Final Review MKTG 5000 - Week 9 and on

The Boundaries of Branding:

- a good branding strategy will not overcome a poorly designed product that fails to deliver on the value proposition -counterfeit products or illegal activities conducted under the name of another company's brand can do significant damage to the brand - there must be real, identifiable and meaningful differences among products in the market space and to create a brand identity

Brands play many roles: Customer Brand Roles:

- brands convey info about the product - brands educate the customer about the product - brands help reassure the customer in the purchase decision.

Which of the following are customer advantages resulting from brand associations?

-Customers process, store, and retrieve product information by brand, which is a big advantage for strong brands. -Strong brands generate a more positive attitude toward the product.

Competitor Brand roles:

-Market leading brands provide competitors with a benchmark against which to compete. For example, Huawei and LG compare their smartphones to brands like Samsung and Apple to get noticed.

Which two of the following are company brand roles?

-The brand offers legal protection for the product through a trademark. -The brand offers an effective and efficient methodology for categorizing products. **Brands also perform important roles for the brand's sponsor (manufacturer, distributor, or retailer). They offer legal protection for the product through trademark. By protecting the brand, the company is able to defend essential product elements such as its features, patentable ideas in manufacturing product design and packaging. A second critical role is that brands offer an effective and efficient methodology for categorizing products. Samsung has thousands of products across many product categories and branding helps keep track of those products.

Competitor - based pricing:

-at the competitor's price or slightly above or below -price war occur when one competitor tries to gain sales and net market share -stability pricing is a neutral set point that doesn't irk competitors or endanger the value proposition

Profit maximization and target ROI:

-bottom line profit is set and then price to meet the target profit -price elasticity of demand (will consumers buy at the target ROI price?)

Company Brand Roles:

-brands offer legal protection for the product through a trademark - brands offer an effective and efficient methodology for categorizing products

Price skimming:

-initial high price indicates a strong price-quality relationship -used by firms with first-mover advantage with high level of panache and exclusivity (electronics, pharmaceuticals) -used effectively in niche markets with few competitors -if the product moves from a niche to a differentiated product, it is difficult to maintain skimming

Which of the following are benefits of brand equity?

-perceived quality -brand connections -brand loyalty

Penetration pricing:

-used to gain maximum market share -price sensitive customers -firm's internal efficiencies lead to cost advantages which allows lower price -sometimes used for new product introduction **be careful with penetration pricing: -price influences customer perception of quality -customers prefer lowering price, not raising it -changing price confuses positioning and brand image

Brand: the fundamental character of a product:

A brand is "a name, term, sign, symbol, or design, or any feature that identifies one seller's goods or services as distinct from those of other sellers." - American Marketing Association

Inseparability:

A customer still can't really experience it until it is actually consumed. -first the service is sold, then it is produced and consumed at the same time and cannot be separated from its provider -allows for customization of service

Brand Association

A primary purchase driver

Intangibility:

A service cannot be experienced through the physical senses. It cannot be seen, heard, tasted, felt, or smelled by a customer. -Goods can easily be experienced through the senses -strong branding can make a service seem more tangible -customers drawn conclusions about the tangible aspects they can experience.

Perishability:

A service cannot be stored or saved up for future use. -----------Perishability is a major potential problem for service providers.---- Fluctuating demand is related to perishability of services.

Brand Equity:

A set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm or that firm's customers.

Captive Pricing

Also called complementary pricing or "razors and blades" like printer and ink cartridges - in the service sector may be called two-part pricing for firms that charge a monthly fee and then bills for specific services like a gym membership and personal trainer fees.

Variability:

Bc it cannot be separated from the provider, a service's quality can only be as good as that of the provider him/herself. -employees can be a source of differentiation. -removing variability and provide a dependable level of service - requires investment in training and good management in a culture that values employees.

The function of ________ ______ occurs within a channel to better match quantities needed to space constraints and inventory turnover requirements.

Breaking bulk

What are three transaction and communication functions performed by intermediaries?

Buying, selling and marketing communications

Licensing:

Companies can choose to extend their brand by licensing , - offering other manufacturers the right to use the brand in exchange for a set fee or %age of sales. -little risk -generates additional revenue -extends the brand and builds brand associations with new users -must be monitored closely for product quality and brand image protection

Service as a Differentiator:

Focusing on service and on enabling employees to effectively deliver service can be one differentiator that is hard for the competition to replicate - Great service provides sustainable competitive advantage

Characteristics of Services

Intangibility, inseparability, variability and perishability

Branding Decisions: National or Store:

National brands: that are sold around the country under the same brand create efficiencies in marketing communications and distribution - higher perceived quality and price Store brands are when large retailers create a store brand to market their own products. - Stores contract with national manufacturers like P&G and compete with national brands through lower prices.

