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MOS 1021 Unit #7 > Chapter 13 > Flashcards

Chapter 13 Flashcards

1
Q

What is a product?

A

Anything that can be offered to a market for attention, acquisition,
use, or consumption that might
satisfy a want or need

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2
Q

Do products include more than just tangible objects?

A

WHEN BROADLY DEFINED, products also include services, events, persons, places, organizations, and ideas or a
mixture of these

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3
Q

What are examples of tangible objects?

A

Cars, clothing, or mobile phones

Apple iPhone, a Toyota Camry, and a Caffé Mocha at Starbucks are products

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4
Q

Give examples of products (when broadly defined) that aren’t tangible objects.

A

Trip to Las Vegas, TD online investment services, your Instagram account, and advice from your family doctor.

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5
Q

Why do we give special attention to services?

A

Because of their importance in the world economy

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6
Q

What are services?

A

An activity, benefit, or satisfaction
offered for sale that is essentially
intangible and does not result in
the ownership of anything.

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7
Q

What are examples of services?

A

Banking, hotel, airline travel, retail, wireless communication, and home-repair services

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8
Q

What is the starting point of marketing mix planning?

A

Building an offering that brings value to target customers.

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9
Q

What is a key element in the overall market offering?

A

Products

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10
Q

What is the foundation of profitable customer relationships?

A

The company’s market offering, which delivers value to customers.

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11
Q

What elements can a company’s market offering include?

A

Both tangible goods and services.

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12
Q

What approaches can company’s take when offering goods & services?

A
  1. Pure tangible goods
  2. Pure services
  3. Usually many good and services combinations possible
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13
Q

What does it mean when a market offer consists of pure tangible goods?

A

Such as soap, tooth-paste, or salt; no services accompany the product

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14
Q

What does it mean when a market offer consists of pure services?

A

For which the market offer consists primarily of a service. Examples include a doctor’s exam and financial services

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15
Q

What new level in creating value for their customers, are companies moving to?

A

Beyond simply making products and delivering services, they’re creating and managing CUSTOMER EXPERIENCES with their brands or companies

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16
Q

Why are companies focusing on creating customer experiences?

A

To differentiate their offers as products and services become more commoditized

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17
Q

True or false: Experiences haven’t always been an important part of marketing for some companies

A

False: They HAVE

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18
Q

How does Disney incorporate experiences into its marketing?

A

By manufacturing dreams and memories through movies and theme parks, delivering “small wows” to customers.

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19
Q

How does Nike incorporate experiences into its marketing?

A

“It’s not so much the shoes but where they take you,” focusing on the experience and inspiration rather than just the product.

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20
Q

How are firms evolving their traditional goods and services?

A

Are recasting their traditional goods and services to create experiences

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21
Q

What are the 3 levels of PRODUCT?

A
  1. Core customer value
  2. Actual product
  3. Augmented product
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22
Q

At the most basic level, the company asks, “What is the customer really buying?”
Give an example of this ideology.

A

Ppl who buy Apple iPad are buying more than just a tablet computer. They are buying: entertainment, self-expression, productivity, and connectivity—a mobile and personal window to the world

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23
Q

What question does the most basic level (CORE CUSTOMER VALUE), address?

A

“What is the buyer really buying?”

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24
Q

What must marketers define first when designing products?

A

The core, problem-solving benefits, services, or experiences that consumers seek

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25
Q

What does a woman buying lipstick typically seek beyond the product itself?

A

More than lip color; she seeks hope or confidence, as suggested by Charles Revson of Revlon.

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26
Q

What do Harley-Davidson customers buy beyond the motorcycle itself?

A

Self-expression, lifestyles, aspirations, and dreams.

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27
Q

What are the 5 components that need to be developed at the second level: “Actual Product”?

A
  1. Brand name
  2. Quality level
  3. Packaging
  4. Design
  5. Features
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28
Q

What are the 4 components of “Augmented Product”?

A
  1. Delivery and credit
  2. Product support
  3. Warranty
  4. After-sale service
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29
Q

At the 2nd level, what must product planners turn the core benefit into?

A

An actual product

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30
Q

Explain how a Harley Davidson motorcycle is an actual product.

A

Its name, styling, features, sounds, parts, and other attributes are all carefully combined to deliver the core customer values of freedom and independence

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31
Q

What is the augmented product?

A

The additional consumer services and benefits offered around the core benefit and actual product.

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32
Q

What augmented benefits does Harley-Davidson provide with its motorcycles?

A

A warranty on parts and workmanship, quick repair services, accessories, and web and mobile support.

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33
Q

What additional benefits does the Harley Owners Group (H.O.G.) offer?

A

Roadside assistance, H.O.G. rallies and events, and regular issues of HOG Magazine featuring news, product information, and riding stories.

