Chapter 11 Lecture Notes
Chapter 11 Lecture Notes 86498 - MKT 3010 - 006
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86498 - MKT 3010 - 006
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This 9 page Class Notes was uploaded by Alexis Cone on Thursday October 1, 2015. The Class Notes belongs to 86498 - MKT 3010 - 006 at Clemson University taught by Amanda Cooper Fine in Spring 2015. Since its upload, it has received 29 views. For similar materials see Principles of Marketing in Marketing at Clemson University.
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Date Created: 10/01/15
Chapter 11 09/29/2015 ▯ What is a Product? Anything of value Through voluntary marketing exchange o goods o services o ideas o experiences Company has something the consumer values, and it is swapped for something the company values Levels of Products and Services Core customer value Actual product o Features, design, packing, brand, ect. Augmented product (associated services) o Warranties, free delivery, financing, customer support, ect. ▯ Product Mix and Product Line Product mix= Product assortment o All products offered by the firm Product lines o Breaking down your product assortment o Ex. Old Navy has broken down their sections into Men, Women, Maternity, Girls, Boys, Toddlers, Baby, ect. Product line breadth is the number of product lines within a firm o Can be increased or decreased Product line depth is the number of products within a product line *in the book the top definition is incorrect, but the one within the text is correct* ▯ What is Branding? Brand name o The spoken name for a product Domain names o .coms Logos and symbols are the visual component of the brand o Writing down the brand name is the logo and the symbol is the logo without words o Ex. Nike=logo and Swoosh (with no other text)=symbol Characters o Some sort of symbol that is human, character, cartoon o Ex. Pillsbury dough boy, car fox for car fax, ect. Slogans o Nike- Just do it Jingles o Ex. Oscar Myer song o Ex. Soundmarks- NBC chimes, ect. Soundmarks can be protected and are part of the brand Distinctive packaging o Ex. how much pringles stand out compared to other chips ▯ Branding Decisions Choosing a name o What is the brand’s role? Ex. Marcal got rid of their small steps logo because it confused many consumers on what the product actually was o Are you planning a line of products? Westin hotels used to be Western hotels but now they are all over the world o Long-term position in the market? Want to avoid sounding like 2015 25 years from now o Insulting or irritating to anyone? Ex. Dreft used to have a different name which translated to garbage in other countries, so they had to change the name ▯ The Value of Branding Facilitate purchase o Is there a brand we (as consumers) know or recognize? o That brand can stand for quality to that consumer who doesn’t know much about a certain product Establish loyalty o Consumer become less price conscious because the consumers are not looking at the competition Protect from competition Reduce marketing costs Assets o Trademarks- protected by the Lanham Act Impact market value o Can influence equity, stock prices, ect. Brand Equity Assets or liabilities associated with a brand Adds or subtracts to the value of the product or service from that brand Brand awareness o How many people in a market are not only familiar with a brand but have an opinion about that brand and know what that brand stands for Perceived value o Value equation o Benefits vs. costs in the mind of the consumer Brand associations o What are the attributes we associate with a brand Brand loyalty o Number of loyal consumers to a brand Net promoter score (NPS) o Degree to which someone would recommend a brand/product to someone else ▯ Branding Strategies Brand ownership o Anyone can own a brand o Manufacturer brands/ national brands – managed by manufacturer Ex. Nike, Kellogg’s, SONY, ect. o Private-label/store brands-owned and managed by retailers Ex. Gap, Arizona, Banana Republic ect. Premium brands As good in quality as top manufacturer brand or better Generic brands have no branding at all Type of store brand- not all store brands are generic brands Copycat brands Try to position themselves as the same quality of manufacturer brands but for less price Exclusive co-brands Store brands where the retailer collaborates with a national brand (exclusive line that is only available at that store) Ex. Lily Pulitzer at Target Ex. Elie Tahari Exclusive for Nordstrom Naming brands and product lines o Corporate or family brands Ex. GE uses the GE corporate name for a variety of its products o Individual brands Ex. Proctor and Gamble owns Tide, Cheer, and Gain but have chosen not use the corporate name to brand the products Brand extensions and line extensions *DO NOT need to know the difference between brand extensions and line extensions for the test* o Extensions have to do with when you use an existing brand name on a new product o Advantages Cost effective Image transfer- taking the feelings from product A and trying to transfer those feelings onto product B Complementary products o Brand dilution Affecting your brand in a negative way o Considerations: Evaluate the fit Evaluate consumer perceptions Brand dilution and damaged brand equity Distance form core brand Co-Branding o Having two or more brands on the same product o Enhances perception of quality Ultimately adds values to the product o Prelude to acquisition strategy Some companies are interested in acquiring other companies, so co-branding can get an idea of that company before you buy it o Can be an issue if one or both of the companies experience something negative Ex. The companies who endorse Tiger Woods saw a drop in their stock prices when the Tiger Woods scandal happened Brand Licensing o Names o Symbols o Logos o Characters ▯ Packaging Designing and producing the container or wrapper for the product Developing a good package o Reinforce brand message (having the logo, symbol, marks, ect.) o Protect the contents o Ensure product safety issues o Address environmental concerns (especially with disposal of the package) o Cost reduction Primary package o Bag of cereal (the one you interact with to consumer the product) Secondary package o Box around the bag that contains the cereal (incases the primary packaging) o Many form of secondary packaging because of shipping o Brand communication, provides information, allows consumer to interact with product Graphics is important to packaging because it makes the package look exciting and grabs the attention of the consumer, but also provides useful information to the consumer Product Labeling Provides information o Identifies product or brand and then helps to promote the brand Legal requirements o Federal Food & Drug Act created the FDA FDA- primary federal agency that reviews food and packaging labels Prohibits the manufacturing of food that has been fraudulently labeled or is unsafe for consumption o Fair Packaging and Labeling Act Contents of the package must be listed Ingredients Where the product was made Directions for use How to use the product safely o Nutrition Labeling Act Requires nutrition facts to be present on food o POM Wonderful took Minute Maid (who is owned by Coke) to court because their pomegranate blueberry juice was not really pomegranate juice. Coke said they were not in the wrong though because the law states that you can name food based on the predominant flavor not the predominant ingredient. POM said that this was false advertising though. Coke said that consumers should know that its not predominantly pomegranate juice by looking at the ingredients. The supreme court ruled in favor of POM Wonderful. ▯ Socially Responsible Labeling Clearly defined o Certified Humane Raised and Handled o Animal Welfare Approved (AWA) o Grass-fed Governed by the USDA o Fair Trade Certified o Organic ▯ Greenwashing Packaging changed to make it look more “clean” and to make people think they were getting more value Unclear terms o Antibiotic-free Actually a banned term No certifying organization behind these claims o Free range/free roaming Only goes for poultry Only has to be out of cage for 5 min a day Regulated by USDA o Low sugar Doesn’t mean anything Its not the same as reduced sugar or no sugar added o Natural Defined only for meat, poultry, and eggs- cant add any artificial coloring or ingredients but you can have flavor enhancers (so long as they are natural) GMO labeling ▯ ▯ ▯ ▯