Page 320 - Foundations of Marketing

Product, Branding, and Packaging Concepts | Chapter 10 287

A manufacturer brand is initiated by a producer. A private protection, economy, safety, and convenience. It can influ-
distributor brand is initiated and owned by a reseller, some- ence a customer’s purchase decision by promoting features,
times taking on the name of the store or distributor. A generic uses, benefits, and image. When developing a package,
brand indicates only the product category and does not marketers must consider the value to the customer of effi-
include the company name or other identifying terms. When cient and effective packaging, offset by the price the cus-
selecting a brand name, a marketer should choose one that tomer is willing to pay. Other considerations include how
is easy to say, spell, and recall and that alludes to the prod- to make the package tamper resistant, whether to use mul-
uct’s uses, benefits, or special characteristics. Brand names tiple packaging and family packaging, how to design the
can be devised from words, letters, numbers, nonsense words, package as an effective promotional tool, and how best to
or a combination of these. Companies protect ownership of accommodate resellers. Packaging can be an important part
their brands through registration with the U.S. Patent and of an overall marketing strategy and can be used to target
Trademark Office. certain market segments. Modifications in packaging can
Individual branding designates a unique name for each revive a mature product and extend its product life cycle.
of a company’s products. Family branding identifies all of Producers alter packages to convey new features or to make
a firm’s products with a single name. A brand extension is them safer or more convenient. If a package has a second-
the use of an existing name on a new or improved product in ary use, the product’s value to the consumer may increase.
a different product category. Co-branding is the use of two Category-consistent packaging makes products more easily
or more brands on one product. Through a licensing agree- recognized by consumers. Innovative packaging enhances a
ment and for a licensing fee, a firm may permit another orga- product’s distinctiveness.
nization to use its brand on other products. Brand licensing 8. Understand the functions of labeling and
enables producers to earn extra revenue, receive low-cost or
free publicity, and protect their trademarks. selected legal issues.
7. Describe the major packaging functions Labeling is closely interrelated with packaging and is used
and design considerations as well as how for identification, promotional, and informational and legal
purposes. Various federal laws and regulations require that
packaging is used in marketing strategies. certain products be labeled or marked with warnings, instruc-
Packaging involves the development of a container and a tions, nutritional information, manufacturer’s identification,
graphic design for a product. Effective packaging offers and perhaps other information.

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Key Concepts

good 259 MRO supplies 265 product adoption brand recognition 275
service 259 business services 265 process 271 brand preference 275
idea 259 product item 266 innovators 272 brand insistence 275
consumer products 261 product line 266 early adopters 272 manufacturer brands 276
business products 261 product mix 266 early majority 272 private distributor
convenience products 261 width of product late majority 272 brands 276
shopping products 261 mix 266 laggards 272 generic brands 276
specialty products 262 depth of product brand 272 individual branding 279
unsought products 263 mix 266 brand name 272 family branding 279
installations 264 product life cycle 267 brand mark 273 brand extension 279
accessory equipment 264 introduction stage 267 trademark 273 co-branding 281
raw materials 264 growth stage 267 trade name 273 brand licensing 281
component parts 265 maturity stage 268 brand equity 274 family packaging 282
process materials 265 decline stage 270 brand loyalty 274 labeling 284

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