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
Define the product life cycle. List, define, and draw a graph of each of the categories of the product life cycle curve
• Product life cycle: defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning
o Not every product follows the same life cycle curve
• Introduction stage: usually starts with a single firm, innovators are the ones to try the new offering
• Growth stage: marked by a growing number of product adopters, rapid growth in industry sales, and increases in both the number of competitors and the number of available product versions
• Maturity stage: characterized by the adoption of the product by the late majority, intense competition for market share among firms
o Marketing costs increase as firms defend market share against competitors
o Price competition increases, profit margins erode
• Decline stage: firms either position themselves as niche products (for diehard consumers) or exit the market
What are the four main categories marketers use to asses global markets?
economic analysis using metrics, sociocultural analysis, infrastructure and tech, government actions
What are the two most important population trends we discussed in class?
Developing vs. developed countries
We discussed two ways that firms name their brands, list define and example
Family brands- a firm uses its own corporate name to brand all its product lines and products, the individual brand benefits from the overall brand awareness associated with the family name. Ex: Apple- the use of one brand name and the recognizable logo make it easy for consumers to find and identify all their products.
oIndividual brands- each product has it’s own name, individual identity. Ex: Whopper burger
