Chapter 9:

Product, Branding,
and Packaging
Concepts

Pride/Ferrell
Foundations of Marketing
Fourth Edition

Prepared by Milton Pressley

University of New Orleans

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Objectives
1. Understand the concept of a product and how
products are classified.
2. Explain the concepts of product item, product line,
and product mix, and understand how they are
connected.
3. Understand the product life cycle and its impact on
marketing strategies.
4. Describe the product adoption process.
5. Explain the value of branding and the major
components of brand equity.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Objectives
6. Recognize the types of brands and how they are
selected and protected.
7. Identify two types of branding policies, and explain
brand extensions, co-branding and brand licensing.
8. Describe the major packaging functions and design
considerations and how packaging is used in
marketing strategies.
9. Understand the functions o labeling and selected
legal issues.

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 Product Decisions

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 What Is a Product?
A Product Defined
A good, a service, or
an idea received in an
exchange
Tangible or intangible
or a combination
products vs services
Functional, social, and
psychological utilities
or benefit

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 What Is a Product?

What is a Product?
A product can be a service, and
idea, goods, or a combination
of these. The Houston Museum
of Natural Science provides a
service.

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 Discussion Question
The Houston
Museum of Natural
Science provides a
service. Does it also
provide products
and/or ideas?

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 Consumer Products
Product purchased to satisfy personal and
family needs
- Consumer product categories:
Convenience products: inexpensive and frequently purchased
Shopping products: buyers willing to expend considerable effort
in planning and making the purchase
Specialty products: possess one or more unique characteristics
and buyers are willing to expend considerable effort to obtain them
Unsought products: purchased when a sudden problem must be
solved, customers are unaware of them and do not usually think of
purchasing them

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 Classifying Products

Convenience Product and Shopping Product

An ice cream bar is a convenience product. Hotels are shopping
products.
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 Discussion Question
Click on the Television below, watch the
commercial, and then discuss whether
dining at Ruths Chris Steakhouse is a
convenience, shopping, specialty, or
unsought product.

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 Business Products
Products bought to use in an organizations
operations, to resell, or to make other
products
Installations - facilities & non-portable equipment
Accessory equipment - not part of final product
Raw materials - natural materials part of product
Component parts - finished items ready for assembly or
need little processing
Process materials -used in production but not identifiable
MRO supplies -maintenance, repair, and
operating items not part of final product
Services - intangible products in operations

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 Classifying Products

Business Product
New Holland equipment is a business product designed for
use by business customers.

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 Product Line and Product Mix
Product item
- a specific version of a product that can be designated as a
distinct offering among a firms products
Product line
- a group of closely related product items viewed as a unit
because of marketing, technical or end-use considerations
Product mix
- the total group of products that an organization makes available
to customers
Width of product mix
- the number of product lines a company has
Depth of product mix
- the average number of different product items offered in each
product line
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 The Concepts of Product Mix,

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 Product Line

Product Line and Product Mix

This Hilton ad shows a number
of Burberrys product lines.

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 Discussion Question

Which of these ads shows the companys product mix? Which shows a
product line?

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 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Product Life Cycle: Introduction
The initial stage of a products life cycleits first
appearance in the marketplacewhen sales start at zero
and profits are negative
Risk of failure high
Buyers must be made aware of:
Features
Uses
Advantages
Sellers lack
Resources
Technological knowledge
Marketing know-how

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 Product Life Cycle: Growth
The stage of a products life cycle when sales
rise rapidly and profits reach a peak and
then start to decline
More competitors enter the market
Product pricing is aggressive
Brand loyalty becomes important
Gaps in market coverage are filled
Promotion expenditures moderate
Production efficiencies lower costs

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 Product Life Cycle: Maturity
The stage of a products life cycle
when the sales curve peaks and starts
to decline and profits continue to fall
Intense competition
Emphasis on improvements and differences in competitors
products
Weaker competitors lose interest and exit the market
Advertising and dealer-oriented promotions predominate
Distribution sometimes expands to the global market
Strategic objectives for maturity stage
Generate cash flow
Maintain market share
Increase share of customer

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 Product Life Cycle: Decline
The stage of a products life cycle when sales
fall rapidly
Pruning items from the product line
Cutting promotion expenditures
Eliminating marginal distributors
Planning to phase out the product

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 Product Life Cycle

Product Life Cycle

Notebook computers are in
the maturity stage of the
product life cycle.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Most New Products
Have Their Skeptics

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Product Adoption Process
The five stages of the product adoption
process:
1. Awareness: buyer becomes aware of the product
2. Interest: the buyer seeks information and is
receptive to learning about the product
3. Evaluation: the buyer considers the products
benefits and decides whether to try it
4. Trial: the buyer examines, tests, or tries the product
to determine if it meets his or her needs
5. Adoption: the buyer purchases the product and can
be expected to use it again whenever the need for this
general type of product arises

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 Adopter Categories
Consumers fall into one of five major categories:
Innovators
- first adopters of new products
Early adopters
- careful choosers of new products
Early majority
- those adopting new products just before the average person
Late majority
- skeptics who adopt new products when they feel it is necessary
Laggards
- the last adopters who distrust new products

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Distribution of Product Adopter

