Branding, Labeling, and Packaging
This section discusses the branding decisions firms have to make when they are developing new products and the various levels of packaging for new products.
Branding
A brand is a name, picture or design, symbol, or combination of these items used by a seller to identify its offerings. Successful branding strategy is one that creates recognition among consumers. A brand name is the spoken part of the brand's identity; a brand mark is the symbol associated with the brand. An important decision companies must make is under which brand a new offering will be marketed. A brand extension involves utilizing an existing brand name or brand mark for a new product category. One thing firms have to consider when they're branding a new offering is the degree of cannibalization that can occur across products. Cannibalization occurs when a firm's new offering eats into the sales of one of its older offerings. Some marketers argue that if a firm doesn't cannibalize its own offerings, its competitors will. The article and clip from Bloomberg Businessweek are interesting.
