RETL 369 Chapter 2 Notes
RETL 369 Chapter 2 Notes RETL 369 001
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This 3 page Class Notes was uploaded by Cassie Newman on Monday September 5, 2016. The Class Notes belongs to RETL 369 001 at University of South Carolina taught by Michael Moody in Fall 2016. Since its upload, it has received 9 views. For similar materials see Retail Promotion in Retail at University of South Carolina.
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Date Created: 09/05/16
Bolded words = vocabulary introduced Retail Promotion (RETL 369) – Professor Michael Moody Chapter 2: Corporate Image and Brand Management I. Corporate Image A. Corporate image is what reflects the way consumers and businesses feel about an organization and its brands - A strong corporate image gives that organization a major advantage; adversely, a tarnished corporate image can make an organization suffer financially - Consumer beliefs are more important than those of the company officials B. Corporate image is thought to be based on three main elements - Quality of products and services - Willingness of a firm to stand behind its products and services when something goes wrong - Perceptions of how a firm deals with its customers C. From consumer perspective, corporate image plays a large role and serves several functions - Well known firms provide positive assurance about what to expect, making purchasing decisions with them easier even if the consumer has little experience with the product or service - Familiar firms also allow search time to be reduced because of purchasing confidence instilled - Strong corporate image makes customers assume “you get what you pay for” - Provides social acceptance of the purchase with the knowledge that other individuals have purchased from the firm D. From company perspective, a highly reputable corporate image is extremely beneficial - New products and services can be introduced more easily - Allows a company to charge more - Consumer loyalty results in repeat customers and more purchases - Positive comments from consumers as a form of endorsement - Quality employees that are also loyal to the company/brand become assets - Favorable ratings by financial institutions II. The “Right” Image A. To identify the desired image for the company, it is necessary to assess the nature of the company including things such as its strengths and opportunities in the external environment B. A fitting image should send a clear message that depicts what the organization does and what kind of products or services are marketed C. Rejuvenating an image requires multiple things from the brand to be successful in the alteration - Help customers rediscover the brand - Offer timeless value (simplicity, brand story, etc.) - Stay true to the brand, but contemporize - Build a community D. Changing a brand image completely is only necessary when a target market has diminished or the firm’s image no longer reaches industry or consumer expectations Bolded words = vocabulary introduced III. Corporate Names, Logos, and Branding A. Corporate names are the overall banner for firms and come in four variations - Overt names: reveal what a company does (Ex: American Airlines) - Implied names: contain word or word parts that point to what a company does (Ex: FedEx) - Conceptual names: capture the essence of what the company offers (Ex: Twitter) - Iconoclastic names: represent something memorable and different (Ex: Monster) - Brand names should be associated with the most pronounced characteristic that sets it apart from the competitors B. Corporate logos are symbols used to identify a company and its brands and should be well-matched to the organization’s name; logos should be able to pass each test of quality - Easily recognizable where the logo is stored in memory - Familiar where the logo reminds a customer of the name or brand - Prompts a consensual meaning/feeling in consumers, also known as stimulus codability - Elicits positive feelings C. Branding provides assurance of quality and in turn allows a company to raise prices - Brands are the names assigned to individual or complementary groups of goods or services - Family brand: group of products listed under one brand name - Brand extension: new good or service introduced to an established brand - Flanker brand: a new brand created by a company in a category which it already is offering a brand D. Co-branding is when marketers offer two or more brands in a single offering - Ingredient branding: the placement of one brand within another brand (intel processors in Dell computers) - Cooperative branding: two or more brands placed within a good or service (Gillette Venus with oil of Olay) - Complementary branding: marketing of brands together to encourage them to be co-purchased (Jif peanut butter and Welch’s jelly) IV. Brand Development and Loyalty A. Powerful brands require extensive planning and substantial investment in communications - A strong brand retains its power through maintaining salient properties, or those that make consumers aware of the brand, regard it positively and as a good value, and consumer it when making purchases - Build trust, or dependency of consumers on the reliability of the brand - Deliver an experience that is personal and customized - Offer value that consumers will appreciate B. Brand loyalty means customers only purchase one particular brand in a category and do not consider other brands, despite price differences - Brand loyalty is usually associated with the value and emotions consumers attach to products Bolded words = vocabulary introduced C. Brand equity is when a brand has a set of characteristics that make it unique and often is a deciding factor in whether or not consumers will look for cheaper alternatives - Creates higher gross margins - Captures additional shelf space - Prevents erosion of market share - Brand equity is measured through the use of brand metrics, which measure the return on branding investments based on financial value, stock market value, revenue premium, consumer value D. Private brands (or private labels) are brands marketed by an organization and distributed exclusively within the organization and its outlets - Improved quality and higher loyalty towards retail outlets - Increased advertising and quality of in-store displays - Tend to be priced between 5%-20% lower than national brands, but still generate higher gross margin because there are no middlemen - Retailers spending marketing dollars on improving private labels, displays, and packaging - Manufacturers respond to private brands by attempting to combat their gains in ways such as focusing on core brands, increasing advertising, introducing new products, focusing on in-store selling and packaging, and using alternative marketing methods E. Packaging on products has many purposes aside from being the last chance to make an impression on the consumer - Protect product and prevent or reduce tampering and theft - Provide ease for placement on shelves and/or shipping - Communicate marketing message - Meet consumer needs for speed, convenience, and portability F. Labels on packages contain the company’s logo and brand name, nutrition facts, and warranties - QR codes are located on labels to allow consumers ease of access to product information, nutrition, product reviews and ratings, links, and comparison to other brands V. Ethical Issues and International Implications A. Most common issue in brand management is brand infringement which is when companies create brands under names that closely resemble another popular or successful brand B. International marketers continue to utilize standardization and adaptation tactics with brands and products; standardized global brands reduce costs and may have a higher perceived quality
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