My test review
Market Segmentation Criteria
*Size: Is there adequate sales potential in the segment? • Accessibility: Are specialized distribution outlets and communication media available to reach the segment? • Responsiveness: How favorably will the segment respond to a tailored marketing program? • Identifiability: Can we easily identify the segment?
Segment specific values
However, segment specific values do not explain why you would want to choose Gucci over Prada for your bag purchase.
Mass markets and hyper stores
The major distinction between these stores and other department stores and other department stores is that in addition to a mix of hard and soft merchandise, they sell groceries as well
Variety or breadth of merchandise
The number of different categories of merchandise that a store offers.
Brand attributes
descriptive features that characterize a product or service. For example, a dress might be well fitting, cheap/expensive, red, designer, etc, which are the brand attributes.
Competitive points of parity
designed to negate competitors' points-of-difference Brands should have unbeatable points of difference
Bait and switch
advertised at a low price to lure customers but then customers convinced to buy products of a higher price. Example: A car ad
Mass customization
allows consumers to customize or adapt mass-produced products' features according to their needs.
Target Market
A market is a set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.
4 categories of brand resonance
1. Behavioral loyalty 2. Attitudinal attachment 3. Sense of community 4. Active engagement
Customer- based brand equity
customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand.
Points-of-difference
defined as attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. DEALS WITH QUALITY, EXAMPLE NORTH FACES LAST LONGER
Customer purchase process
1. need 2.information 3. evaluation 4. buy
Types of private label brands
1.generic (noname) 2.Copy cat brands 3.Private label brands that offer superior quality above manufactures 4.Value Innovators
Brand
A brand starts with an idea to solve a need. name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers
Price penetration
A product is introduced at an attractive low price to achieve a faster market penetration and gain market share. Then the prices are increased after consumer awareness increases and customers get hooked. OPPOSITE OF SKIMMING
Broad/ wide variety
A store that has many categories are said to have a broad/ wide variety. For example, a baby store might have wider variety if they keep onesies, blankets, shoes, toys, personal care items, cribs, etc
Sense of community
Affiliation with other people associated with the brand, whether fellow brand users or customers, or employees or representatives of the company. A brand community can exist online or off- line.
Independent brand
An independent brand is one for which the company or the corporation is the brand and the products are an extension of the company's image. Eg. Nike.
Markdowns/ sales
Any kind of discount or sales promotion
Brand Recognition
Brand awareness consists of brand recognition and brand recall performance.
Brand Awareness
Brand awareness is the ability of a consumer to identify the brand under different conditions. Includes brand recognition and brand recall performance.
Brand benefits
Brand benefits are the personal value and meaning that consumers attach to the product or service attributes.
Brand Elements
Brand elements are those trademark-able devices that serve to identify and differentiate the brand. The main ones are brand names, logos, symbols, characters, slogans, typefaces/ fonts/ colors, and, packages.
Brand Equity
Brand equity consists of marketing effects uniquely attributable to a brand. That is, brand equity explains why different outcomes result from the marketing of a branded product or service than if it were not branded. Example: Michael jacksons glove sale. This glove sold for 330,000 dollars, without such a celeb endorsement this would not have been possible.
Brand feelings
Brand feelings are customers' emotional responses and reactions to the brand. T
Brand Recall
Brand recall is consumers' ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue.
Brand Values
Brand values satisfy us emotionally and rationally For example, we might like owning a Michael Kors bag just because it is a higher status symbol or we perceive it to be of higher quality, even though we might be paying a higher price. We believe that the brand is the best in delivering that value to us.
Customer-based brand equity
Customer-based brand equity occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable, and unique brand associations in memory.
Attitudinal attachment
Customers should go beyond having a positive attitude to viewing the brand as something special in a broader context. For example, customers with a great deal of attitudinal attachment to a brand may state that they "love" the brand. creating greater loyalty requires creating deeper attitudinal attachment.
Consumer response to marketing
Customers' differential responses, which make up brand equity, are reflected in perceptions, preferences, and behavior related to all aspects of brand marketing. example:choice of a brand, recall of copy points from an ad, response to a sales promotion, and evaluations of a proposed brand extension.
Buying
Decides whether or not to buy. relationship between a brand and its buyer does not end with buying. At this stage the buyer actually experiences the brand and sends feedback to himself/herself for future purchase decisions as well as to others.
Mass distributed
Distribution is available to almost any retailer willing to carry the products. These are usually budget products that generate profit through high sales volume.
