FASH430: Exam 1

American Marketing Association definition:

"name, term, sign, symbol, design or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. these different components of a brand that identify and differentiate it are brand elements."

Branding Process (graphic)

Brand Decision - company, consumer, culture Positioning Strategy: Product Mix - features, price, distribution, support Identity: symbols, personality Positioning Communication Consumer Experience (the image) Audit & Evaluation Growth/Repositioning Strategies

What's under brand development?

Brand extensions - line and category extensions sold under a particular brand

How do you create customer value?

By creating customer brand relationships which are the foundation of brand resonance and building a strong brand

The Customer (Graph)

Consumer Adoption Pattern (horizontal), Magnitude (vertical) bell curve Innovators, Early Adopters, Early Majority, Late Majority, Laggards

What are the type of brand experiences?

Consumer experiences - shopping and service (location, synergy, interactive, integration) Environments - pop-up shops, endorsements Events - PR event, brand spectacle

Risk?

Financial risk (buyers remorse), physical risk (threat to well-being/health), Time risk (shipping) quality, social reputation/responsibility (embarrassment from others, morals, ethical, psychological) functional risk (not performing) brand risk Opportunity cost (searching & purchasing products)

Things a valuable brand does?

Heighten brand awareness develop favorable associations consistent reinforcement create emotional connections

What does brand anatomy include?

Identifier Symbols-->Emotional Benefits-->Functional Benefits-->Core Essence-->Heritage Personality

What type of brand extensions are there?

Line extensions - new products issued under an existing brand to a new target market (crew cuts) Category extensions - successful brand names help introduce new products (vera wang for kohl's) Multibrands - multiple product entries in a product category w/ different brand names New brands: new product category

Core Essence

Most Basic Brand Value clearly defines the basic benefit a brand offers to its customers, identifying a brand's core benefit guide all over activities and significantly enhances its longevity market scope and financial value

What is a brand?

Name or image Identity or representation of a company with a person

Key Brand Basics: What is a brand?

Name, symbol, a person can be branded, company/organization, set of characteristics & expectations, promise of benefits, trademark, campaign, positioning, actual product or service

Positioning Approach (map)

Positioning Map Split up into fourths High Variable at the top Low Variable at the bottom Period A (top left) Period C (top right) Period B (bottom left) Period D (bottom right)

What's Marketing Mix (4Ps) - Nike

Product, Price, Promotion, Place

Product Mix:

Product, Price, Service, Distribution product features + price, location and service when a person buys a product the decision & experience isn't isolated from its price, where it's sold and the service that comes with it

Can everything be branded?

Resides in the minds of consumers Key to branding is that consumers perceive differences among brands in a product category Yes

Example: Starbucks

Salience - high recognition, well known Performance - uniqueness in design/material, variety, customize, best service, relaxed Imagery - modern lifestyle, working age, stylish, wealth Judgement - credibility: premium brand Feeling - security, social approval, self-respect Resonance - high attachment, active engagement

What is the consumer-based brand equity pyramid? (bottom up)

Salience - measures awareness of brand (how often & how easily the brand is evoked under various situations? starbucks) Performance - primary characteristics and supplementary features (product reliability, durability, serviceability, service effectiveness, style and design, price) Imagery - demographics, purchase and usage situations (type of channel, specific stores), personality and values (5 personality dimensions), history, heritage and experience Judgements - brand quality, credibility, superiority (differentiation) Feelings - warmth, fun, excitement, social approval Resonance (Ultimate relationship w/ branding) - behavioral loyalty, attitudinal attachment (love/proud brand), sense of community, active engagement

5 Brand Personality Dimensions

Sincerity (down to earth), Excitement (daring, spirited), Competence (reliable, intelligent), Sophistication (upper-class, charming), Ruggedness (outdoorsy, tough)

What is positioning?

The message of a company what they want to be known for

Who's Brand Positioning Statement?

To (core user), (brand name), is the (frame of reference) that (point of difference), because (support).

The Positioning Strategy 4 questions

What: what is the benefit and purpose of the brand? The brand promise and value to the consumer need to be clearly identified Who: Who is the target, the potential customer? Reason: what are the differentiators that support and can create such a benefit? Against whom: who is the competition?

What are the 4 questions customers ask of brands?

Who are you? (identity) What are you? (meaning) What about you? What do I think or feel about you? (response) What about you and me? What kind of associations and how much of a connection would I have with you? (relationship)

What is product line?

a group of products w/in a product category that are closely related (e.g. children's wear, women's wear) function in a similar manner market through the same type of outlets fall w/in given price ranges

What is brand processing?

a multi-functional process that highlights a proposed value for a product & transforms it into a real consumer experience starts w/ a vision that identifies the need & the purpose for the brand to exist executed through a positioning strategy

What is product mix?

aka product assortment consists of all the product lines and items that a particular seller offers for sale width: # of product lines length: # of product in lines depth: # of versions of each product carried consistency: how closely related the product lines are

What are the growth strategies?

allow for better segmentation provide an array of choices for the consumer (product mix) increase visibility of the brands attract new customers and increase market share (w/0 the need to reposition the initial brand) establish new brand equity and enhance existing brand equity can be good strategy against competitors

Product

anything we can offer to a market for attention, acquisition, use or consumption that might satisfy a need or want. maybe physical good, a service a retail outlet, a person, an organization, a place or even an idea

