BRANDING MARKETING 2 BRANDING • BRAND- A NAME, TERM, DESIGN, SYMBOL, OR COMBINATION OF THESE ELEMENTS THAT IDENTIFIES A BUSINESS, PRODUCT OR SERVICE AND SETS IT APART FROM ITS COMPETITORS. BRAND NAME • BRAND NAME- PRODUCT BRAND IS A WORDS, LETTERS, OR NUMBER THAT REPRESENT A PRODUCT OR SERVICE • EXAMPLES • PEPSI • FORD FOCUS • BARBIE • BIG MAC TRADE NAME • A CORPORATE BRAND, IDENTIFIES AND PROMOTES A COMPANY OR A DIVISION OF A PARTICULAR CORPORATION • EXAMPLES • DISNEY • FORD • NIKE • IBM BRAND MARK • BRAND MARK- INCORPORATES A UNIQUE SYMBOL COLORING LETTERING, OR DESIGN ELEMENT • MCDONALD'S® GOLDEN ARCHES TRADE CHARACTER • TRADE CHARACTER IS A SPECIFIC TYPE OF BRAND MARK, WHICH HAS HUMAN FORM OR HUMAN CHARACTERISTICS • JOLLY GREEN GIANT ® TRADEMARK • A BRAND NAME, BRAND MARK, TRADE NAME, TRADE CHARACTER, OR A COMBINATION OF ELEMENTS, REGISTERED WITH THE FEDERAL GOVERNMENT • REGISTERED WITH THE U.S. PATENT OR TRADEMARK OFFICE • ®= A REGISTERED TRADEMARK SYMBOL • ™= AN UNREGISTERED TRADEMARK SYMBOL NATIONAL BRANDS • NATIONAL BRANDS GENERATE THE MAJORITY OF SALES FOR MOST CONSUMER PRODUCT CATEGORIES. • ALSO KNOWN AS PRODUCER BRANDS • OWNED AND INITIATED BY NATIONAL MANUFACTURERS TO PROVIDE SERVICE • HERSHEY FOODS • WHIRLPOOL • SUNOCO • FORD PRIVATE DISTRIBUTOR BRANDS • ALSO KNOWN AS PRIVATE BRANDS, STORE BRANDS, DEALER BRANDS, OR PRIVATE LABEL • DEVELOPED AND OWNED BY WHOLESALERS, AND RETAILERS • NORDSTROM’S CASLON- WOMEN'S APPAREL • WALMART’S GREAT VALUE- FOOD AND GENERAL MERCHANDISE • THE MANUFACTURER’S NAME MAN NOT APPEAR ON THE PRODUCT GENERIC BRANDS • GENERIC BRANDS- PRODUCTS THAT DO NOT CARRY A COMPANY IDENTITY • THE TITLE OF THE PRODUCT JUST DESCRIBES THE PRODUCT BRANDING STRATEGIES • BRAND EXTENSION • BRAND LICENSING • MIXED BRANDS • CO-BRANDING BRAND EXTENSION • A STRATEGY THAT USES AN EXISTING BRAND NAME TO PROMOTE A NEW OR IMPROVED PRODUCT • EXAMPLE OCEAN SPRAY- EXTENDED ITS CRANBERRY LINE BY ADDING: • CRANAPPLE, CRANGRAPE, AND CRANCHERRY BRAND LICENSING • A LEGAL AUTHORIZATION BY A BRAND OWNER TO ALLOW ANOTHER COMPANY TO USES ITS BRAND, BRAND MARK, OR TRADE CHARACTER • COMES WITH A FEE MIXED BRAND • OFFERS A COMBINATION OF MANUFACTURER, PRIVATE DISTRIBUTOR, AND GENERIC BRANDS TO CONSUMERS • MICHELIN TIRES • MICHELIN MAKES ITS OWN TIRES, BUT THEY ALSO MAKE TIRES TO BE SELL A SEARS CO-BRANDING • COMBINES ONE OR MORE BRANDS IN THE MANUFACTURE OF A PRODUCT, OR IN THE DELIVERY OF A SERVICE • EXAMPLE SMUCKER’S SUGAR-FREE PRESERVES ARE MADE WITH SPLENDA BRANDING STRATEGIES Branding Strategies Brand Extension • Uses an existing brand name to promote a new or improved product in a company’s product line. • Can overextend product line and dilute the brand. Brand Licensing • Legally allows another company to use a brand, brand mark, or trade character for a fee. • Can increase revenue sources, enhance company image, sell more core products. Mixed Brands • Offers a combination of manufacturer, private distributor, and generic brands to customers. • Enables a business to maintain brand loyalty through a national brand and reach other target markets through private brands. Co-Branding • Combines one or more brands in the manufacture of a product or in the delivery of a service. • Can work with one or several partners. • Partners must be compatible. PACKAGING AND LABELING BRANDING SECTION 2 PACKAGING • PACKAGING- THE WRAPPING OR