Chapter 11- Branding

Question 1

What is a product?

Answer 1

Anything that is of value to a consumer and can be offered to through a voluntary marketing exchange

Question 2

What are associated services/augmented product?

Answer 2

The nonphysical attributes of the product, including product warranties, financing, product support, and after-sale service.
e.g. for M8Ms: customer complaint line

Question 2

What is core customer value?(PS benefits)

Answer 2

The basic problem-solving benefits that consumers are seeking

Question 3

What is an actual product?

Answer 3

The physical attributes of a product including the brand name, features/design, quality level, and packaging

Question 4

What do marketers start with when developing or changing a product?

Answer 4

The core customer value, in order to determine what their potential customers are seeking

Question 4

Why do marketers consider the types of products they are designing and selling?

Answer 4

These types affect how they will promote, price and distribute their products

Question 5

What are consumer products?

Answer 5

Products and services used by people for their personal use

Broken down into 4:
Speciality products and services: products/services toward which the customer shows a strong preference and for which they will expend considerable effort to search for the best suppliers e.g. luxury cars, designer apparel

Shopping products/services: products/services for which the consumer will spend time comparing alternatives, e.g. apparel, fragrances, appliances, travel

Convenience products/services: products/services for which the consumer is not willing to spend any effort to evaluate prior to purchase
e.g. frequently bought commodity items like beverages, bread, soap

Unsought products/services: products/services consumers either do not normally think of buying/do not know about

Question 6

Three components of a product?

Answer 6

Center: core customer value
Actual product
Augmented product/associated services (nonphysical aspects of the product)

Question 7

What is a product mix?

Answer 7

The complete set of all products offered by a firm

Question 8

What is a product line?

Answer 8

Group of associated items, such as those that consumers use together or think of as part of a group of similar products

Question 9

What is depth?

Answer 9

No of categories within a product line

Question 10

What does breath mean?

Answer 10

No of product lines offered by a firm; also known as variety

Question 11

What does it mean to cannibalize?

Answer 11

From a marketing perspective, the negative impact on a firm’s sales, profits or market share when PRODUCT competes closely with a similar product offered by the same company

Happens if products are too similar

Question 12

What makes a brand?

Answer 12

Brand name, URLs, Logos and symbols, Characters, Slogans, Jingles/sounds

Question 13

Why do firms change their product mix’s breadth/depth

Answer 13

Increase breath (variety of product lines offered by a form)
- Capture new/evolving markets

Decrease breadth:
- Delete entire product lines to address changing market conditions/meet internal strategic priorities

Increase depth: (no of categories within a product line)
- changing consumer preferences
preempt competitors while boosting sales

e.g. adding a new type of Haagen-Daz ice cream extraas or dairy free ice cream

Decrease depth:(i.e. remove some categories with a product line)
- realign the firm’s resources, eliminate nonprofitable/low-margin items

Question 14

What are ways brands add value for customers and the firm?

Answer 14

1. They facilitate purchases
2. They establish loyalty
3. They protect from competition and price competition (strong brands are somewhat protected by competition from other firms and price competition due to more established presence and loyal customer base)
4. They are assets (brands are assets that can legally be protected through trademarks, copyrights etc)
5. They affect market value (the value of a company is its overall monetary worth, comprising a vast number of assets. When the brand loses value, it also threatens other assets.)

Question 15

What is brand equity?

Answer 15

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service

Question 16

What is brand awareness?

Answer 16

Measures how many consumers in a market are family with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, slogan) in the firm’s communications to consumers.

The more familiar they are with it, the easier their decision-making process- improves chances of purchase

Question 17

What is perceived value

Answer 17

The relationship between a product’s or service’s benefits and its cost.

Customers usually determine this value in relation to the value of its close competitors. e.g. if a less expensive brand is similar quality as a premium brand, the cheaper brand has higher perceived value

Question 18

What are brand associations?

Answer 18

The mental links that consumers make between a brand and its key product attributes e.g. logos, slogans, a famous personality

One type: brand intimacy- how consumers form affect-laden, emotional bonds with brands result from a firm’s advertising and promotional efforts e.g. Toyota Prius

Other ways: jingles: State Farm

scope, attributes, uses, quality, functional benefits

Question 19

What is brand loyalty?

Answer 19

Occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buying from multiple suppliers within the same category. e.g. CRM (customer relationship management programs), redeeming points, special credit cards

Lower marketing costs to reach loyal customers

Question 20

Components of brand equity?

Answer 20

Brand awareness, loyalty, associations, perceived value

Question 21

What is brand ownership? And two types?

Answer 21

Manufacturer/national brands: national brands: owned and managed by the manufacturer e.g. Kraft, Coca-cola

Manufacturer develops merch, produces it and invests in marketing program

Retailer/store brands: private-label brands
Products developed by retailers
In some cases, retailers manufacturer their own products, in other cases, they develop the design and then contract with manufacturers to produce them
e.g. Target’s, Trader Joe’s product lines

Question 22

Family vs individual brands

Answer 22

Family brands: a firm’s own corporate name used to brand its product lines and products
When all products are sold under one family brand, the individual brands benefit from the overall brand awareness associated with the family name

Individual brands: use of individual brand names for each of a firm’s products
(usually the more the products vary in their message/performance, more likely to use individual brands)

Question 23

Brand vs line extension?

Answer 23

Brand extension: the use of the same brand name in a DIFFERENT product line (increase in product mix's breath) e.g. Colgate and Crest also sell toothbrushes + other dental hygiene products, not just toothpaste Line extension: use of same brand name within the same product line (increase in product line's depth) e.g. Diet Coke, Cherry coke etc

Question 24

Advantages to using the same brand name for new products?

Answer 24

1. firm can spend less in developing consumer brand awareness and brand associations bc of already established brand 2. if the original brand has strong consumer acceptance, that perception will carry over to the other product e.g. Ferrari's clothes 3. when brand extensions are used for complementary products, there is a synergy between the two products, can increase sales

Question 25

What is brand dilution?

Answer 25

Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold (unsuccessful brand extensions)

Question 26

How to prevent brand dilution?

Answer 26

- Evaluate fit between product class of core brand that of the extension - Firms should evaluate consumer perceptions of the attributes of the core brand, seek out similar attributes for the extension since brand-specific associations are very important for extensions - Refrain from extending brand name to too many products an product categories - Need to consider whether the brand extension will be distanced from the core brand, especially if the firm wants to use some but not all of the existing brand associations

Question 27

What is co-branding?

Answer 27

Practice of marketing two or more brands together, on the same package or promotion e.g. Pizza Hut and Taco Bell in the same store space, as part of the Yum! brand

Question 28

What is brand licensing?

Answer 28

A contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, or characters in exchange for a negotiated fee e.g. for toys etc

Question 29

What is brand repositioning/rebranding?

Answer 29

A strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences. e.g. Aunt Jemima rebranded into Pearl Milling Company by PepsiCo

Question 30

Costs/risks of repositioning?

Answer 30

- Firms often need to spend tremendous amounts of money to make tangible changes to the products and packages (these may not be recovered fi the repositioned brand is not credible to customers)