Discuss branding strategy—the decisions companies make in building and managing their

Branding Strategy: Building Strong Brands (pp 267–275)

.Z.BSLFUJOH-BC™

*NQSPWF:PVS(SBEF

0WFSNJMMJPOTUVEFOUTJNQSPWFEUIFJSSFTVMUTVTJOHUIF1FBSTPO.Z-BCT7JTJU XXXNZNLUMBCDPNGPSTJNVMBUJPOTUVUPSJBMTBOEFOEPGDIBQUFSQSPCMFNT

Objective 1

Defi ne product and the major classifi cations of products and services.

Product

"OZUIJOHUIBUDBOCFPGGFSFEUPBNBSLFUGPS attention, acquisition, use, or consumption UIBUNJHIUTBUJTGZBXBOUPSOFFE

Service

"OBDUJWJUZCFOFmUPSTBUJTGBDUJPOPGGFSFEGPS TBMFUIBUJTFTTFOUJBMMZJOUBOHJCMFBOEEPFT OPUSFTVMUJOUIFPXOFSTIJQPGBOZUIJOH

Products, Services, and Experiences

1SPEVDUT BSF B LFZ FMFNFOU JO UIF PWFSBMMmarket offering .BSLFUJOH NJY QMBOOJOH CFHJOT XJUICVJMEJOHBOPGGFSJOHUIBUCSJOHTWBMVFUPUBSHFUDVTUPNFST5IJTPGGFSJOHCFDPNFTUIF CBTJTPOXIJDIUIFDPNQBOZCVJMETQSPàUBCMFDVTUPNFSSFMBUJPOTIJQT

"DPNQBOZTNBSLFUPGGFSJOHPGUFOJODMVEFTCPUIUBOHJCMFHPPETBOETFSWJDFT"UPOFFY USFNFUIFNBSLFUPGGFSNBZDPOTJTUPGBpure tangible goodTVDIBTTPBQUPPUIQBTUFPSTBMUOP TFSWJDFTBDDPNQBOZUIFQSPEVDU"UUIFPUIFSFYUSFNFBSFpure servicesGPSXIJDIUIFNBSLFU PGGFSDPOTJTUTQSJNBSJMZPGBTFSWJDF&YBNQMFTJODMVEFBEPDUPSTFYBNBOEàOBODJBMTFSWJDFT

#FUXFFOUIFTFUXPFYUSFNFTIPXFWFSNBOZHPPETBOETFSWJDFTDPNCJOBUJPOTBSFQPTTJCMF 5PEBZ BT QSPEVDUT BOE TFSWJDFT CFDPNF NPSF DPNNPEJUJ[FE NBOZ DPNQBOJFT BSF NPWJOH UP B OFX MFWFM JO DSFBUJOH WBMVF GPS UIFJS DVTUPNFST 5P EJGGFSFOUJBUF UIFJS PGGFST CFZPOETJNQMZNBLJOHQSPEVDUTBOEEFMJWFSJOHTFSWJDFTUIFZBSFDSFBUJOHBOENBOBHJOH DVTUPNFSexperiencesXJUIUIFJSCSBOETPSDPNQBOZ

&YQFSJFODFTIBWFBMXBZTCFFOBOJNQPSUBOUQBSUPGNBSLFUJOHGPSTPNFDPNQBOJFT

%JTOFZ IBT MPOH NBOVGBDUVSFE ESFBNT BOE NFNPSJFT UISPVHI JUT NPWJFT BOE UIFNF QBSLT"OE/JLFIBTMPOHEFDMBSFEi*UTOPUTPNVDIUIFTIPFTCVUXIFSFUIFZUBLFZPVu 5PEBZIPXFWFSBMMLJOETPGàSNTBSFSFDBTUJOHUIFJSUSBEJUJPOBMHPPETBOETFSWJDFTUPDSF BUFFYQFSJFODFT 'PSFYBNQMF4UBSCVDLTTFSWJDFTVQNPSFUIBOKVTUBIPUDVQPGDPGGFF2 5ISFFEFDBEFTBHP)PXBSE4DIVMU[IJU POUIFJEFBPGCSJOHJOHB &VSPQFBOTUZMF DPGGFFIPVTF UP"NFSJDB )F CFMJFWFE UIBU QFPQMF OFFEFE UP TMPX EPXO UP iTNFMMUIFDPGGFFuBOEFOKPZMJGFBMJUUMF NPSF 5IF SFTVMU XBT 4UBSCVDLT 5IJT DPGGFFIPVTF EPFTOU TFMM KVTU DPGGFF JU TFMMT 5IF 4UBSCVDLT&YQFSJFODF‡POF that FOSJDIFT DVTUPNFST MJWFT 5IF TNFMMT UIF IJTTJOH TUFBN UIF DPNGZ DIBJST‡BMMDPOUSJCVUFUPUIF4UBSCVDLT BNCJFODF 4UBSCVDLT HJWFT DVTUPNFST XIBU JU DBMMT B iUIJSE QMBDFu‡BXBZ GSPN IPNF BOE BXBZ GSPN XPSL‡B QMBDF GPS DPOWFSTBUJPO BOE B TFOTF PG DPNNVOJUZ"TBSFTVMU4UBSCVDLTIBT USBOTGPSNFE DPGGFF GSPN B DPNNPE JUZUPBŇTQMVSHFBOEUIFDPNQBOZT TBMFTBOEQSPàUTIBWFSJTFOMJLFTUFBN PGGBNVHPGIPUKBWB

$PNQBOJFTUIBUNBSLFUFYQFSJFODFT SFBMJ[FUIBUDVTUPNFSTBSFSFBMMZCVZJOH NVDINPSFUIBOKVTUQSPEVDUTBOETFS WJDFT5IFZBSFCVZJOHXIBUUIPTFPGGFST will doGPSUIFN"SFDFOU#.8BEQVUT JUUIJTXBZi8FSFBMJ[FEBMPOHUJNFBHP UIBUXIBUZPVNBLFQFPQMFGFFMJTKVTUBT JNQPSUBOUBTXIBUZPVNBLFu

Levels of Product and Services

1SPEVDUQMBOOFSTOFFEUPUIJOLBCPVUQSPEVDUTBOE TFSWJDFT PO UISFF MFWFMT TFF Fig ure 8.1 &BDI MFWFM BEET NPSF DVTUPNFS WBMVF 5IF NPTU CBTJD MFWFM JT UIFcore customer valueXIJDIBEESFTTFTUIFRVFTUJPOWhat is the buyer really buying?8IFOEFTJHOJOHQSPE VDUTNBSLFUFSTNVTUàSTUEFàOFUIFDPSFQSPCMFNTPMWJOHCFOFàUTPSTFSWJDFTUIBUDPOTVN FSTTFFL"XPNBOCVZJOHMJQTUJDLCVZTNPSFUIBOMJQDPMPS$IBSMFT3FWTPOPG3FWMPOTBX UIJTFBSMZi*OUIFGBDUPSZXFNBLFDPTNFUJDTJOUIFTUPSFXFTFMMIPQFu "OEQFPQMF XIPCVZBO"QQMFJ1BEBSFCVZJOHNVDINPSFUIBOKVTUBUBCMFUDPNQVUFS5IFZBSFCVZJOH FOUFSUBJONFOU TFMGFYQSFTTJPO QSPEVDUJWJUZ BOE DPOOFDUJWJUZ XJUI GSJFOET BOE GBNJMZ‡B NPCJMFBOEQFSTPOBMXJOEPXUPUIFXPSME

"U UIF TFDPOE MFWFM QSPEVDU QMBOOFST NVTU UVSO UIF DPSF CFOFàU JOUP BOactual prod uct 5IFZ OFFE UP EFWFMPQ QSPEVDU BOE TFSWJDF GFBUVSFT B EFTJHO B RVBMJUZ MFWFM B CSBOE OBNF BOE QBDLBHJOH 'PS FYBNQMF UIF J1BE JT BO BDUVBM QSPEVDU *UT OBNF QBSUT TUZMJOH Creating customer experiences: Starbucks doesn’t sell just coffee, it sells The

Starbucks Experience—what it calls a “third place”—away from home and away from work, a place for conversation and a sense of community.

