Chapter 5 Flashcards
Starbucks
- the product is everything the customer experiences core prouduct: coffee functional: staff, service, quality augmented: logo, guarantee, CSR, website potential: "third place"
D-Base Transformers
- selling transformers and undercut by Chinese competitors who could sell at lower prices
- must focus on customers that valued the product D-Base offers – insight technical advice and short production runs
core product
the good/service, the main sell
functional product
how the product functions and performs
augmented product
all the available additions to the basic product
potential product
the true solution the customer wants or seeks from the offering
- customers don’t buy the core product but the potential product
“Build your brand from the inside out, but communicate (focus) from the outside in”
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CEMEX
- building and materials supplier
- adopted 911 like system with cement trucks to make deliveries when best suited for clients without delay issue
How to Build a Strong Brand
- What Business Am I In
- Create Brand Identity
- Implement Brand Identity
- Measure Brand Equity
- Refresh the Brand
What Business Am I In
- never define your brand in terms of what you do
- rather define it in terms of what outcomes you do
Build Brand Identity
- establishes customer behaviour/associations towards a brand
brand identity
- strategic
- set of brand associations
- brand promise
- brand concept as the strategist intends it to be
Samsung
fighting weak brand perception by developing an emotional connection with customers (distinct forms, colours, names, ring tones)
brand image
- set of brand associations actually in the marketplace
- strategist has no control over brand image, can only measure it
brand equity
measured based on brand awareness, brand association and brand loyalty
Mouton Cadet
- repositioning the brand
- french wine competing with modern catchy named products
- now shifting to cater to the budget customer, change formula and packaging
Disney
- extending the brand
- move beyond comics and film into merchandise and vacation destination
Apple
- repositioning the corporate brand
- changed name to reflect the wide variety of products available and how its not just a computer manufacturer (avoid being pigeonholed)
Innovation Lessons
- Get good customer insight
- Get customers to do the work
- Coordinate and Collaborate
- Culture of Innovation Starts at the Top
- Make a Seat at the Table
- Preserve Oral Traditions
- Use Metrics
How to manage brands
- treat like a portfolio
- too many similar brands are confusing and erode loyalty
- too many brands suffer from increasing marketing and operational complexity
- moderately diversified but focused companies succeed
Brand Management Lessons
- Deep understanding of customer needs
- Develop brands based on customer needs
- Establish clear identities for each brand
- Establish goals for each
- Adapt to local tastes when going global
- Establish the relationships and boundaries among different brands
- Make sure new markets still serve your core customer and brand identity
- Designate a portfolio manager to oversee the entire brand portfolio
- Prune and reposition
- Think Global
Arbol [PT.5]
- brand their products
- focused on potential product (i.e. Hush Floor)
