Chapter 11

Product, Branding, and Packaging

Decisions

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 Learning Objectives (1 of 2)

Learning Objective 11.1 Describe the components of a

product.
Learning Objective 11.2 Identify the types of consumer
products.
Learning Objective 11.3 Explain the difference between a
product mixs breath and a product lines depth.
Learning Objective 11.4 Identify the advantages that
brands provide firms and consumers.

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 Learning Objectives (2 of 2)

Learning Objective 11.5 Explain the various components

of brand equity.
Learning Objective 11.6 Determine the various types of
branding strategies used by firms.
Learning Objective 11.7 Distinguish between brand
extension and line extension.
Learning Objective 11.8 Indicate the advantages of a
products packaging and labeling strategy.

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 Types of Products

Specialty Shopping

Convenience Unsought

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 PROGRESS CHECK (1 of 5)

1. Explain the three components of a product.

2. What are the four types of consumer products?

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 Product Mix and Product Line Decisions
(1 of 2)
Product Lines

Mercedes-Benz Cars Mercedes-AMG cars Smart Cars Mercedes-Benz Vans

A-Class C 63 Smart ForTwo Sprinter Worker

B-Class CLS 63 Smart ForTwo Cabrio Sprinter Cargo Van

C-Class GLE 450 Smart ForFour Sprinter Crew Van

CLA SL Convertible Smart ForTwo Electric Drive Sprinter Passenger Van

CLS GT Metro Passenger Van

G-Class Metro Cargo Van

E-Class Marco Polo Camper Van

GLA

R-Class

S-Class

V-Class

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 Product Mix and Product Line Decisions
(2 of 2)

Breadth Depth

Number of product Number of

lines categories within a
product line

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McGraw-Hill Education Courtesy Pepsi Cola Company
 PROGRESS CHECK (2 of 5)

1. What is the difference between product line

breadth versus depth?
2. Why change product line breadth?
3. Why change product line depth?

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 What Makes a Brand?

Logos and Characters

symbols

URLs
Slogans
www.eBay.com

Brand Jingles/
name Branding Sounds

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 Value of Branding for the Customer

Facilitate Purchasing

Establish Loyalty

Protect from Competition

Are Assets

https://www.youtube.com/watch?v=MX8O7z4NtoU

Impact Market Value

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 Brand Equity for the Owner

Brand Value
2015 Rank 2013 Rank Brand Country Sector (in $ Billions)

1 1 Apple United States Technology $170.3

2 2 Google United States Technology $120.3

3 3 Coca-Cola United States Beverages $78.4

4 5 Microsoft United States Technology $67.7

5 4 IBM United States Business Services $65.1

6 10 Toyota Japan Automotive $49.0

7 8 Samsung South Korea Technology $45.3

8 6 GE United States Diversified $42.3

9 7 McDonald's United States Restaurants $39.8

10 n.a. Amazon United States Retail $37.9

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McGraw-Hill Education Source: From Interbrand.com, http://interbrand.com/best-brands/best-global-brands/2015/ranking/#?listFormat=ls.
 Brand Equity: Brand Awareness

The more aware of or

familiar with an offering,
the easier the
consumers decision-
making process is,
which improves the
chances of purchase.

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 Brand Equity: Perceived Value

How do discount retailers like Target, T.J. Maxx,

and H&M create value for customers?

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 Brand Equity: Brand Associations

Brand associations often result from a firms

advertising and promotional efforts.

Prius
Economical
Good value
Stylish
Good for the environment

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 Brand Equity: Brand Loyalty

Consumers are often less sensitive to price.

Marketing costs are much lower.

Firm are insulated from the competition.

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 PROGRESS CHECK (3 of 5)

1. How do brands create value for the customer

and the firm?
2. What are the components of brand equity?

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 Brand Ownership

Private-label brands or
Store Brands
Manufacturer brands Premium
or national brands Generic
Copycat
Exclusive co-branded

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 Naming Brands and Product Lines

Corporate or family brand

The Gap
Corporate and product line brands
Kelloggs Corn Flakes
Individual lines
Mr. Clean (Proctor & Gamble)

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McGraw-Hill Education All photos: M. Hruby.
 Brand and Line Extensions

Jump to Appendix 1 long 19

image description M. Hruby.
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 Brand Dilution

Evaluate the fit between the product

class of the core brand and the
extension.

Evaluate consumer perceptions of the

attributes of the core brand and seek
out extensions with similar attributes.

Refrain from extending the

brand name to too many products.

Is the brand extension distanced

enough from the core brand?
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 Co-Branding

Can enhance perceptions of quality through links

between brands

Yum! Brands
Combines two or more of its restaurant chains
(A&W, KFC, Long John Silvers, Pizza Hunt, and
Taco Bell) into one store space

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 Brand Licensing

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McGraw-Hill Education Stacy Revere/Getty Images
 Brand Repositioning

Can improve the brands fit with its target segment

Can boost vitality of old brands

Not without costs and risks

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 PROGRESS CHECK (4 of 5)

1. What are the differences among manufacturer

and private-label brands?
2. What is co-branding?
3. What is the difference between brand extension
and line extension?
4. What is brand repositioning?

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 Packaging

What other packaging do you

as a consumer find useful?

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 Product Labeling

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McGraw-Hill Education Photo 1: The McGraw-Hill Companies, Inc/Elite Images, Photo 2: C Sherburne/PhotoLink/Getty Images
 PROGRESS CHECK (5 of 5)

1. Why do firms change packaging?

2. What objectives do product labels fulfill?

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 Marketing
Chapter 11
The End

The End

McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.