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UF / Marketing / MAR 3023 / What is brand equity and its components?

What is brand equity and its components?

What is brand equity and its components?

Description

School: University of Florida
Department: Marketing
Course: Principles of Marketing
Professor: Richard lutz
Term: Fall 2018
Tags: Mar, mar3023, and Marketing
Cost: 50
Name: MAR Exam 2 Study Guide
Description: These notes cover the lecture for the MAR3023 exam 2.
Uploaded: 10/29/2018
15 Pages 15 Views 5 Unlocks
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MAR Notes week 7  


What is brand equity and its components?



Lecture #11

Basic Branding Terminology  

- Brand name

- Brand mark  

o Nonverbal representation of brand (nike swish, Adidas 3 stripes) - Trade character

o Ronald McDonald

- Logo

o Any verbal or nonverbal representation  

o Pepsi logo evolution and different logo on various products - Trademark

o Any of the 4 things above – registered

Extending Product Life Cycle (PLC)  

- Market penetration

- Market development

- Product modification

- Product repositioning

Family vs. Multiple Branding

Family: take branding and apply it to every one of my products (nike)  Multiple Branding: introduce different brand names for target category  positioning  


What is product life extension?



Co-Branding

- 2 different brands put together for short-term strategy: synergy  - ex. Betty Crocker and Hershey’s / Doritos and taco bell  

National Brands vs. Private Label Brands

National: produced by major manufacturer, sold in lots of locations Private Label: store brands (great value, green wise)  

 cheaper, but still essentially as good

 get higher margin because it is your own product

 national brands benefit because they have use for extra  products  

Licensing:  

License brand for fee  

Brand Equity:  

The added value a given brand name provides a product

Components of Brand Equity  

- awareness

o can you identify a brand / how aware is the consumer? o companies create their own font


What is brand terminology?



If you want to learn more check out What are the types of gene regulation?
Don't forget about the age old question of Who were the most responsive to babies?

- associations

o what brands bring to mind

- perceived quality

o target vs. Walmart

- loyalty

o develop strong brand equity to increase loyalty

Extension of Brand Equity

- line extension  

o add more to already existing line of products (oreos making a  new flavor)  

- category extension

o into new product category – much riskier

o brands often release new product under separate brand name  

Packaging Functions

- contain and protect the product

- facilitate use (yogurt mix ins)  

- communicate

- fir channel needs

- innovation  

Packaging Disasters  

- coors (old cans needed actual can opener)  

- Tropicana

- Sunlight  

o Laundry detergent pack looked like lemonade pack

Emerging Issues  

- consumer-brand relationships

o promote well and not distribute well

o study/understand factors that contribute to relationship - brand communities  Don't forget about the age old question of What do you mean by indifference curve?

o different consumers with shared aspects of brand

o don’t have control of word-of-mouth  

Lecture #12

Segment 9: New Product Strategy  

- chapter 10 in text  

wide spread acceptance of PLC concept

New Product Development: Process of Innovation  

Levels of Innovation: Consumer Perspective

- continuous

o no new learning

- dynamically continuous  

o additional new learning

- discontinuous  

o radical shift  

o very rare  

o new learning and social adaption (phone, www., laptops) o future for us: driverless cars

New Product Planning Process: in-sequence

- new product strategy

- idea generation

- screening and evaluation  

o feasibility screening

 does it make sense?  

o concept testing

 put concept in front of consumers and see how they react - business analysis

o cost/benefit, demand forecasting

o concern of cannibalization  

- prototype development If you want to learn more check out What is de jure discrimination?

- market testing

- commercializing  Don't forget about the age old question of What is docket?

Today, companies are lacking research and development  

Adoption Process (individual level)  

- awareness

o of brand, product category

- interest

- evaluation

- trial  

- adoption

Factors Influencing Rate of Diffusion  

- relative advantage

- communicability

- complexity

- compatibility  

o with lifestyle of target market

- risk

o financial and social  

Organization for Effective New Product Development: the cross-functional  team

- marketing

- sales  

- research and development If you want to learn more check out What hominin means?

