Chapter 12Chapter 12

Category and Brand Management, Product Identification, and New-

Product Planning

ManufacturerBrand

Kodak, Heinz

ManufacturerBrand

Kodak, Heinz

Private Brand

Kenmore, DieHardCragmont

Private Brand

Kenmore, DieHardCragmont

Family BrandKitchenAid

Appliances, Johnson & Johnson products

Family BrandKitchenAid

Appliances, Johnson & Johnson products

Individual Brand

Lever’s Aim, Close-Up & Pepsodent

Toothpastes

Individual Brand

Lever’s Aim, Close-Up & Pepsodent

Toothpastes

Generic Products

No name cigarettes

Generic Products

No name cigarettes

Figure Types of Brands

Definition of Brand EquityDefinition 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 KnowledgeTwo 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 KnowledgeTwo forms of Brand Knowledge

Brand Image

The types of associations that come to

the consumer’s mind when

contemplating a particular brand

Consumer-Based Brand Equity Consumer-Based Brand Equity FrameworkFramework

BrandKnowledge

BrandKnowledge

Brand Recognition

Brand Recognition

Brand Recall

Brand Recall

Non-Product-Related(e.g., Price, Packaging,

User and Usage Imagery)

Non-Product-Related(e.g., Price, Packaging,

User and Usage Imagery)

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

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

FunctionalFunctional

SymbolicSymbolic

ExperientialExperiential

AttributesAttributes

BenefitsBenefits

OverallEvaluation(Attitude)

OverallEvaluation(Attitude)

Types ofBrand Associations

Types ofBrand Associations

Favorability, Strength, and

Uniqueness of Brand Association

Favorability, Strength, and

Uniqueness of Brand Association

BrandAwareness

BrandAwareness

BrandImage

BrandImage

Brand equity enhanced by:

• Name awareness

• Positive associations

• Perceived quality

• Strong brand loyalty

Brand Equity EnhancementBrand Equity Enhancement

The Marketing Communications The Marketing Communications Decision ProcessDecision Process

A

BC

The Marketing Communications The Marketing Communications Decision ProcessDecision Process

A

BC

Monitoring and Managing Monitoring and Managing Environmental InfluencesEnvironmental Influences

EconomicEnvironment

Social-CulturalDemographicEnvironment

CompetitiveEnvironment

TechnologicalEnvironment

RegulatoryEnvironment

Product Decisions

DistributionDecisions

PromotionDecisions

PricingDecisions

Advertising

Sales Promotion

Point-of-purchase CommunicationsDirect

Marketing Communications

Public Relations& Sponsorship Marketing

Personal Selling

The Marketing Communications The Marketing Communications Decision ProcessDecision Process

A

BC

Interdependencies among Interdependencies among Target Market, Objective, and BudgetTarget Market, Objective, and Budget

The Marketing Communications The Marketing Communications Decision ProcessDecision Process

A

BC

The Concept of Brand EquityThe Concept of Brand Equity

“Gardenburger’s

ad on last episode

of Seinfeld

pays off big!”

The Marketing Communications The Marketing Communications Decision ProcessDecision Process

A

BC

The Marketing Communications The Marketing Communications Decision ProcessDecision Process

A

BC

Consumers become familiar with

the brand and hold:

Enhancing Brand EquityEnhancing Brand Equity

Favorable associations

Strong associations

Uniqueassociations

Co-Branding and Ingredient BrandingCo-Branding and Ingredient 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

Co-Branding andCo-Branding and Ingredient Branding Ingredient Branding

• A special type of alliance between branding partners

• e.g., “Intel Inside”

Ingredient Branding

Figure 12.8 Alternative Product Development Strategies

MarketPenetration

ProductDevelopment

MarketDevelopment

ProductDiversification

Old Product New Product

Old Market

New Market

A loss of sales of a current product due to competition from a new product in the same line.

Cannibalization

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.

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.*

Stages in the adoption process

Integrated Marketing Communications

(IMC)The process of developing and implementing

various forms of persuasive communication

programs with customers and prospects over

time

Integrated Marketing Communications Integrated Marketing Communications (IMC)(IMC)

Key Features of IMCKey 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 CommunicationsElements of Marketing Communications

Changes in Changes in Marketing Communication PracticesMarketing 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