© Daily Mail/Rex/Alamy

GFBUVSFTQBDLBHJOHBOEPUIFSBUUSJCVUFT IBWFBMMCFFODBSFGVMMZDPNCJOFEUPEF MJWFSUIFDPSFDVTUPNFSWBMVFPGTUBZJOH DPOOFDUFE

'JOBMMZ QSPEVDU QMBOOFST NVTU build an augmented product around the DPSF CFOFàU BOE BDUVBM QSPEVDU CZ PG GFSJOH BEEJUJPOBM DPOTVNFS TFSWJDFT BOECFOFàUT5IFJ1BEJTNPSFUIBOKVTU BEJHJUBMEFWJDF*UQSPWJEFTDPOTVNFST XJUI B DPNQMFUF DPOOFDUJWJUZ TPMVUJPO 5IVT XIFO DPOTVNFST CVZ BO J1BE

"QQMFBOEJUTSFTFMMFSTBMTPNJHIUHJWF CVZFSTBXBSSBOUZPOQBSUTBOEXPSL NBOTIJQ JOTUSVDUJPOT PO IPX UP VTF UIFEFWJDFRVJDLSFQBJSTFSWJDFTXIFO OFFEFE BOE B 8FC TJUF UP VTF JG UIFZ IBWFQSPCMFNTPSRVFTUJPOT"QQMFBMTP QSPWJEFTBDDFTTUPBIVHFBTTPSUNFOUPG BQQTBOEBDDFTTPSJFT

$POTVNFST TFF QSPEVDUT BT DPN QMFY CVOEMFT PG CFOFàUT UIBU TBUJTGZ UIFJS OFFET 8IFO EFWFMPQJOH QSPE VDUT NBSLFUFST àSTU NVTU JEFOUJGZ UIF core customer valueUIBUDPOTVNFSTTFFL GSPNUIFQSPEVDU5IFZNVTUUIFOEFTJHOUIFactualQSPEVDUBOEàOEXBZTUPaugment it to DSFBUFUIJTDVTUPNFSWBMVFBOEUIFNPTUTBUJTGZJOHCSBOEFYQFSJFODF

Product and Service Classifi cations

1SPEVDUT BOE TFSWJDFT GBMM JOUP UXP CSPBE DMBTTFT CBTFE PO UIF UZQFT PG DPOTVNFST UIBU VTFUIFNconsumer products and industrial products#SPBEMZEFàOFEQSPEVDUTBMTPJODMVEF PUIFSNBSLFUBCMFFOUJUJFTTVDIBTFYQFSJFODFTPSHBOJ[BUJPOTQFSTPOTQMBDFTBOEJEFBT

Consumer Products

Consumer productsBSFQSPEVDUTBOETFSWJDFTCPVHIUCZàOBMDPOTVNFSTGPSQFSTPOBM DPOTVNQUJPO.BSLFUFSTVTVBMMZDMBTTJGZUIFTFQSPEVDUTBOETFSWJDFTGVSUIFSCBTFEPOIPX DPOTVNFSTHPBCPVUCVZJOHUIFN$POTVNFSQSPEVDUTJODMVEFconvenience products, TIPQ ping products, specialty products, and unsought products 5IFTF QSPEVDUT EJGGFS JO UIF XBZT DPOTVNFSTCVZUIFNBOEUIFSFGPSFJOIPXUIFZBSFNBSLFUFE TFF Table 8.1

Core, actual, and augmented product: People who buy an iPad are buying much more UIBOBUBCMFUDPNQVUFS5IFZBSFCVZJOHFOUFSUBJONFOUTFMGFYQSFTTJPOQSPEVDUJWJUZBOE connectivity—a mobile and personal window to the world.

Betsie Van der Meer/Getty Images

Consumer product

"QSPEVDUCPVHIUCZmOBMDPOTVNFSTGPS QFSTPOBMDPOTVNQUJPO

'FBUVSFT

8BSSBOUZ

%FTJHO Core

customer value

1SPEVDU TVQQPSU

"GUFS TBMF TFSWJDF

%FMJWFSZ BOE

DSFEJU #SBOE OBNF

2VBMJUZ MFWFM

Actual product Augmented product

1BDLBHJOH

At the most basic level, the company asks, “What is the customer really buying? For example, people who buy an Apple iPad are buying more than just a tablet computer. They are buying FOUFSUBJONFOUTFMGFYQSFTTJPO productivity, and connectivity—a mobile and personal window to the world.

FIGURE | 8.1 5ISFF-FWFMTPG1SPEVDU

Convenience productsBSFDPOTVNFSQSPEVDUTBOETFSWJDFTUIBUDVTUPNFSTVTVBMMZ CVZGSFRVFOUMZJNNFEJBUFMZBOEXJUINJOJNBMDPNQBSJTPOBOECVZJOHFGGPSU&YBNQMFT JODMVEFMBVOESZEFUFSHFOUDBOEZNBHB[JOFTBOEGBTUGPPE$POWFOJFODFQSPEVDUTBSFVTV BMMZMPXQSJDFEBOENBSLFUFSTQMBDFUIFNJONBOZMPDBUJPOTUPNBLFUIFNSFBEJMZBWBJMBCMF XIFODVTUPNFSTOFFEPSXBOUUIFN

Shopping productsBSFMFTTGSFRVFOUMZQVSDIBTFEDPOTVNFSQSPEVDUTBOETFSWJDFTUIBU DVTUPNFST DPNQBSF DBSFGVMMZ PO TVJUBCJMJUZ RVBMJUZ QSJDF BOE TUZMF 8IFO CVZJOH TIPQQJOH QSPEVDUTBOETFSWJDFTDPOTVNFSTTQFOENVDIUJNFBOEFGGPSUJOHBUIFSJOHJOGPSNBUJPOBOE NBLJOHDPNQBSJTPOT&YBNQMFTJODMVEFGVSOJUVSFDMPUIJOHVTFEDBSTNBKPSBQQMJBODFTBOE IPUFMBOEBJSMJOFTFSWJDFT4IPQQJOHQSPEVDUNBSLFUFSTVTVBMMZEJTUSJCVUFUIFJSQSPEVDUTUISPVHI GFXFSPVUMFUTCVUQSPWJEFEFFQFSTBMFTTVQQPSUUPIFMQDVTUPNFSTJOUIFJSDPNQBSJTPOFGGPSUT

Specialty productsBSFDPOTVNFSQSPEVDUTBOETFSWJDFTXJUIVOJRVFDIBSBDUFSJTUJDT PSCSBOEJEFOUJàDBUJPOGPSXIJDIBTJHOJàDBOUHSPVQPGCVZFSTJTXJMMJOHUPNBLFBTQFDJBM QVSDIBTFFGGPSU&YBNQMFTJODMVEFTQFDJàDCSBOETPGDBSTIJHIQSJDFEQIPUPHSBQIZFRVJQ NFOUEFTJHOFSDMPUIFTHPVSNFUGPPETBOEUIFTFSWJDFTPGNFEJDBMPS MFHBMTQFDJBMJTUT"

-BNCPSHIJOJBVUPNPCJMFGPSFYBNQMFJTBTQFDJBMUZQSPEVDUCFDBVTFCVZFSTBSFVTVBMMZ XJMMJOH UP USBWFM HSFBU EJTUBODFT UP CVZ POF #VZFST OPSNBMMZ EP OPU DPNQBSF TQFDJBMUZ QSPEVDUT5IFZJOWFTUPOMZUIFUJNFOFFEFEUPSFBDIEFBMFSTDBSSZJOHUIFXBOUFEQSPEVDUT