- production

- finance  

Lecture #14  

Customer Pyramid:  

Customer worth from most profitable to least profitable: Platinum, gold, iron, lead  

Lead: customers that you’ve acquired but they are projected to not be  profitable  

Beyond delivering services to staging experiences: the “Experience  Economy”

- Service blueprint: way to figure out what the overall customer  experience, what aspects one can improve upon  

Levels of Market Offering

- Commodity  

- Good (product)

- Service

- Experience  

Segment 11: Integrated Marketing Communication  - Related to chapter 17 in text

Integrated Marketing Communication (IMC)

Designing marketing communication programs to coordinate all  promotional activities and provide a consistent image across all  audiences  

Promotional “Mix”

- Advertising  

o Paid promotional insertions in given media  

- Personal Selling

o Interactions with sales associates  

o B2B selling (pharmaceutical sales reps, etc.)

- Sales Promotion

o Increase sales over next few weeks: coupons, samples, etc. - Public Relations  

o Unpaid activities designed to positively influence consumers  image of brand/company

o Publicity happens organically

o PR is done by company  

- Direct Marketing  

o Efforts to directly contact consumer and get consumer to buy  o Permission marketing: opt in to promotional activities  

US consumers purchase influencers:  

Top of these are from unpaid media  

- Recommendation from friends / family

- Online review from someone in social media circle

- TV

- Online review from someone you don’t know

Other IMC tools:

- Sponsorships

- Product placements  

- Infomercials  

- Branded entertainment

o Promoted so just the people we want see it, and they share it  with other

Lecture #15  

Promotional Mix 

- Advertising

- Personal selling

- Sales promotion

- Public relations  

- Direct marketing  

Mix Elements Have:

- Different tasks  

- Consistency  

- Complementarily  

Promotion is Communication  

Communications Process:  

Shannon Weaver Model

Source: brand / company putting out message  

Encode  

Message (carried by Channel of Communication)

Decode

Receiver: consumer  

Noise: stuff that gets in the way of consumer understanding message clearly  - Any form or misinterpretation that can occur during encoding/decoding and receiving  

Field of Experience: altars how you intend and perceive a message  

Feedback loop:

Response  

Feedback  

Receiver is not only influenced by one brand

- Other brands message can influence opinion of competitor brand  - Can be received beyond intended receiver due to social media  - Getting lots of messages and interacting with other receivers

Personal

Impersonal

Marketer  

Controlled

Sales People

The Company Advertising  and Sales Promotion

Independe nt

Word of Mouth

Publicity

Sources 

- Company  

- Spokesperson

 E.g., Celebrity endorser  

Basic Factors  

- Credibility

 Expertise of source  

 Trustworthiness of source

- Attractiveness  

 75% of marketers use influencer marketing  

- More authentic alternative  

Message Factors 

- Objectives

- Strategy  

- Tactics  

100% total potential market

80% aware

75% knowledgeable  

70% like  

60% intend

52% listen

Compute the ratios between the steps  

100 / 80 = 1.25*  

80 /75 = 1.07

75 / 7 = 1.07  

70 / 60 = 1.17  

60 / 52 = 1.15  

Use the Multi Attribute model to Determine Strategy  Summary of Strategies  

#1 Best Attribute Change  

#2 Best Importance Change  

#3 Best New Attribute  

Tactics – How to say it (APPEAL)  

Types of Appeals  

- Informational  

- Comparative

- Image

- Fear

- Humor  

- Sex  

Lecture #16

Segment 13: Advertising and Sales Promotion 4

- Chapters 18-19 in the text  

The Advertising “Industry”  

- Media  

o Publishers  

- IMC Firms

o Integrated marketing communications

o Big companies that purchase advertising, serve the client o Produce ad / place promotions  

- Producers (clients)  

o Buying ads  

Full Service Agency

- Typically, very large agency

- Provides all services  

Limited Service Agency (Specialty)

- Limited variety of service provided

- Typically revolve around specific capital

In-house Agency

- Hire advertising professionals to do all ad functions  

Lecture #14  

Customer Pyramid:  

Customer worth from most profitable to least profitable: Platinum, gold, iron, lead  

Lead: customers that you’ve acquired but they are projected to not be  profitable  

Beyond delivering services to staging experiences: the “Experience  Economy”

- Service blueprint: way to figure out what the overall customer  experience, what aspects one can improve upon  

Levels of Market Offering

- Commodity  

- Good (product)

- Service

- Experience  

Segment 11: Integrated Marketing Communication  - Related to chapter 17 in text

Integrated Marketing Communication (IMC)

Designing marketing communication programs to coordinate all  promotional activities and provide a consistent image across all  audiences  

Promotional “Mix”

- Advertising  

o Paid promotional insertions in given media  

- Personal Selling

o Interactions with sales associates  

o B2B selling (pharmaceutical sales reps, etc.)  

