Marketing Management Chapter 11 – Flashcards
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Examples of communication media that firms use to create brand awareness include:
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-advertising -publicity
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A brand such as T-Mobile can build awareness through ______________ exposure to the brands logo, symbols and slogans
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repeated
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Brand Equity
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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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When Frito-Lay decided to introduce a salsa product line, it used the existing Tostitos (under which it sells taco chips). What advantage did this strategy provide to Frito-Lay?
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-It could introduce the product sooner and more easily -The Tostinos brand already had brand associations that helped to sell salsa -It could spend less on developing consumer brand awareness
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Typically, who determine's the product's or service's value in relationship to that of it's close competitors?
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Consumers
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Good marketing increases ____________ by raising customers' quality perceptions relative to price.
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Perceived Value
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Firms reward loyal customers through ______________ programs.
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Customer relationship management
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Firms tend to spend __________ to market to loyal customers compared to marketing to new customers.
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Substantially less
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Brand loyalty tends to be an advantage to the firm because it will __________ competition.
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Insulate a firm from
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Product Mix
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complete set of all products and services offered by a firm
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Product Lines
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which are groups of associated items that consumers tend to use together or think of as part of a group of similar products or services.
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Product Mix Breadth
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represents a count of the number of product lines offered by the firm
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Product Line Depth
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in contrast to product mix breadth, equals the number of products within a product line.
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A product mix typically consists of ___________, or groups of associated items.
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Product lines
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Firms add items to their product lines to address changing consumer preferences. For example, an ice cream company might add low-fat to it's existing ice cream flavors. This is an example of increasing ______________.
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Increasing Depth
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Firms decrease depth to
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-refocus marketing efforts on profitable items. -eliminate unprofitable items
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A firm can delete entire product lines to address changing market conditions; this is also known as:
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Decreasing breadth
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To capture new or evolving markets, a firm may increase _________ to compete in new product areas.
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Breadth
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Product lines are a part of a product:
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Mix
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A product line typically consists of ____________, or groups of associated items.
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Product lines
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Which products/services are typically consumer durables like a dryer or a refrigerator? Buyers spend a fair amount of time and effort to make the comparisons before purchasing and usually do not know which one or which brand they will buy in advance of the process.
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Shopping
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Specialty Good
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Compares many alternatives, lots of time and effort involved in searching, and consumer has a good idea of the brand he or she will buy in advance.
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Shopping Good
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Compares alternatives and consumer spends moderate amount of time and effort deciding among products, features, and brands.
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Augmented Product or Associated Services
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include the nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service
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Which of the following are components of augmented product?
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-Warranties -Product Support
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If a brand has a high degree of brand ___________, it means that most consumers are familiar with the brand and what it stands for even if they do not use the brand.
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Awareness
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When a brand extension adversely affects consumer perceptions about the core brand it is known as:
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Brand Dilution
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Branding includes:
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-Distinctive packaging -Logos -Slogans
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Competitive brands add value for the consumer by:
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-Identifying unique features and attributes that are easy to distinguish -Signifying a distinct level of quality
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Products are complex with multiple components. ______________ defines the basic problem solving benefits that consumers are seeking.
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Core customer value
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Some firms use ____________ for each of their products, as opposed to the same name or brand for all their product lines and products.
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Individual brands
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What are considered components of the actual product?
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-Brand name -Features/Design
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The value of a brand like Starbucks or Apple can be converted into brand ___________, which is essentially the assets and liabilities of the brand.
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Equity
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Brands have value as corporate assets and the "value of the brand" refers to:
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The earning potential of the brand over the next year.
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Product packaging offers a variety of benefits to:
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Retailers and Consumers
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Labels must comply with laws and regulations and must include:
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-Where the product was made -Ingredients -Safety precautions
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Core customer value
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Defines the basic problem solving benefits that consumers are seeking. What are customers looking for?