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34
Q

How do consumers view products in terms of satisfaction?

A

As complex bundles of benefits that satisfy their needs.

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35
Q

What is the first step marketers take when developing products?

A

Identifying the core customer value that consumers seek.

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36
Q

What follows after identifying the core customer value?

A

Designing the actual product.

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37
Q

What is the purpose of augmenting a product?

A

To create additional customer value and provide a full and satisfying brand experience.

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38
Q

What is consumer product?

A

A product bought by final consum-ers for personal consumption.

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39
Q

What is convenience product?

A

A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

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40
Q

What is shopping product?

A

A consumer product that the customer, in the process of selecting
and purchasing usually compares
on such attributes as suitability,
quality, price, and style.

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41
Q

What are the 2 broad classes products and services can fall into based on the types of consumers who use them?

A
  1. Consumer products
  2. Industrial products
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42
Q

Broadly defined, what can products also include?

A

Other marketable entities such as experiences, organizations, persons, places, and ideas

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43
Q

How do marketers usually classify consumer products?

A

Based on how consumers go about buying them

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44
Q

What are the 4 types of consumer products?

A
  1. Convenience products
  2. Shopping products
  3. Specialty products
  4. Unsought products
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45
Q

How do the 4 types of consumer products differ from each other and what effect does that have?

A

These products differ in the ways consumers buy them and, therefore, in how they are marketed

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46
Q

What are examples of convenience products?

A

Laundry detergent, candy, magazines, fast food, and toothpaste

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47
Q

How available are convenience products to customers?

A

Usually low-priced, and marketers place them in many locations to make them readily available when customers need or want them

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48
Q

What is the customer buying behaviour like for convenience products?

A

Frequent purchase; little planning, little comparison or shopping effort; low customer involvement

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49
Q

What is the price for convenience products?

A

Low price

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50
Q

What is the distribution like for convenience products?

A

Widespread distribution; convenient locations

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51
Q

What is promotion like for convenience products?

A

Mass promotion by the producer

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52
Q

What is the customer’s buying behaviour for shopping products?

A

Less frequent purchase; much
planning and shopping effort;
comparison of brands on
price, quality, and style

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53
Q

What is the price for shopping products?

A

Higher price

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54
Q

What is the distribution like for shopping products?

A

Selective distribution in fewer
outlets

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55
Q

What is promotion like for shopping products?

A

Advertising and personal selling by both the producer and
resellers

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56
Q

What are examples of shopping products?

A

Major appliances, televisions,
furniture, clothing, and hotel services

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57
Q

What is the customer’s buying behaviour for specialty products?

A

Strong brand preference and
loyalty; special purchase
effort; little comparison of
brands; low price sensitivity

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58
Q

What is the price for specialty products?

A

Highest price

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59
Q

What is distribution like for specialty products?

A

Exclusive distribution in only one or a few outlets per market area

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60
Q

What is promotion like for specialty products?

A

More carefully targeted pro-motion by both the producer and resellers

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61
Q

What are examples of specialty products?

A

Luxury goods, such as Rolex watches or fine crystal, specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods, and the services of medical or legal specialists

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62
Q

What is the customer’s buying behaviour for unsought products?

A

Little product awareness or knowledge (or, if aware, little or even negative interest)

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63
Q

What is the price for unsought products?

A

Varies

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64
Q

What is distribution like for unsought products?

A

Varies

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65
Q

What is promotion like for unsought products?

A

Aggressive advertising and personal selling by the producer and resellers

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66
Q

What are examples of unsought products?

A

Life insurance, Red Cross blood donations, and preplanned funeral services

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67
Q

How do shopping product marketers help customers in their comparison efforts?

A

Provide deeper sales support

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68
Q

What is a speciality product?

A

A consumer product with unique
characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

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69
Q

What is an unsought product?

A

A consumer product that the consumer either does not know about or knows about but does not normally consider buying.

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70
Q

What is an example of customer’s buying behaviour towards specialty products?

A

Lamborghini automobile
- Buyers willing to travel great distances to buy
- Buyers normally don’t compare specialty products
- Invest only the time needed to reach dealers carrying wanted brands

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71
Q

What is a type of product that is mainly unsought?

A

Most major new innovations are unsought until consumers become aware of them through marketing

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72
Q

How does the nature of unsought products effect their promotion?

A

By their very nature, unsought products require a lot of promoting, personal selling, and other marketing efforts.

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73
Q

What are the 3 levels marketers make product and service decision at?

A
  1. Individual product decisions
  2. Product line decisions
  3. Product mix decisions
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74
Q

What is the focus of all the individual product decisions?

A

To create core customer value

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75
Q

What are the 5 important decisions in the development and marketing of individual products and services?