Unsought productsBSFDPOTVNFSQSPEVDUTUIBUUIFDPOTVNFSFJUIFSEPFTOPULOPX BCPVUPSLOPXTBCPVUCVUEPFTOPUOPSNBMMZDPOTJEFSCVZJOH.PTUNBKPSOFXJOOPWBUJPOT BSFVOTPVHIUVOUJMUIFDPOTVNFSCFDPNFTBXBSFPGUIFNUISPVHIBEWFSUJTJOH$MBTTJDFY BNQMFTPGLOPXOCVUVOTPVHIUQSPEVDUTBOETFSWJDFTBSFMJGFJOTVSBODFQSFQMBOOFEGVOFSBM TFSWJDFTBOECMPPEEPOBUJPOTUPUIF3FE$SPTT#ZUIFJSWFSZOBUVSFVOTPVHIUQSPEVDUT SFRVJSFBMPUPGBEWFSUJTJOHQFSTPOBMTFMMJOHBOEPUIFSNBSLFUJOHFGGPSUT

Industrial Products

Industrial products BSF UIPTF QSPEVDUT QVSDIBTFE GPS GVSUIFS QSPDFTTJOH PS GPS VTF JO DPOEVDUJOHBCVTJOFTT5IVTUIFEJTUJODUJPOCFUXFFOBDPOTVNFSQSPEVDUBOEBOJOEVTUSJBM QSPEVDU JT CBTFE PO UIFpurpose GPS XIJDI UIF QSPEVDU JT QVSDIBTFE *G B DPOTVNFS CVZT BMBXONPXFSGPSVTFBSPVOEIPNFUIFMBXONPXFSJTBDPOTVNFSQSPEVDU*GUIFTBNF DPOTVNFSCVZTUIFTBNFMBXONPXFSGPSVTFJOBMBOETDBQJOHCVTJOFTTUIFMBXONPXFS JTBOJOEVTUSJBMQSPEVDU

Table 8.1 | Marketing Considerations for Consumer Products

Type of Consumer Product Marketing

Considerations Convenience Shopping Specialty Unsought

$VTUPNFSCVZJOH CFIBWJPS

'SFRVFOUQVSDIBTFMJUUMF planning, little comparison PSTIPQQJOHFGGPSUMPX customer involvement

-FTTGSFRVFOUQVSDIBTF NVDIQMBOOJOHBOE TIPQQJOHFGGPSU

DPNQBSJTPOPGCSBOETPO QSJDFRVBMJUZBOETUZMF

4USPOHCSBOEQSFGFSFODF BOEMPZBMUZTQFDJBM QVSDIBTFFGGPSUMJUUMF DPNQBSJTPOPGCSBOET MPXQSJDFTFOTJUJWJUZ

-JUUMFQSPEVDUBXBSFOFTT PSLOPXMFEHF PSJGBXBSF little or even negative interest)

Price -PXQSJDF )JHIFSQSJDF )JHIQSJDF Varies

%JTUSJCVUJPO 8JEFTQSFBEEJTUSJCVUJPO convenient locations

4FMFDUJWFEJTUSJCVUJPOJO GFXFSPVUMFUT

&YDMVTJWFEJTUSJCVUJPOJO POMZPOFPSBGFXPVUMFUT QFSNBSLFUBSFB

Varies

Promotion .BTTQSPNPUJPOCZUIF

producer

Advertising and personal TFMMJOHCZCPUIUIF producer and resellers

.PSFDBSFGVMMZUBSHFUFE QSPNPUJPOCZCPUIUIF producer and resellers

Aggressive advertising BOEQFSTPOBMTFMMJOHCZUIF producer and resellers

&YBNQMFT 5PPUIQBTUFNBHB[JOFT BOEMBVOESZEFUFSHFOU

.BKPSBQQMJBODFT UFMFWJTJPOTGVSOJUVSF BOEDMPUIJOH

-VYVSZHPPETTVDIBT 3PMFYXBUDIFTPSmOF DSZTUBM

-JGFJOTVSBODFBOE3FE

$SPTTCMPPEEPOBUJPOT

Convenience product

"DPOTVNFSQSPEVDUUIBUDVTUPNFST VTVBMMZCVZGSFRVFOUMZJNNFEJBUFMZBOE XJUINJOJNBMDPNQBSJTPOBOECVZJOHFGGPSU Shopping product

"DPOTVNFSQSPEVDUUIBUUIFDVTUPNFSJO UIFQSPDFTTPGTFMFDUJOHBOEQVSDIBTJOH VTVBMMZDPNQBSFTPOTVDIBUUSJCVUFTBT TVJUBCJMJUZRVBMJUZQSJDFBOETUZMF

Specialty product

"DPOTVNFSQSPEVDUXJUIVOJRVF DIBSBDUFSJTUJDTPSCSBOEJEFOUJmDBUJPOGPS XIJDIBTJHOJmDBOUHSPVQPGCVZFSTJT XJMMJOHUPNBLFBTQFDJBMQVSDIBTFFGGPSU

Unsought product

"DPOTVNFSQSPEVDUUIBUUIFDPOTVNFS FJUIFSEPFTOPULOPXBCPVUPSLOPXT BCPVUCVUEPFTOPUOPSNBMMZDPOTJEFS CVZJOH

Industrial product

"QSPEVDUCPVHIUCZJOEJWJEVBMTBOE PSHBOJ[BUJPOTGPSGVSUIFSQSPDFTTJOHPSGPS VTFJODPOEVDUJOHBCVTJOFTT

5IFUISFFHSPVQTPGJOEVTUSJBMQSPEVDUTBOETFSWJDFTBSFNBUFSJBMTBOEQBSUTDBQJUBM JUFNTBOETVQQMJFTBOETFSWJDFTMaterials and partsJODMVEFSBXNBUFSJBMTBTXFMMBTNBOV GBDUVSFENBUFSJBMTBOEQBSUT3BXNBUFSJBMTDPOTJTUPGGBSNQSPEVDUT XIFBUDPUUPOMJWF TUPDL GSVJUT WFHFUBCMFT BOE OBUVSBM QSPEVDUT àTI MVNCFS DSVEF QFUSPMFVN JSPO PSF .BOVGBDUVSFE NBUFSJBMT BOE QBSUT DPOTJTU PG DPNQPOFOU NBUFSJBMT JSPO ZBSO DFNFOU XJSFTBOEDPNQPOFOUQBSUT TNBMMNPUPSTUJSFTDBTUJOHT.PTUNBOVGBDUVSFENBUFSJBMT BOEQBSUTBSFTPMEEJSFDUMZUPJOEVTUSJBMVTFST1SJDFBOETFSWJDFBSFUIFNBKPSNBSLFUJOH GBDUPSTCSBOEJOHBOEBEWFSUJTJOHUFOEUPCFMFTTJNQPSUBOU

Capital itemsBSFJOEVTUSJBMQSPEVDUTUIBUBJEJOUIFCVZFSTQSPEVDUJPOPSPQFSBUJPOT JODMVEJOHJOTUBMMBUJPOTBOEBDDFTTPSZFRVJQNFOU*OTUBMMBUJPOTDPOTJTUPGNBKPSQVSDIBTFT TVDIBTCVJMEJOHT GBDUPSJFTPGàDFTBOEàYFEFRVJQNFOU HFOFSBUPSTESJMMQSFTTFTMBSHF DPNQVUFSTZTUFNTFMFWBUPST"DDFTTPSZFRVJQNFOUJODMVEFTQPSUBCMFGBDUPSZFRVJQNFOU BOEUPPMT IBOEUPPMTMJGUUSVDLTBOEPGàDFFRVJQNFOU DPNQVUFSTGBYNBDIJOFTEFTLT 5IFZIBWFBTIPSUFSMJGFUIBOJOTUBMMBUJPOTBOETJNQMZBJEJOUIFQSPEVDUJPOQSPDFTT

