MKT EXAM 3 (Unit 4-7)
a brand vs BRAND in marketing
- A brand = Brand = name, term, sign, symbol, or design, or a combo of them, intended to identify the goods and services of one seller or group of sellers and differentiate them from those of competition - BRAND IN MARKETING = Really though is EVERYTHING THAT WE DO that creates a certain amount of awareness, reputation, prominence, or loyalty (including sensory, emotional, rational, and cultural) images that you associate with a company or product
targeting strategy: undifferentiated
Do not like an undifferentiated approach to targeting - market is one big segment/ no differences in the needs of customers. Mass marketing approach by designing the same product for everyone
the decisions we make about the supply chain/marketing channel is based on the
POSITIOING that we determined when we made our marketing strategy - So we use our positioning, to drive our decisions about how to ake our marketing channels to get our products to our customers
brand resonance pyramid level 1. (lowest)
Salience= AWARENESS. creating memory node. - all about identity. who are we, what is the brand, the name, the category branding objective: 1. depth of awareness: ease of recognition and recall/ the strength and clarity of category membership 2. breadth of brand awareness. ex- amazon. Want us to think of them for every purchase in every category. - Range of purchase consideration - Range of consumption consideration
1. MAPPING INDUSTRY CHANNELS: the 4 forces that affect our channel strategy and that the channel steward maps out
The channel steward should first map the status of each of four essential forces influencing channel strategy and then research how the forces came to be how they are - 4 forces= 1. customer wants and needs 2. channel capabilities and costs 3. Chanel power and influence 4. whats the competition doing or doing to do
targeting strategy: mass customization (one to one marketing)
movement towards treating every single customer as a unique segment ex) Nike id sneakers→ can customize your own so that its uniquely yours... but also there is a limited number of choices... but to the customer they can build on their needs and wants which brings us closer to this utopia ex) consulting firms do this: they get your unique problems / environment and build a program for how to help you ^ the fact that its tailored to customers needs is an adv
every piece of the value chain must
add value. - an orgs value chain has become increasingly important in the firm's ability to create and sustain a competitive advantage in the marketplace - if a piece of the chain is NOT ADDING VALUE. it should be REMOVED.
product mix
all products that the org sells... made up of product lines
brand resonance pyramid purpose
as a brand manager we would use this frameworks to build brand awareness and favorability with our target market over time - the pyramid is all about how this takes some time and there are steps you need to go though - WHOLE PYRAMID IS REALLY: How we think about building brand relationships overtime
importance of branding for companies
bc they matter for customers so really same reasons as above they reduce risk, reduce search costs, and serve as internal or external symbolic divide but also -increased marketing communication and effecitvness - support brand extensions - increase financial returns
brand equity can grow brand
brand value
how do we display our position/ differentiation to our customers?
by varying the 4PS in the marketing mix in ways that strengthen the uniqueness and value of the product
targeting strategy: multi segment
choose multiple segments to target: we have the resources to reach them/ reach them uniquely enough to put them in different segments - the best. bc we focus on our targets and satisfy them
as we add more products items to the product line, we say we are
deepening the product line. - implies the company is gaining expertise in an area
3 Cs model of brand positioning : consumer analysis
from the consumer POV, the company needs to be ... 1. relevant: address relevant needs 2. resonant: claims should resonate with consumers - value positioning (where the positing takes on something bigger, connecting with the values that the target market holds dear to them) ex) Loreal: because your worth it. Worth it to spend more money when it comes to self care, bc your worth it, - Benefit positing (not just what the feature is, but what the feature does for the target market) ex) pamper diapers= soft and wrap tour baby in comfort and protection - Feature positing (features of the product that would be important to the target market) ex) dove soap: contains ¼ moisturizing cream 3. realistic: offers specific evidence to support a claim. gives consumers reasons to believe it
targeting strategy: concentrated
going after one segment.
product line
groups of closely related product items... within each product line is individual product items
market
heterogeneous set of people or org with needs or wants and the ability and willingness to buy
positioning
identifying and articulating the space we are trying to occupy in a customer's mind, based on their understanding of the problem they are trying to solve and based on how they view the marketplace - as a part of positioning we like to differentiate ourselves in the customers mind relative to competitors --> showing that we are the best option
product items
individual things that are for sale.
