Exam 3

brand

a name, term, symbol, design, thereof that identifies a seller's products and differentiates them from competitors' products

brand name

the part of a brand that can be spoken, including letters, words, and numbers

brand mark

the elements of a brand that cannot be spoken

brand promise

the marketer's vision of what the brand must be and do for consumers

Trademark

A brand that has exclusive legal protection for both its brand name and its design

trade name

a commercial, legal name under which a company does business

Types of Brands: Manufacturer Brands

initiated by producers to ensure that producers are identified with their products at the point of purchase

Types of Brands: Distributor

brand owned by a retailer or distributor and sold exclusively by them

Types of Brands: Generic

A non-branded or unbranded product often sold at lower prices

family branding

Using the same brand name for multiple products within the same company

Individual Branding

Creating unique brand names for different products offered by the same company

Co-Branding

Partnering with another company to combine their brand strengths in a product

Brand Extensions

Using an existing brand name to launch new products in different categories

Brand Licensing

Allowing another company to use a brand's name, logo, or other assets for a fee

Brand Loyalty

preference and consistent choice of a consumer to buy a certain brand over time

primary source of brand loyalty

Built on emotional connection, trust, and positive experiences

secondary source of brand loyalty

Based on factors like convenience, availability, or price

Brand Equity

The value a brand adds to a product, based on consumer perception and experiences

Attributes of Brand Equity

Features or characteristics that make a brand recognizable and differentiate it from competitors

Benefits of Branding (consumers)

Helps identify quality, reduces decision-making time, and ensures consistent experiences

Benefits of Branding (firms)

Builds recognition, fosters customer loyalty, and increases competitive advantage

building strong brands (attributes)

Clear identity, positive reputation, consistent messaging

building strong brands (benefits)

Increased sales, customer loyalty, market share growth

building strong brands (values)

core beliefs and ethics that a brand represents, which resonate with consumers

Criteria for Brand Names

Easy to remember, pronounceable, meaningful, and culturally appropriate

word marks

brand name written in a specific font or style (ex: coca cola)

Abstract Designs

Unique, non-literal symbols representing the brand (ex: Nike swoosh)

Literal Representation

Images/icons directly connected to the product (ex: Apple's apple logo)

Core Product

basic, fundamental benefit or service the customer is purchasing

Actual Product

physical product or service with features, design, brand name, and packaging

Augmented Product

Additional services or benefits (ex: warranty, customer service) that enhance the core product

Convenience Products

Low-cost, frequently bought items (ex: snacks, toothpaste)

Shopping Products

Higher-cost, less frequently purchased products that require comparison (ex: clothing, electronics).

Specialty Products

Unique, high-involvement products with strong brand loyalty (ex: luxury cars, designer handbags)

Unsought Products

Products consumers do not think about until needed (ex: life insurance, emergency services)

Product Life Cycle Stages: Introduction

product is launched; sales grow slowly; profits are low or negative

Product Life Cycle Stages: Growth

Sales rise rapidly, market acceptance increases, and profits peak

Product Life Cycle Stages: Maturity

Sales rise rapidly, market acceptance increases, and profits peak

Product Life Cycle Stages: Decline

Sales and profits drop; the product may be discontinued or updated

Product Portfolio Changes

- Adding new products to meet market demand or innovate

- Phase out declining products or products with low profit margins

new-product process

1. Idea generation
2. Screening ideas
3. Concept testing
4. Business analysis
5. Product development
6. test marketing
7. Commercialization

Product Adoption Process

The five-stage process of buyer acceptance of a product

Product Adoption Process (awareness)

Customer learns about the product

Product Adoption Process (interest)

Customer becomes interested

Product Adoption Process (evaluation)

Customer assesses the product's value

Product Adoption Process (trial)

Customer tests the product

Product Adoption Process (adoption)

Customer decides to fully use the product

rate of diffusion

the speed at which a new product, idea, or service spreads through a market

rate of diffusion (relative advantage)

