Notes 197
stretching or line filling, by featuring certain products, and by pruning to eliminate
some products.
Branding is a major product-strategy issue. High brand equity translates into
high brand-name recognition, high perceived brand quality, strong mental associa-
tions, and other important assets. In creating brand strategy, firms must decide
whether or not to brand; whether to produce manufacturer brands, or distributor or
private brands; which brand name to use, and whether to use line extensions, brand
extensions, multibrands, new brands, or co-brands. The best brand names suggest
something about the product’s benefits; suggest product qualities; are easy to pro-
nounce, recognize, and remember; are distinctive; and do not carry negative mean-
ings or connotations in other countries or languages.
Many physical products have to be packaged and labeled. Well-designed pack-
ages create convenience value for customers and promotional value for producers.
Marketers start by developing a packaging concept and then testing it functionally and
psychologically to make sure it achieves its desired objectives and is compatible with
public policy and environmental concerns. Physical products also require labeling for
identification and possible grading, description, and product promotion.
NOTES
- This discussion is adapted from Theodore Levitt, “Marketing Success through
Differentiation—of Anything,”Harvard Business Review,January-February 1980, pp. 83–91.
The first level, core benefit, has been added to Levitt’s discussion. - See Harper W. Boyd Jr. and Sidney Levy, “New Dimensions in Consumer Analysis,”
Harvard Business Review,November–December 1963, pp. 129–40. - Theodore Levitt, The Marketing Mode(New York: McGraw-Hill, 1969), p. 2.
- For some definitions, see Dictionary of Marketing Terms,ed. Peter D. Bennett (Chicago:
American Marketing Association, 1995). Also see Patrick E. Murphy and Ben M. Enis,
“Classifying Products Strategically,”Journal of Marketing,July 1986, pp. 24–42. - “Fairfield Inn by Marriott to be Positioned in Lower-Moderate Lodging Segment,”PR
Newswire,January 19, 2000. - See Jean-Noel Kapferer, Strategic Brand Management: New Approaches to Creating and
Evaluating Brand Equity(London: Kogan Page, 1992), pp. 38 ff; Jennifer L. Aaker,
“Dimensions of Brand Personality,”Journal of Marketing Research,August 1997, pp. 347–56. - David A. Aaker, Building Strong Brands(New York: Free Press, 1995). Also see Kevin Lane
Keller, Strategic Brand Management: Building, Measuring, and Managing Brand Equity(Upper
Saddle River, NJ: Prentice-Hall, 1998). - Margaret Webb Pressler, “The Power of Branding,”Washington Post,July 27, 1997, p. H1;
“Triarc Reports Strong Second Quarter 1999 Results With Adjusted EBITDA Up 12
Percent,” Triarc news release, August 19, 1999, http://www.triarc.com. - See Paul S. Richardson, Alan S. Dick, and Arun K. Jain, “Extrinsic and Intrinsic Cue Effects
on Perceptions of Store Brand Quality,”Journal of Marketing,October 1994, pp. 28–36. - Saul Hensell, “Selling Soap Without the Soap Operas, Mass Marketers Seek Ways to Build
Brands on the Web,”New York Times,August 24, 1998, p. D1. - Jeffrey O’Brien, “Web Advertising and the Branding Mission,”Upside,September 1998,
pp. 90–94; Ellen Neuborne, “Branding on the Net,”Business Week,November 9, 1998,
pp. 76–86. - Patricia Nakache, “Secrets of the New Brand Builders,”Fortune,June 22, 1998, pp. 167–70;
John Ellis, “Digital Matters: ‘People Need a Haven from the Web That’s on the Web,’ ”Fast
Company,January-February 2000, pp. 242–46.