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Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
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M A R K E T I N G
Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Chapter
Objectives
1. Explain the concept of a total product and of product management.
2. Discuss the role of brands, brand names, and trademarks.
3. Elaborate on basic approaches to brand management.
4. Understand brand equity and what contributes to it.
5. Explain the importance, role, and functions of packaging.
6. Identify the classifications for consumer products and briefly describe each category.
7. Classify the types of industrial products.
Marketing the Total Product: Brand, Image, Warranty, and Packaging 10
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Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Chapter
Total Product
• A total bundle of physical, service, and symbolic characteristics designed to produce customer want satisfaction.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
The Total Product Concept
10Figure 10.1
Brand
Warranty and
service
Product image
Package and label
Physical or Functional
Characteristics of a Good or Service
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Warranty
• A guarantee to the buyer that the supplier will replace a defective product (or part of a product) or refund its purchases price during a specified period of time.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Brand
• A name, term, sign, symbol, or design (or some combination of these) used to identify the products of one firm and to differentiate them from competitive offerings.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Brand Name
• Words, letters, or symbols that make up a name used to identify and distinguish the firm’s offerings from those of its competitors.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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A Good Brand Name
1. Easy to pronounce
2. Recognize
3. Remember
4. Legally protectable
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Chapter
Trademark
• A brand that has been given legal protection and has been granted solely to its owner.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Generic Name
• A brand over which the original owner has lost exclusive claim because all offerings in the associated class of products have become generally known by the brand name (usually that of the first or leading brand in that product class).
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Chapter
Brand Equity
• Represents the value customers (and the stock markets) place on the sum of the history the customer has had with a brand.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Components of Brand Equity
10Figure 10.2
Brand association
Brand loyalty
Brand awareness
Perceived quality
Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Brand Leadership, by David A. Aaker and Erich Joachimsthaler, p. 17. Copyright © 2000 by David A. Aaker andErich Joachimsthaler.
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Brand Equity
Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Brand Loyalty Categories
1. Familiarity
2. Preference
3. Insistence
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Brand Familiarity
• The first stage of brand loyalty, when a firm has developed enough publicity for a brand that its name is familiar to consumers.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Brand Preference
• The second stage of brand loyalty, when based on previous experience, consumers will choose a product rather than one of its competitors -- if it is available.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Chapter
Brand Insistence
• The ultimate stage of brand loyalty, when consumers will accept no alternatives and will search extensively for the product.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Brand Architecture
• The relationship between a company’s products, brands and sub-brands.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Brand Leadership
10Figure 10.3
Organizational Structure and Processes• Responsibility for brand strategy• Management processes
Brand Architecture• Brands/subbrands/endorsed brands• Roles of brands/subbrands
Brand Leadership
Brand-Building Program• Accessing multiple media• Achieving brilliance• Integrating the communication• Measuring the results
Brand Identity/Position• Aspirational image• Positioning the brand
Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Brand Leadership, by David A. Aaker and Erich Joachimsthaler, p. 25. Copyright © 2000 by David A. Aaker andErich Joachimsthaler.
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Family Brand• Brand name used for several related
products.
Individual Brand• Brand that is known by its own brand
name rather than by the name of the company producing it or an umbrella covering similar items.
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Chapter
Brand Extension
• The decision to use a popular brand name for a new product entry in an unrelated product category.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Brand Strategy
1. The decision to use a popular brand name for a new product entry in an unrelated product category.
a) Family
b) Individual
2. Private
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
National Brand (Manufacturer’s Brand)• A brand promoted and distributed by a
manufacturer.
Private• A brand promoted and distributed by a
wholesaler or retailer.
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Chapter
Generic Products
• Food and household staples characterized by plan labels, little or no advertising, and no brand names.
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Chapter
Purposes for Packaging
1. Protection against damage, spoilage, and pilferage
2. Assistance in marketing the product
3. Cost-effectiveness
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Label
The part of the package that contains:
1. The brand name or symbol
2. The name and address of the manufacturer or distributor
3. Information about product composition and size
4. Information about recommended uses of the product.
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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• A code readable by optical scanners that can print the name of the item and the price on the cash register receipt.
10Universal Product Code
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
1. Convenience
2. Preference
3. Shopping
4. Specialty
5. Unsought
10Consumer Goods Classification:
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• Products that are lowest in terms of both effort and risk.
10Convenience Products
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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• Products that are slightly higher on the effort dimension and much higher on risk than convenience products.
10Preference Products
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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• Products that are usually purchased only after the consumer has compared competing products.
10Shopping Products
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Chapter
• Products that are highest in both effort and risk, due to some unique characteristics that cause the buyer to prize that particular brand.
10Specialty Products
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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• Products that people may know about but normally do not purchase.
10Unsought Products
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter 10Figure 10.4
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A Strategic Classification of Products
Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter 10Managerial Implications of Classifying Products Strategically (1 of 2)
Table 10.1
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Managerial Implications of Classifying Products Strategically (1 of 2) 10
Table 10.1
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
1. Installations
2. Accessory Equipment
3. Component Parts and Materials
4. Raw Materials
5. Supplies and MRO Items
10Classifying Business-to-Business Products:
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Chapter
• Major capital assets that are used to produce products and services.
10Installations
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Chapter
• Second-level capital items that are used in the production of products and services but are usually less expensive and shorter-lived than installations.
10Accessory Equipment
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• A wholesaler that operates in the business-to-business goods market and typically handles small accessory equipment and operating supplies.
10Industrial Distributor
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Chapter
• Finished business-to-business goods that actually become part of the final product.
10Component Parts and Materials
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Raw Materials
• Farm products (such as cattle, wool, eggs, milk, pigs, and canola) and natural products (such as coal,copper, iron ore, and lumber).
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Marketing the Total Product: Brand, Image, Warranty, and Packaging
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Chapter
Supplies and MRO Items
Supplies• Regular expense items necessary in the daily
operation of a firm, but not part of its final product.
MRO Items • Business-to-business supplies, so called
because they can be categorized as maintenance items, repair items, and operating supplies.
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