CONTAINER OF A PRODUCT FUNCTIONS OF PACKAGING • SELLING THE PRODUCT • PROMOTING THE PRODUCT • DEFINING THE PRODUCT IDENTITY • PROVIDING INFORMATION • EXPRESSING CUSTOMER NEEDS • ENSURING SAFE USE • PROTECTING THE PRODUCT SELLING THE PRODUCT • ITS IMPORTANT TO HAVE ATTRACTIVE, COLORFUL, AND VISUALLY APPEALING PACKAGES IN ORDER TO SELL YOUR PRODUCTS • MIXED BUNDLING-TWO OR MORE DIFFERENT GOODS OR SERVICES IN ONE PACKAGE • PRICE BUNDLING- TWO OR MORE SIMILAR PRODUCTS SOLD IN ONE PACKAGE FOR ONE PRICE PRODUCT IDENTITY • HOW DOES THE PACKAGE COMMUNICATE TO THE CONSUMERS? • THE DESIGN • THE COLOR • THE WORDS • THE LABEL • COLOR IS THE MAIN DESIGN ELEMENT, BECAUSE IT HELPS PROJECT AN IMAGE AND ATTRACT CONSUMER ATTENTION • FOR EXAMPLE: GREEN PROJECTS A NATURAL OR HEALTHY IMAGE. • FOR EXAMPLE: BLACK IMPLIES STATUS, QUALITY, AND RICHNESS. PROVIDING INFORMATION • PROVIDES CUSTOMERS WITH DESIRED INFORMATION MEETING CUSTOMER NEEDS • PACKAGES DESIGNED WITH CUSTOMER CONVENIENCE IN MIND PROTECTING CONSUMERS • CHANGING PRODUCTS FROM GLASS TO PLASTIC • USING CHILDPROOF CONTAINERS PROTECTING THE PRODUCT • PRODUCTS NEED TO BE PROTECTED DURING SHIPPING, STORAGE, AND DISPLAY • SHOULD DISCOURAGE SHOPLIFTING • METHODS OF PROTECTION • PACKING PEANUTS • CLAMSHELL-TYPE PACKAGES • BLISTERPACKS • SENSOR TAGS PACKAGING ISSUES • ASEPTIC PACKAGING • ENVIRONMENTAL PACKAGING • CAUSE PACKAGING ASEPTIC PACKAGING • PACKAGING THAT IS USED TO KEEP FOOD PRODUCTS FRESH WITHOUT REFRIGERATION FOR LONG PERIODS OF TIME • EXAMPLES: LIQUID EGGS, JUICE, PUDDING & SYRUPS ENVIRONMENTAL PACKAGING • A COMPANIES RESPONSE TO CONSUMERS DEMAND FOR ENVIRONMENTALLY FRIENDLY PACKAGING CAUSE PACKAGING • COMPANIES WILL USE THEIR PRODUCTS OR PACKAGING TO PROMOTE SOCIAL, OR POLITICAL ISSUES • DOMINO’S PIZZA IS PROMOTING ST. JUDE CHILDREN'S HOSPITALS LABELING • LABEL - AN INFORMATION TAG, WRAPPER, SEAL, OR IMPRINTED MESSAGE THAT IS ATTACHED TO A PRODUCT OR PACKAGE • BRAND LABEL - GIVES THE BRAND NAME, TRADEMARK, OR LOGO • EXAMPLE: CHIQUITA BANANAS • DESCRIPTIVE LABEL – GIVES INFORMATION ABOUT THE PRODUCT’S US, CONSTRUCTION, CARE & PERFORMANCE • EXAMPLE: DATING AND STORAGE INFORMATION • GRADE LABEL - SHOWS THE QUALITY OF PRODUCTS • EXAMPLE: EGGS ARE “AA”, “A”, AND “B” LABEL LAWMAKERS • THE FDA • THE FEDERAL TRADE COMMISSION • U.S. DEPARTMENT OF AGRICULTURE FDA • NUTRITION LABELING AND EDUCATION ACT OF 1990 • LABELS MUST GIVE NUTRITIONAL INFORMATION • PACKAGES MUST CARRY HEALTH WARNINGS FEDERAL TRADE COMMISSION • REGULATES LABELING AND MONITORS ADVERTISING THAT IS FALSE OR MISLEADING • CARE LABELING RULE OF 1972 • GUIDELINES FOR ENVIRONMENTAL CLAIMS U.S. DEPARTMENT OF AGRICULTURE • LEGAL STANDARDS, CERTIFICATION REQUIREMENTS, AND PENALTIES FOR MISUSE OF ORGANIC LABELS • COUNTRY-OF-ORIGIN LABEL • ALLERGEN LABELING BRANDING SECTION 3 MARKETING 2 BRAND LOYALTY • A BRAND OR PRODUCT IN WHICH CUSTOMERS PLEDGE AN AMOUNT OF LOYALTY TOWARDS BRAND RECOGNITION • WHEN CONSUMERS LEARN ABOUT A BRAND AND KNOW A LITTLE ABOUT IT BRAND PREFERENCE • WHEN CONSUMERS PREFER TO PURCHASE A BRAND BASED ON PREVIOUS POSITIVE EXPERIENCES • HOWEVER IF A BRAND IS NOT AVAILABLE THE CONSUMER WILL PURCHASE ANOTHER BRAND BRAND INSISTENCE • ONLY A SPECIFIC BRAND WILL SATISFY A CUSTOMER FOR A GIVEN PURPOSE • COKE HAS MADE IT TO THIS LEVEL • ONCE A COMPANY HAS REACHED THIS LEVEL THEY TEND TO HAVE AN ADVANTAGE IN THE MARKETPLACE