A
  1. Product and service attributes
  2. Branding
  3. Packaging
  4. Labelling and logos
  5. Product support services
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76
Q

When developing a product or service it involves you to define _____?

A

The benefits it will offer

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77
Q

The benefits of a product or service are communicated and delivered by what 3 product attributes?

A
  1. Quality
  2. Features
  3. Style & design
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78
Q

What is product quality?

A

The characteristics of a product or
service that bear on its ability to
satisfy stated or implied customer
needs.

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79
Q

What is one of the marketer’s major positioning tools?

A

Product quality

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80
Q

How is quality closely linked to customer value and satisfaction?

A

Quality affects product or service performance; thus, it is closely linked to customer value and satisfaction

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81
Q

In the narrowest sense, what can quality be defined as?

A

“No defects”

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82
Q

How do most marketers go beyond the narrow definition of quality?

A

Instead, they define quality in terms of creating customer value and satisfaction

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83
Q

Who is product quality a serious matter to?

A

Marketers, many of whom belong to the Society of Quality Assurance (SQA)

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84
Q

What is the Society of Quality Assurance (SQA)?

A

An international professional membership organization that provides a forum for organizations to exchange information about research and regulations that govern quality
assurance practices

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85
Q

How does Siemens define quality?

A

“Quality is when our customers come back and our products don’t.”

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86
Q

What is total quality management (TQM)?

A

An approach in which all the company’s people are involved in constantly improving the quality of products, services, and business
processes

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87
Q

For most top companies, what kind of approach has become a way of doing business?

A

Customer-driven quality

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88
Q

What is a return-on-quality approach?

A

Viewing quality as an investment and holding quality efforts accountable for bottom-line results

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89
Q

What are the 2 dimensions of product quality?

A
  1. Level
  2. Consistency
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90
Q

In developing a product, what must marketers first choose that will support the product’s positioning?

A

The quality level

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91
Q

When developing a product and choosing the quality level, what does quality mean?

A

Product quality means performance quality—the product’s ability to
perform its functions

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92
Q

What is an example of performance quality?

A

A Rolls-Royce provides higher performance quality than a Chevrolet: It has a smoother ride, lasts longer, and provides more hand-craftsmanship, custom design, luxury, and “creature comforts.”

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93
Q

Do companies try to offer the highest possible performance quality level?

A

They rarely do, few customers want or can afford the high levels of quality offered in products such as a Rolls-Royce automobile, Wa Viking range, or a Rolex watch.

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94
Q

What do companies do instead of offering the highest possible performance quality level?

A

Companies choose a quality level that
matches target market needs and the quality levels of competing products

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95
Q

Beyond quality level what else can high quality mean?

A

Also can mean high levels of quality consistency

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96
Q

What does quality mean in high levels of quality consistency?

A

Quality means conformance quality—freedom from defects and consistency in delivering a targeted level of performance.

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97
Q

True or False: Like performance quality, companies should rarely try and offer high levels of conformance quality

A

False: All companies should strive for high levels of conformance quality.

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98
Q

Give an example of maintaining high conformance quality/quality consistency

A

A Chevrolet can have just as much quality as a Rolls-Royce. Although a Chevy doesn’t perform at the same
level as a Rolls-Royce, it can just as consistently deliver the quality that customers pay for and expect.

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99
Q

What is the starting point in product features?

A

A stripped-down model, one without any extras, is the starting point.

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100
Q

What can the company create higher-level models after the starting point?

A

The company can then create higher-level models by adding more features.

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101
Q

How are features a competitive tool?

A

For differentiating the company’s product from competitors’ products

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102
Q

What is one of the most effective ways to compete (in the context of product features)?

A

Being the first producer to introduce a valued new feature

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103
Q

How can a company identify new features and decide which ones to add?

A

It should periodically survey buyers who have used the product

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104
Q

What kinds of questions should a survey used to identify new features include?

A

How do you like the product? Which specific features of the product do you like most? Which features could we add to improve the product?

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105
Q

What do the answers of surveys (in the context of trying to find and implement new product features) provide to the company?

A

A rich list of feature ideas.

106
Q

What assessment should the company make (after looking at survey results) when deciding to add features to a product?

A

Assess each feature’s VALUE to customers versus its COST to the company.

Features that customers value highly in relation to costs should be added

107
Q

What is the difference between design and style?

A

Design is a larger concept than style. Style simply describes the appearance of a product.

108
Q

What is the difference between design and style specifically in product style & design?

A
  • Styles can be eye catching or boring
  • Sensational style may grab attention and produce pleasing aesthetics, but it does not necessarily make the product PERFORM better
  • Unlike style, DESIGN is more than skin deep—it goes to the very heart of a product
109
Q

What does good design contribute to?

A

Contributes to a product’s usefulness as well as to its looks.

110
Q

Where does good design start from?