targeting / goal of targeting
involves evaluating the attractiveness of each market segment, selecting one or more segments to pursue, and then designing marketing programs to service them - The goal is to select segments that improve the organization;s chances of maximizing its long-term profitability in those segments - A firm's choice of target segments depend on the level of segmentation in a particular situation or marketplace, which ranges from mass market to customization, or one-to-one marketing
channel stewardship
is the intentional set of activities the organization undertakes to design, manage, and evolve its channel strategy to reflect the conditions and changes that arise in the competitive and customer environments -Design decisions refer to the structural aspects of the channel, like the use of intermediaries (or not), the type of relationships (contracts), the amount coverage across a marketplace (or multiple marketplaces), and the overall structure of entities involved and flow of goods and services throughout the entire purchase decision process.
customer and product factors that impact the diffusion of new products through the marketplace using related concepts and frameworks.
marketers identify five categories of potential customers based on their willingness to adopt products and services 1. Innovators: Those who are quick to try anything new and are willing to put up with the pain that sometimes goes with it are called Innovators. 2. Early Adopters: those who are also fairly quick to try something new. They adopt new ideas early but carefully. 3. Early majority (first half of mass market): these people tend to be more deliberate. They will adopt a new idea before the average person but are rarely the leaders. They tend to be very practical. If the technology will solve a problem for them, and it has been tested out and has well-established references, they will adopt. 4. Late majority (other half of mass market) : These people tend to be skeptics. They will adopt an innovation only after a majority of people have tried it. 5. Laggards (people who aren't very influenced by market messages) These people tend to be tradition-bound and suspicious of any change. They have no desire to have anything to do with any new technology.
the firms point in the value chain when looking forward to the end customer is referred to as the
marketing or distribution channel
3 Cs model of brand positioning :company analysis
needs to be - feasible, favorable, and faithful for the company
BCG matrix is used for looking at
portfolio of current products and services and determining what's the relative market share(% of sales we are getting vs total sales everyone is getting ) of this product/service today. And are those low growth markets or high growth.
perceptual map
provides a visual image of consumers' mental landscapes - allows managers to identify gaps in the market, represented by pieces of mental real estate to which no brand has yet laid claim - also allows managers to understand how crowded their own section is, which indicates how fiercely they will need to compete for consumers' attention
brand value is associated with the
resonance pyramid
how services differ from products in relation to the marketing mix
services= not tangible , meanwhile products are tangible..... But its not that black and white bc there are a range of products that have both qualities
Boston Consulting Group Matrix
stars( High market growth High market share Best place to be) - question marks (High market growth Low market share We would like to be doing better here. Would like to grow market share, but that takes resources to do, so hopefully we get the money from our cash cow to fund ? If we are successful and grow market share → will become a star If we are not successful overtime we call ? → problem child) cash cows (Low market growth High market share So, overtime the growth of the market is slowing, so not many new customers are coming in, but we have a high market share of that market. Cash cow BC when we have high market share in a low growth market, means there is not as much competition as we used to have. Not putting as much resources into this product or service, as we would into our stars, so the cost of maintaining the cash cow is lower than a star, but we still get good revenues off of it -bc high market share-so it is producing CASH. and its cash cow, bc we can then put that cash into other products and services and invest in new things, like our starts) dogs (Low market growth Low market share We need to think seriously about getting rid of it Only reason we would hang on to it is if it was like a flagship→ and serves some strategic purpose)
The firm's point in the value chain looking backward to the creation or acquisition of raw materials is referred to as the
supplier network
a good segment is a group of potential buyers who
that will respond favorably to a product offering.
Value Chain
the PLACE part of action plan - represents the interactions involved in this journey, from the creation of a product's most basic form to its final delivery to a targeted customer
product line depth
the number of items in a given product line - Attracts buyers with different preference a - Increases sales/profits by further market segmentation - Capitalizes on economies of scale - Evens out seasonal sales patterns
diffusion
the process by which the adoption of an innovation spreads
product mix width (breadth)
the variety and number of product lines offered. - Diversifies risk - Capitalizes on established reputations - Establish relationships between product lines if any
3 Cs model of brand positioning : competitive analysis
AGAINST THE COMP.... - the brand needs to be.... distinctive, defensible, durable
components of a brand equity
- Brand awareness: familiarity is the simplest form of brand equity - Perceived quality: a known brand often conveys a sense of quality, either good or bad, real or perceived - Brand associations: beyond quality, help us create brand personality that suggests when the brand is appropriate - brand loyalty : repeat buying/ spreading word of mouth - other brand assets = such as patents and trademarks contribute to brand equity, help create barriers to entry, and maintain competitive advantage
why do firms implement positioning statements as a part of creating marketing strategy?
