978-1305405769 Chapter 10 Part 2

17

Chapter 10: Product, Branding, and Packaging Concepts

Increasingly, consumers are interacting with virtual reality sites. As more and more consumers visit these

sites, marketers have found ways to use these sites to build or support brands.

ASK: What is the benefit of marketing in virtual games?

McDonald’s partnered with farming simulation social network game FarmVille.

https://www.youtube.com/watch?v=tu9hrMsR7Nc

Discussion Starter 5: Brand Equity

ASK: What firm do you think is consistently in the top 10 global brands based on brand value?

http://www.millwardbrown.com/BrandZ/2015/Global/2015_BrandZ_Top100_Chart.pdf

ASK: What do you think contributes to Coca–Cola’s ability to remain on top of such lists?

Coca-Cola’s global presence is clearly the most important factor. Other elements are a globally

http://www.youtube.com/watch?v=9RFhKppBh8M&feature=related

Discussion Starter 6: Packaging Matters

ASK: Do you think you can judge a product by the package?

Often a unique package can have dramatic impact on a product’s appeal and, thus, on its sales. Every year

https://www.youtube.com/watch?v=FnHGrz5Tc3M

18

Chapter 10: Product, Branding, and Packaging Concepts

CLASS EXERCISES

Class Exercise 1: The Product Life Cycle

The goal of this exercise is for students to apply the product life cycle to existing products. In what stages

of the product life cycle are the following products?

Question

Answer

1.

Landline telephones

decline

2.

Digital display watches

decline

3.

Blue jeans

maturity

4.

Laptop computers

maturity

5.

DVD players

decline

6.

Wine coolers

Decline

7.

Streaming videos

Growth

8.

Tablet computers

Growth

9.

Compact discs

Decline

10.

Apple iPod

maturity

11.

Skateboards

Maturity

12.

Mobile homes

Maturity

13.

Bottled water

Maturity

14.

Fur coats

Decline

15.

Peanut butter

Maturity

Class Exercise 2: Product Classification

Step 1: Fill in the following table with examples for each product classification category.

Product Classification

Example

Convenience Product

Shopping Product

Specialty Product

Unsought Product

Step 2: List the steps in the consumer decision-making model (see Figure 6.1).

Step 3: How are product classification and consumer decision-making related? What does the consumer’s

level of involvement have to do with each of these?

Class Exercise 3: Similarities between Products

Recommended as a group activity

19

Chapter 10: Product, Branding, and Packaging Concepts

Often organizations deliver a wide variety of products with the same brand name. These product lines

generally have something in common which unifies the offerings. In this exercise, examine the underlying

similarities across diverse product lines.

Step 1: Think about Disney. Then brainstorm the product lines which carry the Disney name.

Step 2: Categorize your list into categories which make sense to your group participants.

Step 3: Identify similarities across all product lines.

Step 4: What is Disney’s product?

Class Exercise 4: Functions of Packaging

The purpose of this exercise is to reinforce an understanding of brand components and policies and the

functions of packaging.

Prompts for students:

1. Look at the nearest snack food wrapper or soft drink container and identify the

a. brand name.

b. brand mark.

c. trademark.

d. trade name.

2. Using the wrapper or container, explain how packaging performs three functions: protection,

convenience, and communication.

3. Is the manufacturer of the product using individual branding, family branding, or brand extensions?

4. You work for a firm that is introducing a new chocolate candy bar that contains an extra amount of

caffeine. Develop a brand name that

a. is easy for customers to say, spell, and recall.

b. positively suggests uses and special characteristics.

c. indicates major product benefits.

d. can be protected easily through registration.

Answers:

1. Students often get these components mixed up, particularly the first two. Coke cans offer a good

2. Replaceable caps (on 16-oz. drinks) help preserve taste; airtight containers and expiration dates help

21

Chapter 10: Product, Branding, and Packaging Concepts

CHAPTER QUIZ

1. An example of a convenience product is

a. stereo equipment.

b. gasoline.

c. a motorcycle.

d. a bicycle.

e. athletic shoes.

2. Price strategies become more mixed during the __________ stage of the product life cycle.

a. growth

b. maturity

c. decline

d. introduction

e. late introduction

3. People who enjoy trying new products and are often the first to do so are known as

a. early adopters.

b. the early majority.

c. market mavericks.

d. innovators.

e. laggards.

4. A group of closely related product items that are related because of marketing, technical, or end-use

considerations is a product

a. category.

b. dimension.

c. extension.

d. line.

e. mix.

5. Choosing appropriate colors for packaging best serves to enhance the __________ function of

packaging.

a. convenience

b. safety

c. cost effectiveness

d. protection

e. promotional

6. The type of brand that has seen a significant decrease in popularity in recent decades is

a. generic.

b. manufacturer.

c. private label.

d. distributor.

22

Chapter 10: Product, Branding, and Packaging Concepts

e. store brand.

7. Which of the following is not a result of General Mills’ use of the Pillsbury Doughboy?

a. It helps build brand loyalty.

b. It helps consumers connect the packages to the brand.

c. It contributes to brand equity.

d. It makes the products more expensive.

e. It helps the consumer identify the product in the store.

