Branding and Packaging

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Branding: Key Terms

Brand
An identifying name, term, design, or symbol

Brand Name
The part of a brand that can be spoken Words, letters, numbers

Brand Mark
The part of a brand not made up of words Symbols or designs
Nike swoosh, Mercedes star, McDonalds arches

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Branding: Key Terms (contd)

Trademark
A legal designation of exclusive use of a brand
Coca-Cola, Hewlett-Packard

Trade Name
Full legal name of an organization

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Value of Branding
For Consumers
Helps speed consumer purchases by identifying specific preferred products Provides a form of self-expression and status Evaluates product quality to reduce the risk of purchase

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Value of Branding (contd)

For Marketers
Identifies and differentiates a firms products from competing products Helps in the introduction of new products Facilitates the promotion of all same-brand products Development of brand loyalty Can create valuable intangible assets

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Brand Loyalty: Key Terms

Brand Loyalty A customers favorable attitude toward a specific brand

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Major Elements of Brand Equity

Source: Adapted with the permission of The Free Press, a division of Simon & Schuster Adult Publishing Group, from Managing Brand Equity: Capitalizing on the Value of a Brand Name by David A. Aaker. Copyright 1991 by David A. Aaker.

FIGURE 13.1
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Types of Brands
Manufacturer Brands
Brands initiated by producers

Private Distributor Brands

Brands initiated and owned by resellers
Dealer brands, private brands, store brands

Generic Brands
Brands indicating only the product category
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Selecting a Brand Name

The name should
be easy to say and recall. indicate the products major benefits. suggest the products major uses and special characteristics. be well-matched with all products in line. be planned for use and recognition in all types of media.

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Protecting a Brand
Degree of brand protection through registration
Most

Surnames, geographic, or functional names are also difficult to protect.

Least
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Branding Policies
Individual Branding
A policy of naming each product differently

Family Branding
Branding all of a firms products with the same name Promotion of one item also promotes all other products

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Branding Policies (contd)

Using an existing brand name for an improved or new product Provides support for new products through established brand name and image

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Packaging
Involves the development of a container and a graphic design for a product Packaging Functions
Protect the product from damage Offer convenience to consumers Prevent waste and make storage easier Promote the product by communicating its features, uses, benefits, and image
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Major Packaging Considerations

Cost of Packaging
Limited consumer willingness to pay for better packaging.

Family Packaging
Similar packaging for all of a firms products or packaging that has one common design element A
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A
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Major Packaging Considerations (contd)

Promotional Role (Informing the Consumer)
Verbal and nonverbal symbols Size, shape, texture, color, and graphics

Reseller Needs
Transportation, storage, and handling

Environmentally Responsible
eco-friendly and recyclable
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Packaging Examples

Packaging and Marketing Strategy

Altering the Package
To update style and to meet increased competition To highlight new features To take advantage of new packaging materials To make the product safer or easier to use To reduce packaging costs

Secondary-Use Packaging
Reusable packaging adds customer value

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Packaging and Marketing Strategy (contd)

Innovative Packaging
Unique features or ways of packaging that make a product more distinct from its competitors

Multiple Packaging
Bundling multiple units of a product together to encourage usage and to increase demand

Handling-Improved Packaging
Packaging that has been changed to facilitate product handling in the distribution channel

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Criticisms of Packaging
Lack of functionality
Leak, difficult to open/close/seal, hard-touse designs

Safety
- Broken glass, health hazards

Deceptive
Shape, size, colors mask true nature of product

Cost of packaging
What customers prefer is costly
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Labeling
Labeling
Providing identifying, promotional, legal, or other information on package labels

Universal Product Code (UPC)

A series of electronically readable lines identifying a product and containing inventory and pricing information
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Labeling (contd)
Purposes of Labels
Help identify the product
Display brand name and unique graphics

Support promotional efforts for the product

Coupons, discounts, product features

Provide legally required labeling information

Fair Packaging and Labeling Act of 1966 Nutrition Labeling Act of 1990

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Labeling (contd)
Purposes of Labels (contd)
Green Labeling issues
Labeling packaging as made of recyclable materials

Provide information on product origin

Made in the USA
1st

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