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Marketing > Deck 8 - Branding - lecture 9 > Flashcards

Deck 8 - Branding - lecture 9 Flashcards

1
Q

what is brand equity

A

positive differential effect that knowing brand name has on customer response to product or service

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2
Q

what does brand equity result in

A

customers showing a preference for one product over another when they are basically identical

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3
Q

branding benefits *

A

consumer (easy product identification),
manufacturer (creates loyalty),
retailer (attracts customers)

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4
Q

what are branding benefits for consumers *

A

easier product identification,
communicates benefits and features,
reduces risk in purchasing

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5
Q

what are branding benefits for manufacturers *

A

helps create loyalty,
defends against competition,
allows premium pricing

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6
Q

why are branding benefits a double edged sword for retailers *

A

brings in customers because of brand however this creates brand loyalty not shop loyalty (nike shoes in footlocker)

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7
Q

what is an example of brand loyalty not shop loyalty

A

new nike trainers if not in stock in one shop customer will just go to another

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8
Q

what is the cost difference of acquiring a new customer compared with current

A

acquiring a new customer is about 6 times more expensive than keeping a current customer

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9
Q

what can strong brands do

A

strong brands can override disaster (coke bringing out tap water but didn’t affect them long term)

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10
Q

example of a strong brand overriding disaster

A

tesco horse meat scandal didn’t affect them much long term

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11
Q

how do brands generate value for companies

A

price premiums,
higher market share,
stable earning streams,
growth avenue

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12
Q

why is there a need for global brands

A

pressure to reduce cost,
accelerate international innovation,
internationalisation of tastes and buying patterns

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13
Q

main standardised characteristics

A

product formulation,

brand name

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14
Q

mcdonalds has a global brand but a _____ menu

A

local (China etc)

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15
Q

short-termism affects ______ ________

A

brand equity

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16
Q

what is a way to avoid short-termism affecting brand equity

A

differentiate between ‘overhead costs’ and investment in the future

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17
Q

what are four parts of the product

A

core product,
tangible product,
augmented product,
potential product

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18
Q

what does core product mean

A

main reason for existence and purchase

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19
Q

what does tangible product mean

A

the means by which the core product is made real

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20
Q

example of tangible product

A

design,
packaging,
branding

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21
Q

what does augmented product mean

A

add-on extras that make the product more attractive

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22
Q

example of augmented product

A

insurance deals, extended warranties

23
Q

what is the product life cycle *

A

1 introduction,
2 growth,
3 maturity,
4 decline

24
Q

features of product life cycle introduction 1

A

sales slow to build, small or negative profit, main priority to create awareness of the product

25
Q

features of product life cycle growth 2

A

rapid increase in sales, PRIORITIES - to build up brand preferences, take defensive steps against competition, think about improvements

26
Q

features of product life cycle maturity 3

A

can’t be complacent, consolidate core buyers, nurture distribution channels

27
Q

features of product life cycle decline 4

A

CHOICES - slow down decline, maximise returns while you still can, phased withdrawal

28
Q

example of related diversification from coke

A

a new type of drink (vitamin water for example)

29
Q

example of unrelated diversification from coke

A

a coca cola t-shirt (completely unrelated), highest risk

30
Q

what is a brand

A

an identifying symbol, words, or mark that distinguishes a product or company from its competitors

31
Q

what is the branding dilemma

A

torn between long-term investment and short-term profits

32
Q

what does short-termism affect

A

brand equity

33
Q

what does the core product, tangible product, augmented product and potential product look like as a diagram

A

smallest circle in the middle is the core product, larger circle round that is the tangible product, larger still circle round that is the augmented product, potential is larger round edge but different colour because not yet realised (lec slides ‘product’)

34
Q

what does potential product mean

A

what it could and should be in the future

35
Q

what does product management involve

A

what products should be created and when is the best time to launch them,
capitalise on strength and iron out weaknesses,
decide if older product should be ditched or reinvigorated through modifications or marketing strategy

36
Q

what are the problems with the introduction stage for product life cycle

A

hard to convince retailers on shelf space,
high failure rates of new production so introduction stage makes heavy demands on marketing resources,
need time for marketing effort to take place

37
Q

draw out the product life cycle diagram it has time on x and sales and profit on y

A

two lines sales and profit,

look at post it

38
Q

what does nurturing distribution channels mean for product life cycle maturity

A

likely to be heavy competition and increased marketing expenditure from competitors, good relations with distributors essential

39
Q

what does consolidate core buyers mean for product life cycle maturity

A

encourage them to buy more, may be possible to convert some brand switcher into loyal customers by sales promotion/ advertising

40
Q

what does can’t be complacent mean for product life cycle maturity

A

if product starts to look dated, customers likely to switch brand, small/poorly positioned brands may disappear

41
Q

what are some reasons for the decline phase

A

not necessarily poor management,
technological developments,
changes in consumer tastes,
some fashion products have naturally short life-cycles

42
Q

what does a phased withdrawal involve for product life cycle decline

A

set cut off date but let people know (car manufacturers often do this)

43
Q

what does contract out or sell involve for product life cycle decline

A

smaller firm might see your product as a manageable challenge and satisfactory return

44
Q

what do slow down decline and maximise returns while you can mean for product life cycle decline

A

slow down decline: with marketing expenditure and support,

milk whatever you can from it and then withdraw support

45
Q

what is the product mix

A

total sum of products and variants offered by the organisation

46
Q

what is a product line

A

group of closely related products

47
Q

why would a company make various combinations of a product (lynx different fragrances and product type shower gel body spray)

A

not to cover different markets but to offer lots of choice/variation to keep target segment interested/loyal

48
Q

what is the boston consulting group matrix

A

post it note

49
Q

features of question mark in growth share matrix

A

low market share in high growth market,
requires a high level of investment and has low profitability,
whether it becomes a star depends on how much can afford to invest has product got potential and how effectively can competitors respond to attack (often becomes a double or quit situation)

50
Q

features of star in growth share matrix

A

market leader in high growth market,
profitability good and investment high,
investment needed to maintain product position,
when market matures should become cash cows

51
Q

features of cash cow growth share matrix

A

high market share in low growth market,
profitability good investment low,
cash cows should be generating the resources to support the organisations development in other high-growth markets

52
Q

features of dog in growth share matrix

A

low market share in low growth market,
profitability poor investments divest,
if they require investment to maintain their position they become cash users,
consume more time than they are worth so general recommendation is to divest from these businesses

53
Q

what can you do a growth share matrix for

A

a company and then put their products in the different bits,
adidas:
clothes cash cow,
sports equipment like boxing gloves in question mark,
hats and sunglasses in dog,
sports shoes in star

Marketing (17 decks)

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