Marketing lec 6-10 Flashcards
1
Q
moving from products to brands
A
material utility/functional benefit vs symbol meaning/utility
brands as symbols
meaning from advertising/celebrity culture/popular culture
2
Q
marketing
A
adding, maintaining and enhancing symbolic meaning
turning products into brands
source of comp adv
3
Q
brand
A
-set of differentiating promises link product to customer
-sum of experiences created between consumers & company or product
-curious mix of function & emotion
-instant communication of what takes times and effort to explain
face of business strategy
-only exist in minds of consumers
-powerful enough to influence perceptions and transform product usage experience
4
Q
importance of brands today
A
-permeates all aspects of all societies
-consumer perceive unique added values for brands to be relevant to lives
-brand signifies relationship
-add value in quality & emotional attachments they provide
-strong enough to influence taste perception (e.g. coke vs Pepsi)
-sufficiently important for backlash
5
Q
9 aspects of a strong brand
A
- quality
- 1st in market
- unique positioning
- strong communication programme
- respect of/for consumers (other stakeholders)
- time and consistency
- authenticity
- respect env
- relationship with consumers
6
Q
3 benefits of brands to consumers
A
- image
- risk reduction
- information efficiency
7
Q
image benefit of branding
4 things
A
idea-final value
self realisation
self representation
identification
8
Q
risk reduction benefit of branding
3 elements
A
brand = reduce risk of making wrong decision
-safety
-continuity
-trust
9
Q
info efficiency benefit of branding
A
facilitate info processing
1. provenance
2. orientation
3. interpretation
4. recognition
10
Q
brand equity
A
-aggregation of brand awareness and brand image
-differential effect that the brand name has on customer response to the product or its marketing
-can be positive and negative
e.g. Apple has high brand equity willing to pay more because it is apple
e.g. BP oil leak damage the brand equity
11
Q
brand stretching
A
add it to your brand as you know your brand is so strong (brand/line extensions)
can create new products under the same brand because people know that brand
transfer the positive associations to the new products as well
e.g. Unilever and ben & Jerrys had to pay more for brand as it is well known
12
Q
8 function of brands within companies
A
1-source of value
2-prefer strong = less risky
3-future profits, LT cash flows
4-differential adv between rivals
5-premium pricing (less price sensitive)
6-secure shelf space
7-source of loyalty, retention cheaper than acquire
8-brand stretching
13
Q
building a brand
A
weak -> strong (trust increases)
risk reduction
differentiation
relevance
esteem
emotional bond
14
Q
4 brand strategy decisions
A
- brand positioning (attribute/benefits/belief/value)
- brand name selection (protection)
- brand sponsorship (manufacturer/private/licensing/co branding)
- brand development (line ext/multi brand/new)
15
Q
3 positioning in branding
A
- brand identity
- brand image
- brand perceptions
16
Q
brand image
A
set of mental representations
cognitive and affective
person/group of persons hold towards brand
17
Q
brand image vs brand identity
A
18
Q
brand identity
A
true self of brand
based on vision aim and nature
included in document - defined what must stay and what is free to change
visual brand identity: name, logo, font type, symbols, colour, shape, product benefit descriptions e.g. coke - always coloured vs L’Oreal = lots of variation
19
Q
brand identity prism
A
tool for analysing brand identities
looks at internal and external elements
20
Q
functional vs symbolic brands
A
symbolic - focus on quality & reliability, create strong emotional connection
21
Q
6 features of brand name
A
- easy recall
- consistent with positioning
- indicates benefits and characteristics
- distinctive
- meaningful
- protectable
-not already taken!
