BRANDING, PACKAGING, AND LABELS

BRAND

• A name, term, design, symbol, or any other feature that identifies one seller’s
good/ service as distinct from those of other sellers
• It may identify one item, a family of items, or all items of that seller.
• The legal name for a brand is TRADEMARK
– Reasons for the existence and protection of trademark
• They facilitate and enhance consumer decisions
• They create incentives for firms to product goods of desirable qualities, even if these
qualities are not observable before purchase.
BRANDING

• It is the marketing practice of creating a name, symbol or design that identifies and
differentiates a product from other products
• Significance of branding to consumers
– Helps consumers identify product that might benefit them
– It tells consumers about product quality
HOW BRANDS ADDS VALUE FOR BOTH
CUSTOMERS AND THE FIRM
• Brands Facilitate Purchases –brands are often easily recognized by consumers, and because
they signify a certain quality level and contain familiar attributes, brands help consumers make
quick decisions especially about their purchases.
• Brands Establish Loyalty- over time and with continued use consumers learn to trust certain
brands
• Brands Protect from Competition and Price Competition- strong brands are somewhat
protected from competition from other firms and price competition because such brands are
more established in the market and have a more loyal customer base, neither competitive
pressures on price nor retail-level competition is as threatening to the firm.
• Brands can Reduce Marketing Cost – firms with well-known brands can spend relatively less
on marketing than firms with little known brands because the brand sells itself.
• Brands are Assets – for firms, brands are also assets that can be legally protected through
trademarks and copyrights and thus constitute a unique form of ownership.
• Brands Impact Market value – Having well-known brands can have a direct impact on the
company’s bottom line. The value of the company is its overall monetary worth comprising a
vast number of assets
PACKAGING

• An activity is an activity which involves the designing and producing of the container or
wrapper for a product.
• It’s main function is to contain and protect the product.
• It includes the ff:
– Primary container (the bottle containing the product)
– Secondary Packaging (thrown away when the product is to be used)
– It can also include Shipping Package ( necessary to store, identify, and ship the product)
IMPORTANCE OF PACKAGING

• Packaging can make a difference – a new package can make the important difference in a new
marketing strategy—by meeting customer’s needs better. Sometimes new package makes the
product easier and safe to use
• Packaging sends a message- packaging can tie the product to rest of the marketing strategy. A
good packaging sometimes gives a firm more promotion effect than it could get with
advertising
• Packaging may lower distribution cost. – better protective packaging is very important to
manufacturers and wholesalers. They sometimes have to pay the cost of goods damaged in
shipment.
• Universal protect codes speed handling.- to speed the handling of fast-selling products,
government and industry representatives have developed a universal product code (UPC) that
identifies each product with marks readable by electronic scanners.
LABELLING

• Simple tags to complex graphics attached to products that are part of the package.
• Functions
– It identifies the product or brand
– It also describes several things about the product-who made it, where and when it was made, its
contents, how it is to be used, and how to use it safely
– It might promote the products through attractive graphics