8. The Nike swoosh that is prominent on all of the firm’s packaging, products, and advertising is a

a. trade character.

b. brand.

c. trade name.

d. brand mark.

e. brand design.

23

Chapter 10: Product, Branding, and Packaging Concepts

SEMESTER PROJECTS

1. You Are Your Product

In Chapter 10 we learned about various ways organizations and consumers conceive of products and

services. In this exercise, you will define your product and look at ways to improve your product to

make it more desirable to your target market.

Step 1: Define your product. What are the unique elements of your product, you?

Step 2: What benefit would a customer (aka: employer) obtain by purchasing (hiring) your product?

Step 3: What steps can you take now to improve your product and make it more attractive to the

market?

2. In the last exercise you worked on defining your product, looking at possible modification and

extensions to your product. In this exercise you will look at developing a branding strategy for your

product.

Step 1: Define any signature elements of your brand. Some possible examples are nicknames, brand

symbols such as some object you are identified with, a unique first or last name, etc.

Step 2: What will be the core values of your brand? Will you build your brand on integrity or quality

or reliability? Will you build your brand on creativity or innovativeness or ease?

Step 3: How will you demonstrate these core values to your consumers? How will you package your

product to demonstrate these core values?

24

Chapter 10: Product, Branding, and Packaging Concepts

ANSWERS TO ISSUES FOR DISCUSSION AND REVIEW

1. Is a personal computer sold at a retail store a consumer product or a business product? Defend

your answer.

2. How do convenience products and shopping products differ? What are the distinguishing

characteristics of each type of product?

Convenience products (milk, pay telephones, and gasoline) are purchased at the closest retail facility.

3. How does an organization’s product mix relate to its development of a product line? When

should an enterprise add depth to its product lines rather than width to its product mix?

Product mix is the composite of products an organization sells. The product line includes a group of

4. How do industry profits change as a product moves through the four stages of its life cycle?

5. What are the stages in the product adoption process, and how do they affect the

commercialization phase?

The stages of the product adoption process are the stages buyers must go through before they accept

a product.

6. How does branding benefit consumers and marketers?

Brands aid buyers by helping them identify specific products that they like and do not like, which in

7. What is brand equity? Identify and explain the major elements of brand equity.

Brand equity is the marketing and financial value associated with a brand’s strength in the market.

Four major elements underlie brand equity—brand name awareness, brand loyalty, perceived brand

8. What are the three major degrees of brand loyalty?

9. Compare and contrast manufacturer brands, private distributor brands, and generic brands.

Manufacturer brands are initiated by producers and ensure that producers are identified with their

products at the point of sale. These brands usually require a producer to become involved in

10. Identify the factors a marketer should consider in selecting a brand name.

When selecting a brand name, marketers must consider a number of factors. The brand name should

11. What is co-branding? What major issues should be considered when using co-branding?

Co-branding is the use of two or more brands on one product. Marketers employ co-branding to

12. Describe the functions a package can perform. Which function is most important? Why?

13. What are the main factors a marketer should consider when developing a package?

When making packaging decisions, marketers must take into account a variety of issues. Cost is a

critical consideration when developing a package. Some available processes and designs are very

14. In what ways can packaging be used as a strategic tool?

15. What are the major functions of labeling?

29

Chapter 10: Product, Branding, and Packaging Concepts

ANSWERS TO DEVELOPING YOUR MARKETING PLAN

The information obtained from these questions should assist you in developing various aspects of

your marketing plan found in the Interactive Marketing Plan exercise at www.cengagebrain.com.

1. Using Figure 10.2 as a guide, create a matrix of the current product mix for your company.

This matrix will vary a great deal from one student to the next. This matrix should show the width

2. Discuss how the profitability of your product will change as it moves through each of the

phases of the product life cycle.

No product is profitable right away. During the introduction stage, sales will start at zero and profits

3. Create a brief profile of the type of consumer who is likely to represent each of the product

adopter categories for your product.

The product adopter categories are innovators, early adopters, early majority, late majority and

31

Chapter 10: Product, Branding, and Packaging Concepts

COMMENTS ON VIDEO CASE 10: GAGA: NOT JUST A LADY

Summary

This case focuses on GaGa’s SherBetter, a dessert product that is in between sherbet and ice cream. Jim

King founded GaGa and instantly began finding ways to market the SherBetter product. King landed his

first sale to Munroe Dairy, who ordered 500 pints of his lemon SherBetter. The brand continued to

expand and new flavors of SherBetter were created. In addition, new products were created such as frozen

dessert novelty bars and the toasted coconut SherBetter. To increase brand awareness, King and his wife

set up tables and gave free samples outside the frozen sections of grocery stores. Although the marketing

budget for GaGa is relatively small, Jim King has still found ways to get the word out and increase the

sales of his products.

Questions for Discussion

1. When GaGa began adding novelty bars in new flavors, what was the effect on the width and

depth of its product mix?

2. Why is packaging particularly important for a company like GaGa, which can’t afford

advertising?

3. Do you think GaGa’s SherBetter pints and bars are likely to follow the product life cycle of

traditional ice cream products? Explain your answer.

Students who say GaGa’s products are likely to follow the product life cycle of traditional ice cream