MKT 300 Exam 3 Eaton
Aaker Model (5 levels of customer attitude toward a brand)
1. Devoted to Brand 2. Values the brand (brand as friend) 3. Satisfied and Switching Cost 4. Satisfied Customer (no reason to change) 5. No Brand Loyalty (customer will change)
Types of Private Brand; Combination Brand
Family name plus the individual brand name -ASU Tempe, ASU polytechnic, W.P Carey
Variability
difference in consistency from one service transaction to another; makes it impossible for a service operation to achieve 100% perfect quality on an ongoing basis
Innovation Continuum
discontinuous, dynamically continuous, continuous
Product Mix
entire collection of product lines a company sells; similar to portfolio
Dynamically continuous
entirely new version or new product category from previous version -laptop (different from desktop), tablets
Services are intangible dominant
experience attributes, credence attributes
Persuasive Labeling
focuses on promotional theme, consumer information is secondary
Intangibility
primary source from which the other three characteristics emerge; services can't be seen, felt, tasted, or touched like goods; difficult to evaluate after consuming services
Process
procedure; flow of activities; steps/script one follows to consume the service -set up appointment and do paperwork for doctors appointment
Marketing creates _______ value
intangible
People
interface, buy from people, provide services to people
Service marketing triangle
internal marketing, external marketing, interactive marketing between company, customers, and employees
Product Life Cycle
introduction, growth, maturity, decline
Possession processing
involving something you own; can be separated from the individual and could be left somewhere
Diffusion
process by which the acceptance of an innovation is spread by communication to members of social system over period of time; rate/speed new product is adopted
Marketing Mixes for Services: Product
processing, possession processing, mental stimulus processing, information processing
Discountinuous
product inventions; very first of it's kind; didn't continue from anything else -phonograph, computer, telephone
Types of Consumer Products: Convenience Products
products you can find anywhere, normally inexpensive, minimal purchasing effort -bottle of water or soft drink
Building strong brand image
provide identity, project the right message, saves time
Types of Consumer Products: Unsought Products
purchased to solve sudden problem -vacuum cleaner
Level of a Service Product: Core Product
remains the same; why you are buying
Brand Image
salient and feeling-related associations -image we have of a product and the brand -salient: important associations
Goods are tangible dominant
search attributs
Benefits to Consumers
search cost reducer, signal of quality, risk reducer, symbolic device
Marketing Mixes for Service: Promotion
stressing tangible clues, using personal information sources, create a strong organizational image, engage in post-purchase communication
Importance to long-term success
strong correlation between new product success and a company's profitability and sales growth
Gap 5: service gap
takes place after service has taken place and been finalized; expectations being met, not, or exceeded; greater the disconfirmation the more feelings and emotions play a role
Customer Service
taking requests, answering questions, responding to complaints
Brands are intangible, but they have ________ impact on consumer product experience
tangible
Physical evidence
tangible element; indicates a level of quality -decor in a waiting room
Levels of a Product: Actual Product
tangible features that are necessary for the product to function -(for a car) steering wheel, engine
Managing Service Quality
the effective marketing of services requires that managers learn what customer want and expect in their interaction with the service provider; if expectations do not equal experience, a gap exists
Brand equity
the marketing and financial value associated with a brand's strength; based on loyalty, awareness, perceived product quality, and brand associations; reflective of long-term trust; "strength" of brand and brand "fit"; can be so strong that brand name becomes the category name (master brand)
Packaging
Effective packaging offers protection, economy, safety, and convenience
Brand
a name, term, symbol, design, or combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
Widening the Product Mix
add a new product category to portfolio
Deepening the Product Line
adding another product to the product line
The connecting point for customers?
The brand
Levels of a Product: Augmented Product
all the extra features of the product that might not be necessary for the product to work, but that can enhance the experience -(for a car) AC, phone charging plug in -(for ASU) student organizations, career center
Mental stimulus processing
anything experiential, paying for experience of consuming entertainment
Miami, FL is a huge
brand name
Private Brand
brand names that are owned by the retailer -safeway select soft drinks
Manufacturer's Brand
brand names you can find in any number of retailers -pepsi
Transition to growth stage
break even point
Levels of Service Product: Actual Product
changes; tangible parts of the product have to be there; missing as services are intangible
Functions of Packaging
contain and protect, promote, facilitate storage, use and convenience, facilitate recycling
Brand Extensions
current brand to new product class; widening the mix -coming out of iPhone for apple -cheeto lip balm
Transition to decline stage
decreasing at an increasing rate
Marketing creates, communicates, and ______ the product
delivers
Building strong brands start with
positioning
The name "Apple" is intangible yet worth
$214M
Your brand isn't what you say it is...