A

DOESN’T start with brainstorming new ideas and making prototypes
DOES start from observing customers, understanding their needs, and shaping their product-use experience

111
Q

Product designers should think less about_____________ and more about_____________

A

technical product specifications, how customers will use and benefit from the product

112
Q

What is an example of using smart design based on consumer needs?

A

Sonos created a wireless, internet-enabled speaker system that’s easy to use and fills a whole house
with great sound

113
Q

What is a brand?

A

A name, term, sign, symbol, or design, or a combination of these,
that identifies the products or
services of one seller or group of
sellers and differentiates them
from those of competitors.

114
Q

What is perhaps the most distinctive skill of professional marketers?

A

Their ability to build and manage brands

115
Q

How important is branding to consumers?

A

Consumers view a brand as an important part of a product, and branding can ADD VALUE to a consumer’s purchase.

116
Q

How does branding affect relationships with customers?

A

Customers attach meanings to brands and develop brand relationships

As a result, brands have meaning well beyond a product’s physical attributes

117
Q

What is an example of branding?

A

The Joshua Bell (violinist) playing in the subway, wearing regular clothes, getting no attention vs selling out an music hall for $100/seat with branding

118
Q

How strong is branding?

A

Has become so strong that today hardly anything goes unbranded

119
Q

What are examples of typical household items and groceries that are branded?

A

-Salt is packaged in branded containers
- Common nuts and bolts are packaged with a distributor’s label
- Automobile parts—spark plugs, tires, filters—bear brand names that differ from those of the automakers.
- Fruits, vegetables, dairy products, and poultry are branded—Cuties mandarin oranges, Dole Classic salads, Wonderful Pistachios, Perdue chickens, Eggland’s Best eggs, and Avocados From Mexico

120
Q

How does branding help buyers?

A
  • Help identify products
  • Say something about quality and consistency
121
Q

How does branding help buyers identify products?

A

Brand names help consumers identify products that might benefit them.

122
Q

How does branding say something about the product’s quality and consistency?

A

Brands also say something about product quality and consistency; buyers who always buy the same brand know that they will get the
same features, benefits, and quality each time they buy

123
Q

How does branding give the seller advantages?

A
  • Legal protection
  • Helps segment markets
  • Helps build story based on product’s special qualitites
124
Q

How does branding provide the seller with legal protection?

A

The seller’s brand name and trademark provide legal protection
for unique product features that otherwise might be copied by competitors.

125
Q

How does branding help the seller to segment markets?

A

Ex. rather than offering just one general product to all consumers, Toyota can offer the different Lexus, Toyota, and Scion brands, each with numerous sub-brands—such as Avalon, Camry, Corolla, Prius, Yaris, Tundra, and Land Cruiser.

126
Q

How does branding help build a story based on the product’s special qualities?

A

A brand name becomes the basis on which a whole story can be built about a product’s special qualities.

Ex: goal of Avocados From Mexico—a
a not-for-profit organization representing both Mexican avocado growers and packers and U.S. importers and packers—is to convince consumers that avocados are a must-have snack (“No Guac. No Game!”). Spend lots of money on branding, ex. Superbowl to get the message across

127
Q

What is packaging?

A

The activities of designing andproducing the container orwrapper for a product

128
Q

What was traditionally the primary function of packaging?

A

To hold and protect the product

129
Q

How has the function of packaging changed in recent times?

A

Packaging has become an important marketing tool as well

130
Q

Why has packaging become important in marketing?

A

Increased competition and clutter
on retail store shelves means that packges must now perform many sales tasks

131
Q

What are some sales tasks packaging must now perform?

A
  • Attracting buyers
  • Communicating brand positioning
  • Closing the sale
132
Q

Why is packaging necessary in terms of grabbing the attention of consumers?

A

Not every customer will see a brand’s advertising, social media pages, or other marketing content. However, all consumers who buy and use a product will interact regularly with its packaging.

133
Q

What does “the humble package” represent?

A

Prime marketing space

134
Q

What have companies realized about the power of packaging?

A

Realize the power of good
packaging to create immediate consumer recognition of a brand

135
Q

What is an example of packaging creating immediate consumer recognition?

A

Supermarkets carry lots of brands, Walmart carries 142,000
55%of shoppers decide what brand to buy while shopping. In this highly competitive environment, the package may be the seller’s
best and last chance to influence buyers. So the package itself becomes an important promotional medium.

136
Q

What can innovative packaging provide to a company?

A

Can give a company an advantage over competitors and boost sales.

137
Q

What can distinctive packaging become to a company?

A

An important part of a brand’s identity

138
Q

What is an example of distinctive packaging becoming a part of a brand’s identity?

A

Ex.
- Regular brown package, but with distinct a to z Amazon smiley face logo
- Tiffany blue

139
Q

What are some of the effects of poorly designed packaging?

