Brand Lec Impo

Dr. M.
Usman Branding MM Fall 2019
Developing and Managing

Brand and Product Categories
By
Dr. M. Usman
1
Dr. M. Usman Developing and Managing Brand and Product Categories
Objectives
1. Determine how to define a brand.
2. Identify the different types of brands.
3. Explain the strategic value of brand
equity.
4. Explain the benefits of category and
brand management.
5. Discuss how companies develop a strong
identity for their product or brand.
2
Objectives
6. Identify and briefly describe each of the
new-product development strategies.
7. Describe the consumer adoption process.
8. List the stages in the new-product
development process.
9. Explain the relationship between product
safety and product liability.
3
Managing Brands for Competitive

Advantage
▮ Brands have a powerful influence on
consumer behavior
▮ Brand - Name, term, sign, symbol, design, or
some combination that identifies the
products of one firm while differentiating
them from competitors’ offerings
4
Table 13.1 – Selected Brands, Brand Names,

and Brand Marks
5
Brand Loyalty
▮ Measured in three stages
• Brand recognition - Consumer awareness and
identification of a brand
• Brand preference - Consumer choice of a
product on the basis of a previous experience
• Brand insistence - Consumer refusal of
alternatives and extensive search for desired
merchandise
6
Types of Brands
▮ Generic products - Products characterized
by plain labels, no advertising, and the
absence of brand names
▮ Manufacturer’s brand - Brand name
owned by a manufacturer or other producer
▮ Private brands - Brands offered by
wholesalers and retailers
7
Types of Brands
▮ Captive brands - National brands sold
exclusively by a retail chain
• Example: Target’s sale of products by Michael
Graves
▮ Family brand - Single brand name that
identifies several related products
▮ Individual brand - Single brand that
uniquely identifies a product
8
Brand Equity
▮ Added value that a respected, well-known
brand name gives to a product in the
marketplace
▮ Built sequentially on four dimensions
• Differentiation
• Relevance
• Esteem
• Knowledge
9
The Role of Category and Brand

Management
▮ Brand manager - Marketer responsible for
a single brand
▮ Category management - Product
management system in which a category
manager—with profit and loss
responsibility—oversees a product line
10
Product Identification
▮ Products identified in the marketplace by
brand names, symbols, and distinctive
packaging
▮ Choosing how to identify a firm’s output
represents a major strategic decision for
marketers
11
Brand Names and Brand Marks

▮ Brand name - Part of a brand that can be
spoken
▮ Brand mark - Symbol or pictorial design
that distinguishes a product
▮ Effective brand names are easy to
pronounce, recognize, and remember
12
Brand Names and Brand Marks

▮ Brand name
• Should give buyers the correct connotation of
the product’s image
• Must qualify for legal protection
▮ A brand name loses protection when a class
of products generally comes to be known by
that name
13
Trademarks
▮ Brand for which the owner claims exclusive
legal protection
14
Protecting Trademarks
▮ Gives firms the exclusive legal right to use a
brand name, brand mark, and any slogan or
product name abbreviation
▮ Firms can also seek protection for
packaging elements and product features
15
Trade Dress
▮ Visual components that contribute to the
overall look of a brand
▮ Visual components may be related to color
selections, sizes, package, label shapes, and
similar factors
16
Developing Global Brand Names and

Trademarks
▮ An excellent name or symbol in one country
may be a poor choice in another
▮ A firm marketing a product in multiple
countries has two choices
• Use a single brand name for universal
promotions
• Tailor names to individual countries
17
Packaging
▮ Serves three major objectives
• Protection against damage, spoilage, and
pilferage
• Assistance in marketing the product
• Cost effectiveness
18
Labeling
▮ Label - Carries an item’s brand name or
symbol, the name and address of the
manufacturer or distributor, information
about the product’s composition and size,
and recommended uses
▮ Universal product code (UPC) - Numerical
bar code system used to record product and
price information
19
Labeling
▮ RFID tags may replace some of the functions
of UPC codes
• Reduce labor costs and improve inventory
control
20
Brand Extensions
▮ Attaching a popular brand name to a new
product in an unrelated product category
▮ Line extension - Development of individual
offerings that appeal to different market
segments while remaining closely related to
the existing product line
21
Brand Licensing
▮ Practice that expands a firm’s exposure in
the marketplace
▮ Brand name’s owner receives royalties,
typically 8 to 12 percent of wholesale
revenues
▮ Can hurt a brand if the licensed product is
poor quality or ethically incompatible with
the brand
▮ Another risk is overextending the brand
22
Figure 13.1 – Alternative Product

Development Strategies
23
Product Development Strategies

▮ Market penetration - Increase sales of
existing products in existing markets
▮ Product positioning - Consumers’
perceptions of a product’s attributes, uses,
quality, and advantages and disadvantages
relative to competing brands
▮ Market development - Concentrates on
finding new markets for existing products
24
Product Development Strategies

