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MRKT 354 > Chapter 7: Product Positioning, Branding, and Product Line Strategies > Flashcards

Chapter 7: Product Positioning, Branding, and Product Line Strategies Flashcards

1
Q

what is a brand?

A

a BRAND is a name or symbol used to identify the source of a product

–> Name, term, sign, symbol or design, or a combination of them, intended to identify goods or services, to distinguish them from the competition

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2
Q

what are the five benefits of branding

A
  1. High brand awareness
  2. Emotional connection
  3. Brand loyalty
  4. Price premiums
  5. Product line extensions
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3
Q

describe a fighter/flanker brand

A

newly launched brand in an area/category where you already have a brand

–>protective brands

  • introduced to try to augment market share
  • can protect companies’ existing brands’ price premiums
  • To create stronger points-of- parity with competitors’ brands
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4
Q

describe the different kinds of differentiation with regards to product positioning

A
  • Product Differentiation
    Quality, performance, reliability
  • Service Differentiation
    Reliability, extended service, reputation
  • Brand Differentiation
    Brand status
  • Low Cost of Purchase
    Low price or lower transaction cost
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5
Q

relationship between market share and product positioning

A

market share = product position x marketing efforts

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6
Q

what are the three general management efforts needed that are related to product positioning strategies?

A
  1. Differentiation and Product Positioning
  2. Branding and Brand-Management Strategies
  3. Brand and Product Line Strategies
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7
Q

what three things make up the total benefits derived from product position?

A
  1. Product performance (prod. differentiation)
  2. Service quality (Service diff)
  3. Brand Reputation (brand diff.)
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8
Q

customer value rough formula

A

cust value is difference between total benefits derived from product position and the total cost of obtaining these benefits

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9
Q

what are product performance requirements

A
  1. Reliability
    –> The length of time before failure or malfunction of the product.
  2. Conformance
    –> Incidence of defects that should not have occurred.
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10
Q

what are product performance differentiators?

A
  1. Improvements
    –> Operational characteristics that distinguish product performance.
  2. Durability
    –>Product life and ability to endure demanding use conditions.
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11
Q

what are product performance enhancements?

A
  1. Features
    –> Number and types of options that can be added.
  2. Serviceability
    –> Ease, speed, and costs of maintenance and repair.
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12
Q

what are product performance emotional enhancements>

A
  1. Appearance
    –>The fit, finish, and overall appearance of the product.
  2. Reputation
    –>The image created by the brand name or company.
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13
Q

what are service quality differentiators?

A
  1. high levels of service performance
  2. high responsiveness
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14
Q

service quality enhancements

A
  1. Extended services
  2. Customer empathy (individualized customer attention)
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15
Q

service quality emotional enhancements

A
  1. appearance (e.g. quickness of service personnel at a tire shop)
  2. reputation
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16
Q

A strong brand enhances _____________ , maintains a high level of ____________ , and provides a ________ image or brand personality

A

enhances positive evaluations of a product’s quality

high level of product awareness

consistent image or brand personality

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17
Q

what are the two ways a low cost advantage can be used?

A

low price position

lower ownership costs

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18
Q

what are the four different parts of branding and brand management strategies?

A
  1. brand identity
  2. brand encoding
  3. brand assets and liabilities
  4. brand equity
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19
Q

how to create brand identity

A

define the desired product positioning and value proposition for a specific target market.

*want it to be meaningful to target customes

20
Q

brand encoding system

A

encoding system is pre- sented as a hierarchy of possible naming components, starting with the:
(1) company name, followed by
(2) a brand name, and
(3) enhanced or modified by sub- brand names,
(4) numbers, letters, product names, and benefits.

21
Q

umbrella brand

A

Used in more than one product category
* But is not necessarily the name of the
company or corporation
* Also called a range brand or family brand

  • If the corporate brand is applied to a range of products, then it functions as a family brand too
  • If products linked to a family brand are not carefully considered, the associations to the family brand may become weaker
22
Q

subbrand

A

Brand extension in which the new product carries both the parent brand name and a new name

  • tie back with value, message, but have own values as well
  • look at individual brands to see about own impressions of sub brand (ie Apple Watch might not have same quality impressions as iPhone)
23
Q

what are the five kinds of brand names?

A
  1. Founder Brand Names
  2. Functional Brand Names
  3. Invented Brand Names
  4. Experiential Brand Names
  5. Evocative Brand Names
24
Q

functional brand names

A

These names are derived from the basic benefit provided by the product. Duracell (long lasting), Federal Express (fast delivery), Lean Cuisine (low calorie), Sub-Zero (stays cold), and Microsoft (microcomputer software) each strived to build an association between the brand name and core function of the brand. Federal Express eventually shifted to a name morpheme (FedEx).