A

Can cause headaches for consumers and lost sales for the company

140
Q

How can poor packaging create headache for consumers?

A

Ginger-splitting wire twist-ties or sealed plastic clamshell containers that cause “wrap rage” and send thousands of people to the hospital each year with lacerations and
puncture wounds.

141
Q

What is a packaging issue other than poorly designed packaging?

A

Overpackaging

142
Q

Give an example of overpackaging.

A

When a tiny USB flash drive in an oversized cardboard and plastic display package is delivered in a
giant corrugated shipping carton.

143
Q

What is a negative effect of poor packaging?

A

Overpackaging creates an incredible amount of waste, frustrating those who care about the environment.

144
Q

In making packaging decisions, what concern must the company also heed to?

A

Environmental concerns

145
Q

How have companies heeded to environmental concerns with packaging?

A

Many companies have gone “green” by reducing their packaging and using environmentally responsible packaging materials

146
Q

Give an example of product safety becoming a major packaging concern in recent years.

A

Innovative Child Guard safety packaging likely saved P&G’s fast-growing Tide PODS and other unitdose laundry detergent brands.

147
Q

What can labels and logos range from?

A

Range from simple tags attached to
products to complex graphics that are part of the packaging

148
Q

What are the 3 key functions of labels?

A
  1. Identifies
  2. Describes
  3. Promotes
149
Q

How do labels “identify”?

A

At the very least, the label identifies the product or brand, such as the name Sunkist stamped on oranges

150
Q

How do labels “describe”?

A

Label might also describe several things about the product—who made it, where it was made, when it was made, its contents, how it is
to be used, and how to use it safely

151
Q

How do labels “promote”?

A

Might help to promote the brand
and engage customers

152
Q

For many companies, what has become an important element in broader marketing campaigns?

A

Labels

153
Q

What role do labels and brand logos play in branding?

A

They support the brand’s positioning and add personality, helping to create a strong brand–customer connection.

154
Q

Why are logos important in creating a strong brand-customer connection?

A

Customers often become strongly attached to logos as symbols of the
brands they represent

155
Q

Why are logos important to customers?

A

They often evoke strong emotional attachments and act as symbols of the brands they represent.

156
Q

What are examples of iconic logos that evoke strong feelings?

A

Google, Coca-Cola, Twitter, Apple, and Nike.

157
Q

Why do companies redesign their logos periodically?

A

To stay contemporary and adapt to new digital devices and interactive platforms like mobile apps and social media.

158
Q

What are examples of brands that have successfully updated their logos?

A

Yahoo!, eBay, Southwest Airlines, Wendy’s, Pizza Hut, Black+Decker, and Hershey.

159
Q

Why must companies take care when changing such important brand symbol?

A

Customers often form strong connections to the visual representations of their brands and may react strongly to changes

160
Q

What is an example of negative reactions to a logo change?

A

When Gap tried to modernize its familiar old logo, customers went ballistic, highlighting the powerful
connectionpeople have to the visualrepresentations of their
belovedbrands

161
Q

What did the U.S. Federal Trade Commission Act of 1914 establish regarding labels and packaging?

A

That false, misleading, or deceptive labels or packaging constitute unfair competition.

162
Q

What are common issues/legal concerns with labels?

A

They can mislead customers, fail to describe important ingredients, or omit necessary safety warnings.

163
Q

What law regulates labeling and packaging in Canada?

A

The Consumer Packaging and Labelling Act.

164
Q

What is the purpose of the Consumer Packaging and Labelling Act?

A

Establish regulations for goods sold in Canada pertaining to labels and packaging

165
Q

What role does customer service play in product strategy?

A

A company’s offer usually includes some support services, which can be a minor part or a major part of the total offering

166
Q

How can support services influence a customer’s overall brand experience?

A

Keeping customers happy after the sale is the key to building lasting relationships.

167
Q

Give an example of a company that values good support service.

A

Lexus knows that good marketing doesn’t end with making a sale. They believe that if you delight the customer, and continue to delight the customer, you will have a customer for life. So Lexus dealers across the country will go to almost any lengths to take care of customers and keep them coming back

In addition to its Starbucks coffee shop, one Lexus dealership features four massage chairs, two putting greens, two customer lounges, and a library.
“Treat customers like guests in our own home”
Lexus has the world’s most satisfied car owners

168
Q

What is the first step in designing support services?

A

To survey customers periodically to
assess the value of current services and obtain ideas for new ones

169
Q

What can the company do once they have assessed the quality of various support services to customers?

A

Tt can take steps to fix problems and add new services that will both delight customers and yield profits
to the company

170
Q

What can companies now use to provide support services that wasn’t possible before?

A

Now use a sophisticated mix of phone, email, online, social
media, mobile, and interactive voice and data technologies to provide support services

171
Q

What do some analysts see as THE major enduring asset of a company?