▮ Product development - Introduction of
new products into identifiable or
established markets
▮ Product diversification - Focuses on
developing entirely new products for new
markets
▮ Cannibalization - Introducing a new
product that adversely affects sales of
existing products
25
Consumer Adoption Process

▮ Adoption process – Stages consumers go
through in learning about a new product,
trying it, and deciding whether to purchase
it again
• Awareness
• Interest
• Evaluation
• Trial
• Adoption/rejection
26
Adopter Categories
▮ Consumer innovators - People who
purchase new products almost as soon as
the products reach the market
▮ Diffusion process - Process by which new
goods or services are accepted in the
marketplace
27
Figure 13.2 - Categories of Adopters Based

on Relative Times of Adoption
28
Identifying Early Adopters

▮ Firms who reach early purchasers can treat
them as a test market
• Evaluating the product and discovering
suggestions for modifications
▮ Early purchasers can act as opinion leaders
from whom others seek advice
• Attitudes toward new products quickly spreads
to others
29
Rate of Adoption Determinants

▮ Relative advantage - Innovation that
appears far superior to previous ideas
▮ Compatibility - Innovation consistent with
the values and experiences of potential
adopters
▮ Complexity - Relative difficulty of
understanding the innovation influences the
speed of acceptance
30
Rate of Adoption Determinants

▮ Possibility of trial use - Initial free or
discounted trial of a good or service reduces
adopters financial risk
▮ Observability - Observing an innovation’s
superiority increases the adoption rate
31
Organizing for New Product Development
▮ New-product committees
• Most common arrangement
• Brings together functional experts
• Tends to reach decisions slowly
• Maintains conservative views
• Members may compromise so they can return
to their regular responsibilities
32
Organizing for New Product Development
▮ New-product departments
• Separate and formally organized
• Aims at generating and refining new product
ideas
• Encourages innovation as a permanent full-time
activity
• Responsible for all phases of a development
project within the firm
33
Product Managers
▮ Another term for a brand manager;
supports the marketing strategies of an
individual product or product line
▮ Set prices, develop advertising and sales
promotion programs, and work with sales
representatives in the field
34
Venture Teams
▮ Specialists from different areas of an
organization who work together in
developing new products
35
Venture Teams
▮ The venture team must meet criteria for:
• Return on investment
• Uniqueness of product
• Serving a well-defined need
• Compatibility of the product with existing
technology
• Strength of patent protection
36
Figure 13.3 – Steps in the New-Product Development Process
37
The New-Product Development Process

▮ Idea generation - New-product development
begins with ideas from many sources
▮ Screening - Separates ideas with
commercial potential from those that
cannot meet company objectives
▮ Business analysis - Assessing the new
product’s potential market, growth rate, and
likely competitive strengths
38

• Concept testing - Method for subjecting a
product idea to additional study before actual
development by involving consumers through
focus groups, surveys, in-store polling, and
similar strategies
• Screening and business analysis stages generate
important information because they:
• Define the proposed product’s target market and
customers’ needs and wants
• Determine the product’s financial and technical
requirements
39

▮ Development - Financial outlays increase
substantially as a firm converts an idea into
a visible product
▮ Test marketing - To verify that the product
will perform well in a real-life environment
▮ Commercialization - A product is ready for
full-scale marketing
40
Product Safety and Liability

▮ Manufacturers must design their products
to protect users from harm
▮ Product liability - Responsibility of
manufacturers and marketers for injuries
and damages caused by their products
41

▮ The Consumer Product Safety Commission
has jurisdiction over most consumer
product categories
▮ The Food and Drug Administration
approves food, medications, and health-
related devices
▮ Liability lawsuits are increasing
domestically and internationally
42

▮ To counter increased litigation and
legislation
• Companies sponsor voluntary improvements in
safety standards
▮ Safety planning and testing can be an
effective marketing tool
43
Zappos Video
http://www.cengage.com/marketing/book_content/boone_9781133628460/
videos/ch13.html
Scripps Networks Interactive & Food

Network Video
http://www.cengage.com/marketing/book_content/boone_9781133628460
/videos/part4.html
44

Brand Lec Impo

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Brand Lec Impo

Caricato da

Copyright:

Formati disponibili

Dr. M.

Usman Branding MM Fall 2019

Developing and Managing

Managing Brands for Competitive

Table 13.1 – Selected Brands, Brand Names,

The Role of Category and Brand

Brand Names and Brand Marks

Brand Names and Brand Marks

Developing Global Brand Names and

Figure 13.1 – Alternative Product

Product Development Strategies

Product Development Strategies

Consumer Adoption Process

Figure 13.2 - Categories of Adopters Based

Identifying Early Adopters

Rate of Adoption Determinants

Rate of Adoption Determinants

Organizing for New Product Development

Organizing for New Product Development

The New-Product Development Process

The New-Product Development Process

The New-Product Development Process

Product Safety and Liability

Product Safety and Liability

Product Safety and Liability

Scripps Networks Interactive & Food

Potrebbero piacerti anche