5IFàOBMHSPVQPGJOEVTUSJBMQSPEVDUTJTsupplies and services4VQQMJFTJODMVEFPQFSBU JOHTVQQMJFT MVCSJDBOUTDPBMQBQFSQFODJMTBOESFQBJSBOENBJOUFOBODFJUFNT QBJOUOBJMT CSPPNT4VQQMJFTBSFUIFDPOWFOJFODFQSPEVDUTPGUIFJOEVTUSJBMàFMECFDBVTFUIFZBSFVTVBMMZ QVSDIBTFEXJUIBNJOJNVNPGFGGPSUPSDPNQBSJTPO#VTJOFTTTFSWJDFTJODMVEFNBJOUFOBODF BOESFQBJSTFSWJDFT XJOEPXDMFBOJOHDPNQVUFSSFQBJSBOECVTJOFTTBEWJTPSZTFSWJDFT MFHBM NBOBHFNFOUDPOTVMUJOHBEWFSUJTJOH4VDITFSWJDFTBSFVTVBMMZTVQQMJFEVOEFSDPOUSBDU

Organizations, Persons, Places, and Ideas

*OBEEJUJPOUPUBOHJCMFQSPEVDUTBOETFSWJDFTNBSLFUFSTIBWFCSPBEFOFEUIFDPODFQUPGB QSPEVDUUPJODMVEFPUIFSNBSLFUPGGFSJOHTPSHBOJ[BUJPOTQFSTPOTQMBDFTBOEJEFBT

0SHBOJ[BUJPOTPGUFODBSSZPVUBDUJWJUJFTUPiTFMMuUIFPSHBOJ[BUJPOJUTFMGOrganization mar ketingDPOTJTUTPGBDUJWJUJFTVOEFSUBLFOUPDSFBUFNBJOUBJOPSDIBOHFUIFBUUJUVEFTBOECFIBW JPSPGUBSHFUDPOTVNFSTUPXBSEBOPSHBOJ[BUJPO#PUIQSPàUBOEOPUGPSQSPàUPSHBOJ[BUJPOT QSBDUJDFPSHBOJ[BUJPONBSLFUJOH#VTJOFTTàSNTTQPOTPSQVCMJDSFMBUJPOTPScorporate image mar

keting DBNQBJHOT UP NBSLFU UIFNTFMWFT BOE QPMJTI UIFJS JNBHFT *#.T 4NBSUFS 1MBOFUDBNQBJHOGPSFYBNQMFNBSLFUT*#.BTBDPNQBOZUIBUQSPWJEFTJOOPWB UJWFTPMVUJPOTUIBUJNQSPWFUIFXPSMET*2*#.TNBSUTPMVUJPOTTQBOBOJODSFEJCMF CSFBEUIPGJOEVTUSJFTBOEQSPDFTTFT‡GSPNDPNNFSDFBOEEJHJUBMDPNNVOJDBUJPOT UPIFBMUIDBSFFEVDBUJPOBOETVTUBJOBCJMJUZ 'PSFYBNQMFPOF4NBSUFS1MBOFU BEUFMMTIPX*#.JTIFMQJOHUPiUSBDLGPPEGSPNGBSNUPGPSLuJOBOFGGPSUUPSFEVDF UIFŇQFSDFOUPGUIFXPSMETGPPEDVSSFOUMZMPTUUPTQPJMBHF"UUIFPUIFSFYUSFNF BETUFMMIPX*#.BOBMZUJDTIFMQFE/FX:PSL$JUZT/:1%DVUDSJNFCZQFSDFOU BOE/FX:PSL4UBUFTBWFNJMMJPOCZDBUDIJOHUBYEPEHFST

1FPQMFDBOBMTPCFUIPVHIUPGBTQSPEVDUTPerson marketingDPOTJTUTPGBD UJWJUJFTVOEFSUBLFOUPDSFBUFNBJOUBJOPSDIBOHFBUUJUVEFTPSCFIBWJPSUPXBSE QBSUJDVMBS QFPQMF 1FPQMF SBOHJOH GSPN QSFTJEFOUT FOUFSUBJOFST BOE TQPSUT àHVSFT UP QSPGFTTJPOBMT TVDI BT EPDUPST MBXZFST BOE BSDIJUFDUT VTF QFSTPO NBSLFUJOHUPCVJMEUIFJSSFQVUBUJPOT"OECVTJOFTTFTDIBSJUJFTBOEPUIFSPS HBOJ[BUJPOTVTFXFMMLOPXOQFSTPOBMJUJFTUPIFMQTFMMUIFJSQSPEVDUTPSDBVTFT 'PSFYBNQMF/JLFJTSFQSFTFOUFECZXFMMLOPXOBUIMFUFTTVDIBT,PCF#SZBOU 4FSFOB 8JMMJBNT BOE IVOESFET PG PUIFST BSPVOE UIF HMPCF JO TQPSUT SBOHJOH GSPNUFOOJTBOECBTLFUCBMMUPJDFIPDLFZBOEDSJDLFU

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iDPPMUPPMTGPSZPVSLJUDIFOu BMPOHXJUIiJEFBTGPSDPPLJOHBOEFOUFSUBJOJOHUIBUZPVDBOVTFFWFSZEBZu

Place marketing JOWPMWFT BDUJWJUJFT VOEFSUBLFO UP DSFBUF NBJOUBJO PS DIBOHF BUUJUVEFT PS CFIBWJPS UPXBSE QBSUJDVMBS QMBDFT $JUJFT TUBUFT SFHJPOT BOEFWFOFOUJSFOBUJPOTDPNQFUFUPBUUSBDUUPVSJTUTOFXSFTJEFOUTDPOWFOUJPOT Organization marketing: IBM’s Smarter Planet

campaign markets IBM as a company that helps improve the world’s IQ. This ad tells how IBM technologies are helping to create safer food supply chains.

Courtesy of International Business Machines Corporation, © International Business Machines Corporation.

BOE DPNQBOZ PGàDFT BOE GBDUPSJFT /FX :PSL 4UBUF BEWFSUJTFT i* /:u"OE .JDIJHBO JOWJUFTZPVUPFYQFSJFODFVOTQPJMFEOBUVSFMBLFTUIBUGFFMMJLFPDFBOTNJMFTPGDIFSSZPS DIBSETHMPSJPVTTVOTFUTBOEOJHIUUJNFTLJFTTDBUUFSFEXJUITUBSTJO1VSF.JDIJHBO

#SBOE64"BQVCMJDQSJWBUFNBSLFUJOHQBSUOFSTIJQDSFBUFECZSFDFOUBDUPG$POHSFTT QSPNPUFTUIF6OJUFE4UBUFTBTBUPVSJTUEFTUJOBUJPOUPJOUFSOBUJPOBMUSBWFMFST4VQQPSUFECZ BNJMMJPOCVEHFU#SBOE64"TNJTTJPOJTUPiSFQSFTFOUUIFUSVFHSFBUOFTTPG"NFSJDB‡

GSPNTFBUPTIJOJOHTFBu$PNQFUJUJPOGPSJOUFSOBUJPOBMUPVSJTNJTà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

Ideas DBO BMTP CF NBSLFUFE *O POF TFOTF BMM NBSLFUJOH JT UIF NBSLFUJOH PG BO JEFB XIFUIFSJUJTUIFHFOFSBMJEFBPGCSVTIJOHZPVSUFFUIPSUIFTQFDJàDJEFBUIBU$SFTUUPPUI QBTUFT DSFBUF iIFBMUIZ CFBVUJGVM TNJMFT GPS MJGFu )FSF IPXFWFS XF OBSSPX PVS GPDVT UP UIFNBSLFUJOHPGsocial ideas5IJTBSFBIBTCFFODBMMFEsocial marketingEFàOFECZUIF 4PDJBM.BSLFUJOH*OTUJUVUF 4.*BTUIFVTFPGDPNNFSDJBMNBSLFUJOHDPODFQUTBOEUPPMTJO QSPHSBNTEFTJHOFEUPJOáVFODFJOEJWJEVBMTCFIBWJPSUPJNQSPWFUIFJSXFMMCFJOHBOEUIBU PGTPDJFUZ

