Chapter 8

Major Brand Strategy Decisions

Brand positioning, brand name selection, brand sponsorship, brand development

Consumer experience

Creating / managing customer experiences differentiates offers from each other (Target, REI, American Doll, Build-a-bear, Rainforest Cafe)

Unsought products

New innovations, Are often products consumers do not want to think about, Require a lot of advertising and personal selling, Ex: coffin, life insurance, creating a will

Multibranding

Offers a way to establish different features and appeal to different buying motives (P&G having multiple brands in one category. Having different brands for laundry detergent (Tide, Charm, Soft)

Consumer products

Products and services bought by final consumers for personal consumption. Classified by how consumers buy them: Convenience, shopping, specialty, unsought goods

Specialty products

Special purchase efforts, High price, Unique characteristics, Brand identification, Few purchase locations, Ex: Rolex, Ferrari

Product mix dimension: Width

The number of different product lines the company carries (Colgate carries oral, home, fabric, personal)

Product mix dimensions: Length

The number of items in a line (If Colgate has 12 different toothpastes. They can stretch it)

Product line length (stretching)

The number of items in a product line; stretch it upward by having more high end products. Stretching downward would be adding more lower end products.(Ex: Marriott offers a full line of hotel brands, each aimed at a different market)

Product mix dimensions: Depth

The number of versions offered of each product in the line

Brand equity

The positive differential effect that knowing the brand name has on customer response to the product or service.Provides:Greater brand awareness and loyalty Basis for strong, profitable customer relationships

Brand extension

Using a successful brand name to launch a new or modified product in a new category (Like Dove... you can have dove deodorant, dove soap, dove shampoo, dove body wash. Same name in different categories)

Four service characteristics

What distinguishes services: Intangible Inseperability: massage Variability: want masuse to be in a good mood. Perishability: cant buy two massages and store them for later

Branding

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.

Service

A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything (banking, hotel, airline, retail, tax preparation, home repairs).

Product line

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

New brands

developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for products in new product category.

Three levels of product

1) Core customer value (What is the consumer really buying?..."When you're buying a camera, you are buying the ability to capture memories") 2)Actual product (brand name, quality level, packaging, features, design, Ex: megapixels of camera) 3) Augmented product (delivery and credit, product support, warranty, after-sale service)

Product and Service attributes

1) Product quality (Performance: quality is going to have direct impact on product's performance; Conformance: free from defects) 2) Features (value to customer, cost to company( 3) Style and Design (influences experience; style=appearance, design=usefulness)

Brand sponsorship

1)Manufacturers (national) brands: Also called national brands (Coke, Tide) 2)Private: Also called store or distributor brands (safeway soda) 3)Licensed brands: Sometimes companies can license out brand name. Sesame street has clothing. 4)Co-branding: When two brands come together for one product (When two brands come together for one product)

Product mix

All of the product lines and items that a particular seller offers for sale (Ex: Colgate: has oral care, home care products, personal care, fabric care. Whole line of products is the product mix) Also: look at example of cars

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Includes: physical objects, services, events, persons, places, organizations, or ideas

Product Support Services (Customer Service)

Assess the value of current services and obtain ideas for new services, Assess the cost of providing the services, Put together a package of services that delights the customers and yields profits for the company. (1-800 number, questionnaire)

Advantages of branding to sellers

Basis for product's quality, Provides legal protection, Helps to segment markets

Convenience goods

Bought frequently and immediately, Low priced, Mass advertising, Many purchase locations, ex: Coke

Shopping goods

Bought less frequently, Higher price, Fewer purchase locations, Comparison shop, Ex: Computer

Brand positioning

Can position brands at any of three levels: 1) Product attributes: Least desirable; easily copied. 2) Product benefits (teeth whitening, cavity protection) 3) Beliefs and values: Hits consumers on a deeper level, touching universal emotions. (beautiful smile for LIFE)

Packaging

Designing and producing the container or wrapper for a product.Developing a good package:Market the brand, Protect the elements, Ensure product safety, Address environmental concerns

Brand name selection

Desirable qualities for a brand name include: It should suggest product's benefits and qualities. It should be easy to pronounce, recognize, and remember, It should be distinctive, It should be extendable, It should translate easily into foreign languages, It should be capable of registration and legal protection.

Product filling

Filling line in with more products to generate more profits (Adding another model of car).

Product mix dimensions: Consistency

How closely related various lines are (Colgate personal care line is somewhat related to hair care line. Fairly consistent. Dog food wouldn't be very consistent if they added that)

Brand Personality Scale

If a brand had a personality (Sincerity, excitement, competence, sophistication, ruggedness)

Brand development strategies

Line extension, brand extension, multibrands, new bands

Labeling

Printed information appearing on or with the package. Performs several functions: Identifies product or brand. Describes several things about the product. Promotes the product through attractive graphics.

Individual product decisions

Product attributes, branding, packaging, labeling, product support services

Advantages of branding to buyers

Product identification, Product quality

Person marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people (Ex: Rachel Ray)

Line extension

introduction of additional items in a given product category under the same brand name (Coming up with a new flavor. New size. "Colgate total." When dove comes out with different types of shampoos)