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Marketing Final > Chapter 6: Product and Branding > Flashcards

Chapter 6: Product and Branding Flashcards

1
Q

Product

A

A set of tangible and intangible attributes,
including:
- packaging
- color
- price
- quality
- brand name
- Seller’s services
- reputation

  • Can be a physical object, service, person,
    place, organization, idea, or a combination of
    these
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2
Q

Benefits offered by a product

A

Core product

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3
Q

Physical attributes of a product

A

Actual Product/ Tangible
Product

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4
Q

Additional support / service of a product

A

Augmented product (added features or service to a product to distinguish it)

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5
Q

Product types: Service continuum

A

Good-dominated item (tangible)
- Salt
- Necktie
- Dog Food
- House
- Automobile
- Tailored Suit

Balanced Item
- Fast-food restaurant

Service-dominated item (intangible)
- Television
- Air Travel
- Advertising agency
- Theatre
- Nursing

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6
Q

Stages in new product development process

A
  1. Idea generation & screening
  2. Concept development & testing
  3. Marketing strategy
  4. Business analysis
  5. Product development
  6. Test marketing
  7. Commercialization
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7
Q

Expected cost of a new product launch, steps of new product launch:

A
  1. Identify opportunity
  2. Design
  3. Testing
  4. Introduction
  5. Total
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8
Q

Product Adoption and Diffusion

A

Process by which new products spread
through a population

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9
Q

The factor that affects rate of product adoption and diffusion.

A

The ‘risk-taking’ ability of individuals

People who buy early tend to influence
those who follow them

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10
Q

Adopter categories

A

Two types of consumers: Innovators and imitators

Innovators: Early owners who influence others
- Innovators (2.5%)

Immitators: Those who buy primarily because of influence of other owners
- Early Adopters (13.5%)
- Early Majority (34%)
- Late Majority (34%)
- Laggards (16%)

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11
Q

Two types of consumers

A

Innovators -> Early owners who influenc others
Immitators -> Buy primarily because of influence of other owners

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12
Q

Product Life Cycle

A

Y Axis: Sales revenue or profit
X axis: Stages of the product life cycle

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13
Q

Stages of product life cycle

A
  1. Introduction
  2. Growth
  3. Maturity
  4. Decline
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14
Q

What is the “Product” in PLC?

A

Product in PLC usually refer to product class/form.

  1. Product Classes:
    - Cars
    - Audio Playing Devices
  2. Product Form:
    - Compacts, subcompacts, luxury, sports, SUVs.
    - CDs, tapes, albums
  3. Brands
    - Jaguar, Ford, Cadillac
    - Sony, Panasonic, Aiwa
  4. PLC: “Product” - Product Class/Form (Usually)
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15
Q

Detail of the stages in Product Life Cycle

A
  1. Introduction
    - Sales growth: Low
    - Profits: Negative
    - Marketing goals: Build awareness; Induce Trial
    - Marketing Tactics: Advertising; Pricing
  2. Growth
    - Sales Growth: Very High
    - Profits: Zero or Somewhat Positive
    - Marketing Goals: Maximize Market Share; Build Loyalty
    - Marketing Tactics: New Segments; Ensure availability; Improve 4P’s.
  3. Maturity
    - Sales Growth: Low to Medium
    - Profits: Very Positive
    - Marketing Goals: Maximize profits; Defend Share; Deepen customer relationships
    - Marketing Tactics: Modify products; Fine-tune 4P’s
  4. Decline
    - Sales Growth: Low to negative
    - Profits: Somewhat Positive
    - Marketing Goals: Maximize profits; Do not spend resources on Defending Share
    - Marketing Tactics: Withdraw support; drop weak products; improve contribution
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16
Q

3 Factors of product life cycle

A
  1. Empirical observation
  2. Valid across product categories
  3. Cycles becoming shorter over the years
17
Q

What is a Brand?

A
  • A name, term, sign, symbol, or design, or
    combination of them, intended to identify
    the goods and services of a seller and to
    differentiate them from those of the
    competitors
  • A brand is a set of promises. It implies
    consistency and a defined set of
    expectations.
    1. Promise that establishes credibility
    over time
    2. Builds customer relationships
18
Q

Concept of Brand Equity

A

Brand equity represents the added value
endowed to a product as a result of past
investments in the marketing for the
brand.

