Vocab

Product-anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.

Services-form of product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.

Brand equity-the differential effect that knowing the brand name has on customer response to the product or its marketing.

Brand value-the total financial value of a brand.

Colors of logos meaning

• Green-supports balance, harmony, love, communication, social, natural, and acceptance, healthy environment

• Orange-creativity, productivity, pleasure, optimism, enthusiasm, emotional expression, innovation

• Red-increases physical energy, vitality, stamina, grounding, spontaneity, stability, and passion, hunger

• Purple-universal flow, royalty, artistic qualities, imagination

• Blue-increases calmness, peace, love, honesty, kindness, truth, devotion, inner peace, secuirty

• Yellow-fun, humor, lightness, personal power, intellect, logic, and creativity

Shapes in Logos

• Circle-symbolizes friendship, care, and support.

• Triangle-symbolizes action, conflict, and tension.

• Square-Symbolizes stability, honesty, and equality

Why is product planning important

• To build product recognition and customer loyalty

• To ensure quality and consistency

• To capitalize on brand exposure

Branding Strategy order

• brand positioning

• brand name selection

• Brand sponsorship

• Brand development

How are name brands generated?

• Branding agencies

• Naming consultants

• Public relations firms

Brand Equity

-The differential effect that knowing the brand name has on customer response to the product or its marketing.

• Measure of the brand’s ability to capture consumer preference and loyalty.

• Measurements: differentiation, knowledge, relevance, esteem.

Elements of Branding.

brand mark- a unique symbol, coloring, lettering, or other design element. It is recognizable visually and does not need to be pronounced.

trade name-(or corporate brand) identifies and promotes a company or a division of a particular corporation.

Trade Character-brand mark that has human form or characteristics.

(logo)-is a word, name, symbol, device, or combination of these elements that is given legal protection by the federal government. Trademarks are used to prevent other companies from using a similar element that might be confused with the trademarked one.

Brand Positioning

Brand Positioning-Refers to the process of developing a product or brand image in the consumer’s mind. Based on consumers’ perceptions of product features

• Brand positioning strategy decisions

  • Product attributes (features)

  • Product benefits

  • Product beliefs and values

• Brand Positioning strategies

  • Price and Quality

  • Features and Benefits

  • In Relation to the Competition

  • In Relation to Other Products in a Line

Creating The Brand

• Characteristics of a good brand name

  • Suggests something about the product’s benefits (Lean Cuisine, Mop & Glo)

  • Short and simple

  • Easy to spell, read, and pronounce

  • Pleasant sounding

  • Distinctive and memorable

  • Appropriate to new products that may be added to the line at a later date. •

  • Legally available for use.

• A Tagline

  • I’m lovin’ it. Just do it.

  • Impossible is nothing.

  • Mmm Mmm Good.

• 3 Types of Brands

  • National brands (manufacturers)

  • Private distributor brands (wholesalers and retailers)

  • Generic brands

National brands- are owned and initiated by national manufacturers or by companies that provide services, such as: coke, Tropicana, oreo

Private distributor-developed and owned by wholesalers and retailers. The manufacturer’s name does not appear on the product.

Generic brands-products that do not carry a company identity. They are generally sold in supermarkets and discount stores

Brand Licensing

Brand licensing- a legal licensing agreement for which the licensing company receives a fee, such as a royalty, in return for allowing another company to use its brand/brand mark/trade character

co-branding-combines one or more brands in the manufacture of a product or in the delivery of a service. It can also happen when two or more retailers share the same location.

Line Extension- Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. This strategy’s risk is overextending a product line and diluting the brand with too many products. ALSO CALLED PRODUCT LINE FILLING

Brand extension- Extending an existing brand name to new product categories. Extend a current brand name to new or modified products in a new category.

Mixed-Brand strategy-They offer a combination of manufacturer, private distributor, and generic brands. For example, a manufacturer of a national brand might agree to make a product for sale under another company’s brand.

Consumer products:

convenience(customer buying behavior)-Frequent purchase; little planning, little comparison or shopping effort; low customer Involvement

shopping(customer buying behavior)-Less frequent purchase; much planning and shopping effort; comparison of brands on price, quality, and style

specialty(customer buying behavior)-Strong brand preference and loyalty; special purchase effort; little comparison of brands; low price sensitivity

unsought(customer buying behavior)-Little product awareness or knowledge (or, if aware, little or even negative interest) not known abut unless you need it

• Type distribution

  • low price-Widespread distribution; convenient locations

  • higher price-Selective distribution in fewer outlets

  • highest price-Exclusive distribution in only one or a few outlets per market area

Consumer products-products and services bought by final consumers for personal consumption.

