Chapter 08Product, Services, and Brands: Building Customer Value
Topics to Cover•Branding Strategy: Building Strong Brands•Services Marketing
Manufacturer has four sponsorship options. •Manufacturer’s brand (National brand).•Private brand (Store brand or Distributor brand).•Licensed brand•Co-brandBranding Strategy: Building Strong BrandsBrand Sponsorship
National Brands Vs Store Brands•Sony – SonyBravia (National Brand)•Wall-Mart (Store Brand)Branding Strategy: Building Strong BrandsBrand Sponsorship
•Licensing (Licensed brand)–Some companies spend millions to create their own brand while some take the license (by paying a fee) of an established brand which is proven. –Name and character licensing has grown rapidly in the recent years. Branding Strategy: Building Strong BrandsBrand Sponsorship
•Co-brand–Occurs when two established brand names of different companies are used on the same product. –In most co-branding situations, one company licenses another company’s well known brand to use in combination with its own. Branding Strategy: Building Strong BrandsBrand Sponsorship
Branding Strategy: Building Strong BrandsBrand Development Strategies
Branding Strategy: Building Strong BrandsBrand Development StrategiesLine Extension•Occurs when a company extends existing brand names to new forms, colors, sizes, ingredients or flavors of the existing product category.
Branding Strategy: Building Strong BrandsBrand Development StrategiesLine Extension•A company might introduce line extensions as a low-cost, low-risk way to introduce new products or it might want to meet consumer desires for variety, to use excess capacity, or simply to command more shelf space from resellers.