4PDJBMNBSLFUJOHQSPHSBNTDPWFSBXJEFSBOHFPGJTTVFT5IF"E$PVODJMPG"NFSJDB www.adcouncil.org GPS FYBNQMF IBT EFWFMPQFE EP[FOT PG TPDJBM BEWFSUJTJOH DBNQBJHOT JOWPMWJOH JTTVFT SBOHJOH GSPN IFBMUI DBSF FEVDBUJPO BOE FOWJSPONFOUBM TVTUBJOBCJMJUZ UPIVNBOSJHIUTBOEQFSTPOBMTBGFUZ#VUTPDJBMNBSLFUJOHJOWPMWFTNVDINPSFUIBOKVTU BEWFSUJTJOH‡UIF4.*FODPVSBHFTUIFVTFPGBCSPBESBOHFPGNBSLFUJOHUPPMTi4PDJBMNBS LFUJOHHPFTXFMMCFZPOEUIFQSPNPUJPOBMAPPGUIFNBSLFUJOHNJYUPJODMVEFFWFSZPUIFS FMFNFOUUPBDIJFWFJUTTPDJBMDIBOHFPCKFDUJWFTuTBZTUIF4.*TFYFDVUJWFEJSFDUPS

Product and Service Decisions

.BSLFUFSTNBLFQSPEVDUBOETFSWJDFEFDJTJPOTBUUISFFMFWFMTJOEJWJEVBMQSPEVDUEFDJTJPOT QSPEVDUMJOFEFDJTJPOTBOEQSPEVDUNJYEFDJTJPOT8FEJTDVTTFBDIJOUVSO

Individual Product and Service Decisions

Figure 8.2TIPXTUIFJNQPSUBOUEFDJTJPOTJOUIFEFWFMPQNFOUBOENBSLFUJOHPGJOEJ WJEVBMQSPEVDUTBOETFSWJDFT8FXJMMGPDVTPOEFDJTJPOTBCPVUproduct attributes, branding, packaging, labeling, and product support services

Product and Service Attributes

%FWFMPQJOHBQSPEVDUPSTFSWJDFJOWPMWFTEFàOJOHUIFCFOFàUTUIBUJUXJMMPGGFS5IFTFCFO FàUT BSF DPNNVOJDBUFE BOE EFMJWFSFE CZ QSPEVDU BUUSJCVUFT TVDI BTquality, features, and style and design

Product Quality. Product qualityJTPOFPGUIFNBSLFUFSTNBKPSQPTJUJPOJOHUPPMT2VBM JUZBGGFDUTQSPEVDUPSTFSWJDFQFSGPSNBODFUIVTJUJTDMPTFMZMJOLFEUPDVTUPNFSWBMVFBOE TBUJTGBDUJPO*OUIFOBSSPXFTUTFOTFRVBMJUZDBOCFEFàOFEBTiGSFFEPNGSPNEFGFDUTu#VU NPTUNBSLFUFSTHPCFZPOEUIJTOBSSPXEFàOJUJPO*OTUFBEUIFZEFàOFRVBMJUZJOUFSNTPG DSFBUJOHDVTUPNFSWBMVFBOETBUJTGBDUJPO5IF"NFSJDBO4PDJFUZGPS2VBMJUZEFàOFTquality as UIFDIBSBDUFSJTUJDTPGBQSPEVDUPSTFSWJDFUIBUCFBSPOJUTBCJMJUZUPTBUJTGZTUBUFEPSJNQMJFE DVTUPNFSOFFET4JNJMBSMZ4JFNFOTEFàOFTRVBMJUZUIJTXBZi2VBMJUZJTXIFOPVSDVTUPNFST DPNFCBDLBOEPVSQSPEVDUTEPOUu

Total quality management TQMJTBOBQQSPBDIJOXIJDIBMMPGUIFDPNQBOZTQFPQMFBSF JOWPMWFEJODPOTUBOUMZJNQSPWJOHUIFRVBMJUZPGQSPEVDUTTFSWJDFTBOECVTJOFTTQSPDFTTFT

1SPEVDU

BUUSJCVUFT #SBOEJOH 1BDLBHJOH -BCFMJOH

1SPEVDU TVQQPSU TFSWJDFT Don’t forget Figure 8.1.

The focus of all of these decisions is to create core customer value.

FIGURE | 8.2

Individual Product Decisions Social marketing

5IFVTFPGDPNNFSDJBMNBSLFUJOH concepts and tools in programs designed UPJOnVFODFJOEJWJEVBMTCFIBWJPSUP JNQSPWFUIFJSXFMMCFJOHBOEUIBUPG TPDJFUZ

Objective 2

Describe the decisions

companies make regarding their individual products and services, product lines, and product mixes.

Product quality

5IFDIBSBDUFSJTUJDTPGBQSPEVDUPS TFSWJDFUIBUCFBSPOJUTBCJMJUZUPTBUJTGZ TUBUFEPSJNQMJFEDVTUPNFSOFFET

'PS NPTU UPQ DPNQBOJFT DVTUPNFSESJWFO RVBMJUZ IBT CFDPNF B XBZ PG EPJOH CVTJOFTT 5PEBZDPNQBOJFTBSFUBLJOHBreturn on qualityBQQSPBDIWJFXJOHRVBMJUZBTBOJOWFTUNFOU BOEIPMEJOHRVBMJUZFGGPSUTBDDPVOUBCMFGPSCPUUPNMJOFSFTVMUT

1SPEVDURVBMJUZIBTUXPEJNFOTJPOTMFWFMBOEDPOTJTUFODZ*OEFWFMPQJOHBQSPEVDU UIF NBSLFUFS NVTU àSTU DIPPTF Bquality level UIBU XJMM TVQQPSU UIF QSPEVDUT QPTJUJPOJOH )FSFQSPEVDURVBMJUZNFBOTperformance quality‡UIFQSPEVDUTBCJMJUZUPQFSGPSNJUTGVOD UJPOT'PSFYBNQMFB3PMMT3PZDFQSPWJEFTIJHIFSQFSGPSNBODFRVBMJUZUIBOB$IFWSPMFU

*U IBT B TNPPUIFS SJEF QSPWJEFT NPSF MVYVSZ BOE iDSFBUVSF DPNGPSUTu BOE MBTUT MPOHFS

$PNQBOJFTSBSFMZUSZUPPGGFSUIFIJHIFTUQPTTJCMFQFSGPSNBODFRVBMJUZMFWFMGFXDVTUPN FSTXBOUPSDBOBGGPSEUIFIJHIMFWFMTPGRVBMJUZPGGFSFEJOQSPEVDUTTVDIBTB3PMMT3PZDF BVUPNPCJMFB7JLJOHSBOHFPSB3PMFYXBUDI*OTUFBEDPNQBOJFTDIPPTFBRVBMJUZMFWFMUIBU NBUDIFTUBSHFUNBSLFUOFFETBOEUIFRVBMJUZMFWFMTPGDPNQFUJOHQSPEVDUT

#FZPOERVBMJUZMFWFMIJHIRVBMJUZBMTPDBONFBOIJHIMFWFMTPGRVBMJUZDPOTJTUFODZ)FSF QSPEVDURVBMJUZNFBOTconformance quality‡GSFFEPNGSPNEFGFDUTBOEconsistencyJOEFMJWFS JOHBUBSHFUFEMFWFMPGQFSGPSNBODF"MMDPNQBOJFTTIPVMETUSJWFGPSIJHIMFWFMTPGDPOGPS NBODF RVBMJUZ *O UIJT TFOTF B $IFWSPMFU DBO IBWF KVTU BT NVDI RVBMJUZ BT B 3PMMT3PZDF

"MUIPVHIB$IFWZEPFTOUQFSGPSNBUUIFTBNFMFWFMBTB3PMMT3PZDFJUDBOKVTUBTDPOTJT UFOUMZEFMJWFSUIFRVBMJUZUIBUDVTUPNFSTQBZGPSBOEFYQFDU

