Branding and Packaging Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook 12 Part Three Product Decisions

Branding and Packaging

Copyright © Houghton Mifflin Company. All rights reserved.Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook

1212

Part ThreePart ThreeProductProduct

DecisionsDecisions

Copyright © Houghton Mifflin Company. All rights reserved. 12–2

Chapter Learning Objectives

• To explain the value of branding• To understand brand loyalty• To analyze the major components of brand equity• To recognize the types of brands and their

benefits• To understand how to select and protect brands• To examine three types of branding policies• To understand co-branding and brand licensing


Chapter Learning Objectives (cont’d)

• To describe the major packaging functions and design considerations and how packaging is used in marketing strategies

• To examine the functions of labeling and its legal issues


Chapter Outline

• Branding• Packaging• Labeling


Branding: Key Terms

• Brand–An identifying name, term, design, or symbol–One item, family of items, or all items of a seller

• Corvette, Chevrolet, General Motors

• Brand Name–The part of a brand that can be spoken–Words, letters, numbers

• Union 76, NBA, 49’ers

• Brand Mark–The part of a brand not made up of words–Symbols or designs

• Nike swoosh, Mercedes star, McDonald’s arches


Branding: Key Terms (cont’d)

• Trademark–A legal designation of exclusive use of a brand

• Coca-Cola®, Hewlett-Packard®

• Trade Name–Full legal name of an organization

• American Telephone and Telegraph Corporation (AT&T)


Branding (cont’d)

• Value of Branding for Consumers–Helps speed consumer purchases by identifying

specific preferred products–Provides a form of self-expression and status–Evaluates product quality to reduce the risk of purchase

• Value of Branding for Marketers–Identifies and differentiates a firm’s products from

competing products–Helps in the introduction of new products–Facilitates the promotion of all same-brand products–Fosters the development of brand loyalty–Can create valuable intangible assets


Branding (cont’d)

• Brand Loyalty–A customer’s favorable attitude toward a specific brand

• Brand Recognition–A customer’s awareness that a brand exists and is an

alternative purchase

• Brand Preference–The degree of brand loyalty in which a customer prefers

one brand over competitive offerings

• Brand Insistence–The degree of brand loyalty in which a customer

strongly prefers a specific brand and will accept no substitute


Major Elements of Brand Equity

FIGURE 12.1

Source: Adapted with the permission of The Free Press, a division of Simon & Schuster, Inc., from Managing Brand Equity: Capitalizing on the Value of a Brand Name by David A. Aaker. Copyright © 1991 by David A. Aaker.




Types of Brands

• Manufacturer Brands–Brands initiated by producers

• Private Distributor Brands–Brands initiated and owned

by resellers• Dealer brands, private brands,

store brands

• Generic Brands–Brands indicating only the product category


Consumers’ Perception of Store and Manufacturers’ Brands for Selected Product Groups

FIGURE 12.2Source: “Store Brands at the Turning Point,” Consumer Research Network, 3624 Market Street, Philadelphia, PA.


Selecting a Brand Name

• The name should–be easy to say, spell, and recall.–indicate the product’s major benefits.–suggest the product’s major uses and special

characteristics.–be distinctive, setting it apart from competing brands.–be compatible with all products in line.–be designed for use and recognition

in all types of media.


Protecting a Brand

• Degree of Brand Protection Through Registration

– Fanciful

– Arbitrary

– Suggestive

– Descriptive

– Generic

• Surnames and descriptive, geographic, or functional names are also difficult to protect.

• Registration with the U.S. Patent and Trademark Office protects a brand for ten years with indefinite renewals.

MostMost

LeastLeast


Branding Policies

• Individual Branding–A policy of naming each product differently–Avoids stigmatizing all products due to a failed product

• Family Branding–Branding all of a firm’s products with the same name–Promotion of one item also promotes all other products

• Brand-Extension Branding–Using an existing brand name for an improved or new

product–Provides support for new products through established

brand name and image


Co-Branding

• Co-Branding–Using two or more brands on one product to capitalize

on the brand equity (customer confidence and trust) of multiple brands

–Brands involved must represent a complementary fit in the minds of consumers.

–Helps differentiate a firm’s product from those of its competitors

–Helps take advantage of distribution capabilities of co-branding partners


Brand Licensing

• Brand Licensing–An agreement whereby a company permits another

organization to use its brand on other products for a licensing fee

–Advantages• Low-cost and/or free publicity• Revenues from royalty fees

–Disadvantages• Lack of manufacturing control• Creating too many unrelated products• Licensing arrangements can fail


Packaging

• Packaging–Involves the development of a container and a graphic

design for a product

• Packaging Functions–Protect the product from damage–Offer convenience to consumers–Prevent waste and make storage easier–Promote the product by communicating

its features, uses, benefits, and image


Major Packaging Considerations

• Cost of Packaging–Limited consumer willingness to pay for better

packaging

• Tamper-Resistant Packaging–FDA regulations and consumer

safety concerns

• Family Packaging–Similar packaging for all of a firm’s

products or packaging that has one common design element

AA


Major Packaging Considerations (cont’d)