Product Line Pricing:

Price points reflect different benefits at different prices. - hotel rooms, autos, appliances or different brands like Ritz-Carlton, Marriott, Courtyard

Establishing pricing objectives:

Pricing objectives are the desired or expected result associated with a pricing strategy. Pricing objectives must be consistent with other marketing-related objectives (positioning and branding) as well as with the firm's overall objectives for doing business

Branding Decisions: Stand-alone or family branding :

Stand-Alone brands: separate the company from the brand which insulates the company if there is a problem with the brand but are expensive and offer little or no synergy between company brands Family branding advantages and disadvantages are just the opposite. One negative event reflects on all (Heinz ketchup and other condiments)

One price Strategy and Variable Pricing;

The U.S. market is virtually all one-price with the exception of products like automobiles and real estate that use variable pricing. -in many parts of the world, haggling is expected -in the US, B2B and the service sector often uses variable pricing

What are the three customer brand roles?

The brand helps reassure the customer in the purchase decision. The brand conveys information about the product. The brand educates the customer about the product.

Which of the following are distinct benefits of perceived quality to the company?

The perception of quality can lead to a price premium opportunity. The perception of quality is an excellent differentiator in the market. The perception of quality enables companies to extend the product range.

True or false: To be successful, marketing strategy must build quality into the entire customer experience.

True **Successful marketing strategy builds quality in the entire customer experience including product, service and any interaction with the company. Quality can create a price premium, but managers understand that to validate that price premium they must constantly validate the value proposition for the customer and answer the customer question, "what makes this product different"?

The independent entities involved in the process of making products available to consumers or business users are referred to as

a channel of distribution **consists of interdependent entities that are aligned for the purpose of transferring possessions of a product from producer to consumer or business user.

Why Service is Important:

a service is a product in the sense that it represents a bundle of benefits that can satisfy customer wants and needs, yet it does so without physical form. We live in a SERVICE ECONOMY with more than 80% of U.S. jobs being service -related. All domestic job growth is expected to be in the service sector. Services produce 75% of GDP

A _______ intermediary does not take title to the products it distributes.

agent **Most channels are not direct from producer to consumer. Instead, they contain a variety of intermediaries, formerly called middlemen, that play a role in the exchange process between producer and consumer. A wide variety of types of intermediaries exist, and they usually fall within 2 principal categories: merchant intermediaries (take the title to the product) and Agent intermediaries, who do not take the title to the product. ** "taking title" implies ownership of the merchandise and control of the terms of sale - ex: price and delivery date of an order.

Price Bundling:

allows customers to buy a package deal at a lower price than if items bought separately (capable TV, landline phone service, and Internet).

Brand _______ are other possessions such as trademarks and patents that represent a significant competitive advantage.

assets ** Google is very protective of its search algorithm intellectual property, which, in the view of the company, gives the company a significant advantage over other search engines.

Brand ______is a number of emotional, psychological, and performance associations with a brand.

association **In many cases, these associations become a primary purchase driver, particularly with brand-loyal users. Apple is consistently associated with continuous innovation - the brand that always has "something new coming!"

Service and customer experience are :

at the core of marketing: -service is the fundamental basis of exchange : goods or products historically were the basis of exchange but now unique skills and competencies (services) are. -value is co-created by multiple parties, including the company and the customer - customers interact with the offering in different ways. Value is defined by the customer: customers receive value from the experience, not the firm.

The most basic form of brand equity is brand _________which simply means being conscious of the brand.

awareness **the most basic form of brand equity is simply being aware of the brand. Awareness is the foundation of all other brand relationships. It signals familiarity and potential commitment to the brand

A _______ is a name, term, sign, symbol, or design, or a 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.

brand

Extending the product range, price premium opportunity, and differentiation in the market are benefits to the company from perceived high quality of a

brand

Other possessions such as trademarks and patents that represent a significant competitive advantage are called ____

brand assets

Customers develop a number of emotional, psychological, and performance associations with a brand is called

brand association

The foundation of all other brand relationships is ______, which means being conscious of the brand.

brand awareness ***brand awareness is the most basic form of brand equity is simply being aware of the brand. Awareness is the foundation of all other brand relationships. It signals familiarity and potential commitment to the brand

A summary of unique qualities attributed to the brand is referred to as

brand identity ** Commodities are difficult to brand bc customers often fail to perceive a difference among products. Major oil companies such as ExxonMobil, Shell and BP want to differentiate their gasoline from competitors' but find it difficult bc most ppl do not perceive a difference. Despite all their efforts, companies still find it difficult to overcome perceptions about a brand.

A commitment to repeat brand purchases is called ______.

brand loyalty ** this is the strongest form of brand equity and reflect a commitment to repeat purchases. Loyal customers are reassured by the brand and are often ambassadors to new customers. Loyal customers enable a company to reduce marketing costs, leverage trade relationships and speak to competitive threats with greater success.

