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