Marketing bán hàng - Chapter 11: Product strategies: Branding & packaging decisions

Chapter 11Product Strategies: Branding & Packaging Decisions Chapter Outline Branding DecisionsBranding Levels and Alternatives- Branding vs. No Brand- Private Brand vs. Manufacturer's BrandSingle Brand versus Multiple BrandsLocal Brands vs. Worldwide Brand Chapter OutlineBrand ConsolidationBrand Origin and SelectionBrand CharacteristicsBrand ProtectionPackaging: Functions and CriteriaMandatory Package ModificationOptional Package ModificationBrand any word, name, symbol, or device or any combination thereof used by a manufacturer or merchant to identify this goods and distinguish them from those manufactured or sold by others (Lanham Trade-Mark Act)any sign, or any combination of signs, capable of distinguishing the goods or services of one undertaking from those of other undertakings, shall be capable of constituting a trademark. Such signs, in particular words including personal names, letters, numerals, figurative element5s and combinations of colours as well as any combination of such signs, shall be eligible for registration as trademarks (WTO)Functions of Brandcreate identification and brand awarenessguarantee a certain level of quality, quantity, and satisfactionhelp with promotionBranding Decisions Branding vs. No BrandPrivate Brand vs. Manufacturer's BrandSingle Brand versus Multiple Brands (in one country)Local Brands vs. Worldwide Brand Branding vs. No BrandCommodity - unbranded or undifferentiated product - sold by grade, not by brands- flexibility in quality and quantity control- lower production costs along with lower marketing and legal costs. - demand being strictly a function of priceBranding vs. No BrandProduct - value-added commodity - better identification and awareness - promotion and differentiation - consumer confidence, brand loyalty, and repeat sales - possible to use premium pricing - allowing effective brandingPrivate Brand vs. Manufacturer’s Brand Distributor's (Private) Brand lower retail price for price-sensitive consumershigher profit margin for distributorManufacturer's Brandbetter image and market acceptanceno promotion hassles for distributorPrivate Brand vs.Manufacturer’s Brand"Least Dependent Person" Hypothesis- least dependent person is stronger party - stronger party has more resources and market acceptance- least dependent person is likely to prevail on brand choice Single Brand vs. Multiple Brands (in one country) Single Brand- full attention for maximum impact- based on assumption of market homogeneityMultiple Brands- market segmentation - based on assumption of market heterogeneity Local Brands vs. Worldwide BrandWorldwide Brand - based on assumption of market homogeneity- uniform brand image- convenient identification - status and prestige- maximum market impact- lower production costs- lower advertising costsLocal Brand vs. Worldwide BrandsLocal Brands- allowing quality variations- easier pronunciation by local consumers- avoiding negative connotation. - avoiding legal complications- circumventing price control- discouraging gray marketing Brand Characteristics short and easy to pronounce (in local languages)suggesting product benefits without negative connotations unique or distinctive (or capable of being distinctive)Hierarchy of Registration Eligibility Fanciful MarkArbitrary Mark Suggestive MarkDescriptive MarkGeneric MarkHierarchy of Registration Eligibility Fanciful Mark - coined solely for purpose of identifying a particular product- strongest legal protectionArbitrary Mark - ordinary word that is used on a product in a totally nondescriptive waySuggestive Mark - subtly indicating something about a product- requiring consumers to use imagination to link the mark to a product's characteristic Hierarchy of Registration EligibilityDescriptive Mark - immediately conveying a product's characteristic, quality, or feature- not requiring consumers to use imaginationGeneric Mark - identifying a product rather than its manufacturer/marketer- no legal protectionPackagingFunctionsFunctional: protectionPromotionalModificationMandatoryOptional