Which of the following are dimensions of brand equity?

brand loyalty brand assets brand association perceived quality brand awareness

a firm's _______ is the unique elements of a brand that defines the products sold by a firm.

brand strategy

A firm's ______ is the unique elements of a brand that defines the products sold by a firm.

brand strategy **it is an integral part of the product development process bc companies know that successful new products result from a well-conceived branding strategy. At the same time, established products are defined, in large measure, by their brand, and companies work very hard to protect this critical asset.

All things being equal (value proposition, product features), the __________ product gives customers a reason to buy

branded ***This is a big advantage over unbranded products bc customers will infer a level of quality from the branded products that facilitate their purchase decision.

No other single product element conveys more information about the company than its

branding

Offering legal protection for the product through a trademark and offering an effective and efficient methodology for categorizing products are ______ brand roles.

company

Which five of the following are physical distribution functions?

creating assortments breaking bulk accumulating bulk and sorting reducing transactions transportation and storage

Conveying information about the product, educating the customer about the product, and reassuring the customer in the purchase decision are all elements of______ brand roles.

customer Customer brand roles: brands have 3 primary roles.

Perceived Quality:

differentiates the product and creates higher price points

A channel of __________ is a system of interdependent relationships among a set of organizations that facilitates the exchange process.

distribution

Brand Loyalty:

enables a company to reduce marketing costs and leverage trade relationships

Brand ______is a set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm or that firm's customers.

equity

Perceived quality, brand connections, and brand loyalty are all benefits of brand

equity

Which of the following are facilitating functions?

financing risk-taking market research

Reference pricing:

gives the buyer a comparative price -store brands on the shelf next to national brands -used heavily in B2B price lists

Prestige Pricing:

higher than the competition like luxury goods or ultra premium products; leads to higher profits (Voss water)

Price is a core component of value... Value is:

is a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits.

Branding Strategy:

is an integral part of the product development process bc companies know that successful new products result from a well conceived branding strategy

Co-Branding:

joins 2 or more well known brands in a common product or takes 2 brands and markets them in partnership (soft drinks and Splenda; Intel Inside logo) Advantages: strength of each brand supports the other, opens up new markets and lowers marketing communication costs. Disadvantages: loss of control, negative effect if one brand has problems and overexposure

When customers identify with a brand and then transfer their brand ____________to the product, it creates an additional barrier to entry for new brands, especially for smaller firms that lack brand recognition.

loyalty

The strongest form of brand equity is brand ______ because it reflects a commitment to repeat purhcases.

loyalty **loyal customers are reassured by the brand and are often ambassadors to new customers. Loyal customers enable a company to reduce marketing costs, leverage trade relationships and speak to competitive threats with greater success.

Price:

or more specifically the customer's perception of the offering's price - is a key determinant of perceived value **developing price strategy implies looking at branding and product decisions, service approaches, supply chain and marketing communications

Value pricing:

overtly attempts to take into account the role of price as it reflects the bundle of benefits sought by the customer - considers the whole deliverable and all sources of differential advantage - image, service, product, quality, personnel, innovation - that create customer benefit. *Toyota and Honda cars cost more initially but last long, need fewer repairs, and more fuel efficient, and have strong resale value

_______ quality conveys a recognition of a brand's quality that is either positive or negative

perceived **companies use a positive perceived quality to differentiate the product and create higher price points. Rolex watches have been able to sustain a price premium long into their life cycle bc of the perceived quality in design and performance of the product.

A recognition of a brand's quality that is either positive or negative is called

perceived quality **companies use a positive perceived quality to differentiate the product and create higher price points. Rolex for example, has been able to sustain a price premium long into their life cycle bc of the perceived quality and performance of the product.

Brand Assets:

possessions, such as trademarks and patents, that represent a significant competitive advantage

Brand Awareness:

signals a familiarity and potential commitment to the brand

All organizations involved in supplying a firm, the members of its channels of distribution, and its end-user consumers and business users is called a

supply chain **the goal is coordination of these value-adding flows among the entities in a way that maximizes overall value delivered and profit realized. The management of this process is called supply chain management.

A _______ ________represents all organizations involved in supplying a firm, the members of its channels of distribution, and its end-user consumers and business users.

supply chain ** the management of this process if called supply chain management

The coordination of value-adding flows among the entities in a channel of distribution in a way that maximizes overall value delivered and profit realized is called

supply chain management

Which three items can be a component of a brand?

symbol, name, design **a brand, as defined by the AMA, is "a name, term design, symbol or any other feature that identifies one seller's goods or services as distinct from those of other sellers."

Brand equity is _____.

the added value (or reduction) a brand name and symbol gives to a product or service Branding Guru David has defined brand equity as "a set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm or that firm's customers."

Stability Pricing:

the firm tries to find a neutral set point that is neither too low to irritate the competition or too high to risk the value proposition with customers - can provide a competitive advantage in markets that have rapidly changing prices (ex. Southwest airlines bases fares on actual distance traveled rather than load maximization formulas of other airlines. Southwest only has a few stable fares for each flight.)

Promotion involves various forms of communication

to inform, persuade or remind