22
Q
brand sponsorship
4 things
A
- manufacturer brand (make product under own brand name)
- private brand (link to retailing
- licensing (produce something then buy rights to use someone else’s brand on it)
- co-branding (2 brands come together for 1 product)
23
Q
brand extensions
A
-use of establish brand names to enter new product categories/classes
-benefits of strong brand
types - vertical & horizontal
24
Q
types of brand extensions
A
- vertical (same category)
-different price/quality point - horizontal (different category)
-existing introduces a new product in similar or completely new category
product category & brand name link
1. line extension
2. brand extension
3. multi brands
4. new brands
25
brand hijacking
brands can be hijacked e.g. Burberry being used by football hooligans
26
anti brand activists
create vocal adversarial brand meaning
activists well organised entities raise consumer consciousness about excess and exploitations of corporate capitalism
creates a brand image that directly compete with corporate brand image
27
culture jamming/anti marketing
use advertising tools and techniques subversively to cast a critical light on marketing practices
target successful iconic brands - brands are considered corporate capitalisms most valued & vulnerable symbolic assets
antimarketers use guerrilla tactics to "uncool" iconic brands e.g. Starbucks - big bucks coffee
28
unmanageable brands vs personal brands
owners vs users
what do consumers do with your brand
whose brand is it
where does the brand exist
personal - each of us is a brand, how are you perceived, employment traps
29
importance of brands
companies
-source of equity and value (balance sheet)
-build relationships with customers
-symbolic benefits difficult to copy
consumers
-image
-risk reduction
-info efficiency benefits
30
brand strategy
involves decisions about positioning, naming, sponsorship, extensions
never full control over perceptions as brands exist in consumers minds
31
product
quality, design, packaging, materials, features
tangible and intangible attributes related to physical goods and services ideas people places experiences and even a mix
32
3 product levels
1. core
2. embodied/actual
3. augmented
33
core product
real core benefit/servvice
may be functional benefits(what product will do)
or emotional benefit (how product/service makes people feel)
e.g. kettle crisps
e.g. not actually buying laptop buying benefit that the laptop gives = need access to the internet
34
embodied (Actual) product
consists of physical good or service that provides expected benefit
consists of many factors
e.g. feature/capabilities, durability, design, packaging, promotion, brand name
e.g. laptop
35
augmented product
consists of embodied product plus all other factors necessary to support purchase and any post purchase activities
e.g. credit and finance
training and delivery
36
5 key characteristics of a service
1. intangibility
2. perishability
3. variability
4. inseparability
5. LACK OF OWNERSHIP
37
service
any act or performance offered by one party to another
essentially intangible
consumption of service doesnt result in transfer of ownership even though service process may be attached to physical product
38
marketing mix service
another 3
people
process
physical evidence
39
service innovation development
4 stages
stage 1- services used as aftersales product support
stage 2- aftersales services used to complement & upsell core product
stage 3- services & products used together to differentiate an offering & solve clients lifecycle problems
stage 4- services become fully integrated element in overall offering - servitization
40
sevitization
as a service
refers to industries using their products to sell outcome as a service rather than 1 off sale
e.g. Netflix Spotify
41
why new products fail
12 reasons
1. NPD too expensive
2. design problems
3. unexpected delays time to market = too long
4. good idea but mkt overestimated
5. insufficient demand
6. not as well designed as should be - over designed
7. incorrect positioning
8. incorrect pricing
9. comp fight back more aggressively than expected
10. internal org factors (power/politics)
11. poor marketing
12. ignore/misread/poor market research findings
42
new product development funnel
43
technology adoption life cycle
44
improving new product success
4 ways
1. good market understanding (customers/size/comp/distribution)
2. well defined product concept (TM/product req/benefits)
3. US promise/proposition (high quality, feature, better value in use, clear focus)
4. good communication (consumer, sales force, trade)
45
value of NPD test marketing
yes:
-less failure risk
-refinement of (product mix, promotion, price ,packaging)
-preview performance in mktplace
no:
-too many risk
-expensive
-unneccesary (if PD procedure is followed)
-invalid results
-alert comp (monitor and copy)
46
product life cycle
47
product life cycle in different field
example- polaroid camera
48
customer co-creation
letting the customers decides the next flavour
e.g. Lays
lots of good PR and social media
and maarket testing
nothing stopping nonsense customer suggestions
49
BCG matrix
cash cow - take money and invest in others
question mark - turn into star but high risk
50
promotion
how will people discover our product
social media -> brand positioning
personal selling
public relations
51
brand positioning with promotion
-where sending message
-what is the message (emotional/rational) (product level)
-how does it look/sound/feel like
-who is meant to see it
-when
52
integrated marketing communication
consistent, clear, compelling company and brand messages
careful blend mix of promotion tools
1. advertising
2. sales promotion
3. direct marketing
4. public relations
5. personal selling
53
linear model of communication
link between brand image and identity
communication process
sender -> message -> receiver
54
AIDA model of communication
largely discredited, still most widely used advertising model
impact of promotional tools on consumer response
1. attention (grasp)
2. interest (from customer)
3. desire (for product)
4. action
55
