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65 Cards in this Set
- Front
- Back
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Zappos Video
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Scripps Networks Interactive & Food Network Video
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Brand
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Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from competitors’ offerings
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Selected Brands, Brand Names, and Brand Marks
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Brand recognition
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Consumer awareness and identification of a brand
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Brand preference
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Consumer choice of a product on the basis of a previous experience
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Brand insistence
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Consumer refusal of alternatives and extensive search for desired merchandise
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Generic products
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Products characterized by plain labels, no advertising, and the absence of brand names
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Manufacturer’s brand
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Brand name owned by a manufacturer or other producer
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Private brands
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Brands offered by wholesalers and retailers
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Captive brands
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National brands sold exclusively by a retail chain
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Family brand
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Single brand name that identifies several related products
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Individual brand
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Single brand that uniquely identifies a product
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Brand Equity
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Added value that a respected, well-known brand name gives to a product in the marketplace
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Brand equity is built sequentially on four dimensions:
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•Differentiation
•Relevance •Esteem •Knowledge |
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Brand manager
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Marketer responsible for a single brand
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Category management
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Product management system in which a category manager—with profit and loss responsibility—oversees a product line
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Product Identification
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Products identified in the marketplace by brand names, symbols, and distinctive packaging
Choosing how to identify a firm’s output represents a major strategic decision for marketers |
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Brand name: Effective brand names are easy to pronounce, recognize, and remember
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Part of a brand that can be spoken
Loses protection when a class of products generally comes to be known by that name |
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Brand mark
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Symbol or pictorial design that distinguishes a product
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Trademarks
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Brand for which the owner claims exclusive legal protection
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ProtectingTrademarks
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Gives firms the exclusive legalright to use a brand name, brand mark, and any slogan or product nameabbreviation
Firms can also seek protection forpackaging elements and product features |
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Trade Dress
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Visual components that contribute to the overall look of a brand
Visual components may be related to color selections, sizes, package, label shapes, and similar factors |
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Developing Global Brand Names and Trademarks:
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An excellent name or symbol in one country may be a poor choice in another
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A firm marketing a product in multiple countries has two choices:
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Use a single brand name for universal promotions
Tailor names to individual countries |
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Packaging serves three major objectives:
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Protection against damage, spoilage, and pilferage
Assistance in marketing the product Cost effectiveness |
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Label
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Carries an item’s brand name or symbol, the name and address of the manufacturer or distributor, information about the product’s composition and size, and recommended uses
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Universal product code (UPC)
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Numerical bar code system used to record product and price information
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RFID tags may replace some of the functions of UPC codes to:
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Reduce labor costs and improve inventory control
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Brand Extensions
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Attaching a popular brand name to a new product in an unrelated product category
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Line extension
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Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line
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Brand Licensing
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Practice that expands a firm’s exposure in the marketplace
Brand name’s owner receives royalties, typically 8 to 12 percent of wholesale revenues Can hurt a brand if the licensed product is poor quality or ethically incompatible with the brandAnother risk is overextending the brand |
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Alternative Product Development Strategies
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Market penetration
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Increase sales of existing products in existing markets
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Product positioning
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Consumers’ perceptions of a product’s attributes, uses, quality, and advantages and disadvantages relative to competing brands
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Market development
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Concentrates on finding new markets for existing products
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Product development
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Introduction of new products into identifiable or established markets
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Product diversification
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Focuses on developing entirely new products for new markets
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Cannibalization
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Introducing a new product that adversely affects sales of existing products
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Adoption process
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Stagesconsumers gothrough in learning about a new product, trying it, and deciding whether topurchase it again
•Awareness •Interest •Evaluation •Trial •Adoption/rejection |
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Consumer innovators
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People who purchase new products almost as soon as the products reach the market
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Diffusion process
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Process by which new goods or services are accepted in the marketplace
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Categories of Adopters Based on Relative Times of Adoption
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Identifying Early Adopters
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Firms who reach early purchaserscan treat them as a test market
•Evaluatingthe product and discovering suggestions for modifications Early purchasers can act as opinionleaders from whom others seek advice •Attitudestoward new products quickly spreads to others |
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Rate of Adoption Determinants: Relative advantage
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Innovation that appears far superior to previous ideas
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Rate of Adoption Determinants: Compatibility
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Innovation consistent with the values and experiences of potential adopters
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Rate of Adoption Determinants: Complexity
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Relative difficulty of understanding the innovation influences the speed of acceptance
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Rate of Adoption Determinants: Possibility of trial use
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Initial free or discounted trial of a good or service reduces adopters financial risk
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Rateof Adoption Determinants: Observability
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Observing an innovation’s superiority increases the adoption rate
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Organizing for New Product Development: New-product committees
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•Mostcommon arrangement
•Bringstogether functional experts •Tendsto reach decisions slowly •Maintainsconservative views •Membersmay compromise so they can return to their regular responsibilities |
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Organizing for New Product Development: New-product departments
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Separate and formally organized
Aims at generating and refining new product ideas Encourages innovation as a permanent full-time activity Responsible for all phases of a development project within the firm |
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ProductManagers
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Another term for a brand manager; supports the marketing strategies of an individual product or product line
Set prices, develop advertising and sales promotion programs, and work with sales representatives in the field |
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Venture Teams
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Specialists from different areas of an organization who work together in developing new products
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The venture team must meet criteria for:
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•Returnon investment
•Uniquenessof product •Servinga well-defined need •Compatibilityof the product with existing technology Strength of patent protection |
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Steps in the New-Product Development Process
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The New-Product Development Process: Idea generation
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New-product development begins with ideas from many sources
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The New-Product Development Process: Screening
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Separates ideas with commercial potential from those that cannot meet company objectives
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The New-Product Development Process: Businessanalysis
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Assessing the new product’s potential market, growth rate, and likely competitive strengths
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The New-Product Development Process: Concept testing
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Method for subjecting a product idea to additional study before actual development by involving consumers through focus groups, surveys, in-store polling, and similar strategies
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Screening and business analysis stages generate important information because they:
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•Define the proposed product’starget market and customers’ needs and wants
•Determine the product’s financialand technical requirements |
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The New-Product Development Process: Development
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Financial outlays increase substantially as a firm converts an idea into a visible product
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The New-Product Development Process: Test marketing
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To verify that the product will perform well in a real-life environment
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The New-Product Development Process: Commercialization
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A product is ready for full-scale marketing
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Product Safety and Liability
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Manufacturers must design their products to protect users from harm
The Consumer Product Safety Commission has jurisdiction over most consumer product categories The Food and Drug Administration approves food, medications, and health-related devicesLiability lawsuits are increasing domestically and internationally |
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Product liability
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Responsibility of manufacturers and marketers for injuries and damages caused by their products
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Product Safety and Liability
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To counter increased litigation and legislationCompanies sponsor voluntary improvements in safety standards
Safety planning and testing can be an effective marketing tool |
