Chapter 11 – Product, Branding, and Package Decisions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1
Chapter 11
Product, Branding, and Package Decisions
Tools for Instructors
• Brief Chapter Outline
• Learning Objectives
• Extended Chapter Outline with Teaching Tips
• Answers to End of Chapter Learning Aids
• Chapter Case Study
• Additional Teaching Tips
• Connect Activities
Brief Chapter Outline
Complexity and Types of Products
Product Mix and Product Line Decisions
Branding
Branding Strategies
Packaging
End of Chapter Learning Aids
Chapter Case Study: From the Counterculture to the Runway: How Did Birkenstocks Become
Fashionable?
Learning Objectives
LO11-1 Describe the components of a product.
The product itself is important, but so are its associated services, such as support or financing. Other
LO11-2 Identify the types of consumer products.
These products tend to be classified into four groups: specialty, shopping, convenience, and unsought
LO11-3 Explain the difference between a product mix’s breadth and a product line’s depth.
of categories within one specific product line.
LO11-4 Identify the advantages that brands provide firms and consumers.
Brands play important roles in enabling people to make purchase decisions more easily and encouraging
LO11-5 Explain the various components of brand equity.
Chapter 11 – Product, Branding, and Package Decisions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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Brand equity summarizes the value that a brand adds or subtracts from the offering’s value. It comprises
brand awareness, or how many consumers in the market are familiar with the brand; brand associations,
LO11-6 Determine the various types of branding strategies used by firms.
Firms use a variety of strategies to manage their brands. First, they decide whether to offer manufacturer
and/or private-label brands. Second, they have a choice of using an overall family brand or a collection of
product line or individual brands. Third, to reach new markets or extend their current market, they can
LO11-7 Distinguish between brand extension and line extension.
LO11-8 Indicate the advantages of a product’s packaging and labeling strategy.
Similar to brands, packaging and labels help sell the product and facilitate its use. The primary package
holds the product, and its label provides product information. The secondary package provides additional
Extended Chapter Outline with Teaching Tips
I. Complexity and Types of Products
A. Complexity of Products
B. Types of Products
1. Specialty Products/Services
2. Shopping Products/Services
3. Convenience Products/Services
4. Unsought Products/Services
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. Explain the three components of a product.
2. What are the four types of consumer products?
II. Product Mix and Product Line Decisions
Chapter 11 – Product, Branding, and Package Decisions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What is the difference between product mix breadth and product line depth?
2. Why change product mix breadth?
Answer: Firms often add new product categories to capture new or evolving markets, increase
3. Why change product line depth?
Answer: Firms may add items to address changing consumer preferences or to preempt
competitors while boosting sales. From time to time, it is also necessary to delete products to
more profitable items.
III. Branding
A. Value of Branding for the Customer
B. Brand Equity for the Owner
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. How do brands create value for the customer and the firm?
Answer: Branding provides a way for a firm to differentiate its product offerings from those of its
Chapter 11 – Product, Branding, and Package Decisions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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2. What are the components of brand equity?
IV. Branding Strategies
A. Brand Ownership
1. Manufacturer Brands
2. Retailer/Store Brands
B. Naming Brands and Product Lines
1. Family Brands
2. Individual Brands
C. Brand and Line Extension
D. Co-Branding
E. Brand Licensing
F. Brand Repositioning
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the differences between manufacturer and private-label brands?
Answer: Manufacturer brands, also known as national brands, are owned and managed by the
manufacturer; some famous manufacturer brands are Kraft, Nike, Coca-Cola, KitchenAid, and
Sony. Private-label brands, also called retailer/store brands, are products developed by retailers.
2. What is co-branding?
Answer: Co-branding is the practice of marketing two or more brands together on the same
package, promotion, or store. Co-branding can enhance consumers’ perceptions of product
quality by signaling unobservable product quality through links between the firm’s brand and a
well-known quality brand. For example, Yum! Brands frequently combines two or more of its
Chapter 11 – Product, Branding, and Package Decisions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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Marketing Applications
1 L.L.Bean has a 100% satisfaction guaranteed policy on all of its products. What features of a
pair of pants from L.L.Bean would be part of the actual product and which would be part of the
associated services?
Features of the actual pants product might include brand name, design, durability, quality, fit, and color.
2 Classify each of the following products into either convenience, shopping, specialty, or
unsought goods: toothpaste, life insurance, Sharp TV, Eggo waffles, lettuce, Coach handbag,
adidas soccer cleats, furniture.
Toothpaste, Eggo waffles, and lettuce are likely convenience products because they are frequently
purchased with very little thought.
Life insurance is an unsought product. Unsought products are goods or services that customers rarely
3 Study the following two product mixes. Product Mix 1: A, B, C, and D are the lines; and for
Product Mix 2: X, Y, and Z are the lines.
Which mix has more breadth and why? Which mix is deeper and why?
A firm’s product mix breadth represents a count of the number of product lines offered by the firm.
4 Suppose you are the coffee buyer at Kroger’s. There is a strong corporate initiative to
increase store-label merchandise. Discuss the advantages and disadvantages of offering
private-label coffee.
Private-label brands (also called retailer/store brands) are products developed by retailers who often
contract with manufacturers to produce products. Store brands now account for almost 20 percent of
Chapter 11 – Product, Branding, and Package Decisions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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5 Identify a specific brand that has developed a high level of brand equity. What specific
aspects of that brand establish its brand equity?
Student answers will vary. In picking a brand that they think has high equity value, students should
explore why they believe it has high value and what determines that value.
You could also review the top brands listed in the book and ask students to discuss why these brands
6 Are you loyal to any brands? If so, pick one and explain why you believe you are loyal, beyond
that you simply like the brand. If not, pick a brand that you like and explain how you would feel
and act differently toward the brand if you were loyal to it.
Student answers will vary. This question challenges students to consider exactly why they may be brand
loyal toward one product but not another, which may be because of product characteristics, the student’s
7 Sears owns several store brands, including DieHard, Kenmore, and Craftsman. Each brand
features many models that may appeal to various customer groups. Wouldn’t it be easier to
just identify them all as Sears? Justify your answer.
Sears is using an individual branding strategy. The advantage of individual branding is that each product
8 Do you think all edible items sold in a grocery store should have an ingredient and nutrition
label? Consider the perspectives of consumers, the manufacturer, and the store.
To expand students’ understanding of the roles and responsibilities of the different parties, this question
challenges them to consider the benefits and costs of labels for each group.
Most food in a grocery store should have an ingredient and nutrition label, with the exception of, say,
unpackaged produce. Consumers can make more informed purchase decisions, and the store might
object to comprehensive labeling.