11-1: Brand Equity: Brand Associations Target teamed up with high-fashion designer
Jason Wu to create reasonably priced, yet very
fashionable apparel.
Firms sometimes develop a personality for the
brand – as if it were human.
Ask students: What brands have personalities?
They might mention McDonald’s and Pepsi
(young).
Consumers develop links between brands and
their own identity.
Some brands are just “not for them.”
Ask students: How many of you proudly wear
Abercrombie & Fitch clothing?
How many choose never to wear this brand?
How do you perceive this brand’s message?
11-2: Brand Equity: Brand Loyalty Brand loyalty provides the firm with high value.
State Farm has built their brand equity by having
loyal customers.
Ask students: Once you have chosen an
insurance company or a bank, how likely is it that
you will switch?
How likely is it that you will switch due to an
increase in price? Is it important for the firm to
spend a lot of money marketing to you, a loyal
customer? Do you pay much attention to ads or
direct mail pieces from competition?
To further illustrate brand loyalty, ask students:
Would you leave a store if your particular brand
were not in stock?
When you order a Sprite in a restaurant and the
server asks, “Is 7-Up okay?” do you say no?
11-3: Check Yourself 1. Brands facilitate the consumer search
process, are valuable in a legal sense, can
lead to lower marketing costs because the
brand and its associations help sell the
product, and brands have real market value
as a company asset.
2. Brand awareness, perceived value, brand
associations, and brand loyalty.
11-4: Brand Ownership Unlike Europe, where store brands such as Tesco
(U.K. grocery chain) were extremely popular, in
the United States, few store brands had achieved
such status and were often considered inferior to
manufacturer or national brands.
Today, many store brands are well established,
such as Kenmore, Charter Club, and Presidents’
Choice.
11-5: Brand Ownership Private-label brands, also called store brands,
house brands, or own brands, are products
developed by retailers.
Some manufacturers prefer to make only
private-label merchandise because the costs of
developing and marketing a manufacturer’s brand
are prohibitive.
11-6: Brand Ownership There are two basic brand ownership strategies:
manufacturer brands and retailer/store brands.
The brands can be marketed using a
common/family name or as individual brands.
11-7: Naming Brands and Product Lines Ask students: Name a firm that uses a corporate
or family brand.
Family brands include Heinz and Del Monte.
Detergents are good examples of firms using
individual brands: Tide, Bold, Gain, and Surf.
11-8: Brand Extension Ask students: What are the advantages of a
brand extension?
They should reply that the firm could spend less
on brand awareness.
That the positive consumer acceptance will
spread to the new product and a synergy exists
between the two products.
In the picture above one might use the Crest
toothpaste and floss together.
This web link is to the State Farm website. You
can see from the website that State Farm has
extended their brand past insurance to include
mutual funds and banking products.
11-9: Brand Dilution A brand is only as good as its last extension.
Many firms try to take their brands just one more
step, only to find the extension hurts rather than
helps the parent brand.
For example, McDonald’s agreed to license a
McKids line of clothing, but the line was not as
successful as it had hoped it would be.
Ask students: In terms of this slide, what do you
think McDonald’s did wrong?
They should comment that this was not a great
fit. That the perceptions might not have been of
the highest quality.
11-10: Co-branding Co-branding benefits the participating brands by
attracting the consumers of one brand to the
others.
Remind students of the FedEx/Kinko’s example.
The synergy between these two brands helped
ensure a successful co-branding effort.
Video: “Zite Teams Up with Bergdorf Goodman”
11-11: Brand Licensing The NBA licenses products like these bobble
head figures of Dallas Mavericks and San
Antonio Spurs players to a manufacturer in
exchange for a negotiated fee.
11-12: Brand Repositioning The product is now positioned as a detergent and
an air freshener.
11-13: Check Yourself 1. Manufacturer brands are owned and
managed by the manufacturer. The
manufacturer develops the merchandise,
produces it to ensure consistent quality, and
invests in a marketing program to establish
an appealing brand image. Private-label
brands are products developed by retailers.
2. Co-branding is the practice of marketing two
or more brands together, on the same
package or promotion.
3. Whereas a brand extension uses the same
brand name for a new product that gets
introduced into new or the same markets, a
line extension is simply an increase of an
existing product line by the brand.
4. Brand repositioning refers to a strategy in
which marketers change a brand’s focus to
target new markets or realign the brand’s
core emphasis with changing market
preferences.
11-14: Packaging Although often overlooked as a marketing tool,
packaging helps determine the success of a
product.
In some instances, such as Coca-Cola or Aunt
Jemima Maple Syrup, the package has become
synonymous with the brand.
Ask students: What packages are so distinct that
it helps make the brand successful?
Possible answers are: Perrier, Altoids, and
Tiffany’s turquoise box.
See if you can bring in examples of other bottled
water in unusual bottles such as Fuji and Fred.
11-15: Product Labeling Label information is determined by regulations,
and labeling rules vary from country to country.
Certain terms convey specific meanings, such as
“natural,” “organic,” “made in the USA,” and
products must meet specific tests before placing
such terms on their label.
Group activity: Look at the label of a snack or
drink you may have brought to class. What
information does it provide? How does it support
the marketing of this item?
Additional Teaching Tips
This chapter examines product lines, mix, and breadth. Different branding strategies are
addressed. Students use critical thinking skills to discover why brands are valuable to a firm.
Product packaging and labeling also contribute to the firm’s overall strategy and those concepts
are also reviewed in this chapter.
This is a fun exercise to get students excited about brands. To demonstrate the value of a
brand, instructors may want to start the topics discussion by gathering brand symbols (such as
below) and brand character icons such as the ones below without any identifying writing on it.
These can be obtained through a Web search of the character; for instance type “Tony the Tiger”
in your search engine and download the graphic. Place the symbols on a transparency in color.
Start the class by dividing the class into four or five groups. The instructions: The leader is to
write down the brand name from input of group members. Time the exercise. It usually doesn’t
take long depending on how many characters you use. At the conclusion declare a winner and
then ask the students “Why are brands valuable?” Students realize the importance of brand
recognition through the brand character or icon.
Online tip: The same exercise can be used in an online forum in synchronous connection with
the class where each of the brand characters are shown. The first student that types in the correct
brand name would “win” and the instructor shows the next image. A synchronous course
discussion can then occur about the importance of the brand character/logo.
Product packaging is known as the last five seconds of marketing. Instructors can bring in an
empty Pringles can as well as other interesting examples of packing. Pringles is one of the first
package designs to protect from breakage of food items such as potato chips. The class can
address how packaging becomes the last five seconds of marketing. Package label requirements
by the FDA and package design for shelf space should also be addressed.