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Product
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-Organizations (ie MADD) -Physical Item -Services -Ideas
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2 Categories of Products
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Consumer and Business
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4 Categories of Consumer Products
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1. Specialty 2. Shopping 3. Convenience 4. Unsought
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Specialty Products
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-consumers spend considerable time and effort searching for the best purveyors of these products. ex: luxury cars, houses, designer apparel, professional medical, financial and legal services
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Shopping Products
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Consumers spend less time and effort choosing shopping products than on specialty items. But, they will still go through the trouble of comparing alternatives to find the best value. ex: furniture, apparel, airfare deals
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Convenience Products
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Consumers do not spend much, if any, time and effortex: gum, bread, and soda
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Unsought Products
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Goods and services the consumer does not normally think about buying or does not know about. These products require a great deal of marketing effort and promotion to get the customer's attention. ex: Insurance policies, towing services, bail bonds, funeral planning
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Breadth
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Number of product lines under a company's umbrella
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Depth
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Amount of products within one line
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Expand or Contract Products
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If the firm has multiple product lines, the company has to consider whether the amount of individual products under that umbrella needs to expand or contract based on sales data. This decision based on factors at the industry, consumer, and firm level.
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Expansion
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Can have an adverse affect on a company's profit and brand image.
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Contraction
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Eliminate unprofitable product lines.
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Size of a product line is dependent on:
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-level of competition -amount of consumer support -how much capital the company is willing to devote to those goods or services
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The complete set of all products offered by a firm is its product _______.
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Mix
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Kellogg's has a long list of ready-to-eat cereals which consumers think of as a similar group of products. Kellogg's ready-to-eat cereals are a product ________.
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Line
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Colgate has a line of oral care products including toothpaste, toothbrushes and teeth whitening products. These products represent the ______ of the line.
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Depth
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Introduced in 1920, Band-Aid now has more than 40 products to help heal cuts and scrapes. Band-Aid has, over the years, increased their _________.
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Product line depth
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If a firm deletes an entire product line, it has _______.
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Decreased its breadth
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Assets
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Anything a company owns that can be used to make the firm money. Adds the firm's value, sales, and profitability.
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Assets -Liabilities=
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Owner's Equity
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Brands facilitate purchase in all of the following ways EXCEPT _______.
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They are always appealing to the customer.
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As a brand becomes more recognizable, _______.
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The company doesn't have to spend as much on marketing the brand.
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When a firm chooses to have a brand legally protected through trademarks and copyrights, the brand becomes _______.
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An asset to the firm.
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_______ measures how many consumers in a market are familiar with a brand and what it stands for.
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Brand awareness
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Branding provides with great marketing advantages by:
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-Defining its products from the competition. -Establish quality levels and specific attributes. -Recognition factor helps consumer makes faster purchasing decisions.
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A good brand name helps insulate a business from competitor products because:
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the firm's items develop loyal buyers.
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When marketers attempt to gage how much equity a brand has, they look at four main components:
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1. Brand awareness 2. Perceived value 3. Brand associations 4. Brand Loyalty
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Brand Awareness
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How many consumers are familiar with and understand the purpose of a particular product.
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Familiarity is especially important with ____________ products.
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Convenience (and just as important to infrequently or never before purchase products)
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Brand awareness is created through repeated exposure to the various brand elements such as:
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-Logo -Slogan -Symbol -Packaging -Character
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Perceived value
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-Related to the cost benefit relationship of the product. -Often promoted as a consumer benefit -Can often be used to separate one brand name from another.
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Brand Associations
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Personal connections that consumers make with a brand and it's key attributes. Such as a logo, slogan, or celebrity spokes person
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A company's marketing division is responsible for creating campaigns that _______________.
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Instill, develop and then reinforce these brand associations.
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Brand associations go beyond value:
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They connect with consumers on an emotional level.
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Loyal customers are less sensitive to:
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price. Meaning they will continue to purchase their favorite product even if it costs a little more.
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Advantages of brand loyalty:
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-buyer is less price sensitive -customer spreads positive word-of-mouth -Lower marketing costs to reach target
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Business Strategy
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use a variety of strategies to create and manage their key brand assets: -Own or license their brand -Extend brand name to other products and markets -Partner their brand name with another firm
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Two main brand ownership strategies:
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1. Manufacturer brands 2. Retailer/Store brands
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Manufacturer brands (also know as national brands)
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- Are owned and manufactured by the manufacturer. - The maker maintains more control over the brands image, as well as product quality and consistency. - The company decides the best market segments to pursue, how to position the brand, and how to create brand equity over time. Examples of well known manufacturer brands include: Frito Lay, Mountain Dew, and Uggs
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Manufacturer brands are responsible for:
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developing and producing the product and determining the marketing strategy.
