DRM5 (P4723) CHAPTER 6 - THE RETAILING DEVELOPMENT OF PRIVATE LABELS AND BRANDS

NATIONAL BRANDS

definition
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

national brand
Definition
Brand marketed throughout a national market. National brands are owned and promoted usually by large manufacturers.

WHAT ARE PRIVATE LABELS AND BRANDS
private label/brand
Definition
Brand owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label. Also called private brand.


PRIVATE LABEL AND BRAND ACQUISITION
private label/brand
Definition
Brand owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label. Also called private brand.


AWARENESS OF PRIVATE BRANDS AND LABELS
buying behavior
Definition
Purchase decision making pattern that is a complex amalgam of needs and desires, and is influenced by factors such as the consumer's (1) societal role (parent, spouse, worker, etc.), (2) social and cultural environment and norms, and (3) aspirations and inhibitions.

complex buying behaviour
consumer buying behaviour in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.
Thus, retailers need to help buyers learn about the attributes and their relative importance. They need to differentiate their brand features, perhaps b describing the brand’s benefits using print media with long copy. They need to motivate store salespeople and the buyer’s acquaintances to influence the final brand choice.

dissonance-reducing buying behaviour
consumer buying behaviour in situations characterized by high involvement but few perceived differences among brands.
Retailers need to counter this dissonance by providing after-sale communications to provide evidence and support to help consumers feel good about their brand choice.

habitual buying behaviour
consumer buying behaviour in situations characterized by low consumer involvement and a few significant perceived brand differences.
Retailers use price and sales promotions to stimulate product trial. In advertising, a few key points should be stressed. Visual symbols and imagery are important because they can be remembered easily and associated with the brand. Ad campaigns should be in the form of repeated short message to condition consumers. They will recall certain product by identifying the product’s symbol.

variety-seeking buying behaviour
consumer buying behaviour in situations characterized by low consumer involvement but significant perceived brand differences.
Retailer may try to encourage habitual buying behaviour by:
• dominating shelf space, keeping shelves fully stocked, and
• running frequent reminder advertising
• offering low prices, special deals, coupons and free samples, and
• advertising reasons for trying something new.