DRIP tasks of marketing communications
Differentiate - position, different to comp
Reinforce - remind/reassure of brand
Inform - aware of brand existence/relevance/attributes
Persuade - encourage customers to behave in particular way
56
push marketing
promote product down marketing channel
e.g. focus on ensuring many retailers carry out products
often focused on B2B tactics e.g. personal selling and trade shows
e.g. Jon Deere
57
pull marketing
promoting the product to end customers
idea is to have end customers demand retailers to carry your products
often focused on B2C tactics: advertising, digital mkting, retail promotions
e.g. Vanish
58
when & how to communicate
message purpose -> message content
awareness -> info e.g. adv
familiarity -> more detail e.g. web
likability -> emotion e.g. social media
purchase -> specifics e.g. instore
aftersales -> reassurance e.g. direct
59
cutting through the clutter
marketers = key task = get consumers attention
DRIP & AIDA all other models highlight importance of standing out and gaining attention
not only goal (attention needs to translate to other things - liking/purchase)
without attention = impossible to persuade consumers (research = strongly influenced by things not consciously aware of)
60
personal selling
most interpersonal part of marketing mix
61
sales management
war between sales and marketing
goal = build skilled & motivated sales team = help create customer value, engage customers and build strong customer relationships
62
personal selling process
steps are transaction oriented aimed at closing specific sale with customer
in long run - single sale is only 1 element of long term customer relationship, selling steps must be understood in broader context of maintaining profitable customer relationships
63
changing sales
buyers (even B2B) start their buying process online
-only contact sales person after already having done extensive research
Digital env allow for finding more qualified leads and focusing on selling solutions (SAVE)
64
5 major advertising decisions
1. obj setting
2. budget decisions
3. message decisions
4. media decisions
5. advertising evaluation
65
advertising
job to help communicate brands value proposition to target customers
must blend well with other promotion and marketing mix decisions
66
2 advertising appeals
depending on goal
1. rational appeals (info, facts, functional benefits)
2. emotional appeals (feelings based imagery, emotions, symbolic benefits)
e.g. ted baker jeans vs mcdonals ad
67
3 controls of the media
1. paid (print tv radio etc) strangers
2. owned (brochure, retail stores, company websites) customers
3. earned (word of mouth, Facebook) fans
68
media types
69
evaluating suitable media
4 ways
reach - % of people in TM exposed to campaign in time period
frequency - how many times exposed to message
impact - strong is message in this platform/believable/reliable
engagement - people actually paying attention to ad
70
digital marketing & social media
search engine optimisation and search engine marketing - online qualification e.g. google
growth in influencer marketing - why influencer work with you, authenticity increasingly important, disclosure mandates more and more common (AI?)
71
word of mouth
consumers telling each other about products & brands they use
highly influenced by recommendations (trustworthy)
branding focus a lot on increasing WOM
-influencer marketing
-hastags
-user generated content
-reviews
-referral programmes
positive or negative
e.g. guitar on the plane example
72
future of promotion
change in platforms - global
73
trends in promotion
not about who yells louder but finding Target customer when facing dilemma or need
-more date = more specific targeting
(crucial as clutter continues to increase, algorithms and AI can make managing budgets of social media campaigns more efficient
empowered consumers (demands for responsible practices, building trust, engagement and participation is crucial)
74
promotion summary
includes - key to be consistent and clear
(advertising, personal selling, public relations, social media channels)
goals - differentiation, reinforcement, informing, persuading
decisions - objectives and budget content and media
different approaches and tactics for different situations e.g purchase funnel
75
place
how/where do people purchase product
website, marketplace, retail, wholesale, resellers
where and how customers get access to your product
significant impact on ease of access, brand experience & perceptions and choice of product
76
brand positioning place
sell direct or part of marketing channel
sell through retailers (what is perception of their brand)
website work and looks
who delivers products how is delivery company seen matching your values
e.g. selling in an open car space or in a indoor "luxury" car hall (Tesla)
77
marketing channel
or distribution channel
set of independent orgs that help make product or service available for use/consumption by consumer/business user
chain before reach customer
78
2 types of marketing channels
Direct = producer -> end user
indirect = uses wholesaler and retailer
different kinds of distribution strategies
have an impact on cost control and adaptability
79
4 steps to developing a channel strategy
1. customer wants and needs
2. set channel obj
3. identify major channel alternatives
4. evaluate alternatives
80
3 pros and cons of channel strategies
1. control (highest control with direct distribution, lowest with inclusive strategy)
2. economic issues (direct = very expensive, indirect move cost and risk towards reseller)
3. adaptability (channel partnership may be LT. channel structure less flexible)
81
retailer & types
firm primarily focused on selling to end users (consumers)
82
wholesaler
firm primarily focused on selling to re-sellers or business users
83
omnichannel retailing
view experience through eyes of customer
orchestrating customer experience across all channels
seamless integrated and consistent
anticipates customers may start in 1 channel and move to another as progress to a resolution
complex "hand offs" = must be fluid for customer
multi channel done right !!!
