BRANDING AND POSITIONING

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  • PACKAGING
  • Who packages the items?
    • Raw material processors, manufacturers, retailers
  • Why and how are things packaged?
  • Protection
  • Convenience
  • Information
  • Environmentally Friendly
  • Promotion
  • Appearance and Branding
  • Packaging is often referred to as “THE SILENT SALESPERSON

6 FUNCTIONS OF PACKAGING

  • Protection
  • Protect from breakage (bubble wrap, foam)
  • Protect from germs, air, sunlight, dust/dirt (air tight seals)
  • Protect the consumer: safety seals, child-proof, warning labels, tampering, theft (sensor tags, cotton in medicine bottles)
  • Helps to ensure the product remains safe and high quality
  • Convenience
  • Packaging a product so that it is easy to carry (transport) and use
  • Special handles, grips, re-sealable bags and boxes
  • Environmentally Friendly
  • Minimal packaging
  • Biodegradable material
  • Reused and recyclable material
  • Information
  • Labelling laws regarding: ingredients (in order of quantity), nutritional content
  • Name and address of mfr, distributor, name of business, slogan, logo, weight, volume, size, pricing (UPC code), storage, health warnings, contents, cooking instructions, recipes, coupons
  • Appearance and Branding
  • Packaging helps customers identify a brand or product (shapes, colour)
  • Some products do not have packaging (appliances, furniture, electronics)
  • Attractive packages are colourful and eye-catching with graphics
  • Must design the packaging with the assumption that it will look good from any angle…”SHELF ALLOCATION”
  • Promotion
  • Some packages can be re-used after the original contents are consumed (Kinder Surprises, drinking glasses, jewellery)
  • Tie-ins with movies, coupons for other products
  • Using popular figures to attract attention
  • Promoting a cause (environment, illnesses, poverty, children’s aid, natural disasters)

IMAGE AND BRANDING

  • A brand and an image is the identity of a product – it’s what makes it different than the other products
  • Product Differentiation: uses branding and imaging to create a different, distinct product
  • Brand and image are based on:
  • Brand names (Kleenex, Band-Aids)
  • Logo or trademark (Nike swoosh)
  • Slogans (“Built Ford Tough”)
  • Jingles (Zoom, zoom, zoom…)
  • Brand extension (different products by the same company)
  • Unbranded products are called COMMODITIES (wheat, lumber, metal, fruits and vegetables)
  • Brand names can be:
  • corporate dominant – using the company name in the products name: Roots clothing, Shoppers Drug Mart Life brand)
  • product dominant – using the product name alone to sell a product (Luv’s diapers, Zest soap, Fancy Feast, Acura)
  • Logos are symbolic versions of a brand; a picture to illustrate the company

3 types of logos:

  • Monogrammatic: writing only
  • Visual symbols: pictures of people, animals or objects
  • Abstract symbols: that don’t look like anything but represent something else

PRODUCT POSITIONING

  • A position is a point of view, stance, perception, or attitude
  • Positioning: to create an image in the consumer’s mind
  • Types of Positioning:
  • Benefit
  • Target
  • Price
  • Distribution
  • Service
READ:
International Business - Marketing and Distribution Terminology

  • Benefit Positioning
  • A product that is positioned to greatly benefit the user – what benefit will the consumer get from having this product?
  • This is done by offering features that other products do not
  • Target Positioning
  • Positioning a product in the minds of certain consumers (i.e. the target market for video games or the target market for athletic running shoes)
  • Price Positioning
  • Products or services are positioned as either the most expensive…
  • High quality, luxury items such as cars, high-end department stores, diamond watches
  • Least expensive…discount items, cost-efficient items (IKEA furniture, Wal-Mart products)
  • Businesses should not use the price positioning approach if they can’t sell their product as high end or discount – no middle ground

  • Distribution Positioning
  • Creating an image in the consumer’s mind based on how and where a company distributes its products
  • Examples: Grocery Gateway, Avon, Gucci
  • Service Positioning
  • Creating an image in the consumer’s mind based on the type of service provided
  • Examples: convenience stores, offering food and drinks in a store, a welcoming atmosphere.
  • Think of banks, car dealerships, hair salons, doctors/dentists offices
  • Services must be maintained if the business is going to use this form of positioning
  • Distribution

  • Channels of Distribution is the path of ownership that goods follow as they pass from producer to consumer.

TYPES OF CHANNELS

  • Direct: direct to customer with no intermediaries
  • Indirect: product passes through intermediaries
    • Importers: exclusive distribution from foreign source i.e. specialty shops
    • Wholesalers: buy from domestic source, sell to other business i.e. Costco
      • 9 functions
    • Retailers: sells to final consumer i.e. Guess
      • 4 Rights of Retailer: merchandise, price, time, place, quantities
    • Specialty Channels: doesn’t involve retail store (no contact with consumer)
      • Vending machines, internet, catalogues, telemarketing, television sales

MODES OF TRANSPORTATION

  • Supply Chain: all actives involved in getting goods/services from original source to the consumer
  • Logistics: process of designing & managing supply chain
  • Which method should be used?
  • 4 FACTORS help determine which method is best:
  • Destination: near or far?
  • Weight: heavy/bulky vs. light/compact?
  • Volume: containerization?
  • Type of goods: food, flowers, chemicals

TRANSPORATION (5 METHODS)

  • 1. Trucks         2. Trains          3. Planes          4. Ships           5. Pipelines

DISTRIBUTION POLICIES

  • Determines whether the product or service will be available in a few or many locations.

  • Exclusive Distribution
    • Manufacturer makes deal with 1 or 2 retailers in a particular area to sell the product exclusively
  • Integrated Distribution
    • Manufacturer/distributor/retailer owns both distribution outlets and manufacturing facilities for a product or a line of products
  • Intensive Distribution
    • Used when a company wants its products sold everywhere (low price, many channels)
  • Selective Distribution
    • Use when a company doesn’t want its product sold everywhere – control distribution

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