Building a Brand (Designing Marketing Mix – Product, Price, Place)

Question 1

Product as it relates to Brand

Answer 1

The creation of brand equity requires that the design of a product satisfies consumer wants and needs.

Question 2

Experimental Marketing

Answer 2

o Promotes a product by communicating features and benefits and connecting it with unique and interesting consumer experiences
o “Idea is not to sell something, but to demonstrate how a brand can enrich a customer’s life.”

Question 3

Brand Experience Scale

Answer 3

Sensory
o Lush
o Victoria secret

Affective
o Disney
o Pixar

Behavioural
o Food delivery

Intellectual
o Dating apps

Question 4

Relationship Marketing

Answer 4

o Transcend an actual product or service to create stronger bonds with consumer
o Maximize brand resonance

Question 5

Mass Customization

Answer 5

o Making products to fit customers’ exact specifications
o Digital-age technology enables customized products

Question 6

Permission Marketing

Answer 6

o The practice of marketing to consumers only after gaining their express
permission

Question 7

Perceived Quality

Answer 7

E.g., iPhone creating new versions all the time. How am I going to make the quality better next time around?

Question 8

Pricing and brand equity

Answer 8

Pricing creates associations in the consumer’s mind – which can build (or hurt) brand equity.

Question 9

What can price do in the mind of the customer?

Answer 9

Pricing can change people’s experiences with a product and, therefore, the outcomes from consuming this product.

Question 10

Choosing a pricing strategy to build brand equity means determining

Answer 10

o A method for setting current prices, and
o A policy for choosing the depth and duration of promotions and discounts

Question 11

prices must be deemed related to

Answer 11

quality

People sometime believe that price is a representation of quality and changes peoples experiences with the product and outcomes from consuming that product
o Stanford wine experiment

Question 12

Value Pricing

Answer 12

o Objective is to uncover the right blend of product quality, product costs, and product prices
o That fully satisfies the needs and wants of consumers
o As well as the profit targets of the firm

Question 13

Price Segmentation

Answer 13

Sets and adjusts prices for appropriate market segments

Question 14

Everyday Low Pricing

Answer 14

Avoids the sawtooth pattern of alternating price increases and decreases

Avoids discounts

In favor of a more consistent set of “everyday” base prices on products

Question 15

Reasons for Price Stability

Answer 15

o Forward buying
o Diverting

Question 16

Direct channels

Answer 16

Selling through personal contacts from the company to prospective customers
* Mail, phone, electronic means, or in-person visits

oManufacturers may choose to sell directly to consumers

Question 17

Brand equity issues of selling through direct channels include

Answer 17

 Company-owned stores
 Store-within-a-store
 Other means may be by phone, mail, or electronic means

Question 18

Indirect channels

Answer 18

Selling through third-party intermediaries
 Agents, broker representatives, wholesalers or distributors, or retailers or dealers

Question 19

How does indirect channels affect brand equity

Answer 19

 Push and pull strategies
 Channel support
 Retail segmentation
 Cooperative advertising

Question 20

Push/Pull strategy

Answer 20

pushing your brand in front of audiences (usually with paid advertising or promotions). Pull marketing on the other hand means implementing a strategy that naturally draws consumer interest in your brand or products

Pull – consumers use their buying power and pull it through the channel
Push – you push your product down the supply chain