Understanding Branding, Positioning, and Marketing Strategies (final not done)

Brand

Name, term, sign or symbol that is intended to identify the good or services of one seller and differentiate from other brands. Brand = identity

(Importance of Brand) adds emotions and trust to products and services which _____

helps simplify consumer choice

(importance of brand) Emotions and trust help create relationships between brands and consumers, which increases ______

Consumer Loyalty

(importance of brand) A Brand creates an aspirational lifestyle based on consumer relationships as a result _____

aspirational brand lifestyle transfers over onto consumers.

(Importance of brand) Brand Lifestyles

Focus on values that make it easier to expand into other markets → avoids the cost and effort of creating new brands and can still enters profitable markets.

(Importance of Brand) The combo of emotions, relationships, lifestyles, and values lets brand owners charge a ______

Price Premium

Advantages of Brand

• improved perception of the product

• greater loyalty

• less vulnerable to competitive marketing actions and crises

• Larger margins; more inelastic

• greater trade cooperation

• Increase marketing communications effectiveness → possible licensing opportunities

Brand awareness

your product or service is one of the first things to come to mind in the certain category

Ex: Iced Tea = Snapple

Positioning

A clear and concise statement of how a company wants its brand to be perceived in the target market's mind.

4 Elements of a Positioning Statement

1. target market

2. frame of reference

3. point of difference

4. reason to believe and supporting evidence

frame of reference (element of positioning statement)

helps understand what youre talking about

ex: Snickers = candy

Point of difference (element of positioning statement)

feature that distinguishes a brand from its competitors

ex: affordable car brands (Toyota) vs luxury car brands (BMW)

reason to believe and supporting evidence (element of positioning statement)

justification for the brand's claims, backed by facts or testimonials that reinforce its credibility and value to the target market.

“how do i know what you are saying is true?”

Repositioning

Slight change or variation in a brand.

3 Reasons for Repositioning

1. Competition (Scope vs Listerine)

2. Change in consumer taste (xerox)

3. Crisis (Toyota’s unintended acceleration)

Differentiation

Need to stand out in a meaningful way.

2 concepts from Jack Trout that address Differentiation

1. Explosion of Choice

2. Minds can’t Cope

Explosion of choice and minds can’t cope concepts highlight what? (Jack Trout)

Challenges in trying to stand out in oversaturated markets

Explosion of Choice (Jack Trout)

the dramatic increase in the number of products, services, and brands available to consumers

Makes it harder for consumers to decide what to buy

ex: smartphone market - there are a lot of smartphone brands

3 elements linked to Explosion of Choice (Jack Trout)

• Globalization

• Tech advancements

• Niche Markets

Minds cant Cope (Jack Trout)

too many options and info - consumer gets overwhelmed and cant decide (think paradox of choice)

mind cant cope = NotLikeThis emote

ex: streaming platform (netflix or amazon prime) - too many movies and shows to pick from

3 elements linked to Minds cant Cope (Jack Trout)

1. indecision - too many options leads to decision fatigue

2. Choice overload - too many choices = dissatisfaction (paradox of choice)

3. simplification - picking brands they know

what are Jack Trouts solution of these two concepts?

position your brand or product in a way that is simple, clear, and memorable ; avoid overload ; stand out in a meaningful way

Differentiations Options (“Stand out by ____”)

• Being the first - pioneer- make sure to be good

  • ex: cola

• Heritage

  • family-owned business

• preferences

• being the latest

• How product or services is conducted

Transactional Function

Buying, selling, supply of products, promoting, taking inventory.

Logistical Function

Point A → Point B (transit).

Facilitating Function

Financing, credit to customers, testing, marketing info, and research.

2 Types of Marketing Channels

1. direct (no middlemen)

2. indirect (middlemen)

Intermediaries

Specific names include agent, industrial distributor, wholesaler, and retailer. basically the middlemen

3 Factors Affecting Channel Choice

1. Consumer factors

2. product factors

3. company factors

Consumer Factors (Factors affecting Channel Choice)

• timeliness, type of care needed (applies to both b to c and b to b), and indirect channel will help with this

• more facts = more intermediaries

Product Factors(Factors affecting Channel Choice)

Any:

• specialties?

• Special package?

• Special handling?

• Sensitivity?

Company Factors (Factors affecting Channel Choice)

Company abilities, what they are good at, what they are limited at

Target Market Coverage

The extent to which a product is available in the market.

3 Target Market Coverage Categories

1. Intensive Coverage

2. Selective Coverage

3. Exclusive Coverage

Intensive Coverage (Target Market Coverage)

Products are widely available, such as water, soda, and chips.

Selective Coverage (Target Market Coverage)

Products are less widely available but still accessible, such as Toyota dealerships and appliances.

Exclusive Coverage (Target Market Coverage)

Products are one of a kind and not very accessible, such as expensive luxury cars.

