product and branding Flashcards
three product propositions
core proposition
embodied proposition
augmented proposition
consumer goods classification
convenience goods
shopping goods
specialty goods
unsought goods
three product levels
core - generic
embodied - expected
augmented
what is a brand?
a type of product manufactured by a particular company under a particular name
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a name, term, design, symbol that identifies one sellers good or service as distinct from those of other sellers
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as set of mental associations, held by the consumer, which add to the perceived value of a product or service
Added values beyond functionality
brands represent more than just utilitarian benefits
the characteristics of products are augmented to give added values that satisft social and psychological need s
the images surrounding brands enable consumers to form a mental vision of what and who brands stand for
functional differences between brands are narrowing due to technological advances, but the emotional differences are more sustainable
why do consumers like brands?
helps people to identify their preferred products
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Informs consumers about the source of a product
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Helps people to gauge the level of product quality
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reduces the amount of time spent making product-based decisions and in turn decrease the time spent shopping
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reduce levels of perceived risk and in doing so improve the quality of the shopping experience
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provides psychological reassurance or reward, especially for products bought on an occasional basis
why do manufactures and retailers like branding?
enables premium pricing
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develops customer loyalty
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helps differentiate a product from competitive offerings
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encourages cross-selling to other brands owned by the manufacturer
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assists the development and use of integrated marketing communications
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contributes to corporate identity programmes
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provides some legal protection
brands as symbolic devices
Consumers show more interest in brands for what they say about them rather than what they do for them. They surround themselves with brands to develop their self-identity or self-image.
Different people ascribe different meanings to the same product.
Brands are also used by people as ritual devices to help celebrate a particular occasion.
are brands used as a decision making cue- y or n
yes
types of risks brands can reduce
financial risk
time risk
performance risk
social risk
psychological risk
when is being unfamiliar good?
Being unfamiliar can also be advantageous when people are seeking adventure. Studies have shown that people tend to prefer amusement rides with unfamiliar names, as these are perceived as more adventurous.
tips on choosing brand names
simple
distinctive
meaningful
compatible
legally protectable
allows flexibility
internationally valid
types of brands
manufacturer brands
distributor brands
generic brands
key factors of store brands
Lower prices
Simpler decision making process
Reduced perceived risk
Increased perceived quality
Greater flexibility over the promotional decisions
Discounts
Bundling
Outfit combination and recipe suggestions
Caveats for Manufacturer brands
In the long run, companies run the risk of cannibalising their own branded products.
Consumers switch to store brands when an economy is suffering.
Consumer switching is asymmetric: the switch to private label during a recession is faster than the switch back to manufacturer brands after a recession ends.
why do manufacturers enter into store (own) label production?
to fill occasional excess capacity,
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to lower overall manufacturing and distribution costs.
two types of brand policies
individual branding
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family branding
individual branding
Each product offered by an organization is branded independently of all the others.
family branding
All products owned by a company use the organisation’s name, either entirely or in part, as an umbrella brand.
pros of umbrella naming
With the goodwill that has been built up over the years, new brand additions can gain instant acceptance by being linked with the heritage.
cons of umbrella branding
If the brand name was extended to a sector dissimilar from that where the original brand’s strengths were built, the company’s image could be diluted.
pros of individual branding
Allows the marketer to develop formulations and positioning to appeal to different segments in different markets.
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If the new line should fail, the firm would experience less damage to its image than if the new brand had been tied to the corporation.
cons of individual branding
Higher marketing costs resulting in reduced brand profitability.
