Chapter 13
Branding And Packaging
Objectives
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Explain value of branding
Understand brand loyalty
Analyze components of brand equity
Recognize types of brands and benefits
Understand how to select and protect brand
Examine branding policies
Understand co-branding/brand licensing
Describe packaging functions/design
considerations and how packaging is used
• Examine functions of labeling and describe
legal issues pertaining to labeling
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Branding
• Brand – a name, term, design, symbol, or other
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feature that identifies a seller’s products and
differentiates them from competitors’ products.
Brand name – part spoken, including letters,
words, and numbers
Brand mark – part not made up of words, such
as a symbol or design
Trademark – legal designation of exclusive use
of a brand
Trade name – full legal name of organization
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Value of Branding – Buyer
• Identify specific products
• Form of self-expression
• Evaluate product
• Reduce perceived risk of purchase
• Status
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Value Of Branding – Seller
• Identify product
• Aids in new product introduction
• Facilitates promotion
• Fosters brand loyalty
• Cultural branding
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Brand Loyalty
A customer’s favorable attitude toward
a specific brand.
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Brand Loyalty (cont’d)
• Recognition – aware brand exists and is
alternative if preferred brand unavailable
• Preference – preferred over competitive
offerings
• Insistence – strongly preferred, no
substitute
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Brand Equity
The marketing and financial value associated
with a brand’s strength in a market.
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Major Elements
Of Brand Equity
Adapted with the permission of The Free Press, a division of Simon & Schuster Adult Publishing Group, from Managing Brand Equity:
Capitalizing on the Value of a Brand Name by David A. Aaker. Copyright © 1991 by David A. Aaker. All rights reserved.
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Types Of Brands
• Manufacturer- initiated by its producer
• Private distributor- initiated and owned
by a reseller
• Generic- indicating only a product category
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The World’s
Most Valuable Brands
From “The Top 100 Global Brands Scoreboard,” Business Week,
http://bwnt.businessweek.com/brand/2005/ (accessed May 1, 2006). Reprinted by permission of
Business Week. The brand valuations draw on publicly available information, which has not been
independently investigated by Interbrand. Data: Interbrand Corp., J. P. Morgan Chase & Co.,
Citigroup, Morgan Stanley, Business Week.
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Consumer
Perceptions Of Brands
“Store Brands at the Turning Point,” Consumer Research Network, 3624 Market Street, Philadelphia, PA.
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Selecting A Brand Name
• Easy to say, spell, recall
• Indicate major benefits- suggest in
positive way products’ uses and
special characteristics
• Recognizable in all types of media
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Sources For Brand Names
• Individual
• Committee
• Department
• Consultant
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Protecting A Brand
• Brand types
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Fanciful = most protected
Arbitrary
Suggestive
Descriptive
Generic = least protected
• 10 year protection but renewed indefinitely
• USPTO®
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Branding Policies
• Individual- each product given a
different name
• Family- all of a firm’s products with the
same name or part of the name
• Extension- organization uses one of its
existing brands to brand a new product
in a different category
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Co-Branding
Using two or more brands on one product.
NASDAQ And Street.com Announcement
Co-BrandingSample Agreement
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Brand Licensing
An agreement whereby a company permits
another organization to use its brand on
other products for a licensing fee.
HP’s Brand Licensing Program
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Packaging Functions
1. Protect product and maintain
functional form
2. Offer convenience
3. Promote product
4. Communicate quality or premium
nature of product
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Packaging Considerations
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Cost
Tamper-resistant
Design consistency
Promotional role- color
Needs of resellers
Environmentally responsible
RFID
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Companies That Spend
The Most On Packaging
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Packaging And
Marketing Strategies
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Altering
Secondary-Use
Category-Consistent
Innovative
Multiple Packs
Handling -Improved
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Criticisms Of Packaging
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Not functional
Safety
Deceptive
Cost
Types Of Packaging
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Labeling
• Labeling- identifying, promotional, or
other information on package
• Universal Product Code (UPC)electronically readable lines identifying
product and inventory/pricing information
Universal Product Code and EAN Article
Numbering Code Page
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Labeling Laws
• Fair Packaging and Labeling Act (1966)
• Nutrition Labeling Act (1990)
Nutrition Labeling Analysis
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Perceived Quality And Value Of
Products Based On Country Of Origin
“American Demographics 2006 Consumer Perception Survey,” Advertising Age, Jan. 2, 2006, p. 9. Data by Synovate.
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