- Brand managers should craft positioning statements to focus on a single, most important claim that distinguishes the product from the competition - Simple messages increase brand recall and receptivity
segmentation benefits customers bc of
- Convenience and time savings -Tailored products and services - Relevant offers - Personalized experience
porters generic forces / competitive advantage
- Cost leadership Strategy Advantage: Low cost Broad (market segment) ex) amazon, ikea - Differentiation strategy Advantage: Product Uniqueness Broad (market segment) May start with a focus strategy and grow here Moving from niche market to serving a bigger broad market with unique products ex) in the 80s/90s apple was pursuing a focus strategy, but as they got more successful, they grew into a differentiation strategy with their broad market - Focus Strategy (Low cost) (CROSSED OUT) Advantage: Low cost Narrow (market segment) crossed out bc --> its very hard to build a low cost strategy when you are serving a small market, bc a low cost strategy is aligned with a low price marketing approach which means you are operating on smaller profits. So it's hard to be successful when you only have small margins for each sale when you have a very small market. To be successful you have to go broad with low price strategy→ you have to make a lot of sales to be successful. - focus strategy/niche (differentiation) Advantage: Product uniqueness Narrow (market segment) Small target market with unique needs and wants A lot of startups start with serving this small group with their unique needs and then they can grow from there
benefits of product line depth
- Equivalent Quality - Efficient Sales and distrbution - package uniformity - advertising economies
4 different levels of products to be considered ... that help perceive value
- Generic Product: combination of elements required to participate in the market - Expected Product: includes generic product plus the minimum that the customer normally expects from a product in the category - Augmented Product: goes beyond expected product to include unexpected value-enhancing elements - Potential Product: extension to the augmented product that includes "everything that might be done to attract and hold customers" (goes beyond what most people might conceive of as possible)
organizations benefit from segmentation bc of
- Identification of unfulfilled needs - Better product design - More targeted promotions - Increased customer satisfaction
brand resonance pyramid level 3 going up
- Judgements and feelings → CUSTOMERS TAKE OVER AND THEY RESPOND) 1. judgments - brand quality (value/satisfaction( - brand credibility (trust worthiness, likability) - Brand superiority (differentiation) 2. feelings - Brand consideration (relevance) - Feelings (fun, excitement, security, social approval, self respect)
brand resonance pyramid level 4 going up
- LOYALTY/ Resonance - Achieving resonance establishes a product or brand's relationship with consumers such that they feel a personal connection to the brand resonance is shown through - Behavioral loyalty (repeat purchases) - Attitudinal attachment (emotional connection ot brand) - Sense of community (affiliation with others who also use the brand- ex) jeep wave) - Active engagement (want to be engaged w the brand)
markets vs industries
- Markets= people or businesses that we are targeting to sell products or services to - industries = ollections of businesses that do the same or similar thing. Like the railway industry= a group of companies whose operations yield similar outcomes. Or like the phone industry AT&T verizon
methods for consumer segmentation
- Need to understand each groups needs and wants, helps us figure out which segments to target and how we should position ourselves to show we are what they want 1. Geographic: country, region, city, urban/rural, climate 2. Demographic: age, income, gender, generation, marital status, occupation, edu 3. Psychographic: lifestyle, interest, activities, opinions 4. Behavioral: what they do with our products/ services AKA usage rate, loyalty, product knowledge, involvement, purchase occasion, buying stage 5. Benefits sought: convenience, value, safety, status what are they looking for, where do they get value - This is what we always want to know, but hard to get out of people as we make the segments, so we use the other 4 here as a proxy to benefits sought - Other 4 are easy to get, so then we make an educated guess to make a guess the benefits sought
why is Unique selling proposition important in a positioning statement
- Unique selling proposition (USP) is a type of value claim that offers a prospective customer a specific, unique, and superior reason to purchase the product - Brands often highlight their most important value claim through the use of a USP - USP must hinge on a specific benefit that competitors could not copy and that was resonant and relevant enough to persuade consumers to buy
additional approach to creating segmentation bases for both consumers and businesses: who, what, why.