Coke Vs Pepsi Example

19
Q

Marketers must have a keen understanding of…

A
  1. Customers
  2. Brand Meaning
  3. Relationship between the two
20
Q

Brand Equity: Customer Level

A

Academic Research: Brands are knowledge structures in memory

  • Derived from psychological research on
    associative network models of memory
  • People learn about brands over time
  • These well-learned knowledge structures
    reflect how customers perceive the brand
21
Q

Customer-Based Brand Equity

A

A brand with high equity is perceived more positively than a generic or less well-known brand.

  1. Where it resides: Customer brand knowledge
    - Associations –> Associations and traits customers have/associate with the brand
  2. Why it matters: Differential Effect
    - Example: Google search results vs Yahoo

The example given implies that consumers may perceive Google’s search results to be more relevant or trustworthy than Yahoo’s, even if the actual difference in the search algorithms or results is negligible. This perception is due to Google’s stronger brand equity.

22
Q

Customer-Based Brand Equity as a “Bridge”

A
  • Customer-based brand equity
    represents the “added value” endowed
    to a product as a result of past
    investments in the marketing of a
    brand.
  • Customer-based brand equity provides
    direction and focus on future marketing
    activities
23
Q

Why do Brands Matter to Consumers?

A
  • Identify source of product
  • Signal of quality
  • Symbolic device: independent source of quality
  • Search cost reducer
  • Risk reducer: Search, Experience, Credence products
  • Source of competitive advantage
  • Build loyal customers
  • Larger Margins
  • Less elastic consumer responses to price increases, more elastic to price decreases
  • Leverage via brand extensions
  • Greater trade cooperation and support
  • Licensing opportunities
  • Means of legal protection
  • Source of financial returns
24
Q

Mindset in Capturing Brand Value

A

Brand Value Chain:

  1. Marketing Program
    - Product
    - Communication
    - Trade
    - Other
  2. Customer Mindset
    - Awareness
    - Attitude
    - Attachment
    - Activity
  3. Product Market Performance
    - Price premiums
    - Price elasticities
    - Cost savings
    - Expansion success
    - Market share
    - Profitability
  4. Shareholder Value
    - Stock price
    - P/E ratio
    - Enterprise value
    - Market capitalization
25
Q

Components of Customer-Based Brand Equity

A
  1. Easy Part: Customer is aware of and familiar with the brand
  2. Hard part: Customer holds strong, favorable, and unique brand associations
    - Distinctive meaning needed to deliver the differential response
26
Q

Sources of Brand Equity (1)

A
  • The consumer is aware of the brand
  • Brand can be conceptualized as knowledge structures in memory that reflect how consumers think about the brand
    1. Attributes
    2. Benefits
    3. Image/experience
27
Q

Sources of Brand Equity (2)

A

The consumer holds some strong, favorable, and unique brand associations in memory.

Brand Equity:
1. Awareness
- Recall
- Recognition

  1. Attitude
    - Types of Associations
    a. Attributes
    b. Benefits
    c. Emotions
  • Strength of Associations
    a. Important deliverable technique
28
Q

Measuring brand equity: what is it and how?

A

It is the “Added Value” from the brand in and of itself.

To estimate brand values, calculate:
1. Projected future earnings for the brand
2. The discount rate to adjust earnings for inflation & risk

Brand earnings are based on a 3-year weighted average of historical profits

29
Q

Brand Strategy, the 4 brand strategies

A

Line Extension: This strategy involves using an existing brand name to launch products in an existing product category. This could mean new flavors, sizes, or variants of a current product. It leverages the equity of the existing brand to introduce new options to the market.

Brand Extension: Here, an existing brand name is used to enter a new product category. This strategy relies on the strength and familiarity of the brand to venture into new markets, assuming the brand’s positive image will transfer to the new product line.

Multibrands: This strategy involves introducing additional brands in an existing product category. A company may use this approach to appeal to different market segments or price points, thus avoiding saturating the market with a single brand and reducing the risk to the parent brand if the new product fails.

New Brands: When a company launches a new brand name for a new product category, it is pursuing a strategy of new brands. This is often used when the existing brand equity is not strong or relevant in the new category, or when the company wants to create an entirely separate brand identity for strategic reasons.

30
Q

Brand Architecture Spectrum

A
  1. House of Brands
  2. Endorser Brands
  3. Sub Branding
  4. Branded House
31
Q
A

Marketing Final (9 decks)

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