Product Features. " QSPEVDU DBO CF PGGFSFE XJUI WBSZJOH GFBUVSFT " TUSJQQFEEPXO NPEFMPOFXJUIPVUBOZFYUSBTJTUIFTUBSUJOHQPJOU5IFDPNQBOZDBOUIFODSFBUFIJHIFS MFWFMNPEFMTCZBEEJOHNPSFGFBUVSFT'FBUVSFTBSFBDPNQFUJUJWFUPPMGPSEJGGFSFOUJBUJOH UIFDPNQBOZTQSPEVDUGSPNDPNQFUJUPSTQSPEVDUT#FJOHUIFàSTUQSPEVDFSUPJOUSPEVDFB WBMVFEOFXGFBUVSFJTPOFPGUIFNPTUFGGFDUJWFXBZTUPDPNQFUF

)PXDBOBDPNQBOZJEFOUJGZOFXGFBUVSFTBOEEFDJEFXIJDIPOFTUPBEEUPJUTQSPE VDU *UTIPVMEQFSJPEJDBMMZTVSWFZCVZFSTXIPIBWFVTFEUIFQSPEVDUBOEBTLUIFTFRVFT UJPOT )PX EP ZPV MJLF UIF QSPEVDU 8IJDI TQFDJàD GFBUVSFT PG UIF QSPEVDU EP ZPV MJLF

NPTU 8IJDIGFBUVSFTDPVMEXFBEEUPJNQSPWFUIFQSPEVDU 5IFBOTXFSTUPUIFTFRVFTUJPOTQSPWJEFUIFDPNQBOZXJUIB SJDIMJTUPGGFBUVSFJEFBT5IFDPNQBOZDBOUIFOBTTFTTFBDI GFBUVSFTvalue UP DVTUPNFST WFSTVT JUTcost UP UIF DPNQBOZ 'FBUVSFT UIBU DVTUPNFST WBMVF IJHIMZ JO SFMBUJPO UP DPTUT TIPVMECFBEEFE

Product Style and Design. "OPUIFSXBZUPBEEDVTUPNFS WBMVF JT UISPVHI EJTUJODUJWFproduct style and design %FTJHO JT B MBSHFS DPODFQU UIBO TUZMFStyle TJNQMZ EFTDSJCFT UIF BQQFBSBODFPGBQSPEVDU4UZMFTDBOCFFZFDBUDIJOHPSZBXO QSPEVDJOH" TFOTBUJPOBM TUZMF NBZ HSBC BUUFOUJPO BOE QSP EVDFQMFBTJOHBFTUIFUJDTCVUJUEPFTOPUOFDFTTBSJMZNBLFUIF QSPEVDUperformCFUUFS6OMJLFTUZMFdesignJTNPSFUIBOTLJO EFFQ‡JUHPFTUPUIFWFSZIFBSUPGBQSPEVDU(PPEEFTJHODPO USJCVUFTUPBQSPEVDUTVTFGVMOFTTBTXFMMBTUPJUTMPPLT

(PPEEFTJHOEPFTOUTUBSUXJUICSBJOTUPSNJOHOFXJEFBT BOE NBLJOH QSPUPUZQFT %FTJHO CFHJOT XJUI PCTFSWJOH DVT UPNFST EFFQMZ VOEFSTUBOEJOH UIFJS OFFET BOE TIBQJOH UIFJS QSPEVDUVTF FYQFSJFODF 1SPEVDU EFTJHOFST TIPVME UIJOL MFTT BCPVU UFDIOJDBM QSPEVDU TQFDJàDBUJPOT BOE NPSF BCPVU IPX DVTUPNFSTXJMMVTFBOECFOFàUGSPNUIFQSPEVDU $POTJEFS 090TPVUTUBOEJOHEFTJHOQIJMPTPQIZBOEQSPDFTT

090T VOJRVFMZ EFTJHOFE LJUDIFO BOE HBSEFOJOH HBEHFUT MPPLQSFUUZDPPM#VUUP090HPPEEFTJHONFBOTBMPUNPSF UIBO HPPE MPPLT *U NFBOT UIBU 090 UPPMT XPSL‡really XPSL‡GPSBOZPOFBOEFWFSZPOF'PS090EFTJHONFBOTB TBMBE TQJOOFS UIBU DBO CF VTFE XJUI POF IBOE UPPMT XJUI QSFTTVSF BCTPSCJOH OPOTMJQ IBOEMFT UIBU NBLF UIFN NPSF FGàDJFOUPSBXBUFSJOHDBOXJUIBTQPVUUIBU SPUBUFTCBDLUP XBSE UIF CPEZ BMMPXJOH GPS FBTJFS àMMJOH BOE TUPSJOH &WFS TJODFJUDBNFPVUXJUIJUTTVQFSFGGFDUJWF(PPE(SJQTWFHFUBCMF QFFMFSJO090IBTCFFOLOPXOGPSDMFWFSEFTJHOTUIBU NBLF FWFSZEBZ MJWJOH FBTJFS *UT FZFDBUDIJOH TVQFS VTFGVM 1SPEVDUEFTJHO090GPDVTFTPOUIFEFTJSFEFOEVTFSFYQFSJFODF

BOEUIFOUSBOTMBUFTJUTQJFDVUUFSJOUIFTLZOPUJPOTJOUPFNJOFOUMZ usable gadgets.

OXO International Inc.

houseware designs have even been featured in museum exhibitions, and OXO has now ex- tended its design touch to office supplies, medical devices, and baby products.

Much of OXO’s design inspiration comes directly from users. “Every product that we make starts with . . . watching how people use things,” says Alex Lee, OXO’s president. “Those are the gems—when you pull out a latent problem.” For example, after watching people struggle with the traditional Pyrex measuring cup, OXO discovered a critical flaw: You can’t tell how full it is without lifting it up to eye level. The resulting OXO measuring cups have markings down the inside that can be read from above, big enough to read without glasses. Thus, OXO begins with a desired end-user experience and then translates pie-cutter-in-the-sky notions into eminently usable gadgets.

Branding

Perhaps the most distinctive skill of professional marketers is their ability to build and man- age brands. A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. Consumers view a brand as an im- portant part of a product, and branding can add value to a consumer’s purchase. Custom- ers attach meanings to brands and develop brand relationships. As a result, brands have meaning well beyond a product’s physical attributes. For example, consider Coca-Cola:9

In an interesting taste test of Coca-Cola versus Pepsi, 67 subjects were connected to brain-wave- monitoring machines while they consumed both products. When the soft drinks were unmarked, consumer preferences were split down the middle. But when the brands were identified, subjects chose Coke over Pepsi by a margin of 75 percent to 25 percent. When drinking the identified Coke brand, the brain areas that lit up most were those associated with cognitive control and memory—a place where culture concepts are stored. That didn’t happen as much when drink- ing Pepsi. Why? According to one brand strategist, it’s because of Coca-Cola’s long-established brand imagery—the almost 100-year-old contour bottle, the bright red cans, the cursive font, and its association with iconic images ranging from the Polar Bears to Santa Claus. Pepsi’s imagery isn’t quite as deeply rooted. People apparently don’t link Pepsi to the strong and emotional American icons associated with Coke. The conclusion? Plain and simple: Consumer preference isn’t based on taste alone. Coke’s iconic brand name appears to make a difference.

Branding has become so strong that today hardly anything goes unbranded. Salt is packaged in branded containers, common nuts and bolts are packaged with a distributor’s label, and automobile parts—spark plugs, tires, filters—bear brand names that differ from those of the automakers. Even fruits, vegetables, dairy products, and poultry are branded—

Sunkist oranges, Dole Classic iceberg salads, Horizon Organic milk, Perdue chickens, and Eggland’s Best eggs.