- Used to determine which variable should be used.... Helpful to group these segmentation variables into 3 categories: who buys, what they buy, and why they buy it 1. WHO= who are the customers demographic, media habits, lifestyle 2. WHAT= what have the customers done with the products and services Usage, loyalty - RFM Metrics: Recency (How recently did they engage with us as a customer), Frequency (How frequently cid they engage with us), and Monetary (How much did they spend) 3. WHY= why do customers make the decisions they do ? - Needs, preferences, decision processes - Such insight helps firm: Convert non loyal consumers into loyal consumers, Design new products to appeal to new groups of consumers, Change their marketing strategy to increase share and profitability
brand positing
- art of staking out a particular piece of mental real estate in the customers mind for our brand and what it represents by crafting and communicating a differential positioning statement that communicates that we understand the value they are looking for and we can explain why we are the best option for delivering that value
Describe the requirements for effective segmentation
- for a segmentation to be useful, it must be identifiable, substantial, accessible, stable, differentiable, and actionable 1. Identifiable: organization should be able to identify customers in each segment and to measure their characteristics, such as demographics or usage behavior (ex In Africa, Procter & Gamble and Unilever appeal to lower-income consumers by selling small packets of products, such as detergent or salt, at small kiosks) 2. Substantial: a segment needs to be substantial—large enough for a firm to serve profitably (ex coke launched C2, which aimed at 20-40 year old males who liked the taste fo coke, but not the cals and who didnt want the fem diet coke brand. Drink was not a success- but the intended market was male target audience was looking for a full-flavored drink with no calories, not reduced calories Rebranded at coke zero) 3. Accessible: To be accessible, a segment needs to be reachable through communication and distribution channels independent of other segments. (ex young consumers, who increasingly use social media, have become more accessible to firms as they are eager to engage with companies via Twitter, Instagram, tik tok) 4. Stable: A segment should be stable over a long enough period of time that any marketing effort would be successful and profitable. (ex lifestyle is often used as a segmentation variable but the stability of lifestyle segments in the international context appears to be low.) 5. Differencitable: Consumers in a segment should have similar needs, and these needs should differ from the needs of consumers in other segments (ex Japan segment for alc free drinks. Sales in this segment doubled between 2009 and 2012 to 12 million cases of beverages) 6. Actionable: An organization should be able to create products and marketing programs for attracting and serving customers in the segments identified (exa leading US insurance company spent a lot of time and money on segmentation, only to realize later that it could neither identify customers in those segments nor design any specific actions to target them. Not surprisingly, it abandoned its segmentation effort. )
2. building and updating the channel value chain: (DIRECT VS INDIRECT)
- look at indirect and direct channels and how these channels differ. - we make choices about direct or indirect channels based on some factors that are associated with our positioning, strategy, and our strengths and weaknesses to reach out customers ex) size of customers - indirect: more customers - direct: fewer ex) nature of product - indirect: simpler - direct: more complex (support the product more if the product is more complex)
brand elements: brand building (ofense)
- memorable - meaningful - appealing
benefits of product mix width (breadth)
- offset risk - leverage key asset - tap into complimentary offerings
importance of branding for consumers
- reduced risk (the fact that we can choose a product based on knowing abt it reduces risks when making a purchase) - reduced search costs (go with a brand we like dont have to search) - serve as internal or external symbolic device (by me choosing the brand, it tells me something about myself that I like→ and when people see me use the brand, it can symbolize something to them as welL. AFFINITY AND COMMUNITY)
intermediaries
- retailer: sells products to end customers, usually individuals though a variety of formats, like department stores, online etc -distributor/wholesaler: sells products to retailers or business end users. they own and take physical control of inventory and they promote the products, arrange for financing, ordering and payment to customers - jobbers/brokers: specilzied sales agents hired by the supplier or manufacture that focuses on a particular customer segment. they do not take physical control of the products they sell and are compensated through commission
SWOT
- situational analysis - Provides an internal look into the firms strengths and weaknesses And an external look at firms opportunities/ threats - -Horizontal axis= represents positive versus negative factors - Vertical axis = represents internal versus external factors - People mistake marketing tactics as opportunities - People also mistake weaknesses of the orgs as threats like ... lack of expertise in digital marketing on the marketing team, rather tan list them as organizational weaknesses-
