Chapter Ten
Marketing 370 with Olson at San Diego State University
About this deck
By: Judy Nguyen
Created: 2011-10-26
Size: 47 flashcards
Views: 17
Created: 2011-10-26
Size: 47 flashcards
Views: 17
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Product
anything that is of value to a consumer and can be offered through a voluntary marketing exchange.
Core customer value
basic problem-solving benefits that consumers are seeking
Associated services or augmented product
nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service
Consumer products
products and services used by people for their personal use
Specialty Products/Services
products or services toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers
Shopping Products/Services
products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel alternatives
Convenience products/services
those products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase
Unsought products/services
products consumers either do not normally think of buying or do not know about
Two components of a product
Actual product and associated services
Four types of consumer products
Specialty, shopping, convenience, and unsought products
Product mix
The complete set of all products offered by a firm
Product lines
groups of associated items that consumers tend to use together or think of as part of a group of similar products
Breadth
number of product lines offered by the firm
Depth
the number of products within a product line
Why change product line breadth?
Firms often add new product lines to capture new or evolving markets and increase sales. Sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities
Why change product line depth?
Firms might add items to address changing consumer preferences or preempt competitors while boosting sales. From time to time, it is also necessary to delete products within a product line to realign the firm's resources.
Brand equity
the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service
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
Brand awareness
measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about that brand
Perceived value
the relationship between a product or service's benefits and its cost
Green products
ecologically safer products, such as products that are recyclable, biodegradable, more energy-efficient, and/or have better pollution controls
Brand associations
the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality
Brand personality
refers to such a set of human characteristics associated with a brand,35which has symbolic or self-expressive meanings for consumers
Brand loyalty
occurs when a consumer buys the same brand's product or service repeatedly over time rather than buy from multiple suppliers within the same category
How do brands create value for the customer and the firm?
Brands facilitates purchases, establish loyalty, protect from competition and price competition, reduce marketing costs, are assets, and impact market value
What are the components of brand equity?
brand awareness, perceived value, brand associations, and brand loyalty
Manufacturer brands
also known as national brands
are owned and managed by the manufacturer
Private-label brands
also called store brands, house brands, or own brands
products developed by retailers
Premium brands
offer the consumer a private label that is comparable to, or even superior to, a manufacturer's brand quality, sometimes with modest price savings
Generic brands
target a price-sensitive segment by offering a no-frills product at a discount price
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-brand
developed by a national brand manufacturer, often in conjunction with a retailer, and is sold exclusively by the retailer
Family brand
individual brands benefit from the overall brand awareness associated with the family name
Individual brands
names for each of its products
Brand extension
the use of the same brand name in a different product line
Line extension
the use of the same brand name within the same product line, and represents an increase in a product line's depth
Brand dilution
occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold
To prevent the potentially negative consequences of brand extensions, firms consider the following
evaluate fit between core brand and extension, match perceptions of attributes of core brand with brand extensions, refrain from extending brand name to too many categories, and consider whether the extension should be distanced from the core brand
Co-branding
the practice of marketing two or more brands together, on the same package, promotion, or store
Brand licensing
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
Brand repositioning
or rebranding
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
Primary package
the one the consumer uses, such as the toothpaste tube. From the primary package, consumers typically seek convenience in terms of storage, use, and consumption
Secondary package
the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners. Consumers can use the secondary package to find additional product information that may not be available on the primary package
Actual product
brand name, quality level, packaging, and features/design
Associated services
financing, product warranty, and product support
There are four categories of private-label brands
premium, generic, copycat and exclusive cobrands
potential benefits of a brand extension
It allows the perception of a brand with a quality image to be carried over to the new product, lowers marketing costs, can boost sales of the core brand, and the firm can spend less on creating brand awareness and associations.
About this deck
By: Judy Nguyen
Created: 2011-10-26
Size: 47 flashcards
Views: 17
Created: 2011-10-26
Size: 47 flashcards
Views: 17
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis
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