CHAPTER 11 PRoduct branding, packaging, decisions

BRANDING- logo, brand name, urls, symbols, characters, slogan

Complexity of products:
Actual product- brand name, quality level, packaging feature? desogms
Core customer value
Associated services- finances
Types of products:
Speciality
shopping
convenience
Product mix and product line
Breadth- number of product lines, changes- add or decrease
depth- number of categories within a product line
changes- add or decrease
value of branding for the customer
facullitate purchasing
establings loyalty
protect from competion and price competition
reduce marketing costs
Brand equitypercieved value- how do discount retailer like target, t.j maxx and value city create value
for customers.
brand associations- link beteen a brand and its key product attributes
logo, slogan, famous personality
brand loyalty- customers are often less sensitive to price, marketing cots are much
lower, firm insulated from the competition
brand strategies:

1. manufacture brand
a.
Coroprate or family brand
ford, chevrolet
b.
individual/ product lines
mustang, impala
c.
corporate
2.
retailer store brands
WALMART, ACME ,TARGET
3.
co-branding
4.

brand licensing

brand & line extensions

same brand name in different product line
colgate and crest
increase in product mix breadth
same brand name in the product line
advantages & disadvantages
-less spent on promotion
-value perception > other product
-synergy exist
brand dilution
evaluate the fit between the proudct clas of the core brand and the extension
evaluate consumer perceptions of the attrivutes of the core brand and seek out
extentions with imilar attributes
refrain from extending the brand name to too many products
is the brand extensions distanced enough from the core brand
brand repositioning
change focus to new target market
realign core emphasis of brand to changing market preferences
packaging- what other packaging do you use as a consumer find useful?
product labeling

CHAPTER 12
Devloping New Products
Value - > innovation
NEw to the world or slightly repositioned
Why do firms create new products
Changing customer needs e.g huggies
MArket saturation e.g automobiles
managing risk through dicersity e.g product lines with depth
fashion cycles
improving business relationships
NEW PRODUCT INTROCUS+TIONS
pioners- radically change competiion and consumer preferences e.g IPOD iphone itunes
ipad
Pioneers failure -->> 95%
why exh 12.2
1 poor mkt assesment
2.
imitators apitalize on weekness
INnovators
risk takers
highly knowledeable
first to own
help product gain market acceptance
EArly Adopters
not risk takers
wait and purchase after review complaints and praises
enjoy novelty
regarded as opinion leaders
early majority
not risk takers
number of competitors has reached its peak

price and quaility compeetion

late majority
last group in the proudct markett
sales has reached it highest point begins to decline
laggards
avoid changes
rely on traditonal products until tey are no longer availle
Diffusion of innovation heory
benefirts
frims develop effection
promotion strategy
pricing strategy
place strategy
using the diffusion of innovation theory
relative advantage e reader v
factors affecting product diffusion
compatiiblity
overvabliity
how firms develop new product
idea gneration- development of viable new product ideas
concept teting- testing the new idea among a set of potential customers
product development development of prototype and or the product
market testing teting the actual product in a few test markets
product launch full scale commericalization of the product
evaluation of reult_ analysis of of the generation
idea generation- source of ideas
concept testing- a brief written description of product (elc scooter p 378)

triggers the marketing research process

customers reaction purcahse intentions
prduct development
proto type, alpha testing: internal, beta teting : extenral
market testing premaket tests, test marketing

product launch
confrim the market
determine how product will be positioned
marketing mix
promotion b2c coupons rebates short term price reductins
place- supply chaine managemnt
price msrp
slotting allownance
final consumer
price
timing
marketers ccannont only clebrate succest but also must un
product life cycle
chapter 13 the intangible product
services
can be the deciding factor in the succes of a product (good
involves deed performance effort
that can be phyically possed
the product- service continumm
differences between service and goods

intangible
rewuires uses cues to adi customer
athmosphere is important to convey value
images are used to convey benefits of value
inseprable proudctioin and consumption
production and consumption are simulatenous
little oppurtinity to test a service before use
lower risk by offering guarantee or warranties
inseperable production and consumption
production and consumption are simultaneous
little opportunity to rest and oppurtunity
heterogeneous variability responses
technology training automation
4.

pershable

15
price- defin
price is a signal
prices can be both too high and too low
price too low may singal porr quality
price see high may signal high quality
role of price in marketing mix
most challenging of 4ps
one of the most imortan factors in ourchasing decision
generates revenue
customers may use it to judge queality
company objectives profit orientation
target profit pricing target return pricing mazimizing profits profit oirentation
sales orientation
focus on icreasing sales

does not imply setting low prices

more concerned with overall market share
c competitor oriented
competitive parity
status quo pricing
value is not part of this pricing strategy
d customer oriented
focus on customer expectation by mathcing price to customer expectations
2n c customers ie demand cruves and rpcing
knowing demand curves enables a firm to see the relationship between prce and
demand
demand curves
not all are downward sloping
prestigious products or services have upward sloping curves
prices elasticity of demand
e lastic price sensitive
inelastic price insenesitive
consumers are less sensitive to price increase for necessities
factors influencing price elasticity of demand a Income effect
change in income change in spending behavior
subtitution effect
meet pete college sutudent on a budget: old spice sport deodorant user
at the store he notices old spice is more expensive
pete decides to give another brand a try and save money
cross price elasticity
kendra buyys a new printer for a great price
learns it requires speical ink catritgdges that cost more than the printer

3rd c costs
variable cost vary with production volume
fixed cost unaffected by production volume
total cost
vc plus fc
mark up & target return pricing
% returon on cost
tc per unit= $5.00
% return 5
$5.00 x 1.05= 5.25
4th c competition
FEWER FIRMS
monopoly one frirm controls the market
less price competition
FEWER FIRMS
oligopoly a handful of firms control the market
more price competion
MANY FIRMS
Monopolistic compwetition
many firms selling differenitiated products at different places
less price comp
many firms
pure competition many firms selling commodities for the same prices
more price comp
5th c channel members
manufactures wholesalers and reatailers cane have different perspectives on pricing
strategies

manufactures must proect against gray market transactions

maacro influences on prcing
the insternet show rooming
increased price senstivity
growth of online auctions
economic factors
local econimic ocnditions increasing disposable income cross shopping
increasing status conciousness increasing globalization
pull and push supply chain
pull
orders based on sale data
more accurate inventory
better when deman