cons of intermediaries
- supplier doesn't get the full money bc if we use channel members we have to give them some of the cut. - These entities intermediate the relationship between the supplier and the customer → they distruupt the relationship . so if we have an indirect chanel we are not forming direct relationships with our customers→ a loss that we cant build direct relationships
brand elements: brand protecting (defense)
- transferable - adaptable - protectable
Ansoff's Opportunity Matrix
-- axis are markets VS products - Market Penetration→ Existing products and existing markets (existing customer base) Getting more of our current customers to buy more of our current products more frequency Lowest risk/reward → bc we know how to do this stuff/ serve these customers well - Market development strategy→ focus energy on using our existing products to reach new markets / customers ex) emphasizing different benefits or features with this customer base to make sure they understand the benefit they can get that maybe our current customers aren't interested in. Balanced risk/reward - Produce development → work with existing market (customers) and give them new products Balanced risk/reward - Diversification→ new markets (customers) and new products Fully diversifying our efforts here.Highest risk/reward → all new. We have not built these products or served these customers before
product vs brand
-product= anything that can be ordered to a market for attention, acquisition, use, or consumption that might satisfy a need or want (functional need) - brand= the stuff that adds other dimensions to a product that differentiate it in some way from other products designed to satisfy the same need ex) difference between mac and cheese as a product vs Kraft mac and cheese as a brand
2. building and updating the channel value chain: channel structure
1. Arms length distribution network → each one of the entities in the chanel is individually owned. One company is the supplier, another company is the distributor another company is a retailer - Prefered approach to make surer the customer is getting a better value - Low control, potentially lower cost, potentially higher coverage 2. Franchised → increase control the supplier has over the distribution network Still independent ownership of each level, but there are some exclusivity → they are only aligned with each other. The supplier creates exclusive contracts with distributors and retailers and prescribes how business will be conducted for that brand - ex) fast food restaurant chains 3. Integrated → still a supplier entity, a distributor entity, and a retail entity - But all of it is owned by the supplier - ex) legazitca (eyeglass/sunglass) - High control, poienally higher cost, potentially lower coverage
positioning statement key elements (4)
1. For whom, for when, for where? - Describing the Segment- what we know about them—> like about he person, their usage situation, and location 2. What value - Describing the value to consumers: - WHAT THE BRAND IS KNOWN FOR - Consider economic (grow revenue or help the business lower costs. Help people save money) , functional (will do the job I want it to do well), experimental (the other pieces about using the product that are important to me) , or social (what is the use of this product convey to other about who i am) 3. Why and how? - Proof of value: why its believable - Why should people know that it has this value 4. Relative to whom (competition set; category) - An explicit description of the competitive set in which the brand classifies itself and the alternatives consumers may be considering - This helps consumers establish a frame of reference for the purchase decision - This section of the position statement can either help consumers classify the brand as similar to other brands or product categories they are already familiar with, or differentiate and distinguish it as something completely different
common methods for business segmentation:
1. Geographic: country, region, city, urban/rural Firmographics: industry, firm size, ownership, global/regional 2. Buying approach: centralized or decentralized purchase, purchase policies, involvement of decision makers 3. Behavioral: volume, purchase frequency, attitude towards risk, loyalty, urgency 4. Benefits Sought: Price, product quality, service, relationship - Part of understanding this behavioral line is satisfiers (basic threshhold/low price) vs optimizers (looking for the best top of the line and will prob pay more for it )
3. Aligning and influencing the channel system. hard vs soft power
1. Hard power AKA legitimate power. - Unique product/technology or brand Or you can show hard power with Market access and intelligence data → usually what retailers bring to the table in negotiation 2. soft power - the trust and commitment that are build up overtime with our collaborators in the channel
characteristics of services
