Chapter 7 COMPLETED Flashcards
Brand expansion strategies
Fighter brands
Product positioning
Fighter brands
Employed by brands to fight against competitor brands to maintain sales
eg: Intel launching a lower priced brand to battle entering cost-cutting competitor AMD without lowering its prices for Intel’s original brand
Product positioning
Strategically placing a product in the minds of consumers relative to competitors to create a distinct and desirable image in the market
2 components of market share
Product positioning x Marketing effort
3 types of product positioning strategies (DP, BB, BPL)
Differentiation and product positioning strategies
Branding and brand management strategies
Brand and product line strategies
4 types of differentiation and product positioning strategies (PSBL)
Product differentiation
Service differentiation
Brand differentiation
Low cost of purchase
4 types of branding and brand management strategies (BBBB)
Brand identity
Brand encoding
Brand assets & liabilities
Brand equity
4 types of brand and product line strategies (UPBP)
Umbrella & flanker brands
Product line extensions
Bundling & unbundling
Product elimination
When customers value price, firms use ?
Low cost of purchase strategy
When customers value differentiation, firms use ?
Product, service, brand differentiation strategies
Product performance and differentiation
Product quality (reliability)
Product performance differentiators (improvements/durability)
Product performance enhancements (options/serviceability)
Product performance emotional enhancements (appearance, reputation)
Service quality and differentiation
Service quality (reliability/assurance)
Service quality differentiators (performance/responsiveness)
Service quality enhancements (extended services/customer empathy)
Service quality emotional enhancements (appearance/reputation)
Brand identity
Having a defined product positioning and value proposition
Brand encoding
Incorporation of distinctive brand elements to reinforce brand identity
Umbrella brands and subbrands
Umbrella brand: VW Auto
Subbrand: Audi
Subbrand of subbrand: Q series (Q5, 6, 7, 8)
5 kinds of brand naming (FFIEE)
Founder
Functional
Invented
Experiential
Evocative
5 ways to protect brand name and intellectual property (CTPLA)
Copyright
Trademark
Patents
Licensing
Assignments
5 components of brand assets (BEBPP)
Brand awareness
Emotional connection
Brand loyalty
Product line extensions
Price premium
5 components of brand liabilities (CPQPN)
Customer dissatisfaction
Product or service failures
Questionable practices
Poor record or social issues
Negative associations
Brand equity
Brand assets - brand liability
Product line extension
Eg: Toyota in cars -> Lexus models, Toyota models covering a large range of customer preferences
4 benefits to product line extension (BKMP)
Brand awareness
Known quality
Market reach
Product experience
Horizontal brand extensions
Eg: GE -> home electric -> jet engines
Vertical brand extensions
Eg: Casual cuisine adding pizza to existing burgers
Cobranding
A business can leverage a strong brand by entering another product-market with cobranding
New Product-Market Brand Extensions
Eg: Honda expanding to lawn applicances
Pure product bundling strategy
Two or more products sold together at a lower price than if one were to purchase them independently