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 Branding
BrandA name, term, design, symbol,
or other feature that identifies a sellers
products and differentiates them from
competitors products.
Corvette, Chevrolet, General Motors
Brand NameThe part of a brand that
can be spoken, including letters, words,
and numbers
Union 76, NBA, 49ers
Brand MarkPart not made up of
words, such as a symbol or design
Nike swoosh, Mercedes star,
McDonalds arches
Trademarklegal designation of
exclusive use of a brand
Trade namefull legal name of Brand Mark
organization The red and white target is the brand mark
for Target stores.
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 The Value of Branding
To Buyers
Helps speed consumer purchases by identifying
specific preferred products
Provides a form of self-expression and status
Evaluates product quality to reduce the risk of
purchase
To Sellers
Identifies and differentiates a firms products from
competing products
Helps in the introduction of new products
Facilitates the promotion of all same-brand
products
Fosters the development of brand loyalty
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Brand Loyalty
A customers favorable attitude toward a
specific brand.
Recognition: aware brand exists and is
alternative if preferred brand unavailable
Preference: preferred over competitive
offerings
Insistence: strongly preferred, no
substitute

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Brand Equity

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Branding

Stimulating Brand Association

Geiko uses the gecko as its
trade character to stimulate
favorable brand associations.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Top Ten Most Valuable Brands in

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Most Valuable Non-Profit Brands
Brand Value $
Organization Million
YMCA of the USA 6,394
Salvation Army 4,703
United Way of America 4,517
American Red Cross 3.146
Goodwill Industries International 2,535
Catholic Charities USA 2.361
Habitat for Humanity International 1,768
American Cancer Society 1,360
The Arc of the United States 1,224
Boys & Girls Clubs of America 1,168
Source: http://www.coneinc.com/stuff/contentmgr/files/0/b2b4cb81b5be7de19ddfd5bb1c5e9711/files/cone_top_100_chart.pdf
(Accessed 9/14/2009)

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 Types of Brands
Manufacturer
Brands initiated by producers
Green Giant, IBM, Levis
Private Distributor
Brands initiated and owned by
resellers
Sears Kenmore
Generic
Do not include the company name or
other identifying terms
Aspirin
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 Protecting a Brand
Brands should be designed to that it can be
protected easily through registration

Protecting a Brand: Companies try to protect their brands by using

certain phrases and symbols in their advertisements. Note the term
brand after Ziploc, and the use of the symbol
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 Selecting a Brand Name
The name should
be easy to say, spell, and recall.
indicate the products major benefits.
suggest the products major uses and
special characteristics.
be distinctive, setting it apart from
competing brands.
be compatible with all products in line.
be designed for use and recognition in all
types of media.

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 What would you name a chocolate

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 Protecting a Brand
Degree of Brand Surnames and
Protection Through descriptive, geographic,
Registration or functional names are
also difficult to protect.
Most Fanciful

Arbitrary
Registration with the
U.S. Patent and
Suggestive Trademark Office
protects a brand for ten
Descriptive years with indefinite
renewals.
Generic
Least

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 Branding Policies, Extensions
Branding Policies
- Individual branding: a policy of naming each product
differently
- Family branding: branding all of a firms products with the
same name
Brand Extensions
- using an existing brand to brand a new
product
Co-Branding
- using two or more brands on one
product
Co-Branding
Lunchables is a co-branded item consisting of
Oscar Mayer and Kraft products.
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 Brand Licensing
Brand licensing
- an agreement whereby a company permits
another organization to use its brand on other
products for a licensing fee

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 Packaging
Involves the development of a container and a graphic
design for a product
Packaging Functions
Protect the product from damage
Offer convenience to consumers
Prevent waste and make storage easier
Promote the product by communicating its features, uses,

Convenience
Packaging
Some companies
compete by
designing
packages that are
convenient to use.

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 Packaging and Marketing
Strategy
Altering the Package
Secondary-Use Packaging
Category-Consistent Packaging
Innovative Packaging
Multiple Packaging
Handling-Improved Packaging

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 Major Packaging Considerations
Cost
Tamper-resistant
Design consistency
Family Packaging
Promotional Role
Verbal and nonverbal symbols
Size, shape, texture, color, and graphics
Reseller Needs
Environmentally responsible
RFID

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 Criticisms of Packaging
Not functional
Safety issues
Deceptive
Excessive cost

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 Labeling
Providing identifying,
promotional, or other
information on
package labels

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 Labeling
Providing identifying, promotional, legal,
or other information on package labels
Help identify the product
Support promotional efforts for the
product
Provide legally required labeling
information
Provide information on
product origin

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 Perceived Quality and Value of

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 After Reviewing This Chapter
You Should:
1. Understand the concept of a product and how
products are classified.
2. Be able to explain the concepts of product item,
product line, and product mix, and understand how
they are connected.
3. Understand the product life cycle and its impact on
marketing strategies.
4. Know how to describe the product adoption process.
5. Be able to explain the value of branding and the
major components of brand equity.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 After Reviewing This Chapter
You Should:
6. Recognize the types of brands and how they are
selected and protected.
7. Be able to identify two types of branding policies,
and to explain brand extensions, co-branding, and
brand licensing.
8. Know the major packaging functions and design
considerations and how packaging is used in
marketing strategies.
9. Understand the functions o labeling and selected
legal issues.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Key Concepts
Good Product item
Service Product line
Idea Product mix
Consumer products Width of product mix
Business products Depth of product mix
Product life cycle
Convenience products
Introduction stage
Shopping products
Growth stage
Specialty products Maturity stage
Unsought products Decline stage
Installations Product adoption process
Accessory equipment Innovators
Raw materials Early adopters
Component parts Early majority
Late majority
Process materials
Laggards
MRO supplies

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 Key Concepts (contd)
Brand
Brand name
Brand mark
Trademark
Trade name
Brand equity
Brand loyalty
Brand recognition
Brand preference
Brand insistence

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.