Category and Brand Management, Product,
Identification, and New Product Planning
What is a brand?
This is such an important aspect to comprehend because it
is the lifeblood of a company; how that establishment nurtures
its products and establishes those products in the minds of
the consumers. Therefore, a brand is a name, term, sign, design,
or some combination that identifies the products of one firm
while differentiating these products from competitor’s
products. Branding is the process of creating an identity
for a product. Companies know many customers have brand loyalty
Three aspects of brand loyalty:
• Brand recognition
1. newly introduced products
2. marketing tactics used to familiarize consumers with product
• Brand preference
1. what motivates customers to a specific product
2. how to maintain that preference
• Brand insistence
1. ultimate stage in brand loyalty
2. consumers refuse alternates
3. example: Coke vs. Pepsi
Types of branding:
• Manufacturer, private, and captive brands
1. manufacturer – refers to a brand name owned by a
manufacturer
2. private – helps to expand the number of alternatives
to customers
3. captive – brands sold exclusively by a retail chain
Brand Equity
A popular, well known brand can be the crown jewel for a
company since it is highly regarded by consumers. A strong
brand identity backed by superior quality offers important
strategic advantages for a firm. It increases the likelihood
that consumers will recognize the firm’s product or
product line when they make purchase decisions. A strong brand
is one that has the power to increase a company’s sales
and earnings.
Brand Names, Brand Marks, Trademarks
• brand name
1. part of the brand that can be vocalized
2. must qualify for legal protection
• brand mark
1. a symbol of pictorial design that distinguishes a product
2. does not have to be spoken
• trademarks
1. defined as a brand the owner claims exclusive legal protection
2. are heavily protected by laws
• brand licensing
1. when a company other than the one that owns the product
is given permission to use that company’s product
2. royalties are generally paid to the originating company
Product development strategies
• Penetration
1. increase sales in existing markets
2. positioning plays a role
• Market development
1. concentrates on finding new markets for existing products
2. market segmentation provides useful support
• product development
1. refers to the introduction of new products
2. a company may introduce another product in a market with
already existing products
KEY TERMS:
| Brand |
generic products |
brand name |
| Brand recognition |
private brand |
brand mark |
| Brand preference |
captive brands |
trademark |
| Brand insistence |
family brands |
brand licensing |