it's what they (consumers) say it is
Successful New Products
-Offer a strong relative advantage -Reflect better understanding of customer needs, and beat the competition to market -Exhibit higher performance-to-cost ratios and higher contribution margins -Are launched with larger budgets -Have stronger top management support
New Product Development:
1. Idea generation: get ideas from customers, competitors 2. Idea screening: review ideas 3. Concept development: become more focused on features and benefits of product 4. Business analysis: outline cost of production and forecast 5. Market testing: limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation (crystal pepsi) 6. Commercialization: launching new product into entire market; population has access
Factors that influence the Rate of Diffusion
1. Relative advantage: product perceived as superior 2. Complexity: degree of difficulty 3. Compatibility: matches customer needs, makes sense, solves problems 4. Trial-ability: degree to which product is capable of being used on a limited basis for very low risk; give someone a shot to try product when thy initially weren't going to try (costco samples) 5. Observability: see products benefits
Building strong brand image triangle
1. Values 2. Benefits 3. Attributes -higher emotional connection with consumers as you climb upwards -increasing difficult for competitors to copy positioning when climbing upwards
Service Quality
1. reliability: perform promised service dependably and accurately; done right first time 2. responsiveness: willingness to help customers and provide prompt service; timely 3. assurance: trust 4. empathy: caring, individualized attention 5. tangibles: appearance of physical facilities, equipment, personnel, communication material
Attributes of Strong Brands
A strong brand occupies a distinct position in consumers minds based on a relevant benefits and creates an emotional connection between business and consumers consistent brand message, focus on long-term growth, manage customer experience, and meaning, memorable, and likeable
Creating compelling experiences
Economic value progresses from commodities to goods to services to experiences
Understanding the service experience
All products, be they goods or services, deliver a bundle of benefits to the consumer The benefit concept is the encapsulation of these benefits in the consumer's mind The service experience demonstrates that consumers are an integral part of the service process
Services Marketing
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
Brand Equity Model: Brand Asset Valuator (BAV)
Brand Equity is made up of differentiation, relevance, esteem, and knowledge multiple these four things together to get brand equity if one of the four categories is 0, then there's no brand equity
Brand Equity Models: Interbrand's Equity Formula
Brand earnings are objective (brand sales, cost of sales, marketing costs) Brand strength is subjective (leadership, stability, market, geographic spread)
Types of Private Brand: Family Brand
Brands owned by retailer and use company's name to market product; only available at one place -Safeway select -GAP -Kirkland Signature (costco)
Types of Private Brand: Individual Brand
Brands owned by retailer with stand alone brand name -Ol'Roy dog food only sold at walmart
Brand Achetypes
Carl Jung suggests that humans are not a "blank state" but rather a combination of archetypes -universal, archaic patterns and images that derive from the collective unconscious and are the psych counterpart of instinct
Types of Manufacturer's Brand; Combination Brand
Company name is paired with an individual brand name; good chance we know both names -Kellogg's Rice Krispies
Branding
Core benefit: what the customer is buying Value proposition: what the brand delivers that customers value; competitively superior
Does satisfaction = loyalty?
It can build to loyalty but it has to go above and beyond satisfaction to guarantee loyalty
Labeling
Labeling is used for identification, promotional, and informational and legal purposes
Brand Archetypes examples
Nike: hero Disney: magician Oprah: sage Godiva: lover Starbucks: explorer Target: every person AMEX: ruler Apple: Revolutionary Ben & Jerry's: jester Campbell's soup: caregiver
The Services Marketing Mix: 7 P's
Product, price, place, promotion + People, Process, Physical Evidence
Why do firms focus on services?
Services can provide higher profit margins and growth potential than products Customer satisfaction and loyalty are driven by service excellence Services can be used as a differentiation strategy in competitive markets
Brand Archetype Categories
Social, order, ego, freedom
Why do new products fail?
They do not solve a problem
Role of Brands
They stand for something; promise to deliver specific benefits associated with products or services to consumers; represent solutions
Types of Manufacturer's Brand: Family Brand
Use company's name to market their products -General electric -Sony -Samsung
Can package size accelerate usage volume?
Yes -people pour from 15-40% more from large vs small containers
Informational Labeling
helps make proper selections, lowers cognitive dissonance; includes use/care
Services as a product
hotels, telecommunication, banking, consulting, healthcare, software services
Reasons for New Product Failure
ignoring favorable market research, overestimating market size, marketing mix decision errors, and stronger than anticipated competitive actions
Line Extension
improvement; new and improved; deepening the line -new colors -redbull
Types of Consumer Products: Speciality Products
items with unique characteristics, willing to spend considerable effort to obtain, only one option in geographic location -watch, jewelry
Transition to maturity stage
mature product being around forever; growth rate begins to slow down even though it's still increasing; still increasing but at a decreasing rate -soft drinks
Levels of a Product: Core product
need that the product fulfills
Types of Consumer Products: Shopping Products
not every retailer will carry every brand of that product, multiple options but not everywhere -not every car dealership sells honda accords, but a lot do
Information processing
paying for some sort of expertise; paying for someone to do something you don't have the knowledge to do
Profits per product
peaks during growth stage
Sales line
peaks during maturity stage
Package shape
people perceive tall, slender glasses to hold more than short, wider glasses
Processing (service strategy)
people processing; paying for service that provides a physical change to yourself
perishability
service can't be saved; it's unused capacity can't be reserved or inventoried -if unsold, lost revenue
Gap 1: Knowledge Gap
service provides perception & expected service from customer; before the service takes place; don't know what the customer expects; best to communicate exceptions
Product Line
set of items company produces that functions in a similar way to solve the same problem -crest vs colgate
Continuous
similar form but add new and improved features, upgrades; incremental
Inseparability
simultaneous production and consumption of the service; service consumer had to be there at the same time as the service provider to experience the optimal service -hair cut, vet visit
Benefits to Companies
source of competitive advantage, predictability and security of demand, barriers to entry, financial returns
Brand personality
specific "personality-type" traits or characteristics ascribed by consumers to different brands -masculine/feminine -calm/exciting
Adoption
stages through which an individual consumer passes in arriving at a decision to try (or not try), to. continue using (or discontinue using) a new product 5 stages: awareness, interest, evaluation, trial, adoption
Types of Manufacturer's Brand: Individual Brand
stands alone because of the brand name, you don't know the manufacturer name -tide (made by procter&gamble)
Level of a Service Product: Augmented Product
stays the same; bonuses, benefits, add ons
Service as value-added for manufacturing products
training, installation, repair services connected with a physical product
Servicescape
use of physical evidence to design service environments
Intangible value
value you can't hold in your hand; value a film has above and beyond tangible assets; market value is greater than the tangible assets