Customer
Every brand is built with a target customer in mind. Such targeting can be based on various segmentation criteria, such as demographic, geographic, psychographic, lifestyle, etc.
differential effect
First, brand equity arises from differences in consumer response. If no differences occur, then the brand-name product can essentially be classified as a commodity or a generic version of the product.
Flexible pricing
Flexible Pricing is when the same product is charged a different price for different customers. For example, airline tickets are sold at a higher price closer to the date of travel than a few days earlier
Brand positioning
Good brand positioning helps guide marketing strategy by clarifying what a brand is all about, how it is unique and how it is similar to competitive brands, and why consumers should purchase and use it.
Brand Imagery
It is the way people think about a brand abstractly, rather than what they think the brand actually does. associations include: (1) family/shared experiences/maternal, (2) multipurpose, (3) classic/timeless,
Market Segmentation
Market segmentation divides the market into distinct groups of homogeneous consumers with similar needs and consumer behavior, and who thus require similar marketing mixes.
Marketing Communications
Marketing communications represent the voice of the brand Marketing communications can contribute to brand equity in a number of different ways: by creating awareness of the brand; linking points-of- parity and points-of-difference associations to the brand in consumers' memory; eliciting positive brand judgments or feelings; and facilitating a stronger consume
Types of brands
National-brands are owned by a national manufacturer and distributed through multiple national retailers Private label- brands are manufactured and distributed only through stores that own the brand. Sometimes the store is the brand such as Old Navy. Exclusive brands- are those that are produced as collaboration between national designers/manufacturers with retailers. For example, Simply Vera is a brand solely made for Kohls by Vera Wang.
Premium brands
Premium brands, also known as aspirational or 'new luxe' (new luxury) are at the highest spectrum of the mass market in terms of both price and design/innovation, just below the luxury brands.
Triple bottom line Theory
Refers to a brands ability to be socially, economically and environmentally sustainable. Many brands are making strides in promoting sustainability efforts
Category Killers
The another form of specialty store that offers the largest range of products in a specific category and at competitive prices. Ex. Hobby lobby or Toys R US
Etailing (online)
The biggest growing retail sector, e-tailing or different forms of electronic retailing (internet, mobile, etc) provide convenience to customers to shop at any place and time convenient to them.
Brand building and management
The brand building and management process involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.
Company
The company creates a brand for financial gain by consistently satisfying customer needs. The company remains the sole legal owner of the brand and all its copyrightable elements such as the name, logo, or technology.
Building brand concept
The concept or idea needs to be fresh and unique enough to convince potential customers of its role and significance in their lives.
Discount stores
These are stores that sell known brands at discounted below-market prices. These no- frills stores offer minimal services and in-store experiences in return for cutting costs and passing these savings to customers
Limited distribution
This approach allows the brand to be sold in one or more stores, chain of stores, or selective department stores that suit its targeted positioning strategy and image.
Price skimming
This policy involves introducing the product at a premium price. This strategy is common with new, innovative, and exclusive products. Before competitors come in, forcing the prices to drop.
Everyday value pricing
This strategy focuses on the concept of value for money, where prices emphasize the amount and value a customer gets. Eg: Walmart Pricing Strategy.
Brand personality and values
Through consumer experience or marketing activities, brands may take on personality traits or human values and, like a person, appear to be "modern," "old-fashioned," "lively," or "exotic."
Establishing brand position
Two key issues in arriving at the optimal competitive brand positioning are (1) defining and communicating the competitive frame of reference and (2) choosing and establishing points-of-parity and points-of-difference.
Behavioral loyalty
We can gauge behavioral loyalty in terms of repeat purchases and the amount or share of category volume attributed to the brand,
Market Segmentation Bases
based on descriptive or customer-oriented (related to what kind of person or organization the customer is), or as behavioral or product-oriented
Product category Structure
brand awareness, brand consideration, and consumer decision making
Integrated marketing communication
choosing the best set of brand communication channels and strategies and managing the relationships between them. Kellogg launched its largest integrated marketing campaign ever in 2011.
Omni- channel
combining the different channels to offer customers a seamless brand experience. Example: you can now purchase your products from JCP or Macy's website, pick it up in store or even return products to the store
Corporate brand
company creates separate brands and promotes each brand individually, as separate entities. example: gap, banana republic, gap, old navy
Brand concept influencers
company, the consumers, and, the culture
Competitive Analysis
considers a whole host of factors—including the resources, capabilities, and likely intentions of various other firms
Brand Knowledge
consumers' knowledge about the brand, that is, what they have learned, felt, seen, and heard about the brand as a result of their experiences over time.
