Chapter 6 - Value Through Products and Brands Flashcards
What is a product?
A physical good, service, idea, person or place that is capable of offering (in)tangible attributes that individuals or organisations regard as so necessary that they are will to exchange money, patronage or some other unit of value for it.
What is high on Tangible components?
Physical Products
What is a service high in?
Intangible components.
What is a brand?
Name, term, design, symbol or any other feature that identifies one seller’s good as different from another’s.
What the company stands for.
Distinguishing from competition, permitting customers to develop associations and easing purchasing decisions are the function fulfilled by what?
Branding.
What are the 3 product levels?
Core Product
Actual Product
Augmented Product
What type of differentiation occurs at the core level and is based on fundamental technological breakthroughs?
Core Differentiation
Actual Differentiation occurs when…
Organisations compete in the basis of the product’s quality, design, features or packaging.
Augmented Differentiation occurs when…
A firm focuses on the intangible elements through their brands.
What are the features of the Augmented Product?
Brand Values Additional Services Guarantees Installation Delivery
What are the benefits of good branding?
Company value Customer preference and loyalty Barrier to competition High profits Forms a base for brand extensions
What are the benefits to consumers of good branding?
Communicating the features and benefits
Reducing the risk of purchase
Simplifying the purchase decision
Symbolic values
What are the 3 brand naming strategies?
FIC
Family Brand Names (Umbrella) - Heinz, Google
Individual Brand Names - Duracell, Pringles (belong to P&G)
Combination Brand Names - Kellogg’s All Bran, Nokia N Series
What is brand extension?
The use of an existing brand name on a new product in the same broad market. (Anadin - Extra, Ultra, Soluble, Paracetamol, Ibuprofen)
What is brand stretching?
The use of an existing brand name on a new product in an unrelated market. (Virgin - Music & Megastore to Trains, Finance etc)
