Part 5 (New Material) Chapters 8-12 Flashcards
How is branding to inform different from branding to differentiate?
- Branding to inform – successful foreign brands seek to build brand recognition
- Branding to differentiate – how do beverage companies separate themselves
What are the six brand elements we discussed in class?
- Brand name- Spoken component of branding
- URL’s (Uniform resource locations)- Location of pages on the internet
- Logo’s and symbols- Visual that state corporate names and trademarks
- Characters- Brand symbols
- Slogans- Short phrases
- Jingles and sounds- Audio message about company
We discussed six positive things that brands can do for a company. List and describe them.
• Brands facilitate purchases
o Easily recognized by consumers
o Signify quality, familiarity, etc.
o Brands enable customers to differentiate one firm or product from another
• Brands establish loyalty
o Consumers develop trust with a brand over time
o Ideally, develop a strong affinity for a brand
o Brands can represent a person’s identity
• Brands protect from competition and price competition
o Established brands mean loyalty, customers less price sensitive
o Brands as a status symbol
• Brands can reduce marketing costs
o The brand sells itself
o Companies can devote more marketing dollars to promoting new products, rather than to informing consumers about unfamiliar products
• Brands are assets
o Legal protection through trademarks and copyrights
o Tiffany & Co.’s brand includes the ‘blue box’
• Brands impact market value
o Affect the company’s bottom line
Define and provide an example of a licensed brand
- a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee
- Angry Birds using Star Wars in its game
List one pro and one con for a brand that takes on the name of a product category.
- Pro:???
- Con: Not ideal, as the individual brand loses its value – ‘Get me a band-aid’ does not mean ‘Get me a Band-Aid brand adhesive strip’
What are brand associations and brand loyalty and how can they help a firm?
• Brand associations: reflect the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality
o Toyota Prius = economical
o BMW, Audi = performance, luxury
o Nike = Michael Jordan
• Brand loyalty: when a consumer buys the same brand’s product or service repeatedly over time rather than buy from multiple suppliers within the same category
o Develops positive word-of-mouth
What is a manufacturer brand? Provide an example of a manufacturer brand
• Manufacturer brands: also called national brands, are owned and managed by the manufacturer
• The manufacturer develops merchandise, produces it, and invests in marketing
o Proctor and Gamble US-based advertising budget: $2.2 billion
List, define, and provide an example for each of the four categories of private brands we discussed in class
• Premium brands: offer the consumer a private label that is comparable to, or even superior to, a manufacturer’s brand quality (Kroger’s Private Selection, President’s Choice)
• Generic brands: target a price-sensitive segment by offering a no-frills product at a discount price
o Not as popular as other private-label categories, as consumers need at least some measure of quality
• Copycat brands: imitate the manufacturer’s brand in appearance and packaging, generally are perceived as lower quality, and are offered at lower prices
• Exclusive co-brands: a brand that is developed by a national brand manufacturer, often in conjunction with a retailer, and is sold exclusively by the retailer
• Family brands: a firm uses its own corporate name to brand all its product lines and products; the individual brands benefit from the overall brand awareness associated with the family name
o Kellogg’s
What is an exclusive co-brand and how can it help a retailer?
- A brand that is developed by a national brand manufacturer, often in conjunction with a retailer, and is sold exclusively by the retailer
- It can give them an advantage if a brand is well-known and popular as they are the only ones who can sell that product
What is a brand extension? A line extension?
• Brand extension: using the same brand name in a different product line, an increase in the product mix’s breadth
o Colgate: toothpaste, toothbrushes, dental floss
o Halo effect
• Line extension: the use of the same brand name within the same product line, which increases the product line’s depth
What is brand dilution, and what are three ways that a company can prevent dilution
• Brand dilution: occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold
o Cheetos Lip Balm; Lifesavers Soda; Colgate Kitchen Entrees
• How to prevent negative consequences:
o Evaluate the fit between the product class of the core brand and that of the extension (will consumer be confused, or does the extension “make sense”)
o Evaluate customer perceptions of the attributes of the core brand and seek out similar attributes for the extension (e.g., reliability, high performance)
o Refrain from extending the brand name to too many products and product categories (brand fatigue)
o Consider whether the brand extension will be distanced from the core brand – if the firm wants to use some but not all of the brand associations (Marriott – budget hotels, mid-range hotels, luxury hotels; luxury doesn’t use Marriott name)
What is one pro and one con of a co-branding agreement?
- Co-branding: the practice of marketing two or more brands together, on the same package, promotion, or store
- Pro: Links from quality brand can enhance less well-known brand (e.g., halo effect)
- Con: If one of the brands suffers, the other brand could be dragged down with it
What are three key roles of product packaging?
- Attracts consumers’ attention
- Enables products to stand out from their competitors
- Offers a promotional tool (e.g., “New”, “Improved”, “Fat-free”)
- Allows the same product to appeal to different markets with different sizes
- The packaging itself can become a marketing tool (e.g., made from recycled materials, saving cereal box tops)
Define innovation. What are the two end points of the innovation continuum (list and define)?
- Innovation: the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow
- Slightly Repositioned: products that are slightly altered
- New-to-the-world: Products that are completely new
List, define, and draw a graph of each of the categories of the diffusion of innovation.
- Diffusion of innovation: the process by which the use of an innovation – whether a product, a service, or a process – spreads throughout a market group, over time and across various categories of adopters
- Pioneers or breakthroughs: new-to-the-world products that create new markets
- First movers: the first to create the market or product category, become readily recognizable to consumers and establish a commanding and early market share lead
- Innovators: buyers who want to be the first on the block to have the new product or service
- Early adopters: not as risky as innovators, but wait and purchase the product after careful review (don’t just buy based on the “name”)
- Early majority: members of this group don’t take much risk, wait until the bugs are worked out of a product or service
- Late majority: the last group of buyers to enter a new product market; at this point, the product has achieved its full market potential
- Laggards: consumers who avoid change and rely on traditional products until they are no longer available