Brand Image
consumers' perceptions about a brand, as reflected by the brand associations held in consumer memory which make up the meaning of the brand
price zoning
creates a price floor and ceiling (for example, minimum and maximum price)
Brand Communications
firms attempt to inform, persuade, and remind consumers about the brands they sell. They inform, that is deliver information about the brand, such as announcing the launch of a new product.
deep assortment
if a store carries only onesies but has many different options in terms of styles, sizes, colors, etc. Store carries only one category but offers multiple choices within that category.
Brand knowledge
key to creating brand equity, because it creates the differential effect that drives brand equity. Brand knowledge is the awareness of the brand name and belief about the brand image. Brand knowledge consists of two components: Brand awareness and brand image.
Brand Salience
measures various aspects of the awareness of the brand and how easily and often the brand is evoked under various situations or circumstances.
Category Points of parity
most likely at the expected product level. Thus, consumers might not consider a bank truly a "bank" unless it offered a range of checking and savings plans; provided safety deposit boxes, traveler's checks, and other such services; and had convenient hours and automated teller machines.
Brand Elements
name, logo, symbol, package design or other characteristic that identify a product and distinguishes it from others
Points of Parity
not necessarily unique to the brand but may in fact be shared with other brands. There are three types: category, competitive, and correlational.
Evaluation
people start to evaluate all the alternative potential purchase options based on the nature of the need and their own priorities.Decisions can be made in rational, objective criteria (such as functionality) or emotional, subjective ones (such as status or prestige).
Active engagement
perhaps the strongest affirmation of brand loyalty occurs when customers are engaged, or willing to invest time, energy, money, or other resources in the brand beyond those expended during purchase or consumption of the brand
Correlational points of parity
potentially negative associations that arise from the existence of other, more positive associations for the brand. One challenge for marketers is that many of the attributes Example:consumers might find it hard to believe a brand is "inexpensive" and at the same time "of the highest quality."
Rational route to brand identity
price service distribution
Product Attributes
product features such as design, color, fabric, etc. are especially important for consumption consideration. utilitarian, aesthetic, and economic customer. Especially important for luxury brands
coverage
proportion of the audience reached by each communication option. Whatever is not reached by one option should be reached by another option.
Specialty stores
retailers that focus on one category of products, such as men's sportswear, women's lingerie, etc.
Boutiques
smaller specialty store with a niche market clientele, carrying trendy and avant-garde merchandise.
Culture
social and cultural changes are instrumental in shaping the needs and aspirations of every generatio
narrow variety/ deep assortment
specialty stores like Victoria's Secret have a narrow variety but deep assortment
problem/ need recognition
state where a person perceives that there is an unfulfilled need. For example, you might need a dress for an interview because you do not have one on hand
SKU
stock keeping unit. Each unique item at the store
Department Stores
stores that are divided into distinct departments such as menswear, womenswear, etc.
Self-owned stores
stores that are fully owned and managed by the brand producer as opposed to being franchised.
increase familiarity and awareness of that brand element.
symbol, logo, character, packaging, or slogan, including advertising and promotion, sponsorship and event marketing, publicity and public relations, and outdoor advertising
vision statement
targets external audience. It is usually long-term oriented. It also presents a framework for future decisions while maintaining flexibility to respond to future changes.
Mission statement
targets internal audience and answers why a brand is in business and what kind of business it is in.
Brand Equity
the power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences over time.
Exclusive distribution
this form of distribution can be either through stores owned by the brand's manufacturers or through an exclusive distribution agreement with a specialty retailer.
contribution
unique information carried by each communication option
broad variety/ narrow assortment
usually department stores have a lot of variety with a narrow assortment.
Types of brand feelings
warmth Fun Excitement security self approval self- respect
Information
when people start to search for the best options and solutions to fulfill the need
Odd Pricing
when the price ends in an odd number ($1.99, $2.95)
price lining
where all items are the same price. ( dollar tree)
User Imagery
• Gender: Venus razors and Secret deodorant have "feminine" associations, whereas Gillette razors and Axe deodorant have more "masculine" associations. • Age: Pepsi Cola, Powerade energy sports drink, and Under Armor performance clothing, shoes and accessories have positioned themselves as fresher and younger in spirit than Coke, Gatorade, and Nike, respectively. • Race: Goya foods and the Univision television network have a strong identification with the Hispanic market. • Income: Sperry Topsider shoes, Polo shirts, and BMW automobiles became associated with "yuppies"—young, affluent, urban professionals.