Chapter 13 Developing and Managing Brand and Product Categories
Chapter 13
Developing and Managing
Brand and Product Categories
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 13 Developing and Managing Brand and Product Categories
Objectives
1.
2.
3.
4.
Determine how to define a brand.
Identify the different types of brands.
Explain the strategic value of brand equity.
Explain the benefits of category and brand
management.
5. Discuss how companies develop strong
identity for their product or brand.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 13 Developing and Managing Brand and Product Categories
Objectives
6. Identify and briefly describe each of the newproduct 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.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
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
those of the competition
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Table 13.1 - Selected Brands, Brand
Names, and Brand Marks
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
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
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Types of Brands
•
•
•
•
•
Manufacturer’s brands
Private brands
Captive brands
Family brands
Individual brands
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
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
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
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
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
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
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
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
• Trademark - Brand for which the owner claims
exclusive legal protection
• Trade dress - Visual components that
contribute to the overall look of a brand
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
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
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Packaging
• Serves three major objectives:
– Protection against damage, spoilage, and pilferage
– Assistance in marketing the product
– Cost effectiveness
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Brand Extensions and Brand Licensing
• Brand extension - Strategy of attaching a
popular brand name to a new product in an
unrelated product category
• Brand licensing - Practice that expands a
firm’s exposure in the marketplace
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Figure 13.1 - Alternative Product
Development Strategies
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
The 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
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Figure 13.2 - Categories of Adopters
Based on Relative Times of Adoption
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Organizing for New Product
Development
• New-product committees
• New-product departments
• Product manager - Marketer responsible for
an individual product or product line
• Venture team - Associates from different
areas of an organization who work together in
developing new products
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Figure 13.3 - Steps in the New-Product
Development Process
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Product Safety and Liability
• 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
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13 Developing and Managing Brand and Product Categories
Product Safety and Liability
• To counter increased litigation and legislation,
some companies sponsor voluntary
improvements in safety standards
• Safety planning and testing can be an effective
marketing tool
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.