A

See brands as the major enduring asset of a company, outlasting the
company’s specific products and facilities

172
Q

What did John Stewart, former CEO of Quaker Oats, say about the importance of brands?

A

“If this business were split up, I would give you the land and bricks and mortar, and I would keep the brands and trademarks, and I would fare better than you.”

173
Q

How did a former McDonald’s CEO emphasize the value of the brand?

A

He stated that even if all physical assets were destroyed, the brand’s value would allow the company to quickly borrow money to replace them.

174
Q

Brands are powerful assets that must be….

A

Carefully developed and managed

175
Q

What is brand equity?

A

The differential effect that know-ing the brand name has on customer response to the product or
its marketing.

176
Q

What is brand value?

A

The total financial value of a
brand.

177
Q

How are brands more than just names and symbols?

A

They are a key element in the company’s relationships with consumers.

178
Q

What do brands represent about consumers?

A

Consumers’ perceptions and feelings about a product and its performance—everything that the product or the service MEANS to consumers.

179
Q

What does the final analysis say about where brands “truly exist”?

A

In the heads of consumer

180
Q

What did a marketer famously say about the creation of products versus brands?

A

“Products are created in the factory, but brands are created in the mind.”

181
Q

A powerful brand has high_____

A

brand equity

182
Q

Brand equity is a measure of what?

A

Measure of the brand’s ability to capture consumer preference and loyalty

183
Q

What does it mean when a brand has positive brand equity?

A

When consumers react more favourably to it than to a generic or unbranded version of the same product

184
Q

What does it mean when a brand has negative brand equity?

A

if consumers react less favourably than to an unbranded version

185
Q

Do all brands hold the same level of power and value in the marketplace?

A

Brands vary in the amount of power and value they hold in the marketplace.

186
Q

What are examples of iconic, long-lasting brands?

A

Coca-Cola, Nike, Disney, Apple, McDonald’s, and Harley-Davidson.

Become larger-than-life icons that maintain their power in the mar-ket for years, even generations.

187
Q

What characterizes newer brands like Amazon, Google, and Airbnb?

A

Win in the marketplace not simply because they deliver unique benefits or reliable service, they create fresh consumer excitement and loyalty by forging deep connections with customers.

188
Q

What is an example of people REALLY having relationships with brands?

A

Instagram: stands for sharing
important moments with friends through pictures as they happen. It means growing closer to friends and family through shared experiences in the moment

189
Q

How does ad agency Young & Rubicam’s BrandAsset Valuator measure brand strength along 4 consumer perception dimensions?

A
  1. differentiation (what makes the brand stand out)
  2. relevance (how consumers feel it meets their needs)
  3. knowledge (how much consumers know about the brand)
  4. esteem (how highly consumers regard and respect the brand)
190
Q

How do brands with strong brand equity rate on the 4 dimension?

A

Rate high on all four dimensions. The brand must be distinct, or consumers will have no reason to choose it over other brands.

191
Q

Does differentiation alone guarantee a brand’s success?

A

No, the brand must also be relevant to consumers’ needs.

192
Q

What must happen before consumers respond to a differentiated and relevant brand?

A

They must first know about and understand it. And that familiarity must lead to a strong, positive consumer-brand connection.

193
Q

What does positive brand equity derive from?

A

From consumer feelings about
and connections with a brand

194
Q

Why is high brand equity important?

A

It makes a brand a highly valuable asset.

195
Q

Is measuring brand value easy?

A

Difficult, but estimates can be made

196
Q

What are examples of some of the most valuable brands and their estimated values?

A

Google: US$246 billion
Apple: US$235 billion
Microsoft: US$143 billion
Amazon: US$140 billion
Facebook: US$130 billion
AT&T: US$115 billion

197
Q

What is one key advantage of high brand equity?

A

It leads to high consumer brand awareness and loyalty.

198
Q

How does high brand equity benefit a company in reseller negotiations?

A

It gives the company more leverage, as consumers expect stores to carry the brand. Therefore can bargain with resellers

199
Q

Why does high brand equity make launching new products easier?

A

A strong brand name carries credibility, making line and brand extensions more successful.

200
Q

How does high brand equity protect a company from competitors?

A

Offers the company some defence against fierce price competition and other competitor marketing actions

201
Q

Above all, a powerful brand forms the basis of what?

A

The basis for building strong and
profitable customer engagement and relationships

202
Q

What is the fundamental asset underlying brand equity?

A

Customer equity—the value of customer relationships that the brand creates

203
Q

A powerful brand is important, but what does it really represent?

A

A profitable set of loyal customers

204
Q

What should the proper focus of marketing be?

A

Building customer equity, with
brand management serving as a major marketing tool.

