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Unformatted text preview: name, term, symbol, design, or combination of these that identifies a seller’s
products and differentiates them from competitors’ products. A brand name is that part of a brand
that can be spoken. The brand mark is the part of the brand that cannot be spoken––a picture,
logo, special decoration, or design.
A trademark is a legal term indicating the owner has the exclusive right to use a brand or part of a
brand; others are prohibited from using the brand without permission. A service mark performs
the same functions as a trademark but is reserved for services.
REF: 162 | 164
KEY: CB&E Model Product OBJ: 10-4 TOP: AACSB MSC: BLOOMS Synthesis 10. What purposes does branding serve?
Branding has three main purposes: identification, repeat sales, and new-product sales.
In terms of identification, branding allows marketers to distinguish their products from all others.
Brands become familiar to consumers as indicators of quality. Brand equity refers to the value of
a well-recognized brand name.
Repeat sales come from satisfied customers who recognize which brands to purchase again and
which brands to avoid. Branding also helps word-of-mouth and mass media promotion. Brand
loyalty occurs when a consumer consistently prefers one brand over all others.
The third main purpose of branding is to facilitate new-product sales. Brands with high equity are
extremely useful when introducing new products.
KEY: CB&E Model Product OBJ: 10-4 TOP: AACSB MSC: BLOOMS Synthesis 11. Define co-branding and describe the three different types of co-branding.
ANS: CO-BRANDING entails placing two or more brand names on a product or its package. Three
common types of co-branding are ingredient branding, cooperative branding, and complementary
INGREDIENT BRANDING identifies the brand of a part that makes up a product.
COOPERATIVE BRANDING occurs when two brands receiving equal treatment borrow from
each other’s brand equity.
COMPLEMENTARY BRANDING occurs when products are advertised or marketed together to
KEY: CB&E Model Product OBJ: 10-4 TOP: AACSB MSC: BLOOMS Synthesis 12. Packaging is an important component of the product strategy. List and briefly describe the four
major functions of packaging.
CONTAIN AND PROTECT PRODUCTS. Packaging contains products in liquid, granular, or
other divisible forms. Packaging allows firms to market products in specific quantities. Physical
protection of the product is also necessary because most products are handled often between
manufacture and final consumption. Packages protect products from breakage, light, heat, cold,
infestation, spoilage, and so on.
PROMOTE PRODUCTS. A key role of packaging is promotion. Labels not only provide brand
identification, ingredient listings, feature specifications, and directions but also use designs,
colors, shapes, and materials to influence consumers’ perceptions and buyi...
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This document was uploaded on 09/29/2013.
- Fall '13