Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 12
Developing and Managing
Brand and Product Categories
CHAPTER 12 Developing and Managing Brand and Product Categories
Chapter 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 strong identities for their
products and brand.
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CHAPTER 12 Developing and Managing Brand and Product Categories
Chapter 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.
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CHAPTER 12 Developing and Managing Brand and Product Categories
Managing Brands for Competitive Advantage
o Brand - Name, term, sign, symbol, design, or some
combination that identifies the products of one firm
while differentiating them from the competition’s
o Brands have a powerful influence on consumer
behavior
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CHAPTER 12 Developing and Managing Brand and Product Categories
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CHAPTER 12 Developing and Managing Brand and Product Categories
Brand Loyalty
o Measured in three stages:
o Brand recognition - Consumer awareness and
identification of a brand
o Brand preference - Consumer reliance on previous
experiences with a product to choose that product again
o Brand insistence - Consumer refusal of alternatives and
extensive search for desired merchandise
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CHAPTER 12 Developing and Managing Brand and Product Categories
Types of Brands
o Manufacturer’s brand
o Private brands
o Captive brands
o Individual brand
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CHAPTER 12 Developing and Managing Brand and Product Categories
Brand Equity
o Added value that a respected, well-known brand name
gives to a product in the marketplace
o It is built sequentially on four dimensions:
o Differentiation
o Relevance
o Esteem
o Knowledge
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CHAPTER 12 Developing and Managing Brand and Product Categories
The Role of Category and Brand Management
o Brand manager - Marketer responsible for a single
brand
o Category management - Product management system
in which a category manager—with profit and loss
responsibility—oversees a product line
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CHAPTER 12 Developing and Managing Brand and Product Categories
Product Identification
o Products identified in the marketplace by brand
names, symbols, and distinctive packaging
o Choosing how to identify a firm’s output represents a
major strategic decision for marketers
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CHAPTER 12 Developing and Managing Brand and Product Categories
Brand Names and Brand Marks
o Brand name - Part of a brand that can be spoken
o Brand mark - Symbol or pictorial design that
distinguishes a product
o Trademark - Brand for which the owner claims
exclusive legal protection
o Trade dress - Visual components that contribute to the
overall look of a brand
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CHAPTER 12 Developing and Managing Brand and Product Categories
Developing Global Brand Names and
Trademarks
o An excellent name or symbol in one country may be a
poor choice in another
o A firm marketing a product in multiple countries has
two choices:
o Use a single brand name for universal promotions
o Tailor names to individual countries
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CHAPTER 12 Developing and Managing Brand and Product Categories
Packaging
o Serves three major objectives:
o Protection against damage, spoilage, and pilferage
o Assistance in marketing the product
o Cost effectiveness
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CHAPTER 12 Developing and Managing Brand and Product Categories
Brand Extensions and Brand Licensing
o Brand extension - Strategy of attaching a popular
brand name to a new product in an unrelated product
category
o Brand licensing - Practice that expands a firm’s
exposure in the marketplace
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CHAPTER 12 Developing and Managing Brand and Product Categories
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 12 Developing and Managing Brand and Product Categories
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CHAPTER 12 Developing and Managing Brand and Product Categories
Organizing for New Product Development
o New-product committees
o New-product departments
o Product manager - Marketer responsible for an
individual product or product line
o Venture team - Associates from different areas of an
organization who work together in developing new
products
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CHAPTER 12 Developing and Managing Brand and Product Categories
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CHAPTER 12 Developing and Managing Brand and Product Categories
Product Safety and Liability
o The Consumer Product Safety Commission has
jurisdiction over most consumer product categories
o The Food and Drug Administration approves food,
medications, and health-related devices
o Liability lawsuits are increasing domestically and
internationally
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CHAPTER 12 Developing and Managing Brand and Product Categories
Product Safety and Liability
o To counter increased litigation and legislation, some
companies sponsor voluntary improvements in safety
standards
o Safety planning and testing can be an effective
marketing tool
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