- Sales Promotion

o Increase sales over next few weeks: coupons, samples, etc. - Public Relations  

o Unpaid activities designed to positively influence consumers  image of brand/company

o Publicity happens organically

o PR is done by company  

- Direct Marketing  

o Efforts to directly contact consumer and get consumer to buy  o Permission marketing: opt in to promotional activities

US consumers purchase influencers:  

Top of these are from unpaid media  

- Recommendation from friends / family

- Online review from someone in social media circle

- TV

- Online review from someone you don’t know

Other IMC tools:

- Sponsorships

- Product placements  

- Infomercials  

- Branded entertainment

o Promoted so just the people we want see it, and they share it  with other

Lecture #16

Segment 13: Advertising and Sales Promotion 4

- Chapters 18-19 in the text  

The Advertising “Industry”  

- Media  

o Publishers  

- IMC Firms

o Integrated marketing communications

o Big companies that purchase advertising, serve the client o Produce ad / place promotions  

- Producers (clients)  

o Buying ads  

Full Service Agency

- Typically, very large agency

- Provides all services  

Limited Service Agency (Specialty)

- Limited variety of service provided

- Typically revolve around specific capital

In-house Agency  

- Hire advertising professionals to do all ad functions

MAR Week 10 Notes

Lecture #16 continued…  

Segment 13: Advertising and Sales Promotion 4

- Chapters 18-19 in the text  

The Advertising “Industry”  

- Media  

o Publishers  

- IMC Firms

o Integrated marketing communications

o Big companies that purchase advertising, serve the client o Produce ad / place promotions  

- Producers (clients)  

o Buying ads  

Full Service Agency

- Typically, very large agency

- Provides all services  

Limited Service Agency (Specialty)

- Limited variety of service provided

- Typically revolve around specific capital

In-house Agency  

- Hire advertising professionals to do all ad functions  

AD Tasks 

- Inform  

o Make customer aware & inform them of product  

- Persuade

o Product advertising

 Persuade you that my product is the best thing / service /  idea  

o Institutional advertising  

 Trying to persuade you about something about my  

company  

- Sell  

o Hard / soft sell  

- Reinforce  

o Avoid buyer’s remorse through reinforcement  

- Remind  

o Remind people that they have the product and should be using it

How Does Advertising Work?  

Three Theories:

- Hierarchy-of-Effects

- Low Involvement

- Dual Mediation  

Hierarchy-of-Effects

: Approach when you are thinking a lot about the purchase - Cognition: “think” awareness, knowledge

- Affect: “feel” liking, preference

- Conation: “do” intent, purchase

Low Involvement Hierarchy

- Cognition: “think”

- Conation: “do”  

- Affect: “feel”  

Dual Mediation Theory  

ad cognitions  attitude towards ad / brand cognitions  brand attitude  purchase intention

Subliminal Advertising

- Ambiguous stimuli

- Embedded stimuli

- Truly subliminal stimuli  

Media Strategy

How to Distribute the Ad Message Effectively  

Key Terms:

Medium

- TV, phone, screen, etc.

Media Vehicle  

- Specific instance (website, etc.)  