205
Q

How should companies view themselves in terms of brands and customers?

A

As portfolios of customers, not just portfolios of brands.

206
Q

What are the 4 major brand strategy decisions?

A
  1. Brand positioning
  2. Brand name selection
  3. Brand sponsorship
  4. Brand development
207
Q

Marketers need to position their brands clearly in target customers’ minds. What 3 levels can they position their brands at?

A
  1. Product attributes (lowest level)
  2. Benefit
  3. Beliefs and values (highest level)
208
Q

What is an example of a brand positioning on product attributes?

A

Whirlpool can position its major home appliance products on attributes such as quality, selection,
style, and innovative features.

209
Q

Why are attributes the least desirable level for brand positioning?

A

Competitors can easily copy attributes. More important, customers are not interested in attributes as such—they are interested in what the attributes will do for them.

210
Q

How can a brand be more well-positioned than by product attributes?

A

A brand can be better positioned by associating its name with a desirable benefit.

211
Q

What is an example of a brand positioning on benefits?

A

Whirlpool can go beyond technical product attributes and talk about benefits such as taking the hassle out of cooking and cleaning, better energy savings, or more stylish kitchens. For example, for years, Whirlpool positioned its washing machines as having “the power to get more done.”

212
Q

What are some more examples of brands positioned on benefits?

A

FedEx (guaranteed on-time delivery), Walmart (save money), and Instagram (cap-turing and sharing moments)

213
Q

What are the strongest brands positioned on?

A

Go beyond attribute or benefit positioning. They are positioned on strong beliefs and values, engaging customers on a deep, emotional
level

214
Q

What is an example of a brand positioning on beliefs and values?

A

Whirlpool’s research showed that home appliances are more than just “cold metal” to customers. They have a deeper meaning connected with
their value in customers’ lives and relationships. So they launched a major positioning campaign—“Every Day, Care”—based on the
warm emotions of caring for the people you love with Whirlpool appliances.

215
Q

What is an example of a Whirlpool ad positioned on beliefs and values?

A

Ad centres on a mom’s interactions
with her daughter around their Whirlpool washer–dryer
Within just six months, the brand’s sales rose 6.6%, market share increased 10%, and positive social media sentiment surged sixfold.

216
Q

What does advertising agency Saatchi & Saatchi suggest brands should strive to become?

A

Lovemarks—brands that inspire loyalty beyond reason.

217
Q

Which brands are examples of “lovemarks”?

A

Disney, Apple, Nike, Coca-Cola, Trader Joe’s, Google, and Pinterest.

218
Q

How does a lovemark differ from a regular brand?

A

They pack an emotional wallop. Customers don’t just like these brands; they have strong emotional connections with them and love them unconditionally.

219
Q

What is an example of a lovemark brand in action?

A

Brand positioning: Some brands—
such as Disney—have become love-marks, products or services that pack
an emotional wallop and “inspire loy-alty beyond reason.”

220
Q

What should marketers establish when positioning a brand?

A

A mission for the brand and a vision of what the brand must be and do.

221
Q

What is a brand’s promise?

A

It’s the company’s commitment to deliver a specific set of features, benefits, services, and experiences consistently to buyers.

222
Q

What are the key characteristics of a brand promise?

A

It must be clear, simple, and honest.

223
Q

How does Motel 6 position its brand?

A

By promising clean rooms, low prices, and good service, without claiming luxury amenities.

224
Q

How does the Ritz-Carlton position its brand?

A

By promising luxurious rooms and a memorable experience, without promising low prices.

225
Q

What are the 4 sponsorship options a manufacturer has?

A
  1. national brand (or manufacturer’s brand)
  2. private brand (also called a store brand)
  3. licensed brands
  4. co-brand a product
226
Q

What are examples of national brand (or manufacturer’s brand)?

A

When Samsung and Kellogg sell their output under their own brand names (the Samsung Galaxy tablet or Kellogg’s Frosted Flakes

227
Q

What is store brand (private brand)?

A

A brand created and owned by a
reseller of a product or service.

228
Q

What type of sponsorship has long dominated the retail scene?

A

National brands (or manufacturers’ brands)

229
Q

What has been happening in recent years with store brands?

A

Increasing numbers of retailers and wholesalers have created their own store brands (or private brands).
They’ve been gaining strength for decades, but recent years have seen a store-brand boom

230
Q

What is an example of a retailer that markets a deep assortment of store-brand merchandise?

A

Loblaw, with private-label brands like President’s Choice, no name, and Life Brand at it various retail outlets including the more than 400 gro-cery stores and 1300 Shoppers Drug Mart locations

231
Q

What are some of Amazon’s private brands?

A

AmazonBasics, Amazon Elements, Strathwood, Good-Threads, and Denali.

232
Q

What were store brands once known as?

