Term
| Define: Product line bredth |
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Definition
| The number of product lines, or variety, offered by the firm |
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Term
| Define: Product line depth |
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Definition
| The number of categories within a product line |
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Term
| Define: Stock keeping units (SKUs) |
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Definition
| Individual items within each product category; the smallest unit available for inventory control |
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Term
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Definition
| The number of stock keeping units (SKUs) within a cetegory |
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Term
| Name (2) ways a company can change product mix breadth |
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Definition
1. Increase breadth - add new product lines to capture new or evolving markets or increase sales
2. Decrease breadth - delete entire product lines to address changing market conditions or meet internal strategic priorities |
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Term
| Name (2) ways a company can change product mix depth |
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Definition
1. Increase depth - Add new products within a line to address changing consumer preferences
2. Decrease depth - Delete product categories to realign resources |
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Term
| Name (6) ways in which brands add value for both customers and the firm |
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Definition
1. Brands facilitate purchasing - helps customers make quick decisions
2. Brands establish loyalty - consumers learn to trust certain brands
3. Brands protect from price competition
4. Brands reduce marketing costs - brand sells itself
5. Brands are assets - can be legally protected through trademarks
6. Brands impact market value - direct impact on the company's bottom line |
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Term
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Definition
| The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service |
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Term
| Name the (4) aspects of a brand that determine its equity |
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Definition
1. Brand awareness: measures how many consumers in a market are familiar with the brand and what it stands for
2. Perceived value: the relationship between a product or service's benefits and cost
3. Brand associations: mental links that consumers make between a brand and its ket product attributes (logo, slogan, etc)
4. Brand loyalty: when a consumer buys the same brand's product repeatedly over time |
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Term
| Name (5) branding strategies |
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Definition
1. Brand ownership
2. Naming brands and product lines
3. Brand extension: the use of the same brand name for new products
4. Co-branding: marketing two or more products together
5. Brand Licensing: one firm allows another firm to use its brand name, logo, etc in exchange for a fee |
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Term
| Name (5) trends in packaging |
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Definition
1. Stand-up, reclosable zipper pouches
2. Aluminum beverage cans
3. Aseptic drink bottles
4. Child resistant/senior friendly packages
5. Green and biodegradable packaging |
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Term
| Name (3) basic brand ownership strategies |
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Definition
1. Manufacturer brands (national brands) - brands owned and manufactured by the manufacturer
2. Private-label brands - brands developed and marketed by a retailer and available only from that retailer
3. Generic - a product sold without a brand name |
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Term
| Name (4) strategies in naming brands and product lines |
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Definition
1. Corporate or Family brand - use a firm's own company name to brand all products
2. Corporate and product line brands - the use of a combination of family brand name and individual brand names
3. Individual brands
4. Choosing a name (steps)
a. descriptive, suggestive of benefits and qualities
b. easy to pronounce, recognize and remember
c. should be able to be registered as a trademark
d. brand name should be easily translated |
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Term
| Name (5) strategies to brand extension |
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Definition
1. Firm can spend less on developing consumer brand awareness
2. Perception of quality will carry over
3. Marketing costs for a new product by an established brand are lower because consumers already know and understand the brand
4. When extensions are used for complimentary products, a synergy exists between the two products that can increase overall sales
5. Successful brand extension can result in cross category trial and boost sales |
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Term
| What is brand dilution and how can it be prevented? |
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Definition
Occurs when a brand extension adversely affects consumer perceptions about the attributes the the core brand is believed to hold
1. Evaluate the fit between the product class of the core brand and that of the extension
2. Evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension
3. Refrain from extending the brand name to too many products
4. Consider whether the brand extension will be distanced from the core brand |
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