chapter 12 developing and managing brand and product categories principles of contemporary marketing...
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Chapter 12Developing and Managing
Brand and Product Categories
Principles of
Contemporary MarketingKurtz & Boone
CHAPTER 12 Developing and Managing Brand and Product Categories
Chapter Objectives
1. Determine how to define a brand.
2. Identify the different types of brands.
3. Explain the strategic value of brand equity.
4. Explain the benefits of category and brand management.
5. Discuss how companies develop strong identities for their products and brand.
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CHAPTER 12 Developing and Managing Brand and Product Categories
Chapter Objectives
6. Identify and briefly describe each of the new-product development strategies.
7. Describe the consumer adoption process.
8. List the stages in the new-product development process.
9. Explain the relationship between product safety and product liability.
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Brand - Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from the competition’s
o Brands have a powerful influence on consumer behavior
Managing Brands for Competitive Advantage
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CHAPTER 12 Developing and Managing Brand and Product Categories
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Measured in three stages:o Brand recognition - Consumer awareness
and identification of a brand
o Brand preference - Consumer reliance on previous experiences with a product to choose that product again
o Brand insistence - Consumer refusal of alternatives and extensive search for desired merchandise
Brand Loyalty
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Manufacturer’s brand
o Private brands
o Captive brands
o Individual brand
Types of Brands
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Added value that a respected, well-known brand name gives to a product in the marketplace
o It is built sequentially on four dimensions:o Differentiation
o Relevance
o Esteem
o Knowledge
Brand Equity
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Brand manager - Marketer responsible for a single brand
o Category management - Product management system in which a category manager—with profit and loss responsibility—oversees a product line
The Role of Category and Brand Management
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Products identified in the marketplace by brand names, symbols, and distinctive packaging
o Choosing how to identify a firm’s output represents a major strategic decision for marketers
Product Identification
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Brand name - Part of a brand that can be spoken
o Brand mark - Symbol or pictorial design that distinguishes a product
o Trademark - Brand for which the owner claims exclusive legal protection
o Trade dress - Visual components that contribute to the overall look of a brand
Brand Names and Brand Marks
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CHAPTER 12 Developing and Managing Brand and Product Categories
o An excellent name or symbol in one country may be a poor choice in another
o A firm marketing a product in multiple countries has two choices: o Use a single brand name for universal
promotions
o Tailor names to individual countries
Developing Global Brand Names and Trademarks
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Serves three major objectives: o Protection against damage, spoilage, and
pilferage
o Assistance in marketing the product
o Cost effectiveness
Packaging
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CHAPTER 12 Developing and Managing Brand and Product Categories
o Brand extension - Strategy of attaching a popular brand name to a new product in an unrelated product category
o Brand licensing - Practice that expands a firm’s exposure in the marketplace
Brand Extensions and Brand Licensing
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CHAPTER 12 Developing and Managing Brand and Product Categories
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 12 Developing and Managing Brand and Product Categories
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 12 Developing and Managing Brand and Product Categories
o New-product committees
o New-product departments
o Product manager - Marketer responsible for an individual product or product line
o Venture team - Associates from different areas of an organization who work together in developing new products
Organizing for New Product Development
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CHAPTER 12 Developing and Managing Brand and Product Categories
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 12 Developing and Managing Brand and Product Categories
o The Consumer Product Safety Commission has jurisdiction over most consumer product categories
o The Food and Drug Administration approves food, medications, and health-related devices
o Liability lawsuits are increasing domestically and internationally
Product Safety and Liability
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CHAPTER 12 Developing and Managing Brand and Product Categories
o To counter increased litigation and legislation, some companies sponsor voluntary improvements in safety standards
o Safety planning and testing can be an effective marketing tool
Product Safety and Liability
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