• Promotional Role (Informing the Consumer)–Verbal and nonverbal symbols–Size, shape, texture, color, and graphics

• Reseller Needs–Transportation, storage, and handling

• Environmentally Responsible–Biodegradable and recyclable


Packaging and Marketing Strategy

• Altering the Package–To update style and to meet increased competition–To highlight new features–To take advantage of new packaging materials–To make the product safer or easier to use–To reduce packaging costs

• Secondary-Use Packaging–Reusable packaging adds customer value

• Category-Consistent Packaging–Packaging reflects customer expectations for the

expected appearance of products in a category


Packaging and Marketing Strategy (cont’d)

• Innovative Packaging–Unique features or ways of packaging that make a

product more distinct from its competitors

• Multiple Packaging–Bundling multiple units of a product

together to encourage usage and to increase demand

• Handling-Improved Packaging–Packaging that has been changed to facilitate product

handling in the distribution channel



Criticisms of Packaging

• Lack of functionality–Leak, difficult to open/close/seal, hard-to-use designs

• Safety–Sharp edges, broken glass, health hazards

• Deceptive–Shape, size, colors mask true nature of product

• Cost of packaging–What customers prefer is costly


Labeling

• Labeling–Providing identifying, promotional, legal, or other

information on package labels

• Universal Product Code (UPC)–A series of electronically readable lines identifying a

product and containing inventory and pricing information


Labeling (cont’d)

• Purposes of Labels–Help identify the product

• Display brand name and unique graphics

–Support promotional efforts for the product• Coupons, discounts, product features

–Provide legally required labeling information• Fair Packaging and Labeling Act of 1966• Nutrition Labeling Act of 1990

–“Green Labeling” issues • Labeling packaging as made of recyclable materials

–Provide information on product origin• “Made in the USA”


After reviewing this chapter you should:

• Be able to explain the value of branding.• Understand brand loyalty.• Be able to analyze the major components of brand equity.• Recognize the types of brands and their benefits• Understand how to select and protect brands.• Know about three types of branding policies• Understand co-branding and brand licensing• Be able to describe the major packaging functions and

design considerations and how packaging is used in marketing strategies

• Understand the functions of labeling and its legal issues

Chapter 12 Chapter 12 Supplemental SlidesSupplemental Slides



Key Terms and Concepts

• The following slides (a listing of terms and concepts) are intended for use at the instructor’s discretion.

• To rearrange the slide order or alter the content of the presentation–select “Slide Sorter” under View on the main menu.–left click on an individual slide to select it; hold and drag

the slide to a new position in the slide show.–To delete an individual slide, click on the slide to select,

and press the Delete key.–Select “Normal” under View on the main menu to return

to normal view.


Important Terms

• Brand–An identifying name, term, design, or symbol

• Brand Name–The part of a brand that can be spoken

• Brand Mark–The part of a brand not made up of words

• Trademark–A legal designation of exclusive use of a brand

• Trade Name–Full legal name of an organization


Important Terms

• Brand Loyalty–A customer’s favorable attitude toward a specific brand

• Brand Recognition–A customer’s awareness that a brand exists and is an

alternative purchase

• Brand Preference–The degree of brand loyalty in which a customer prefers

one brand over competitive offerings

• Brand Insistence–The degree of brand loyalty in which a customer

strongly prefers a specific brand and will accept no substitute


Important Terms

• Manufacturer Brands–Brands initiated by producers

• Private Distributor Brands–Brands initiated and owned by resellers

• Generic Brands–Brands indicating only the product category

• Individual Branding–A policy of naming each product differently

• Family Branding–Branding all of a firm’s products with the same name


Important Terms

• Brand-Extension Branding–Using an existing brand name for an improved or new

product

• Co-Branding–Using two or more brands on one product to capitalize

on the brand equity (customer confidence and trust) of multiple brands

• Brand Licensing–An agreement whereby a company permits another

organization to use its brand on other products for a licensing fee


Important Terms

• Packaging–Involves the development of a container and a graphic

design for a product

• Family Packaging–Similar packaging for all of a firm’s products or

packaging that has one common design element

• Secondary-Use Packaging–Reusable packaging that adds customer value

• Category-Consistent Packaging–Packaging that reflects customer expectations for the

expected appearance of products in a category


Important Terms

• Innovative Packaging–Unique features or ways of packaging that make a

product more distinct from its competitors

• Multiple Packaging–Bundling multiple units of a product together to

encourage usage and to increase demand

• Handling-Improved Packaging–Packaging that has been changed to facilitate product

handling in the distribution channel


Important Terms

• Labeling–Providing identifying, promotional, legal, or other

information on package labels

• Universal Product Code (UPC)–A series of electronically readable lines identifying a

product and containing inventory and pricing information


Transparency Figure 12C

Persons Who Try To Stick With Well-Known Brand Names

Source: “Like Glue,” American Demographics, The Marketing Tools Directory, 2002, p. D46. Adapted with permission.


Transparency Figure 12F

Requirements of an Effective Brand Name

Documents

Branding and Packaging Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook 12 Part Three Product Decisions