Positioning on the Basis of Product Mix

based on features such as design, price, distribution strategy, level of service or a mix geared towards rational decision making; customers make decisions based on value for money, convenience or functionality

Emotional Attributes

basic emotional needs that are satisfied for its purchasing customers, far more persuasive

Functional Attributes

basic tangible qualities of a brand offering that can be expected by its customers

Two components of brand knowledge

brand awareness & brand image

What are the 2 important brand strategic tools?

brand-product matrix brand hierarchy

What are characteristics of fashion brands?

broadly classified as consumer brands readily available and easy to acquire through channels any apparel, accessory, cosmetic, non-durable home product, or service offered for use, sale, or exchange that exhibits characteristics intended to identify and differentiate them from other similar goods and services and which are further intended as means of expression of personal preference, tastes, or acknowledgment of self-expression

Brand Awareness

consumers ability to identify the brand brand recognition (increasing familiarity) brand recall

Brand knowledge

consumers' knowledge about the brand, consumers' responses are reflected in perceptions, preferences, and behavior

Brand Image

consumers' perceptions about a brand, reflected by the brand associations held in consumer strong, favorable, unique brand associations

What is brand positioning?

defines the specific niche the brand occupies in the mind of the customer strong position is demanded, differentiated, deliverable and can be communicated

What are the challenges to growth strategies?

extensions require large investments need to be recognized as a lifestyle brand (initial brand) to extend into new markets and categories extensions must make sense w/in the brand vision & philosophy extensions should be able to deliver brand values to the consumer

What are the competitive advantages brands w/ strong equity have?

high consumer awareness strong brand loyalty helps when introducing new products less susceptible to price competition

Importance of brands to consumers

identification of source of the product, assignment of responsibility to product maker, risk reducer, search cost reducer (economic perspective) - spend less money and time looking and buying the product, promise, bond, or pact w/ product maker, symbolically device (associated w/ certain types of people reflect values or traits), signal of quality

Importance of brands to firms

identification to simplify handling or tracing legally protecting unique features (trademark, logos) signal of quality level endowing products w/ unique associations source of competitive advantage source of financial returns

Mass-Market Brands

mass produced fashion followers - not trendsetters positioned on values derived from price and convenience (location) common principles such as the need to generate values and to possess a strong identity

Positioned on Emotions

mastercard positions its credit cards based on consumer emotions

How do design a brand portfolio?

maximize market coverage so that no potential customers are being ignored minimize brand overlap so that brands aren't competing among themselves to gain the same customer's approval (e.g. urban outfitters, inc - anthro, outfitters, free people)

Brand

more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need. some create competitive advantages with product performance; other brands create competitive advantages through non-product related means

Classic Positioning Approach

most built on the premise of competing against brands in the same segment or category

Positioning on the Basis of Brand Identity

new dimensions to the product and new emotional values humanize so the product and establishes an emotional relationship w/ buyers lifestyle brands are positioned highly on personality

Premium brands

new luxury or new luxe "aspirational" "new lxue" share characteristics w/ luxury brands prices are at the higher end of the mass-market spectrum yet still lower than luxury brands global brands (kate spade, coach, lacoste) "spa brands" specialty chains of private label apparel line (zara, mango, H&m)

What are private brands?

one company offers the branded item or revive and that the item or service may be required or received only through channels the company controls (e.g. sonoma - kohl's)

Brand Anatomy: Identifiers

physical qualities added to or included in a product to reinforce its brand promise

What types of competitive advantages?

product, customer service, prices, location, quality and feature of the product, promotions, lifestyle, price point, emotional connections

What is experiential branding?

psychological aspect of a brand sum of all points of contact w/ the brand

What are branding challenges & opportunities?

savvy customers brand proliferation (new brands and products) media fragmentation - consumers exposed to brands to increase awareness, the type of media and brand uses increase competition & cost greater accountability

What do people try and look for in branding?

seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated w/ a product or service has certain qualities or characteristics that make it special or unique

What does the positioning strategy do?

shapes the product mix and identity of the brand

Why are brands important?

strong brands are the root of financial performance and corporate value. predictable earning, reduce volatility, strong demand, efficient operation, preference, repeat purchases, cash flow, customer loyalty, stock value

Brand Anatomy: Symbols

strong visual identity ongoing communication devices that over time help to define a brand's promise to its target customer, inexpensive methods for reinforcing the brand

Brand-Product Matrix

table that's rated 1-4 and a-c

The Customer

target group in mind determines the brand's true market positioning customer verdict on the brand is major catalyst in evolution of the brand

What does positioning address?

target market competitive set (category frame of reference) differentiation proof or support

What is branding strategy?

the company can help consumers understand its products and services and organize them in their minds

How to measure equity?

the extent to which customers are willing to pay more for the brand

What is brand personality?

the identity element that describes the human qualities give to a product or service that endear it to target customers *human characteristics

Heritage

the identity element that describes the portion of a brand's origins or history that lends credibility to benefit claims ex) Levi's - our story

What is depth of branding strategy?

the number and nature of different brands marketed in the product class sold by a firm referred to as a brand portfolio to pursue different market segments, different channels of distribution, or different geographic boundaries

What is customer-based brand equity?

the positive differential effect that brand knowledge has on consumer response to the product or service

Develop a Brand Positioning Statement

what is the target market what is the competitive set what is this offering what proof or support can we offer