1. Intangibility: Search, Experience, and Credence Quality - Because the aspects of services are intangible, they are inherently more difficult for customers to evaluate relative to tangible products. 2. Inseparability: Between service and Providers - Services are usually inseparable from the service providers and/or customer. so, the relationship between the customer and the service provider is critical to the overall evaluation of the experience ex)to perform a haircut you need the stylist and the customer in the same place. As a result, the relationship between the customer and the service provider is critical to the overall evaluation of the experience. 3. Heterogeneity and Perishability - Services delivered by humans tend to be more consistent with each service execution. like starbucks drinks - One problem with services is that if a customer does not buy the service right when it is offered, the service cannot be stored. like airplane seats
we can think of the value chain as 2 distinct sections based on where the firm sits in the value chain
1. Marketing (or distribution) Channel: the firm's point in the value chain looking forward to the end customer - Because the marketing channel adds value directly to the customer, it is part of the value chain for which marketing managers are more responsible and for which marketing managers lead decision making 2. Supplier Network: the firm's point in the value chain looking backward to the creation or acquisition of raw materials
Benefits of Using Intermediaries
1. Specialization - Allows us to specialize and focus on what we do best 2. Contact Efficiency - If you are trying to sell to a bunch of customers, you would have to set up thousands of points of contact in order to sell to each customer Like when we go grocery shopping we dont go to each producer of each item, we can just go to the grocery shop as it has everything 3. Discrepancies *Main benefit - We can overcome discrepancies the exist btw the producer and the customer 1. Quantity: Producers would want to sell in large quantities, but customers usually just want to buy one at a time. So, intermediaries will buy large volume from producers and sell to us 1 at a time 2. Spacial: producers have a few manufacturing facilities over the world. And customers exist all over the world. Use intermediaries to bridge gaps between where producers are located and where consumers live' 3. Temporal: Producers would like to produce all year long, meanwhile customers want to buy when you want to buy Aka christmas merch, we want in de cember, but procedures want o make them most of the year Intermediaries help us overcome this as they buy the items earlier in the year and sell them to us when we want them 4. Assortment: Individual producers make their brands, but as customers we want to look at a wide assortment of items so we may want to look at multiple different brands or buy multiple things at one place → so intermediaries can pull all these items together and help overcome this assortment discrepancy
competitive advantage 2 basic options in terms of adtanage you are trying to gain in the marketplace relative to competition
1. Your advantage is Low cost→ low cost operator. Pursuing lowering costs structure in your org. investments you make in your org are about lowering the costs of your business 2. Product uniqueness: having unique or better product or services in the marketplace. Better quality, unique features/ well branded/ known/ superior brand→ org is investing that the product is unique ex) Apple, the four seasons
types of marketing channel structures used to reach consumers and organizations, and understand how marketers make decisions when designing marketing channels to reflect the positioning of the firm and meet the needs of target customers.
1. distributor/wholesale chanel: also retailer in the chanel, we just call the channel by its first thing (indirect) 2. jobber/broke→ can include retail (indirect) 3.. Retailer channel (supplier directly to retailer) (indirect) 4. Supplier's own sales and distribution (DIRECT CHANNEL) supplier reaching end customer--> no use of an intermediary to reach end customer so they must manage all the functions and costs associated with disbutruting products (kinda a lot to handle) - Management decisions, include choices about determining incentives and channel margins (profits) and setting the rules that govern the daily behavior of the supplier and other channel members.
2. building and updating the channel value chain: levels of distribution intensity
1. intensive= form of distribution aimed at MASS MARKET SELLING. like having a product available in every outlet Like grocery items. → can find in target, heb, walmart, cvs. (MANY INTERMEDIARIES) 2. selective= work with selected intermediaries. shopping and some speciality goods - trying to reach a higher prince point → higher status item - some complexity to this product, so we need trained sales associate to work with these products so people dont feel jipped (SEVERAL INTERMEDIARIES) 3. exclusive= a form of distribution that established one dealers within a given area - Only working with one entity in a geographic area - Like car sales→ only a few maz dealers in a larger geo area Status perception (ONE INTERMEDIARY)
3 Disciplines of Channel Stewardship
1. mapping the industry channels to get an overall view of the 4 external forces that affect our channel strategy 2. building and updating the company's value chain at the field level - direct or indirect - level of distribution intensity - channel structure 3. aligning and influencing the roles of the various partners in the channel system and altering their behavior when necessary to promote a high level of system performance. - forms of power - channel conflict
Why do companies need segments?