Reach (Net Reach)

- Total number of consumers in target market exposed to an ad  campaign at least once in a given time period  

Frequency  

- The average number of exposures to any target consumer in the given  time period  

Media Mix:

The array of media used in an ad campaign

Calculating Media Efficiency  

CPM = ad cost / impressions/1000

- Cost per thousand  

wCPM = ad cost / (impressions x audience / 1000)  

- Weighted CPM

Traditional Media

- Television: somewhat in decline  

o Network

o Spot

 Bought by local or national companies to fill in slots

o Cable

 Losing cable subscribers rapidly

o Syndicated

 Advertising w syndicated programs, reruns  

- Radio  

- Newspaper  

- Magazine

- Outdoor  

New Media – Digital  

- Search (sponsored links)

- Display ads  

o Behavioral targeting

- Email

o Permission

- Social media  

o Facebook  

o Youtube

o Twitter  

- Mobile  

o Location tracking  

o Advertising through aps  

1) Continuous advertising

a. Start ad, and continue advertising  

b. Useful for products with no natural seasonality: packaged goods  2) Flighting  

a. Really distinct seasonality  

b. Winter wear, sunscreen, skis  

3) Pulsing advertising  

a. Always use baseline advertising

b. Ad spike on top of that to bump up advertising  

Sales Promotion: designed to boost short-term sales

Consumer “Pull”

Trade “Push”

Coupons

Rebates

Sampling

Premiums

Contests

Point of purchase

Displays

Dealer contests

Trade allowances

Trade shoes  

Co-op advertising

 Why has sales promotion increased?

- Growing retailer power  

- Increased promotional sensitivity  

- Brand proliferation / ad clutter

- Short-term focus / accountability  

Segment 13: Personal Selling and Sales Management  - Chapter 20 in text  

- Last segment for exam 2  

The backbone of the promotion mix:

- “everyone lives by selling something”

- “nothing happens until someone sells something”  

The Selling Process 

1) Prospecting

a. needs / wants

b. who am I going to sell to / figure out leads  

c. qualifying leads: collect a lot of info about leads (money, time  frame, can I meet prospective buyer’s needs, whether the lead  has decision authority)  

2) Preapproach

a. gathering information  

b. setting sales call goals  

c. preparing presentation

d. practice, practice, practice  

3) Approach  

a. Making a good first impression

b. Building rapport

c. Asking questions (about what buyers wants from company)  d. Listening! (understand needs)  

e. Discovering needs  

4) Presentation  

a. (determine format to be used)

b. Deliver content

c. Use of visual aids (laptop, physical sample, etc.)

d. Product demonstrations

e. Handling objections  

i. What the buyer is going to object (price, quality) and plan  response

Sales Presentation Formats

“Canned”: planned and canned script (formula) – low level sales man   Ingratiation: sucking up to person

 Foot-in-the-door technique: start with small request –  

increase magnitude  

 Door-in-the-face: start with BIG request – ask more  

moderate to pale in comparison  

Outlined Presentation: outline for presentation, anticipate objections

Adaptive Sales Technique: start out listening to understand needs, then talk to say how  

You can meet needs

 Determine customer needs and perceptions

 Devise strategy to satisfy customer needs  

Lecture #18

5) Close  

a. Summarize benefits  

b. Ask for the sale

c. Confirm the sale

d. Show appreciation  

6) Follow-Up

a. Ensure on-time delivery

b. Ensure customer satisfaction

c. Pursue add-on sales

d. Build/sustain relationship  

Relationship Selling

A salesperson who…  

- Listens

- Expresses genuine concern

- Keep promises

- Uses knowledge to meet customers’ needs  

Joint Value Creation (JVC)  

Buyer and seller are in it together as a part of a channel to create  value  

Partnership Selling

I, as the manufacturer, has certain skills that the buyer does not have.  - Buyer and seller team sit in a room and discuss needs and solutions

Salesforce Management  

Want to uses salesforce to best ability

- Sales objective

- Make or buy?

- Organization  

o Regional

o Product line  

o Type of account (by customer segments)  

- Size of salesforce  

o Hard to determine size  

o Workload method  

 NS = NC x CF x CL / AST  

NS = number of salespeople

NC = number of customers  

CF = call frequency (# per year)

CL = average length of sales call

AST = average amount of salesperson selling the available  annually  

∙ Available sales time  

*make sure units are cohesive – hours / minutes s

Sales Plan Implementation  

- Recruiting  

 Desire empathetic, goal driven employees  

- Training  

- Motivating

- Compensating  

- Evaluating  

Common Salesperson Evaluation Measures  

1. Conversion Rate  

a. # sales / # calls  

2. Meeting Quota

a. $ actual sales / $ sales goals

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