4 types of consumer products- Convenience products, Shopping products, Specialty products, Unsought products

Industrial Products:

Industrial products-those products purchased for further processing or for use in conducting a business.

Materials and parts- raw materials and manufactured materials and parts.

Capital items- industrial products that aid in the buyer’s production or operations.

Supplies and services-

operating supplies, repair and maintenance items, and business services.

Product and service decisions:

Organization marketing-activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization.

Person marketing-activities undertaken to create, maintain, or change the attitudes or behavior of target consumers toward particular people.

Place marketing-activities undertaken to create, maintain, or change attitudes and behavior toward particular places.

Social-commercial marketing concepts to influence individuals’ behavior to improve their well-being and that of society.

Product quality- characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

Style- the appearance of the product.

Design-product’s usefulness as well as to its looks.

Product line-a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

Product mix-all the product lines and items that a particular seller offers for sale.

Service Industry:

Types of service industries - Government, Private not-for-profit organizations, Business organizations

four service characteristics- Intangibility, variability, inseparability, and perishability

Intangibility(4 service characteristics) - services cannot be tasted, felt, heard, or smelled before purchase.

Variability(4 service characteristics) - quality depends on who serves then, when, where, and how.

Inseparability(4 service characteristics) - services cannot be separated from their providers.

Perishability(4 service characteristics) - services cannot be stores for later use or sale

Marketing for service Firms

Marketing strategies for service Firms - Service-profit chain, Internal marketing, and Interactive marketing

Service-profit chain - links service firm profits with employee and customer satisfaction. (greater service quality leads to more satisfied and loyal customers)

Internal marketing - the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.

Interactive marketing - service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.

Managing service quality - enables a service firm to differentiate itself by delivering consistently higher quality than its competitors provide.

Managing service productivity - the cost side of marketing strategies for service firms.

Packaging:

PACKAGE-THE PHYSICAL CONTAINER OR WRAPPING FOR A PRODUCT. DEVELOPING A PRODUCT’S PACKAGE IS AN INTEGRAL PART OF PRODUCT PLANNING AND PROMOTION BECAUSE THE PACKAGE IS A SELLING TOOL.

• Functions of packaging

  • PROMOTING AND SELLING THE PRODUCT

  • DEFINING PRODUCT IDENTITY (BRAND)

  • PROVIDING INFORMATION (NUTRITION, INGREDIENTS)

  • MEET CUSTOMER NEEDS-PACKAGE VARIATIONS

  • ENSURING SAFE USE FOR CONSUMER

  • PROTECT THE PRODUCT

Labeling

Three kinds of labels-BRAND, DESCRIPTIVE, GRADE

BRAND LABEL-GIVES THE BRAND NAME, TRADEMARK, OR LOGO. IT DOES NOT SUPPLY SUFFICIENT PRODUCT INFORMATION.

DESCRIPTIVE LABEL-GIVES INFORMATION ABOUT THE PRODUCT’S USE, CONSTRUCTION, CARE, PERFORMANCE, AND OTHER FEATURES.

GRADE LABEL-STATES THE QUALITY OF THE PRODUCT

FAIR PACKAGING AND LABELING ACT (FPLA) OF 1966-ESTABLISHED MANDATORY LABELING REQUIREMENTS.

THE FEDERAL NUTRITION LABELING AND EDUCATION ACT 994-REQUIRES THAT LABELS GIVE NUTRITIONAL INFORMATION ON HOW A FOOD FITS INTO AN OVERALL DAILY DIET.

FEDERAL TRADE COMMISSION ACT 1914-ESTABLISHED THE FEDERAL TRADE COMMISSION (FTC) TO MONITOR LABELS AND ADVERTISING FOR FALSE OR MISLEADING CLAIMS.

U.S. DEPARTMENT OF AGRICULTURE (USDA)-ISSUES LEGAL STANDARDS AND CERTIFICATION REQUIREMENTS FOR ORGANIC LABELS.

ASEPTIC PACKAGING-SEPARATELY STERILIZING THE PACKAGE AND THE FOOD PRODUCT, AND FILLING AND SEALING THE PACKAGE IN A STERILE ENVIRONMENT. CANNING AND BOTTLING ARE EXAMPLES OF THIS METHOD, WHICH KEEPS FOOD FRESH FOR UP TO SIX MONTHS.