How better the product is compared to others

rate of diffusion (Compatibility)

How well the product fits with consumers' existing values and practices

rate of diffusion (Complexity)

How easy it is to understand and use

rate of diffusion (Trialability)

Ability to test the product before full adoption

rate of diffusion (Observability)

How visible the product's benefits are to others

Why products fail

Poor market research.
Lack of unique value.
Inadequate marketing strategy.
High competition.
Poor timing or bad launch execution

Product Positioning

Creating a distinct image of the product in consumers' minds

Product Differentiation

Making a product stand out from competitors based on quality, features, or brand

Product Packaging

The container or design that protects and promotes the product

Considerations for product packaging

Functionality, safety, branding, convenience, and environmental impact

Product Modification

altering an existing product to improve performance, appearance, or quality

Line Extension

Adding new variations of an existing product to appeal to different customer segments

Product Deletion

Removing a product from the product line due to poor performance or changes in consumer preferences

Service

Intangible products that fulfill customer needs (ex: education, healthcare)

Service Characteristics: Intangibility

Cannot be touched or seen

Service Characteristics: Inseparability

Produced and consumed simultaneously

Service Characteristics: Variability

Quality can vary from one service to another

Service Characteristics: Perishability

Cannot be stored for later use

4 P's Impact on Services: Product

Service quality, features, and customer experience

4 P's Impact on Services: Price

Reflects the perceived value and customer expectations

4 P's Impact on Services: Place

Where and how services are delivered (ex: in-person, online)

4 P's Impact on Services: Promotion

How services are advertised and communicated

Service Marketing Triangle

Shows the relationship between the company, employees, and customers to deliver a quality service

Service Framework: Gaps Model

Identifies gaps between customer expectations and service delivery to improve service quality

5 Dimensions of Service Quality: Tangibles

Physical facilities and appearance of service

5 Dimensions of Service Quality: Reliability

Ability to perform accurately and consistently

5 Dimensions of Service Quality: Responsiveness

Willingness to help and provide prompt service

5 Dimensions of Service Quality: Assurance

Knowledge and trustworthiness of staff

5 Dimensions of Service Quality: Empathy

Caring, individualized attention for customers

3 Extra P's of Service: People

employees and interactions with customers

3 Extra P's of Service: Process

procedures, mechanisms, and flow of activities

3 Extra P's of Service: Physical Surroundings

environment where the service is delivered

Demand Curve

graph showing how the quantity demanded changes with different prices

Price Impact on Revenue

Price increases can reduce quantity sold, and price decreases can boost demand, impacting total revenue

Price Competition Strategy

Competing on the basis of price to attract customers

Price Elasticity of Demand

responsiveness of quantity demanded to price changes

elastic demand

Demand changes significantly with price changes

Inelastic demand

Demand changes little with price changes

Unitary demand

Demand changes proportionally with price changes

Calculating Price Elasticity of Demand

% change in quantity demanded / % change in price

Factors Affecting Price Elasticity of Demand

Substitutability, necessity vs. luxury, consumer income, brand loyalty, and product uniqueness

Non-Price Competition Strategies

Using advertising, quality, service, and brand image to attract customers without changing prices

Fixed Costs

Costs that do not change with production level (ex: rent)

Variable Costs

Costs that change with production level (ex: raw materials)

Total Costs

The sum of fixed and variable costs

Marginal Cost

additional cost of producing one more unit

Calculating Breakeven Point

Fixed Costs / (Selling Price - Variable Cost per Unit)

Pricing Decision Process (Six Steps)

1. Set pricing objectives
2. Determine demand
3. Estimate costs
4. Analyze competitors
5. Choose a pricing strategy
6. Set the final price

Cost of production, competition, target market, brand positioning, and company goals

Shrinkflation

process of reducing the size or quantity of a product while maintaining the price

Marketing Channel

path a product takes from producer to consumer