Chapter 31 Section 31.1.pptx

(1)

Chapter 31 n Branding, Packaging, and Labeling 1

Marketing Essentials

Marketing

Essentials

n Chapter 31 Branding, Packaging, and Labeling

(2)

SECTION 31.1

What You'll Learn What You'll Learn

Branding Elements

and Strategies

Branding Elements

and Strategies

 _{The nature, scope, and importance of}

branding in product planning

 _{The various branding elements}

 _{The different types of brands}

(3)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

Why It's Important 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

(4)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

Key Terms 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}

(5)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

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}

Branding

(6)

SECTION 31.1

Branding Elements

and Strategies

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,}

(7)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

Branding

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

(8)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

Branding

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}

(9)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

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 ().

Branding

(10)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

Brand names, brand marks, trade names, trade characters, and trademarks are often

combined to form a firm's corporate

symbol or name.

(11)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

Top Ten Brands

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?

Rank Brand Company 1999 Advertising

(in millions of dollars)

1 Chevrolet General 762.4 vehicles Motors Corp.

2 AT&T AT&T Corp. 711.4 telephone services

3 Dodge Daimler- 651.7 vehicles Chrysler

4 Ford Ford Motor 629.5 vehicles Company

5 McDonald's McDonald's 627.2 restaurants Corp.

6 Toyota Toyota Motor 569.4 vehicles Corp.

7 Sears Sears, 556.1 department stores Roebuck & Co.

8 Sprint Sprint Corp. 470.1 telephone services

9 Chrysler Daimler- 426.5 vehicles Chrysler

(12)

SECTION 31.1

Branding Elements

and Strategies

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}

(13)

SECTION 31.1

Branding Elements

and Strategies

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

(14)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

Three classifications of brands are:

 _{manufacturer brands}

 _{private distributor brands}

 _{generic brands}

(15)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

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}

Types of Brands

(16)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

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.

(17)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and 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

(18)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

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

(19)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

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

(20)

SECTION 31.1

Branding Elements

and Strategies

Branding Elements

and Strategies

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.

(21)

SECTION 31.1

Branding Elements

and Strategies

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.

(22)

31.1

A

SSESSMENTSSESSMENT

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. Name three types of brands.

(23)

Chapter 31 n Branding, Packaging, and Labeling 23 31.1

A

SSESSMENTSSESSMENT

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

(24)

31.1

Graphic Organizer

Types of Brands

TYPES OF BRANDS

Manufacturer Brands

Private Distributor

Brands

(25)

Marketing Essentials

Marketing

Essentials