Podcast
Questions and Answers
What defines a product category?
What defines a product category?
Which product belongs to the Home Care line?
Which product belongs to the Home Care line?
What term describes the variety of products a company offers within a specific product line?
What term describes the variety of products a company offers within a specific product line?
Which of the following identifies products as distinct from those of other sellers?
Which of the following identifies products as distinct from those of other sellers?
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Which product is associated with the Pet Nutrition category?
Which product is associated with the Pet Nutrition category?
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What is the correct definition of a product mix?
What is the correct definition of a product mix?
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Which type of product is described as one that consumers usually do not seek out actively?
Which type of product is described as one that consumers usually do not seek out actively?
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How is brand equity best summarized?
How is brand equity best summarized?
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Which of the following statements accurately describes product line depth?
Which of the following statements accurately describes product line depth?
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What is a significant advantage that brands provide to consumers?
What is a significant advantage that brands provide to consumers?
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What does increasing product mix breadth involve?
What does increasing product mix breadth involve?
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Which of the following elements is NOT considered a brand element?
Which of the following elements is NOT considered a brand element?
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What is a characteristic of a brand name?
What is a characteristic of a brand name?
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Which statement accurately describes characters in branding?
Which statement accurately describes characters in branding?
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What is the main function of a slogan in branding?
What is the main function of a slogan in branding?
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What is a key benefit of using family branding for a company?
What is a key benefit of using family branding for a company?
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What can happen as a consequence of using too many brand extensions?
What can happen as a consequence of using too many brand extensions?
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Which of the following describes individual branding?
Which of the following describes individual branding?
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What should a brand name ideally achieve?
What should a brand name ideally achieve?
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What is a potential negative outcome of brand extension illustrated by Zippo's example?
What is a potential negative outcome of brand extension illustrated by Zippo's example?
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Study Notes
Chapter 9: Product, Branding, and Packaging Decisions
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Key learning objectives include describing product components, identifying consumer product types, explaining product mix breadth vs. depth, identifying brand advantages, summarizing brand equity components, describing branding strategies, and stating how packaging/labeling contributes to a firm's strategy.
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Patagonia exemplifies socially responsible consumption for a for-profit company. They are dedicated to sustainability and environmental causes.
Products and Types of Products
- A product is comprised of the actual product (brand name, quality level, packaging, and features/design), core customer value, and associated services (financing, warranty, and support).
Types of Consumer Products
- Products categorized as Specialty goods, Shopping goods, Convenience goods, and Unsought goods. A medical professional is a specialty service, apparel is a shopping item, soft drinks are convenient goods, and insurance is an unsought service.
Product Mix and Product Line Decisions
- Product Mix: The full set of all products offered by a company.
- Product Lines: Groups of related items consumers use together or see as part of a group.
Product Mix and Product Line Decisions: Breadth and Depth
- Breadth: Number of product lines offered.
- Depth: Number of products within a product line.
How to Change Product Mix Breadth
- Increase: Add new product lines.
- Decrease: Delete entire product lines.
Branding
- A brand can utilize a name, logos, symbols, characters, slogans, jingles, and packages to distinguish itself. Under Armour's slogan "The Only Way Is Through" is an example.
What Makes a Brand?
- Brand Name: Used to describe the product or service. Can be invented or derived from colloquial language (e.g. Comfort Inn).
- URLs/Domain Names: Website addresses which often act as brand names (e.g., www.toyota.ca).
- Logos and Symbols: Visual branding elements (e.g., a Nike swoosh).
- Characters: Humans, animals, and animated figures used as brand symbols (e.g., Pillsbury Doughboy).
- Slogans: Short phrases used to describe or persuade customers (e.g., State Farm's "Like a good neighbour").
- Jingles: Audio messages about a brand using distinctive music (e.g., Intel's sound).
Value of Branding
- Brands impact market value, are assets, facilitate purchasing, establish loyalty, reduce marketing costs, and protect from competitors.
Brand Equity
- Components include brand awareness, perceived value, brand associations, and brand loyalty. Brand equity affects how much consumers are familiar with the brand and their overall opinions.
Brand Equity: Brand Ownership Strategies
- Brand ownership encompasses Manufacturer, Store, or Private labels, and Generic labels
Brand Naming Strategies
- Individual Brand Names: Use unique names for each product (e.g., Tide).
- Family Brand Names: Use one brand name for all products (e.g., Kraft).
Naming Brands and Product Lines: Choosing a Name
- Brand names should be descriptive, easy to pronounce/remember, registrable as a trademark, and possibly translatable.
Brand Extension - Benefits
- Using the same brand name for new products can provide several advantages including name recognition, perceived quality (carryover), lower marketing costs, synergy among compatible products, and increased sales. This can be exemplified by Ferrari's licensing agreement.
Brand Extension - Negative Consequences
- Too many brand extensions can dilute the existing brand, and ensuring brands are distanced from each other if necessary is important. This could be potentially risky if the brand association between existing and new products is not similar (e.g., Zippo perfume, Kate Spade Saturday).
Brand Dilution
- Measures to prevent dilution include evaluating product class fit, evaluating consumer perceptions, and refraining from spreading the brand name across too many products.
Cobranding
- Combining two or more brands in a marketing effort on the same package or promotion.
Brand Licensing
- A contract between companies where one company allows another to use its branding (logo/name) for a fee. Porsche licensing their name to other goods are a relevant example.
Packaging
- Packaging is a vital brand element directly impacting consumer attention and standing out from competitors. It functions as a promotional tool and gives physical benefits to products.
Labeling
- Labels are crucial for providing critical information to consumers allowing for informed purchasing decisions related to the product.
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Description
This quiz covers Chapter 9 on Product, Branding, and Packaging Decisions. It explores key concepts such as product components, consumer product types, branding strategies, and the role of packaging in business strategy. Learn how companies like Patagonia are leading in socially responsible consumption.