Importance of Pricing

The only P that generates potential revenue

3 Pricing Objectives

1. pricing for profit

2. market share

3. survival

Price Sensitivity

The degree to which the price of a product or service influences consumer purchases.

Substitutes

Alternative products consumers get.

Consumers usually look for these when the price of a preferred product increases.

2 Considerations in Pricing Method

• Consider Costs (Variable and Fixed)

• Consider Target Market's sensitivity to price (customer loyalty) - “If you increase the price, will consumers abandon you?”

Substitute for Price Hikes

• shrinking product size

• using less expensive materials (product and packaging material)

• creating more economy brands

What is important to consider when determining which pricing strategy to use?

Pricing Objectives

Promotion

any form of media that designed to to inform, persuafe, or remind a target audience about a product or service

Promotion Objectives

• informing about a new product

• persuading consumers to buy

• remind consumers to buy

6 Elements of Communications Process

1. source

2. encoding

3. message

4. decode

5. receiver

6. feedback

Strategic Objectives of Advertising

• pioneering/Informational

• competitive/persuasive

• reminder advertising

Pioneering/Informational (Strategic Objectives of Advertising)

• first time doing it - never done it before

• sharing information

• ex: public service announcement

competitive/persuasive (Strategic Objectives of Advertising)

• Insurance ads

• Talk about why they are better - comparing themselves to other competitors to show how they are better

reminder advertising (Strategic Objectives of Advertising)

• “hey do this for your pookie”

• “dont forget to pick up a ring for ur pookie bear”

5 Elements of Promotional Mix

1. advertising

2. personal selling

3. public relations

4. sales promotion

5. direct marketing

Strengths of Advertising

can reach large numbers of people.

Strengths of Personal Selling

• instant feedback

• persuasive

• can pick audience

• can give complex info

Strengths of Public Relations

most credible source for consumers

Strengths of Sales Promotion

• can change behavior in the short run

• flexible

Strengths of Direct Marketing

• messages can be prepared quickly

• helps with relationships with customer

Weaknesses of Advertising

• High costs

• hard to get instant feedback

Weaknesses of Personal Selling

• expensive per exposure

• messages may differ between salespeople

Weaknesses of Public Relations

• hard to get media cooperation

Weaknesses of Sales Promotion

• easily abused

• lead to promotion wars

• easily duplicated

Weaknesses of Direct Marketing

• declining customer response

• database management is expensive

4 Types of Advertising Appeals

1. Fear - showing egg frying on pan and say “this is ur brain on drugs”

2. Sex - sex appeal of outfit - Calvin Klein

3. Humor - Funny ad - all-state

4. Cuteness - babies and animals (puppies, kitties)

3 Step Promotion Decision Process

1. Planning

2. Implementation

3. Evaluation

Planning (Promotion Decision Process)

• develop promo program

  • identify TM

  • Objectives

  • set budget

  • design and schedule the promo

Implementation (Promotion Decision Process)

• Executing promo program

  • pretest promo

Evaluation (Promotion Decision Process)

• Assessing/Evaluating promo program

  • post-test

  • make changes as needed

  • “how did the audience react?”

4 W’s of Promotion

1. WHO is the target audience

2. WHAT are the objectives, budget, and tools

3. WHERE should the promotion be run

4. WHEN should the promotion be run

Product Life Cycle

1. Intro

2. Growth

3. Maturity

4. Decline

Introduction (Product Life Cycle)

Promotional objective : To Inform

Promotional Activity:

• lots of advertising

• sales promotion in the form of free samples

• sales force calling on intermediaries

Growth (Product Life Cycle)

Promotional Objective: To persuade

Promotional Activity:

• Personal Selling to Intermediaries

• advertising to differentiate

• little less advertising compared to Intro

Maturity (Product Life Cycle)

Promotional Objective: To remind

Promotional Activity:

• Reminder advertising

• sales promo in form of discounts and coupons

• limited personal selling

Decline (Product Life Cycle)

Promotional Objective: To phase out

Promotional Activity:

• little to no advertising

• no more money left to spend

3 Main Types of Media

1. TV

2. radio

3. newspapers

Advantages of TV

• reaches large audience

• visual

• can target specific audiences

Disadvantages of TV

• high cost

• short exposure

• difficult to convey complex info

Advantages of Radio

• Low cost

• can target specific local audiences

• can quickly place ads

• auditory

Disadvantages of Radio

• No Visual element

• short expsoure time

• difficult to convey complex info

Advantages of Newspaper

• Excellent coverage of local markets

• can quickly place and change ads

• ads can be saved

• fast consumer response

• low cost

Disadvantages of Newspaper

• ads compete for attention

• short lilfe span

• poor color

Push vs. Pull Strategy

Two marketing strategies where push involves moving products through the distribution channel and pull involves drawing consumers to the product.

Push Strategy

Manufacturer → wholesaler →retailer → consumer

Pull Strategy

manufacturer ← wholesaler ←retailer ←consumer