A

hey were once called “generic” or “no-name” brands.

233
Q

How has the image of store brands changed over time?

A

Store brands have shed their image as cheap knockoffs and now offer a greater selection and high-quality products.

234
Q

What has helped store brands become more competitive?

A

Store brands are out-innovating many national-brand competitors and offering products with name-brand quality.

235
Q

In the so-called battle of the brands between national and private brands, who has many advantages?

A

Retailers. They control what products they stock, where they go on the shelf, what prices they charge, and which ones they will feature in local promotions.

236
Q

How do retailers often price their store brands?

A

Price their store brands lower than comparable national brands and
feature the price differences in side-by-side comparisons on store shelves.

237
Q

Although store brands can be hard to establish and costly to stock and promote, what benefits do they yield?

A

Yield higher profit margins for the reseller. And they give resellers exclusive products that cannot be bought from competitors, resulting in greater store traffic and loyalty.

238
Q

What is an example of a retailer that carries mainly store brand?

A

Retailer Trader Joe’s, carries approximately 90% store brands. Largely controls its own brand destiny vs relying on producers to make and manage the brands it needs to serve its customers best

239
Q

What must national brands do to compete with store brands?

A

Must sharpen their value propositions, especially when appealing to today’s more frugal consumers

240
Q

How are national brands fighting back (against store brands)?

A

By rolling out more discounts and coupons to defend their market share

241
Q

In the long run, how must leading brand marketers compete?

A
  1. Investing in new brands, features, and quality improvements that set them apart.
  2. Design strong advertising programs to maintain high awareness and preference.
  3. Find ways to partner with major distributors to find distribution economies and improve joint performance.
242
Q

What is brand licensing?

A

Brand licensing involves companies using brand names, symbols, or characters created by others for a fee.

243
Q

What types of brands or symbols can be licensed?

A

Companies license names or symbols previously created by other manufacturers, names of well-known celebrities, or characters from popular movies and books

244
Q

Why do companies use brand licensing?

A

To gain an instant and proven brand name without spending years and millions to create one themselves.

245
Q

Apparel and accessories sellers pay large royalties to adorn what types of products?

A

Often feature licensed fashion names on apparel and accessories, such as blouses, ties, linens, and luggage.
With: Calvin Klein, Tommy Hilfiger, Gucci, or Armani

246
Q

What types of products do sellers of children’s items attach licensed character names to?

A

Clothing, toys, school supplies, linens, dolls, lunch boxes, cereals, and more.

247
Q

Give examples of classic and modern licensed character names used on children’s products.

A

Classic: Sesame Street, Disney, Star Wars, Scooby Doo.
Modern: Doc McStuffins, Monster High, Frozen, Minions.

248
Q

How do television shows and movies influence the toy market?

A

Many top-selling retail toys are based on characters and themes from television shows and movies.

249
Q

How have name and character licensing grown in recent years?

A

Rapidly. Sales of licensed products worldwide have grown from only US$4 billion in 1977 to US$55 billion in 1987 and more than US$272 billion today.

250
Q

How profitable can licensing be for companies?

A

It can be highly profitable, with companies like Nickelodeon earning billions from character endorsements.

251
Q

What is Disney’s position in the licensing world?

A

Disney is the world’s biggest licensor, with a large portfolio of popular characters.
Disney characters generated US$56.6 billion in worldwide merchandise sales.

252
Q

What is co-branding?

A

The practice of using the established brand names of two different companies on the same product.

253
Q

What are the advantages of co-branding?

A

Co-branding combines brands from different categories to create broader consumer appeal and greater brand equity.

254
Q

Give an example of co-branding.

A

Taco Bell and Doritos teamed up to create the Doritos Locos Taco. Taco Bell sold more than 100 million of the tacos in just the first 10 weeks

255
Q

More than just co-branding, companies are doing what together?

A

“Co-making” these products

256
Q

How can co-branding take advantage of the complementary strengths of two brands?

A

It also allows a company to expand its existing brand into a category it might other-wise have difficulty entering alone

257
Q

How did Nike and Apple collaborate through co-branding and what benefit did each company gain?

A

They created the Nike+iPod Sport Kit, allowing runners to link their Nike shoes with iPods to track and enhance performance. It gave Apple a presence in the sports and fitness market. Helps Nike bring new value to its customers

258
Q

What are some challenges or limitations of co-branding?

A

Co-branding involves complex legal contracts, careful coordination of marketing efforts, and mutual trust between partners.

259
Q

What must co-branding partners coordinate carefully together?

A

Their advertising, sales promotion, and other marketing efforts

260
Q

What must co-branding partners trust each other to do?

A

Each partner must trust that the other will take good care of its brand. If something damages the reputation of one brand, it can tarnish the co-brand as well

MOS 1021 Unit #7 (2 decks)

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