25
Q

invented brand names

A

There are two kinds of invented names: those which are built from root words and morphemes, and those which are poetic constructions based on the rhythm or experience of saying them. Agilent and Alliant are invented company names from roots that mean “agile” and “ally.”

–> Poetically created brand names include Oreo, Kleenex, Snapple, and Google. Google is actually derived from the mathematical term googol. Ketchup is an invented word created in China in the 1690s as Kê-chiap. The word evolved to Kechap in Malaysia and Singapore (early 1800s) and eventually became Ketchup in the United States.

26
Q

experiential names

A

These are company or brand names associated with an experi- ence, such as the experience of discovery, success, movement, or good health.

The Internet browsers Explorer, Magellan, Navigator, and Safari are names created to com- municate the experience of surfing the web. Big Bertha, Red Bull, Path Finder, and Silk Soy Milk are also brand names that convey meanings based on people’s experience.

27
Q

evocative names

A

Companies also create names that evoke a positive attribute or a feeling. Examples include Apple, Yahoo, and Virgin Airlines

28
Q

what are the five main ways to protect a brand name and intellectual property

A
  1. copyright
  2. trademark
  3. US Patent
  4. Licensing
  5. Assignment
    ( Assignment of the rights to a product formalizes the transfer of rights held by one party—the assignor—to another party—the assignee. The financial terms may consist of a single payment, a series of payments over time, royalties, or a combi- nation of these options.)
29
Q

what are the five brand assets?

A

– Brand awareness
– Emotional connection
– Brand loyalty
– Product line extensions
– Price premium

30
Q

what are the five brand liabilities

A

– Customer dissatisfaction
– Product or service failures
– Questionable practices
– Poor record on social issues
– Negative associations

31
Q

how to calculate brand assets/brand liabilities scorecard

A

relative importnace of Brand asset/liabillity multiplied by performance (very low = 0, below avg= 25, avg = 50, above avg = 75, very high = 100) = brand asset/liability score

add each individual asset/liabiltiy score to get total

32
Q

brand equity formula

A

brand equity = brand assets - brand liabilities

33
Q

benefits of broad product line

A

– more selling opportunities for sales
force and channel members
– Potential for higher share of wallet
– “Upsell” potential
– More profitable in emerging and
growing markets

34
Q

narrow product line must be ____________

A

more focused in marketing
efforts

35
Q

The intent of umbrella branding is to enhance the effectiveness of marketing programs and to increase demand for product line extensions by _____________________________

A

transferring brand awareness and perceptions of quality from the umbrella brand.

36
Q

What are the four ways that an addition to business’s product line benefits from a strong umbrella brand and adds to the business’s overall profitability?

A
  1. Brand Awareness
  2. Known Quality
  3. Market reach
  4. Product Experience
37
Q

describe vertical brand extensions

A

same brand
same product category

e.g. kit kat new flavours

38
Q

horizontal brand extensions

A

same brand
new product category

–> adding complementary products

39
Q

co branding

A

leverage a strong brand by entering another product-market with cobranding, rather than creating a brand extension.

Cobranding takes advantage of the potential synergy of two brands that share a common market space.

e.g One example is Yoplait yogurt’s cobranding with Trix, a children’s cereal, to create Yoplait Trix yogurt for children.

40
Q

what are three main ways for firms to expand their product line?

A
  • umbrella brand
  • flanker brands
  • new brands
41
Q

new product-market brand extensions

A

enter new markets to exploit
brand reputation

–> e.g Honda building lawnmowers, snowblowers, etc

42
Q

product bundling

A

Bundling products creates a complete customer solution that has the potential to pro- vide a superior customer value and attract customers. Products such as living room sets, entertainment packages, and software applications that come with a new compu- ter are product bundles that can create a superior value (economic and perceived) for target customers

43
Q

pure product bundling

A

involves the sale of two or more products at an overall price that is lower than the total price that a customer would pay to purchase the products separately

44
Q

mixed bundling strategy

A

offers the customer the opportunity to purchase each of the items separately at a sale price or bundled with an additional level of savings. There is evidence that when both options are available, customer perceptions of value exceed those produced with a pure bundling strategy.

*shown to be more profitable than pure bundling strategies

45
Q

product unbundling

A

Unbundling a set of products that is normally sold as an integrated bundle or system may also attract and satisfy customers

MRKT 354 (12 decks)

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