Marketing Chapter 7
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.
What are the four choices a company has for developing brands?
Line extensions, brand extensions, multibrands, and new brands
National brands
Marketed under the manufacturer's own name Ex: Samsung Galaxy tablet or Kellogg's Frosted Flakes
Brand Equity
The differential effect that knowing the brand name has on customer response to the product or its marketing
Service variability
The quality of services may vary greatly depending on who provides them and when, where, and how they are provided.
Brand value
The total financial value of a brand
Brand Value
Total financial value of a brand. Difficult to measure. Needs to Consider: - Geographic presence (global?) - Net earnings before taxes (reflects prices charged, market share) - The role that brand plays in that specific industry
Interactive marketing
Training service employees in the fine art of interacting with customers to satisfy their needs.
Licensing
Use names and symbols created by other companies or well-known movie characters or celebrities for a fee Ex: Spongebob snacks
Co-branding
Use the established brand names of two different companies on the same product Ex: Taco Bell and Doritos teamed up to create the Doritos Locos Taco
Social marketing
Using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being
Brand Positioning
What does your brand stand for in customers' minds? • Mission for the brand • Vision for the brand
Product width
number of different product lines the company carries. Ex: Clorox has a contained product mix that fits its mission to "make everyday life better, every day." By contrast, GE manufactures as many as 250,000 items across a broad range of categories, from lightbulbs to medical equipment, and jet engines.
Product depth
number of versions offered for each product in the line. Ex: Clorox brand contains a deep assortment of items and varieties, including disinfecting wipes, floor cleaners, stain removers, and bleach products. Each variety comes in a number of product forms, formulations, scents, and sizes.
The four major brand strategy decisions involve brand
positioning, name selection, sponsorship, and development
A brand with high brand equity is a very ______________ asset.
valuable
A company's product mix has four important dimensions:
width, length, depth, and consistency.
What are the two broad classifications of products?
Consumer products and industrial products
New Brands
A company might believe that the power of its existing brand name is waning, so a new brand name is needed. Ex: Toyota created Lexus brand aimed at luxury car consumers and the Scion
Convenience product
A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort. Ex: toothpaste, magazines
Unsought product
A consumer product that the consumer either does not know about or knows about but does not normally consider buying. Ex: Life insurance and Red Cross blood donations
Shopping product
A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style. Ex: Major appliances, TVs, furniture, clothing
Specialty product
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Ex: Luxury goods, such as Rolex watches or fine crystal
Augmented product
After sale service, delivery and credit, warranty, product support
Service
An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Actual Product
Brand name, features, quality level, design, packaging
Multibrands
Companies often market many different brands in a given product category. For example, in the United States, PepsiCo markets at least eight brands of soft drinks
Brand Development
Company can introduce line extensions, brand extensions, multibrands, or new brands.
Store brands
Created and owned by a reseller of a product or service Ex: Kroger's store brands
Line extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Which of the following statements is true regarding the marketing of services?
For service providers, a solution to price competition is to develop a differentiated offer, delivery, and image.
Service profit chain
The chain that links service firm profits with employee and customer satisfaction.
Brand Sponsorship
National brands Store brands Licensing Co-branding
Internal marketing
Orienting and motivating customer- contact employees and supporting service employees to work as a team to provide customer satisfaction.
Which of the following correctly identifies the five important decisions marketers must make when developing individual products and services?
Product attributes, branding, packaging, labeling, and product support services
Service inseparability
Services are produced and consumed at the same time and cannot be separated from their providers.
Service intangibility
Services cannot be seen, tasted, felt, heard, or smelled before they are bought.
Service perishability
Services cannot be stored for later sale or use.
Product line filling
adding more items within the present range of the line. several reasons for product line filling: reaching for extra profits, satisfying dealers, using excess capacity, being the leading full-line company, and plugging holes to keep out competitors. Ex: Apple launches iphone 8, a slightly updated version of iphone 7.
Product line stretching
company lengthens its product line beyond its current range. The company can stretch its line downward, upward, or both ways. Companies located at the upper end of the market can stretch their lines downward. Ex: Apple launches the iphone pal, a less expensive, more basic phone for people who just need a phone for emergencies.
brand extension
extends a current brand name to new or modified products in a new category. For example, Nest—the maker of stylish, connected, learning thermostats that can be controlled remotely from a phone— extended its line with an equally smart and stylish Nest Protect home smoke and carbon monoxide alarm.
Product Line
group of products that are closely related: • Function in a similar manner • Sold to the same customer groups • Marketed the same way • Fall within given price range Ex: Microsoft Corporation as a brand sells several highly recognized product lines including Windows, Office, Xbox and SharePoint
Product Consistency
how closely related the various product lines are in end use, production requirements, distribution channels, or some other aspect. Ex: Clorox product lines are consistent insofar as they are primarily consumer products and go through the same distribution channels
The major product line decision involves the line's ______, or the number of items in the product line.
length
Two ways to lengthen a product line:
line filling or line stretching
Services are characterized by four key aspects:
services are intangible, inseparable, variable, and perishable.
Product length
total number of items a company carries within its product lines. Ex: Clorox cleaning line includes CLOROX, HANDI-WIPES, and others.
Managing Brands
• Communicate the brand's positioning • Manage all brand touch points • Train employees to be customer centered • Audit the brands' strengths and weaknesses