Chapter 12

Category and Brand Management,

Product Identification, and NewProduct Planning

Figure

Types of Brands

Generic
GenericProducts
Products
No
Noname
namecigarettes
cigarettes

Manufacturer
Manufacturer
Brand
Brand
Kodak,
Kodak,Heinz
Heinz

Family
FamilyBrand
Brand

KitchenAid
KitchenAid
Appliances,
Appliances,Johnson
Johnson
&&Johnson
products
Johnson products

Private
PrivateBrand
Brand
Kenmore,
Kenmore,DieHard
DieHard
Cragmont
Cragmont

Individual
Individual
Brand
Brand

Levers
LeversAim,
Aim,CloseCloseUp
Up&&Pepsodent
Pepsodent
Toothpastes
Toothpastes

Definition of Brand Equity

Brand Equity
A brand possesses equity to the extent that
consumers are familiar with the brand and
have stored in their memory warehouses
favorable, strong and unique brand
associations

Two forms of Brand Knowledge

Brand Awareness
An issue of whether a brand name comes to
mind when consumers think about a
particular product category and the ease
with which the name is evoked

Two forms of Brand Knowledge

Brand Image
The types of associations that come to
the consumers mind when
contemplating a particular brand

Consumer-Based Brand Equity

Framework
Non-Product-Related
Non-Product-Related
(e.g.,
(e.g.,Price,
Price,Packaging,
Packaging,
User
and
Usage
User and UsageImagery)
Imagery)

Brand
Brand
Recognition
Recognition
Brand
Brand
Awareness
Awareness

Brand
Brand
Knowledge
Knowledge

Brand
Brand
Image
Image

Brand
Brand
Recall
Recall

Attributes
Attributes

Types
Typesof
of
Brand
Associations
Brand Associations

Benefits
Benefits

Favorability,
Favorability,
Strength,
Strength,and
and
Uniqueness
Uniquenessof
of
Brand
Association
Brand Association

Overall
Overall
Evaluation
Evaluation
(Attitude)
(Attitude)

Product-Related
Product-Related
(e.g.,
(e.g.,color,
color,size,
size,
design
features)
design features)

Functional
Functional
Symbolic
Symbolic
Experiential
Experiential

Brand Equity Enhancement

Brand equity enhanced by:

Name awareness
Positive associations
Perceived quality
Strong brand loyalty

The Marketing Communications

Decision Process
A

The Marketing Communications

Decision Process
A

Monitoring and Managing

Environmental Influences
Economic
Environment

Competitive
Environment

Product
Decisions

Distribution
Decisions

Technological
Environment

Social-Cultural
Demographic
Environment

Promotion
Decisions

Advertising
Personal
Selling

Sales
Promotion

Public
Point-of-purchase
Relations&
Direct Communications
Sponsorship
Marketing
Marketing
Communications

Regulatory
Environment

Pricing
Decisions

The Marketing Communications

Decision Process
A

Interdependencies among
Target Market, Objective, and Budget

The Marketing Communications

Decision Process
A

The Concept of Brand Equity

Gardenburgers
ad on last episode
of Seinfeld
pays off big!

The Marketing Communications

Decision Process
A

The Marketing Communications

Decision Process
A

Enhancing Brand Equity

Consumers become familiar with
the brand and hold:

Favorable
associations

Strong
associations

Unique
associations

Co-Branding and Ingredient Branding

Co-Branding
Two or more brands enter into a
partnership that potentially serves to
enhance both brands equity and
profitability
An important requirement for successful
co-branding : logical fit between the two
brands

Co-Branding and
Ingredient Branding
Ingredient Branding
A special type of alliance between
branding partners
e.g., Intel Inside

Figure 12.8 Alternative Product Development Strategies

Old Product

New Product

Old Market

Market
Penetration

Product
Development

New Market

Market
Development

Product
Diversification

Cannibalization

A loss of sales of a current product due to

competition from a new product in the same line.

Adoption Process

A series of stages through which consumers decide

whether or not to become regular users of a new
product, including awareness, interest, evaluation,
trial, and rejection or adoption.

Stages in the adoption process

1. Awareness. Individuals first learn of the new product, but they lack
full information about it.
2. Interest. Potential buyers begin to seek information about it.
3. Evaluation. They consider the likely benefits of the product.
4. Trial. They make trial purchases to determine its usefulness.
5. Adoption/Rejection. If the trial purchase produces satisfactory
results, they decide to use the product regularly.*

Integrated Marketing Communications

(IMC)
Integrated Marketing Communications
(IMC)
The process of developing and implementing
various forms of persuasive communication
programs with customers and prospects over
time

Key Features of IMC

1. Affect behavior
2. Start with the customer work to
company
3. Use all message channels
4. Achieve synergy
5. Build relationships between the
brand and the consumer

Elements of Marketing Communications

Changes in
Marketing Communication Practices
Reduced faith in mass media advertising
Increased reliance on highly targeted
communication methods
Greater demands imposed on marketing
communications suppliers
Increased efforts to assess communications
return on investment