foundations of chapter m a r k e t i n g copyright © 2003 by nelson, a division of thomson canada...

Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

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M A R K E T I N G

Marketing the Total Product: Brand, Image, Warranty, and Packaging

10


Chapter

Objectives

1. Explain the concept of a total product and of product management.

2. Discuss the role of brands, brand names, and trademarks.

3. Elaborate on basic approaches to brand management.

4. Understand brand equity and what contributes to it.

5. Explain the importance, role, and functions of packaging.

6. Identify the classifications for consumer products and briefly describe each category.

7. Classify the types of industrial products.

Marketing the Total Product: Brand, Image, Warranty, and Packaging 10

10-1


Chapter

Total Product

• A total bundle of physical, service, and symbolic characteristics designed to produce customer want satisfaction.

10

10-2



Chapter

The Total Product Concept

10Figure 10.1

Brand

Warranty and

service

Product image

Package and label

Physical or Functional

Characteristics of a Good or Service

10-3



Chapter

Warranty

• A guarantee to the buyer that the supplier will replace a defective product (or part of a product) or refund its purchases price during a specified period of time.

10

10-4



Chapter

Brand

• A name, term, sign, symbol, or design (or some combination of these) used to identify the products of one firm and to differentiate them from competitive offerings.

10

10-5



Chapter

Brand Name

• Words, letters, or symbols that make up a name used to identify and distinguish the firm’s offerings from those of its competitors.

10

10-6



Chapter

A Good Brand Name

1. Easy to pronounce

2. Recognize

3. Remember

4. Legally protectable

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10-7



Chapter

Trademark

• A brand that has been given legal protection and has been granted solely to its owner.

10

10-8



Chapter

Generic Name

• A brand over which the original owner has lost exclusive claim because all offerings in the associated class of products have become generally known by the brand name (usually that of the first or leading brand in that product class).

10

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Chapter

Brand Equity

• Represents the value customers (and the stock markets) place on the sum of the history the customer has had with a brand.

10

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Chapter

Components of Brand Equity

10Figure 10.2

Brand association

Brand loyalty

Brand awareness

Perceived quality

Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Brand Leadership, by David A. Aaker and Erich Joachimsthaler, p. 17. Copyright © 2000 by David A. Aaker andErich Joachimsthaler.

10-11

Brand Equity



Chapter

Brand Loyalty Categories

1. Familiarity

2. Preference

3. Insistence

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10-12



Chapter

Brand Familiarity

• The first stage of brand loyalty, when a firm has developed enough publicity for a brand that its name is familiar to consumers.

10

10-13



Chapter

Brand Preference

• The second stage of brand loyalty, when based on previous experience, consumers will choose a product rather than one of its competitors -- if it is available.

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Chapter

Brand Insistence

• The ultimate stage of brand loyalty, when consumers will accept no alternatives and will search extensively for the product.

10

10-15



Chapter

Brand Architecture

• The relationship between a company’s products, brands and sub-brands.

10

10-16



Chapter

Brand Leadership

10Figure 10.3

Organizational Structure and Processes• Responsibility for brand strategy• Management processes

Brand Architecture• Brands/subbrands/endorsed brands• Roles of brands/subbrands

Brand Leadership

Brand-Building Program• Accessing multiple media• Achieving brilliance• Integrating the communication• Measuring the results

Brand Identity/Position• Aspirational image• Positioning the brand

Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Brand Leadership, by David A. Aaker and Erich Joachimsthaler, p. 25. Copyright © 2000 by David A. Aaker andErich Joachimsthaler.

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Chapter

Family Brand• Brand name used for several related

products.

Individual Brand• Brand that is known by its own brand

name rather than by the name of the company producing it or an umbrella covering similar items.

10

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Chapter

Brand Extension

• The decision to use a popular brand name for a new product entry in an unrelated product category.

10

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Chapter

Brand Strategy

1. The decision to use a popular brand name for a new product entry in an unrelated product category.

a) Family

b) Individual

2. Private

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Chapter

National Brand (Manufacturer’s Brand)• A brand promoted and distributed by a

manufacturer.

Private• A brand promoted and distributed by a

wholesaler or retailer.

10

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Chapter

Generic Products

• Food and household staples characterized by plan labels, little or no advertising, and no brand names.

10

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Chapter

Purposes for Packaging

1. Protection against damage, spoilage, and pilferage

2. Assistance in marketing the product

3. Cost-effectiveness

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Chapter

Label

The part of the package that contains:

1. The brand name or symbol

2. The name and address of the manufacturer or distributor

3. Information about product composition and size

4. Information about recommended uses of the product.

10

10-24



Chapter

• A code readable by optical scanners that can print the name of the item and the price on the cash register receipt.

10Universal Product Code

10-25



Chapter

1. Convenience

2. Preference

3. Shopping

4. Specialty

5. Unsought

10Consumer Goods Classification:

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Chapter

• Products that are lowest in terms of both effort and risk.

10Convenience Products

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Chapter

• Products that are slightly higher on the effort dimension and much higher on risk than convenience products.

10Preference Products

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Chapter

• Products that are usually purchased only after the consumer has compared competing products.

10Shopping Products

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Chapter

• Products that are highest in both effort and risk, due to some unique characteristics that cause the buyer to prize that particular brand.

10Specialty Products

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Chapter

• Products that people may know about but normally do not purchase.

10Unsought Products

10-31



Chapter 10Figure 10.4

10-32

A Strategic Classification of Products



Chapter 10Managerial Implications of Classifying Products Strategically (1 of 2)

Table 10.1

10-33a



Chapter

Managerial Implications of Classifying Products Strategically (1 of 2) 10

Table 10.1

10-33b



Chapter

1. Installations

2. Accessory Equipment

3. Component Parts and Materials

4. Raw Materials

5. Supplies and MRO Items

10Classifying Business-to-Business Products:

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Chapter

• Major capital assets that are used to produce products and services.

10Installations

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Chapter

• Second-level capital items that are used in the production of products and services but are usually less expensive and shorter-lived than installations.

10Accessory Equipment

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Chapter

• A wholesaler that operates in the business-to-business goods market and typically handles small accessory equipment and operating supplies.

10Industrial Distributor

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Chapter

• Finished business-to-business goods that actually become part of the final product.

10Component Parts and Materials

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Chapter

Raw Materials

• Farm products (such as cattle, wool, eggs, milk, pigs, and canola) and natural products (such as coal,copper, iron ore, and lumber).

10

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Chapter

Supplies and MRO Items

Supplies• Regular expense items necessary in the daily

operation of a firm, but not part of its final product.

MRO Items • Business-to-business supplies, so called

because they can be categorized as maintenance items, repair items, and operating supplies.

10

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foundations of chapter m a r k e t i n g copyright © 2003 by nelson, a division of thomson canada...

Documents

brand warranty

brand familiarity

brand insistence

good brand

brand preference

brand management

brand leadership

brand names