Transcript Document
Marketing Essentials
n
Chapter 31
Branding, Packaging, and Labeling
Section 31.1 Branding Elements and Strategies
Chapter 31 n Branding, Packaging, and Labeling 1
SECTION 31.1
Branding Elements and Strategies
What You'll Learn
The nature, scope, and importance of branding in product planning The various branding elements The different types of brands How to classify branding strategies Chapter 31 n Branding, Packaging, and Labeling 2
SECTION 31.1
Branding Elements and Strategies
Why It's Important
The right name is an important part of every successful business. The name and symbols of a business or a product project the personality of the company, product, or service.
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SECTION 31.1
Branding Elements and Strategies
Key Terms
brand brand name brand mark trade name trade character trademark manufacturer brand private distributor brand generic brand brand extension brand licensing mixed-brand strategy co-branding strategy Chapter 31 n Branding, Packaging, and Labeling 4
SECTION 31.1
Branding Elements and Strategies
Branding
A
brand
is a name, term, design, or symbol (or combinations of them) that identifies a business or organization and the products that they offer. Brands are divided into two categories: corporate brands product brands Chapter 31 n Branding, Packaging, and Labeling 5 Slide 1 of 6
SECTION 31.1
Branding Elements and Strategies
Branding Corporate brands
identify the business and reflect quality, value, and reliability.
Example:
Coca-Cola, Disney, McDonald's, and Citibank
Product brands
connote quality and reliability for a particular product.
Example:
Pepsi, Coke, Barbie, Whopper, and Big Mac Chapter 31 n Branding, Packaging, and Labeling 6 Slide 2 of 6
SECTION 31.1
Branding Elements and Strategies
Branding
Slide 3 of 6 A
brand name
is the word, group of words, letters, or numbers of a brand that can be spoken.
Example:
PT Cruiser, Mountain Dew, SnackWells, and K2 A
brand mark
is a symbol, design, or distinctive coloring or lettering that identifies a brand.
Example:
U.S. Postal Service's eagle, Apple Computer's apple Chapter 31 n Branding, Packaging, and Labeling 7
SECTION 31.1
Branding Elements and Strategies
Branding
Slide 4 of 6
A trade name
is the legal name under which a company or division of a corporation does business.
Example:
Amex, Dell, Kellogg's, and Xerox
A trade character
is a brand mark with human form or characteristics.
Example:
The Jolly Green Giant, the Pillsbury Doughboy Chapter 31 n Branding, Packaging, and Labeling 8
SECTION 31.1
Branding Elements and Strategies
Branding A trademark
is a brand name, brand mark, trade name, trade character, or a combination of these given legal protection by the federal government and noted by the trademark symbol ( ).
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Branding Elements and Strategies
Branding
Brand names, brand marks, trade names, trade characters, and trademarks are often combined to form a firm's
corporate symbol
or name.
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Branding Elements and Strategies
Top Ten Brands Rank
1 2 3 4 5 6 7 8 9 10
Brand Company
Chevrolet vehicles AT&T telephone services Dodge vehicles Ford vehicles McDonald's restaurants Toyota vehicles Sears department stores General Motors Corp.
AT&T Corp.
Daimler Chrysler Ford Motor Company McDonald's Corp.
Toyota Motor Corp.
Sears, Roebuck & Co.
Sprint telephone services Chrysler vehicles Sprint Corp. Daimler Chrysler Nissan vehicles Nissan Motor Co.
1999 Advertising
(in millions of dollars) 762.4
711.4
651.7
629.5
627.2
569.4
556.1
470.1
426.5
416.9
Brands are often a company’s most valuable asset. What is the total 1999 advertising spending for these top ten brands? Do you think these brands would continue to be valuable if the companies reduced or eliminated their advertising?
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Branding Elements and Strategies
Importance of Brands in Product Planning
The use of brands is important in product planning for several reasons. Branding: builds customer loyalty assures customers that products carrying the same brand are of a consistent quality addresses new target markets establishes an image for a product or company Chapter 31 n Branding, Packaging, and Labeling 12
SECTION 31.1
Branding Elements and Strategies
Generating Brands
Seventy-five percent of companies introduce a new product name each year. Brand names are generated by: company employees specialized computer software programs branding agencies, naming consultants, and public relations agencies Half of all corporate name changes occur because of company mergers and acquisitions.
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Types of Brands
Three classifications of brands are: manufacturer brands private distributor brands generic brands Chapter 31 n Branding, Packaging, and Labeling 14 Slide 1 of 3
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Types of Brands Manufacturer brands,
also called
producer brands
, are owned and initiated by manufacturers.
Example:
General Electric, Heinz, Motorola
Private distributor brands,
also called
private brands, store brands,
or
dealer brands
, are owned and initiated by wholesalers and retailers.
Example:
Radio Shack, Kmart Chapter 31 n Branding, Packaging, and Labeling 15 Slide 2 of 3
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Types of Brands Generic brands
represent a general product category and do not carry a company or brand name. The packaging carries only a description of the product, such as “pancake mix” or “paper towels.” They are usually much cheaper than brand-name products.
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Branding Elements and Strategies
Brand Strategies
Branding strategies are the ways companies use brands to meet sales and company objectives. Strategies include: brand extensions brand licensing mixed branding co-branding Chapter 31 n Branding, Packaging, and Labeling 17
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Brand Extension Brand extension
is a branding strategy that uses an existing brand name for an improved or new product in the product line.
Example:
Ocean Spray Cranberry Juice extended to Cran-Apple, Cran-Raspberry, etc.
Advantages:
Reduces risk of new product failure
Disadvantages:
Over-extending a product line can cause brand dilution Chapter 31 n Branding, Packaging, and Labeling 18
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Branding Elements and Strategies
Brand Licensing Brand licensing
is the legal authorization by a trademarked brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee.
Advantages
: Enhance company image, sell more products Chapter 31 n Branding, Packaging, and Labeling 19
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Mixed Brands
A
mixed-brand strategy
involves simultaneously offering a combination of manufacturer, private distributor, and generic brands.
Example:
Union Carbide sells Glad brand garbage bags and generic brand garbage bags.
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SECTION 31.1
Co-Branding
Branding Elements and Strategies
A
co-branding strategy
combines one or more brands to increase customer loyalty and sales for each individual brand.
Example:
Kellogg’s Pop-Tarts are made only with Smucker’s fruit filling. Starbucks Coffee Co. opens coffee shops inside Barnes & Noble bookstores.
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31.1
A
SSESSMENT
Reviewing Key Terms and Concepts
1.
What is the difference between a brand name and a brand mark?
2.
Why is branding important to product planning?
3.
4.
Name three types of brands.
List four different branding strategies.
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31.1
A
SSESSMENT
Thinking Critically
Internet service providers are teaming with airlines, financial institutions, media outlets, celebrities, and non-profit groups to offer private-label Web access. Do you think that individuals want to receive their Internet access from the New York Yankees, David Bowie, Pepsi, or their local bank? Why or why not?
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31.1
Graphic Organizer
Types of Brands TYPES OF BRANDS Manufacturer Brands Private Distributor Brands Generic Brands
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Marketing Essentials
End of Section 31.1
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