Identifying Product/Brand to Market Flashcards
What are the stages of a product’s life cycle?
- Introduction
- Growth
- Maturity/stabilization
- Decline
What should be the focus of the marketing strategy during the introduction stage?
- Getting the product into the market
- Establishing a reputation/gaining recognition
- Possibly limiting distribution to a select number of channels
What should be the focus of the marketing strategy during the growth stage?
- Increase distribution channels
- Widen audience
Why do products hit a plateau after the growth stage?
- Most consumers have already bought the product
- Competition has increased
What should be the focus of the marketing strategy during the maturity/stabilization stage?
- Highlighting differences from competitors
What should be the focus of the marketing strategy during the decline stage?
- Enter new markets
- Innovate (eg. improve the product, change the packaging)
- Lower prices
What does branding do for a product?
Lessens the direct correlation between quality and price
The product is no longer a commodity, and consumers will pay more for a brand they identify with
How does the reading define a “brand”?
“the set of physical attributes of a product or service, together with the beliefs and expectations surrounding it – a unique combination which the name or logo of the product or service should evoke in the mind of the audience”
What are some factors that can lead to a brand’s success?
- Substance
- Consumer trust
- Consumer engagement
- Brand story
- Price premium
- Longevity
- Brand name
What does it mean for a brand to have substance?
The brand delivers consistent quality and style (eg. a Champagne houses’ style of NV bottlings)
How is consumer trust built?
- A result of a brand’s substance
- Low-involvement consumers will regularly buy their favorite brands rather than brands they don’t know
- A very important factor in supermarket branded wines
What does it mean for a brand to have consumer engagement?
- Consumer feels their favorite brand’s marketing is aimed directly at them
- A sense of personal ownership of brand and becomes a channel for self-expression
- Any small changes in branding risk alienating loyal consumers
Why are brand stories important?
- Emotional and personal connection with brand
- Younger consumers heavily attracted to wine with a story
- Creates a sense of authenticity and origin
- Connects product with price/POS
Why is a price premium important in branding?
Most consumers view higher-priced items as higher in quality
What is a brand’s longevity?
Longevity is how long the brand has been established
What are some factors in choosing a successful brand name?
- Easy to remember
- Accessible in markets that speak different languages (translation is appropriate, easy to pronounce. Eg. Penfolds/Ben Fu in China)
- Connects to brand story (geographical or family name)
What is brand equity?
The value of a brand to its owner
Measured by:
- Brand awareness
- Brand image
- A calculated $ amount
What is brand positioning?
A brand’s position is where it’s value lies in relation to other brands in the market (usually measured by retail price)
What’s a common method of categorizing brand positioning?
- Value
- Standard
- Premium
- Ultra-Premium
At which point of the product life cycle is a brand’s position established?
Usually at launch (introduction)
- Position can lower to remain competitive
- Position can raise over time through improvement to product, updating brand image, and introducing higher-end products (rarely happens)
What is a benefit to a value brand position?
Higher volume of sales
What is a way to for a producer to market their products across a range of brand positions?
Create a ladder brand, which consists of positions for products at three distinct tiers
What are the three tiers of a ladder brand?
- Accessible
- Stretch
- Aspirational
What characterizes the Accessible tier of a ladder brand?
- Least expensive
- Most widely distributed
- Most regularly consumed
