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Generic brands of consumer products (often supermarket goods) are distinguished by the absence of a brand name, instead identified solely by product characteristics and identified by plain, usually black-and-white packaging. Generally they imitate more expensive branded products, competing on price. They are similar to "store brand" or "private label" products sold under a brand particular to the merchant, but typically priced lower and perceived as lower quality. The term off brand is sometimes used.
Generics may be manufactured by less prominent companies or manufactured on the same production line as branded products. Generic brand products may be of similar quality as a branded product, but are commonly made from lower-grade ingredients, or with less attention to appearance or flavor.
Without the costs of marketing individual products, generic brands are priced lower than branded products.They are preferred by customers for whom price or value-for-money is the priority. They are generally more popular in recessionary times, when consumers' purchasing power is lower, putting them on the lookout for value-for-money products; they experienced a period of popularity in the United States in the late 1970s and early 1980s, during a period of high price inflation.
Consumer perceptions about generic brands differ widely. A generic brand skin care product may have a consumer unsure about its ‘health and safety’ quotient. This implies that there are certain product categories more aligned to generic brands. Examples include over-the-counter medications, cereal and gasoline among others.
Sales promotion is a short-term incentive to initiate trial or purchase.
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product.
In economics and marketing, product differentiation is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products. The concept was proposed by Edward Chamberlin in his 1933 The Theory of Monopolistic Competition.
In marketing, brand management begins with an analysis on how a brand is currently perceived in the market, proceeds to planning how the brand should be perceived if it is to achieve its objectives and continues with ensuring that the brand is perceived as planned and secures its objectives. Developing a good relationship with target markets is essential for brand management. Tangible elements of brand management include the product itself; its look, price, and packaging, etc. The intangible elements are the experiences that the target markets share with the brand, and also the relationships they have with the brand. A brand manager would oversee all aspects of the consumer's brand association as well as relationships with members of the supply chain.
A generic drug is a pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by chemical patents. Generic drugs are allowed for sale after the patents on the original drugs expire. Because the active chemical substance is the same, the medical profile of generics is believed to be equivalent in performance. A generic drug has the same active pharmaceutical ingredient (API) as the original, but it may differ in some characteristics such as the manufacturing process, formulation, excipients, color, taste, and packaging.
Prescription drug prices in the United States continually rank among the highest in the world. The high cost of prescription drugs became a major topic of discussion in the 21st century, leading up to the U.S. health care reform debate of 2009, and received renewed attention in 2015. A major reason for high prescription drug prices in the United States relative to other countries is the inability of government-granted monopolies in the U.S. health care sector to use their bargaining power to negotiate lower prices. The Democratic Party is broadly in favor of allowing the government to negotiate drug prices, whereas the Republican Party has prevented passage of bills that would permit that.
Three European Union schemes of geographical indications and traditional specialties, known as protected designation of origin (PDO), protected geographical indication (PGI), and traditional specialities guaranteed (TSG), promote and protect names of quality agricultural products and foodstuffs. Products registered under one of the three schemes may be marked with the logo for that scheme to help identify those products. The schemes are based on the legal framework provided by the EU Regulation No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs. This regulation ensures that only products genuinely originating in that region are allowed to be identified as such in commerce. The legislation first came into force in 1992. The purpose of the law is to protect the reputation of the regional foods, promote rural and agricultural activity, help producers obtain a premium price for their authentic products, and eliminate the unfair competition and misleading of consumers by non-genuine products, which may be of inferior quality or of different flavour. Critics argue that many of the names, sought for protection by the EU, have become commonplace in trade and should not be protected.
In economics, a luxury good is a good for which demand increases more than proportionally as income rises, so that expenditures on the good become a greater proportion of overall spending.
Private label products are those manufactured by one company for sale under another company's brand. Private-label goods are available in a wide range of industries from food to cosmetics. Private label brands managed solely by a retailer for sale in a specific chain of stores are called store brands or own brands.
Country of origin (COO) represents the country or countries of manufacture, production, design, or brand origin where an article or product comes from. For multinational brands, COO may include multiple countries within the value-creation process.
A rebate is a form of buying discount and is an amount paid by way of reduction, return, or refund that is paid retrospectively. It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales. Rebates are also used as a means of enticing price-sensitive consumers into purchasing a product. The mail-in rebate (MIR) is the most common. A MIR entitles the buyer to mail in a coupon, receipt, and barcode in order to receive a check for a particular amount, depending on the particular product, time, and often place of purchase. Rebates are offered by either the retailer or the product manufacturer. Large stores often work in conjunction with manufacturers, usually requiring two or sometimes three separate rebates for each item, and sometimes are valid only at a single store. Rebate forms and special receipts are sometimes printed by the cash register at time of purchase on a separate receipt or available online for download. In some cases, the rebate may be available immediately, in which case it is referred to as an instant rebate. Some rebate programs offer several payout options to consumers, including a paper check, a prepaid card that can be spent immediately without a trip to the bank, or even as a PayPal payout.
A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy. Pricing strategies and tactics vary from company to company, and also differ across countries, cultures, industries and over time, with the maturing of industries and markets and changes in wider economic conditions.
No Name is a line of generic brand grocery and household products sold by Loblaw Companies Limited, Canada's largest food retailer. No Name products are available in stores across Canada that include Loblaws, No Frills, Dominion, Real Canadian Superstore, Your Independent Grocer, valu-mart, Zehrs, Fortinos, Provigo, Extra Foods, Super-Valu, Maxi, Atlantic Superstore, and Shoppers Drug Mart.
A product line extension is the use of an established product brand name for a new item in the same product category.
Food marketing brings together the food producer and the consumer through a chain of marketing activities.
A trademark is a type of intellectual property consisting of a recognizable sign, design, or expression which identifies products or services of a particular source from those of others, although trademarks used to identify services are usually called service marks. The trademark owner can be an individual, business organization, or any legal entity. A trademark may be located on a package, a label, a voucher, or on the product itself. For the sake of corporate identity, trademarks are often displayed on company buildings. It is legally recognized as a type of intellectual property.
A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and store value as brand equity for the object identified, to the benefit of the brand's customers, its owners and shareholders. Name brands are sometimes distinguished from generic or store brands.
The country-of-origin effect (COE), also known as the made-in image and the nationality bias, is a psychological effect describing how consumers' attitudes, perceptions and purchasing decisions are influenced by products' country of origin labeling, which may refer to where: a brand is based, a product is designed or manufactured, or other forms of value-creation aligned to a country. Since 1965, it has been extensively studied by researchers.
Debranding is a marketing strategy to remove the manufacturers name from a product to appear less corporate, or to save on advertising. De-corporatizing is when a company removes its name from its logo for a marketing campaign in an attempt to make themselves appear less corporate and more personal. "Transitioning into generic" is when a company with a well-known brand opts to appear more generic. This means the company will eliminate advertising and reduce prices and debranding in this sense can increase profit margins.