Branding helps buyers in many ways. Brand names help consumers identify products that might benefit them. Brands also say something about product quality and consistency—buyers who always buy the same brand know that they will get the same features, benefits, and quality each time they buy. Branding also gives the seller several advantages. The seller’s brand name and trademark provide legal protection for unique product features that otherwise might be copied by competitors. Branding helps the seller to segment markets. For example, rather than offering just one general product to all consumers, Toyota can offer the different Lexus, Toyota, and Scion brands, each with numerous sub-brands—such as Camry, Corolla, Prius, Matrix, Yaris, Tundra, and Land Cruiser. Finally, a brand name becomes the basis on which a whole story can be built about a product’s special qualities. For example, Eggland’s Best sets itself apart from ordinary eggs by promising: “Better Taste. Better Nutrition. Better Eggs.”

Building and managing brands are perhaps the marketer’s most important tasks. We will discuss branding strategy in more detail later in the chapter.

Packaging

Packaging involves designing and producing the container or wrapper for a product. Tra- ditionally, the primary function of the package was to hold and protect the product. In re- cent times, however, packaging has become an important marketing tool as well. Increased competition and clutter on retail store shelves means that packages must now perform many sales tasks—from attracting buyers, to communicating brand positioning, to closing the sale. As one packaging expert notes, “Not every consumer sees a brand’s advertising or is exposed to the exciting social media that your brand is doing. But all of the consumers who buy your product do interact with your humble package.”10

Companies are realizing the power of good packaging to create immediate consumer recognition of a brand. For example, an average supermarket stocks about 38,700 items; the average Walmart supercenter carries 142,000 items. The typical shopper makes 70 percent of Brand

A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.

Packaging

The activities of designing and producing the container or wrapper for a product.

BMMQVSDIBTFEFDJTJPOTJOTUPSFTBOEQBTTFTCZTPNFJUFNTQFSNJOVUF*OUIJTIJHIMZDPN QFUJUJWFFOWJSPONFOUUIFQBDLBHFNBZCFUIFTFMMFSTMBTUBOECFTUDIBODFUPJOáVFODFCVZFST 5IVTGPSNBOZDPNQBOJFTUIFQBDLBHFJUTFMGIBTCFDPNFBOJNQPSUBOUQSPNPUJPOBMNFEJVN

1PPSMZEFTJHOFEQBDLBHFTDBODBVTFIFBEBDIFTGPSDPOTVNFSTBOEMPTUTBMFTGPSUIFDPN QBOZ5IJOLBCPVUBMMUIPTFIBSEUPPQFOQBDLBHFTTVDIBT%7%DBTFTTFBMFEXJUIJNQPT TJCMZTUJDLZMBCFMTQBDLBHJOHXJUIàOHFSTQMJUUJOHXJSFUXJTUUJFTPSTFBMFEQMBTUJDDMBNTIFMM DPOUBJOFSTUIBUDBVTFiXSBQSBHFuBOETFOEBCPVUQFPQMFUPUIFIPTQJUBMFBDIZFBSXJUI MBDFSBUJPOTBOEQVODUVSFXPVOET"OPUIFSQBDLBHJOHJTTVFJTPWFSQBDLBHJOH‡BTXIFOB UJOZ64#áBTIESJWFJOBOPWFSTJ[FEDBSECPBSEBOEQMBTUJDEJTQMBZQBDLBHFJTEFMJWFSFEJO BHJBOUDPSSVHBUFETIJQQJOHDBSUPO0WFSQBDLBHJOHDSFBUFTBOJODSFEJCMFBNPVOUPGXBTUF GSVTUSBUJOHUIPTFXIPDBSFBCPVUUIFFOWJSPONFOU

#ZDPOUSBTUJOOPWBUJWFQBDLBHJOHDBOHJWFBDPNQBOZBOBEWBOUBHFPWFSDPNQFUJUPST BOE CPPTU TBMFT 'PS FYBNQMF 1VNB SFDFOUMZ SFQMBDF UIF USBEJUJPOBM TIPFCPY XJUI BO BUUSBDUJWFBOEGVODUJPOBMZFUFOWJSPONFOUBMMZGSJFOEMZBMUFSOBUJWF‡UIF$MFWFS-JUUMF#BH

*O UIFJS TFBSDI GPS UIF OFYU HFOFSB UJPO PG TIPF QBDLBHJOH 1VNBT EF TJHOFST TQFOU NPOUIT SPBE UFTUJOH TIPFCPY QSPUPUZQFT DIFDLJOH PO UIFJS QPUFOUJBM FOWJSPONFOUBM JNQBDU GSPNQSPEVDUJPOBOEUSBOTQPSUUISPVHI VTF BOE GVUVSF SFVTF 5IFZ DBNF VQ XJUI XIBU 1VNB DBMMT UIF $MFWFS -JUUMF#BHXJUIBCJHJNQBDU5IFOFX DPOUBJOFS‡XIJDI DPOTJTUT PG B MJHIU DBSECPBSEJOTFSUUIBUTMJEFTTFBNMFTTMZ JOUPBDPMPSGVMSFVTBCMFSFECBH‡VTFT Ň QFSDFOU MFTT QBQFS UP NBLF BOE SF EVDFTXBUFSFOFSHZBOEGVFMDPOTVNQ UJPO EVSJOH NBOVGBDUVSJOH CZ NPSF UIBOQFSDFOUBZFBS#FDBVTFJUUBLFT VQMFTTTQBDFBOEXFJHITUIFOFXDPO UBJOFS BMTP SFEVDFT DBSCPO FNJTTJPOT EVSJOHTIJQQJOHCZUPOTBZFBS 8IBUTNPSFFWFSZUIJOHJTQFSDFOU SFDZDMBCMF *O BMM 1VNBT $MFWFS -JUUMF

#BH JT NPSF UIBO KVTU GSJFOEMZ UP UIF FOWJSPONFOU JUT BMTP WFSZ GSJFOEMZ UP DPOTVNFSTu MJLFT BOE UIF DPNQBOZT CPUUPNMJOF1SFUUZDMFWFSIVI

*OSFDFOUZFBSTQSPEVDUTBGFUZIBTBMTPCFDPNFBNBKPSQBDLBHJOHDPODFSO8FIBWF BMMMFBSOFEUP EFBMXJUIIBSEUPPQFOiDIJMEQSPPGuQBDLBHJOH%VFUPUIF SBTI PGQSPE VDUUBNQFSJOHTDBSFTJOUIFTNPTUESVHQSPEVDFSTBOEGPPENBLFSTOPXQVUUIFJS QSPEVDUTJOUBNQFSSFTJTUBOUQBDLBHFT*ONBLJOHQBDLBHJOHEFDJTJPOTUIFDPNQBOZBMTP NVTU IFFE HSPXJOH FOWJSPONFOUBM DPODFSOT 'PSUVOBUFMZ MJLF 1VNB NBOZ DPNQBOJFT IBWFHPOFiHSFFOuCZSFEVDJOHUIFJSQBDLBHJOHBOEVTJOHFOWJSPONFOUBMMZSFTQPOTJCMF QBDLBHJOHNBUFSJBMT

Labeling

-BCFMTSBOHFGSPNTJNQMFUBHTBUUBDIFEUPQSPEVDUTUPDPNQMFYHSBQIJDTUIBUBSFQBSUPG UIFQBDLBHJOH5IFZQFSGPSNTFWFSBMGVODUJPOT"UUIFWFSZMFBTUUIFMBCFMidentifies the QSPEVDU PS CSBOE TVDI BT UIF OBNF 4VOLJTU TUBNQFE PO PSBOHFT 5IF MBCFM NJHIU BMTP describeTFWFSBMUIJOHTBCPVUUIFQSPEVDU‡XIPNBEFJUXIFSFJUXBTNBEFXIFOJUXBT NBEFJUTDPOUFOUTIPXJUJTUPCFVTFEBOEIPXUPVTFJUTBGFMZ'JOBMMZUIFMBCFMNJHIU IFMQUPpromoteUIFCSBOETVQQPSUJUTQPTJUJPOJOHBOEDPOOFDUXJUIDVTUPNFST'PSNBOZ DPNQBOJFTMBCFMTIBWFCFDPNFBOJNQPSUBOUFMFNFOUJOCSPBEFSNBSLFUJOHDBNQBJHOT