2 reasons: different people want different things (forms of value) AND no company (even amazon) has enough resources to serve every single customer with the best possible value
3 C's model of brand positioning
3 areas and what needs to be achieved for all these to do well - consumer analysis - competitive analysis - company analysis
brand equity
= described as the set of assets linked to the brands name that adds or subtracts from the value of that product or service. can be pos or neg - Positive brand equity: causes customers to react more favorably to a product or service when the brand is identified - Negative brand equity: causes customers to react less favorably to promotion of a product or service when the brand of that product or service is identified
brand culture
= evolves as various authors create stories that involve the brand 4 authorirs: The firm, popular culture, customers, influencers
What is a collection of products and services?
= portfolio of products and services
positioning statement
=strategic document that communicates the unique value the brand would offer to a particular target market segment. - They distill the brands value proposition into a compelling answer to the question, WHY SHOULD I BUY. AKA the document that communicates our unique value
target scope in porters/ competitive advantage
Are you going after a broad audience : a big customer base you are trying to serve OR Narrow (niche) : smaller target segment
brand resonance pyramid level 2 going up
ESTABLISHING MEANING. connect the initial memory node from salience to other associations we have in our brain. MENTAL MAPS. - performance and imagery 1. brand preformance = brands features and benefits) → what would I be evaluating about this brand vs other brands in the category.... characteristics and features, price, style, design 2. Imagery= what this brand looks like and sounds like and how it exists as its own. the emotional connection to it.... looked at user profiles, personality and values, history, experiences - brands make intentional choices about the brand so that connections can be made in the minds of our customers
stages of the typical process that firms use to systematically develop and evolve products and services, in an effort to reduce the risks and costs associated with product/service development.
Every org has this process. Needs to be lead by a new product strategy - Centered around positioning 1. new product strategy: : links the new-product development process with the objectives of the marketing department, business unit, and corporation (the most important step- have to do this before anything else) 2. idea generation 3. idea screening blah blah to a 7th step
Positioning Statement Format
For (target market), (brand) is the only brand among all (competitive set) that (unique claim) bc (reason to believe).
why are segmenting and targeting so important in the marketplace
Segmenting/ targeting = critical for orgs to determine peoples needs, wants, behavior, cost sensitivity, and etc that require variations in the marketing mix (4Ps) in order to be successful in the marketplace - once we segment the market and determine which segments we want to target we need to identify how we will position our products and services in the marketplace so that our marketing programs communicate the value we can provide
What is Ansoff matrix used for
The ansoff matrix is used to determine the different possible expansion strategies a business can go with
3. Aligning and influencing the channel system. channel conflict: 2 forms of conflict
WHO HAS POWER. 1. Horizontal conflict: occur among firms at the same level of the channel (ex 2 car dealers or 2 retailers) - We usually dont worry too much about this bc its often just competition 2. Vertical conflict: occur between different levels of the same channel (eg black and decker and home depot) - When 2 levels of the channel are in conflict with each other. Like the retail level being in conflict with the producer level - can happen bc of disintermediation
association map
When the brand of interest, puts their brand at the center and then map the closeness of other brands and other factors that would exist in a customers mind When each of those tings get closer to the center
market segment
a more homogeneous subgroup of people or orgs sharing one of more characteris that cause them to have similar product needs
marketing channels
a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer
sku
a specific unit of inventory that is carried as a separate identifiable unit ex) how many blue versions do we sell vs red versions of this thing
market segmentation
act of dividing a market into meaningful groups based on the needs and wants
targeting strategies
undifferentiated, multi segment, concentrated, mass customization
overall segmentation leads to a better understanding of what
what customers want, which leads to more accurate marketing objectives, and then improved resources, and then better marketing results
porters generic forces / competitive advantage is looking at...
what helps us understand / predict companies success in the marketplace - If a company knows how to choose a strategy and then successfully pursue it, good marker that they will be successful
as we add more product line to our product mix, we are
widening the mix
