.
Added value that a respected, well-known brand name gives to a product in the
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
they have profit responsibility and help retail buyers maximize sales for the whole
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
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’
Firms use scientific methods and virtual simulations in making packaging
decisions, creating three-dimensional images with thousands of colors, shapes, and
They conduct marketing research to evaluate current packages and test new
Protection against damage, spoilage, and pilferage
The original objective of packaging was to offer physical protection for the
Assistance in marketing the product
The importance of packaging as a promotional tool has increased in recent years.
Packaging must perform a number of functions but must do so at a reasonable
Simple design changes can often make packages both cheaper and better for the
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).
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.
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