-BCFMTBOECSBOEMPHPTDBOTVQQPSUUIFCSBOETQPTJUJPOJOHBOEBEEQFSTPOBMJUZUPUIF CSBOE'PSFYBNQMFBMUIPVHITJNJMBSUPUIFGBNJMJBSSFEXIJUFBOECMVFMPHPUIBUDVTUPN FSTXPVMEIBWFTFFOZFBSTBHP1FQTJTSFDFOUMZJOUSPEVDFEBOFXNPSFVQMJGUJOHTNJMJOH MPHPi*UGFFMTMJLFUIFTBNF1FQTJXFLOPXBOEMPWFuTBZTBCSBOEFYQFSUiCVUJUTNPSF BEWFOUVSPVTNPSFZPVUIGVMXJUIBCJUNPSFQFSTPOBMJUZUPJUu*UQSFTFOUTBiTQJSJUPGPQUJ NJTNBOEZPVUIuTBZTB1FQTJNBSLFUFS

*OOPWBUJWFQBDLBHJOH1VNBTOFYUHFOFSBUJPOTIPFQBDLBHJOH‰5IF$MFWFS-JUUMF Box—is more than just friendly to the environment, it’s also very friendly to consumers’

sensibilities and the company’s bottom line. Pretty clever, huh?

PUMA

*O GBDU CSBOE MBCFMT BOE MPHPT DBO CFDPNF B DSVDJBM FM FNFOU JO UIF CSBOEDVTUPNFS DPOOFDUJPO 'PS FYBNQMF XIFO(BQSFDFOUMZJOUSPEVDFEBNPSFDPOUFNQPSBSZSFEFTJHO PGJUTGBNJMJBSPMEMPHP‡UIFXFMMLOPXOXIJUFUFYUPOBCMVF TRVBSF‡DVTUPNFSTXFOUCBMMJTUJDBOEJNQPTFEJOUFOTFPOMJOF QSFTTVSF (BQ SFJOTUBUFE UIF PME MPHP BGUFS POMZ POF XFFL 4VDIFYBNQMFTiIJHIMJHIUBQPXFSGVMDPOOFDUJPOQFPQMFIBWF UPUIFWJTVBMSFQSFTFOUBUJPOTPGUIFJSCFMPWFECSBOETuTBZTBO BOBMZTU

"MPOHXJUIUIFQPTJUJWFTUIFSFIBTCFFOBMPOHIJTUPSZPG MFHBMDPODFSOTBCPVUQBDLBHJOHBOEMBCFMT5IF'FEFSBM5SBEF

$PNNJTTJPO"DUPGIFMEUIBUGBMTFNJTMFBEJOHPSEFDFQ UJWF MBCFMT PS QBDLBHFT DPOTUJUVUF VOGBJS DPNQFUJUJPO -BCFMT DBONJTMFBEDVTUPNFSTGBJMUPEFTDSJCFJNQPSUBOUJOHSFEJFOUT PSGBJMUPJODMVEFOFFEFETBGFUZXBSOJOHT"TBSFTVMUTFWFSBM GFEFSBMBOETUBUFMBXTSFHVMBUFMBCFMJOH5IFNPTUQSPNJOFOU JTUIF'BJS1BDLBHJOHBOE-BCFMJOH"DUPGXIJDITFUNBO EBUPSZ MBCFMJOHSFRVJSFNFOUTFODPVSBHFEWPMVOUBSZJOEVTUSZ QBDLBHJOHTUBOEBSETBOEBMMPXFEGFEFSBMBHFODJFTUPTFUQBDL BHJOHSFHVMBUJPOTJOTQFDJàDJOEVTUSJFT

-BCFMJOHIBTCFFOBGGFDUFEJOSFDFOUUJNFTCZunit pricing TUBUJOHUIFQSJDFQFSVOJUPGB TUBOEBSENFBTVSFopen dating TUBUJOHUIFFYQFDUFETIFMGMJGFPGUIFQSPEVDUBOEnutritional labeling TUBUJOHUIFOVUSJUJPOBMWBMVFTJOUIFQSPEVDU5IF/VUSJUJPOBM-BCFMJOHBOE&EVDB UJPOBM"DUPGSFRVJSFTTFMMFSTUPQSPWJEFEFUBJMFEOVUSJUJPOBMJOGPSNBUJPOPOGPPEQSPE VDUTBOESFDFOUTXFFQJOHBDUJPOTCZUIF'PPEBOE%SVH"ENJOJTUSBUJPO '%"SFHVMBUFUIF VTFPGIFBMUISFMBUFEUFSNTTVDIBTlow fat, light, and high fiber4FMMFSTNVTUFOTVSFUIBUUIFJS MBCFMTDPOUBJOBMMUIFSFRVJSFEJOGPSNBUJPO

Product Support Services

$VTUPNFSTFSWJDFJTBOPUIFSFMFNFOUPGQSPEVDUTUSBUFHZ"DPNQBOZTPGGFSVTVBMMZJO DMVEFTTPNFTVQQPSUTFSWJDFTXIJDIDBOCFBNJOPSQBSUPSBNBKPSQBSUPGUIFUPUBMPG GFSJOH-BUFSJOUIJTDIBQUFSXFXJMMEJTDVTTTFSWJDFTBTQSPEVDUTJOUIFNTFMWFT)FSFXF EJTDVTTTFSWJDFTUIBUBVHNFOUBDUVBMQSPEVDUT

4VQQPSU TFSWJDFT BSF BO JNQPSUBOU QBSU PG UIF DVTUPNFST PWFSBMM CSBOE FYQFSJFODF 'PSFYBNQMFVQTDBMFEFQBSUNFOUTUPSFSFUBJMFS/PSETUSPNLOPXTUIBUHPPENBSLFUJOH EPFTOUTUPQXJUINBLJOHUIFTBMF,FFQJOHDVTUPNFSTIBQQZafterUIFTBMFJTUIFLFZUPCVJME

JOH MBTUJOH SFMBUJPOTIJQT/PSETUSPNT NPUUPi5BLFDBSFPGDVTUPNFSTOPNBU UFS XIBU JU UBLFTu CFGPSF EVSJOH BOE BGUFSUIFTBMF

/PSETUSPN UISJWFT PO TUPSJFT BCPVU JUT BGUFSTBMF TFSWJDF IFSPJDT TVDI BT FNQMPZFFTESPQQJOHPGGPSEFSTBUDVT UPNFST IPNFT PS XBSNJOH VQ DBST XIJMF DVTUPNFST TQFOE B MJUUMF NPSF UJNF TIPQQJOH *O POF DBTF B TBMFT DMFSL SFQPSUFEMZ HBWF B DVTUPNFS B SFGVOEPOBUJSF‡/PSETUSPNEPFTOU DBSSZ UJSFT CVU UIF TUPSF QSJEFT JUTFMG PO B OPRVFTUJPOTBTLFE SFUVSO QPM JDZ*OBOPUIFSDBTFB /PSETUSPNTBMFT DMFSLTUPQQFEBDVTUPNFSJOUIFTUPSF BOEBTLFEJGUIFTIPFTTIFXBTXFBS JOH IBE CFFO CPVHIU UIFSF 8IFO B DVTUPNFS TBJE ZFT UIF DMFSL JOTJTUFE POSFQMBDJOHUIFNPOUIFTQPUTBZJOH UIBUUIFZIBEOUXPSOBTXFMMBTUIFZ TIPVME 5IFSFT FWFO B TUPSZ BCPVU B NBO XIPTF XJGF B MPZBM /PSETUSPN DVTUPNFS EJFE XJUI IFS /PSETUSPN Brand labels and logos: When Gap tried to modernize its

familiar old logo, customers went ballistic, highlighting the powerful connection people have to the visual representations of their beloved brands.

Jean Francois FREY/PHOTOPQR/L’ALSACE/Newscom

Customer service: Nordstrom knows that keeping customers happy after the sale is the key to building lasting relationships. Nordstrom’s motto: “Take care of customers, no matter what it takes.”

AP Photo