SMG MK 323 Study Guide - Midterm Guide: Lip Balm, Cheetos
15 Jun 2019
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Breadth: A count of the number of product lines offered by the firm
• Decrease Breadth: costly to maintain, weaken firm’s reputation, address changing market conditions
• Increase Breadth: Capture new or evolving markets and increase sales → Brand Extension
• Brand Extension: refers to the use of the same brand name in a different product line
Depth: the number of products within a product line → increase = Line Extension
• Might increase depth to address changing consumer preferences or to preempt competitors & boost
sales
• Might decrease depth to realign the firm’s resources
• Line Extension: use of the same brand name within the same product line and represents a depth
increase
Brand Dilution: occurs when the brand extension adversely affects consumer perceptions about the attributes
the core brand is believed to hold
• Cheetos lip balm, lifesavers soda, colgate kitchen entrees
Brand Licensing: a contractual arrangement between firms whereby one firm allows another to use its brand
name, logo, symbols, and/or characters in exchange for a negotiated fee
• Common for toys, apparel, accessories and entertainment products → video games
Co-Branding: the practice of marketing two or more brands together on the same package, promotion or
store
• Can enhance consumers’ perceptions of product quality
• YUM brands combines two or more of its restaurant chains into the same area to appeal to diverse
markets
• Can create risk: when the customers of each brand are SUPER different
Brand Repositioning (rebranding): a strategy in which marketers change a brand’s focus to target new
markets or realign the brand’s core emphasis with changing market preferences
• Sometimes costly and risky
• Can improve the brand’s fit with its target segment
Packaging:
Primary Package: the one the consumer uses, such as the toothpaste tube
• Consumers typically seek convenience in terms of (storage, use & consumption)
Secondary Package: the wrapper or exterior carton that contains the primary package and provides the UPC
label
• Can use to find additional information that may not be available on the primary package
• Add consumer value by facilitating the convenience of carrying, using and storing the product
Contributions to the Marketing Effort
• Adds value
• Visual statement
• Advertising Link
• Promotional Reminder
• Brand Reminder