e.g. Disney land (website =digital kind of system that support online experience check map with rides and pre order foods etc)
84
multichannel
operational view
how you allow customer to complete transactions in each channel
85
web rooming and showrooming
web - do online research first e.g. buying a car
show - going into store and buying online cheaper somewhere else e.g amazon
86
why omni channel
consumers use multiple channels during shopping journey
more channels customers use, more valuable they are (increased spending & higher loyalty)
people dont tend to buy in 1 channel - need to make sure getting same info throughout
more touchpoint = easer to create connection with brand = spending and loyalty
87
shopper marketing - retailer marketing decisions
similar 4Ps - somewhat different perspectives
retail strategy -> retail marketing mix
88
shopper marketing examples
all about the experience? offline stores offer some experiences difficult to replicate online e.g. Lush - activate all senses (sensory marketing) or relaxing atmosphere
e.g. IKEA - promotes impulse buying (layout), touching & testing products = increase feelings of ownership
Ikea effect - building items ourselves makes us like them more
89
price
value and price of product
strategy, list price, determinants etc
amount of money req/given in exchange
unwelcome experience/action/penalty
action of deciding amount required in payment
action of establishing amount required to purchase
not same as cost of value
look into costs, comp prices , customer value
90
brand positioning for price
high or low
price - quality associations
luxury branding
price relative to competitors
frequent or infrequent discounting
91
how to price a product
min - price of product should cover its costs
max - consumers willing to pay the price
92
price demand curves
93
4 functions of price
1. bring in revenue - capture value in return
2. competitive tool - general pricing strategies
3. strategic planning tool - new product pricing
4. signal e.g. towards consumers - psychological pricing
94
2 factors affecting price
both internal and external factors affect pricing decisions
95
9 issues affecting pricing
1. org & mkting obj
2. pricing obj
3. costs
4. marketing mix variables
5. customer value
6. legal/regulatory issues
7. competition
8. buyers perceptions
9. channel member expectations
96
generic pricing approaches
1. cost based (production/selling approach)
2. value based (marketing approach)
3. competitor based (market approach)
97
pricing trade offs
low price:
-happy customers = sales
-no promotion money
-no profit
-cheap product perception
high price:
-no customers
-retailer give shelf space
-better perception
-high price than comp
-money for R&D
98
new proposition pricing strategy
99
new product pricing methods
price skimming
penetration pricing
100
price skimming adv & dis
adv:
-recover R&D costs quickly
-quick cf
-high price may signify high quality
dis:
-MS growth is slow
-profits may attract comp
101
penetration pricing
adv:
build MS (mkt penetration)
EOS
discourage comp
stimulate brand loyalty
dis:
longer time to recover costs
possible cf problem
102
psychological pricing
influences consumers
price = assume certain level of quality
healthy = expensive
99p pricing
compromise effect = offer 3 options increase choice of middle option
103
pricing strategies/approaches
premium
freemium (use for free with limitations e.g. Spotify premium)
penetration
skimming
competition
product line
bundle (sell 2 products but total is cheaper that buying separate)
psychological
captive product pricing -gillette handle = low price but razors are expensive
choosing the right one depends on 3Cs
choice influences revenue but also customer perceptions (positioning)
104
sustainable marketing
extending the marketing concept
meeting current needs in a way that preserves the rights and options of future generations of consumers and businesses
105
marketing concept
meeting current needs of both customers and company
sometimes mean compromising the future of both
106
10 criticisms of marketing
1. higher prices
2. deceptive practices
3. high pressure selling
4. low quality/function
5. planned obsolescence
6. poor service to disadvantaged customers
7. false wants and materialism (actual self vs ideal self)
8. related social costs
9. cultual pollution
10. unfair competition
107
examples of marketing
e.g. alcohol free beer
e.g. deceptive marketing - e.g vitamin waters
e.g. planned obsolescence - H&M bring your clothes for them to recycle
e.g. vulnerable consumers - food desserts
108
responding to marketing criticisms
- important to acknowledge the criticism (caused nay marketing or marketing reacting to consumer wants)
- cause and effect might not matter (marketing might offer solutions too)
109
cause marketing
linking your brand to a social cause of some kind, often through partnership with non profit organisation
110
social marketing
use commercial marketing principles and techniques to advance a social cause and influence target audience behaviours to improve lives or society
111
nudging
not pricing
but help people make better decisions/choices
e.g. healthier foods/exercise more or file taxes on time
driving positive behaviour change
change something in choice env so more likely people chose something helpful
111
sustainable product development
goal = make desirable products = create both immediate customer satisfaction and long run benefits
salutary products = dont like now but good in long run
112
why should a marketer care about societal impact
1. right thing to do
2. increasing trends and consumer attention towards sustainability & responsible business (branding question)
3. many societal actions shwon to have positive effect on profits
4. help build a strong brand and connection with customers e.g. Dove/Patagonia