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Retailer/Store Brands (also referred to as private label brands)
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- These brands are developed and marketed by retailers. They are produced by a manufacturer. - National Brands can partner with a retailer to sell an exclusive line of merchandise at their store.
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Store brands now account for __________ percent of consumer purchases in North America.
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20
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4 Categories of Private Brands:
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1. Premium 2. Generic 3. Copycat 4. Exclusive Co-brands
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Premium Brands
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Marketed as being comparable to or superior to the manufacturers brand.
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Generic Brands
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Offers price sensitive consumers a no frills product at a discount price.
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Copycat Brands
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Attempt to imitate the national brands packaging and appearance. Consumers tend to perceive these brands as being lower in quality.
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Exclusive Co-brands
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Developed by a manufacturer in conjunction with a retailer and sold exclusively at that retailer's stores. A simpler form of co-branding involves a manufacturer assigning different model names and exterior features to the same basic product and then selling the various versions to multiple retailers.
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Sears sells appliances using its own Kenmore brand name and it sells tools using its own Craftsman brand name. These ______ brands can only be bought at Sears.
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private-label
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Manufacturer brands are also known as _______.
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national brands
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Coca-Cola and Nike would be considered _______ brands, while Market Pantry or Archer Farms products (sold at Target stores) would be considered _______ brands.
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manufacturer; store
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Brand Extension
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Launching related products under the same banner. -Can include an increase in depth or breadth -Uses the same brand name in a different product line.
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The Victorinox Swiss Army Company is well known for their Swiss Army Knives. The company also makes and markets watches, travel gear, cutlery and even fragrances. This represents a ___________ strategy.
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Brand Extension
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In the 1980s the Coca-Cola Company introduced New Coke. The product was a total failure and in the short term greatly hurt the reputation of Coca-Cola. This is an example of _________.
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Brand Dilution
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Co-Branding
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Two or more brands are combined on the same package, promotion or product.
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Brand Licensing
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A contractual arrangement where one firm allows another to use it's Brand name, logo, symbols and character in exchange for a negotiated fee. Some of the industries that benefit the most from brand licensing include toys, apparel, accessories and entertainment products (i.e. video games). Allows the the company using the brand to benefit from from that brand's devoted following. It also allows the brand holders get to expand the reach of their properties and put a new product into the hands of their loyal customers.
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Brand Repositioning (Rebrand)
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A strategy where marketers change the focus of a brand to target new markets or realign the brand's key attributes due to changing consumer preferences. Can revive or resurrect a failing brand. But, it is a costly strategy that is not without risk. It requires major changes in how a product is packaged and sold to the public. Can Occur on a company wide basis.
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When Disney launches a popular new movie, the aisles of your local toy store are soon flooded with toys featuring characters from that movie. This is an example of _________.
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Brand Licensing
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Yum Brands owns a number of well-known fast food franchises. Often, consumers will see a KFC with a Taco Bell or a Pizza Hut with a Taco Bell sharing the same building or location. In doing this Yum Brands is using a ________strategy.
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Co-Branding
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Abercrombie and Fitch (A;F) was founded in 1892 as a sporting goods, camping and hunting gear store. A;F is now known as a casual luxury lifestyle brand of clothing for college students. To make this change, A;F had to _______ its brand.
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Reposition
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Line Extension
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A company expands product line under the same brand name umbrella.
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For most products, the UPC code would be located on the _______ package.
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Secondary
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Consumers typically seek convenience in terms of storage, use and consumption from the _____ package.
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Primary
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The primary federal agency that oversees food and packaged good labels is the ___________.
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Food and Drug Administration
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A tube of toothpaste is an example of a _______ package.
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Primary
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An important element of a product is its ______, which is a communication tool that can convey key product benefits to consumers.
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Label
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Product Packaging
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- Attracts the consumers attention - Promotes the product - Helps it stand apart from the competition - Provides vital labeling information - Allows a product to be sold in different sizes
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Packaging must be:
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- Appealing to the eye - Easy for the customer to use - Convenient for the maker to ship and store
