Brand Management Exam 1

Relativity

Branding as a means to distinguish goods of one producer from those of another

Differentiated Goods

Goods that are substitutes, but not perfect substitutes

Horizontal Differentiation

Choices are drive by preferences and circumstances

Vertical Differentiation

Goods are of different qualities

Relevance

Consumers buy products because of a brand's relevance in that moment

Five P's of Relevance

Purpose

Pride

Partnership

Protection

Personalization

Purpose

Customers feel like the company shared and advances their values

Pride

Customers feel accomplished and inspired to use the company's products and services

Partnership

Customers feel like the company relates to and works well with them

Protection

Customers feel secure when doing business with the company

Personalization

Customers feel their experiences with their company are continuously tailored to their needs and priorities

What is the difference between products and brands?

Products are anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need, but a brand has dimensions that differentiate it in some way from other products designed to satisfy the same need

Customer Value Hierarchy

core benefit, generic product, expected product, augmented product, potential product

Core Benefit

First layer of the customer value hierarchy: the fundamental need that consumers satisfy by consuming the product

Generic Product

Second layer of the customer value hierarchy: a basic version of the product containing only those attributes that are absolutely necessary for its functioning

Expected Product

Third layer of the customer value hierarchy: a set of attributes that buyers reasonably expect and agree to when they purchase a product

Augmented Product

Fourth layer of the customer value hierarchy: Additional attributes, benefits, and related services that distinguish the product from competitors

Potential Product

Fifth and final layer of the customer value hierarchy: all of the augmentations and transformations that a product might ultimately undergo in the future.

Perceived Risk

Any action of a consumer may produce consequences which they cannot anticipate

Functional Risk

The risk that a product does not perform up to expectations

Solutions to Functional Risk

Total Quality Management (TQM), meaning (1) eliminating defects (2) waste elimination, or removing inefficiencies and (3) Just-in-time (JIT) production which minimizes inventory and reduces wasted by only producing what is needed

Physical Risk

Product poses a threat to the physical well being or health of the user or others

Solutions to Physical Risks

Product Warnings

Financial Risk

The risk that the product is not worth the price paid

Solution to Financial Risk

Price Sensitivity studies

Social Risk

The risk that the product results in embarrassment from others (stigmatized products)

Solution to Social Risk

Anti-Stigma Marketing Campaigns

Psychological Risk

The risk that the product affects the mental well-being of the user

Solution to Psychological Risks

Advanced Disclosure

Time Risk

The failure of the product results in an opportunity cost of finding another satisfactory product

Solution to Time Risks

Full satisfaction garuntees

Customer-Based Brand Equity (CBBE)

the differential effect that brand knowledge has on consumer response to the marketing of that brand

Associative Network Memory Model (ANMM)

Memory is a network of nodes (concepts) and associations linked tothe nodes

Core Brand Associations

abstract associations that characterize 5 to 10 most important aspects or dimensions of a brand

Brand's Mental Map

Accurately portrays in detail all salient brand associations and responses for a particular target market

When does CBBE occur?

When consumers have (1) a high level of awareness, (2) strong and unique brand associations, and (3) are loyal to the brand

Brand Awareness

Measures how many consumers in a market are familiar with the brand and what it stands for, made up of brand recognition and recall

Brand Recognition

consumers' ability to confirm prior exposure to the brand when given the brand as a cue

Brand Recall

Consumer's ability to retrieve the brand from memory when given the product category

Brand Awareness Pyramid

Complete Market Set > Awareness Set > Consideration Set > Choice Set

Brand Image

Consumers' perceptions about a brand, as reflected by brand associations held in consumer memory

Brand Attributes

Physical characteristics; descriptive features that characterize a product/service

Brand Advantages

What a brand's products/services do, performance characteristics

Brand Benefits

The personal value and meaning that consumers attach to the product/service attributes

Brand Loyalty

A favorable attitude toward and consistent purchase of a single brand over time, created using attitudinal and behavioral marketing focus

Attitudinal Metrics

Liking, Word of Mouth

Behavioral Metrics

Recency of purchase, frequency of purchase, monetary average order size

Size of Wallet

Buyer's total spending in a category

Share of Wallet

The percentage of the customer's purchases made from a particular retailer

How to establish brand positioning?

Know who the target customer is, who the main competitors are, and how the brand is similar to or different from those competitors

Market Segment

a group of consumers who respond similarly to a firm's marketing efforts

Target Market

A group of people or organizations for which an organization designs their products (see 2-17)

Funnel Stages

The idea that companies are trying to funnel people through the different stages of purchase, and you can identify the bottleneck

Points of Parity

Features not necessarily unique to the brand; may be shared with other brands (core benefit, generic product, expected product)

Points of Difference

attributes, advantages, and benefits that consumers strongly associate with a brand, positively evaluate (augmented product)

Benefit Laddering

The idea that some brands position with one point of difference while others have a holistic product benefit (like Tylenol)

Non Comparative Positioning Statement

[Offering] is the best [product category] for [target customers]because [primary reason (i.e., the most strongly relevant POD)]

Four Fundamental Brand Questions

Who are you? (brand identity)

What are you? (brand meaning)

What do I think or feel about you? (brand responses)

What kind of association and how much of aconnection would I like to have with you? (brand relationships)

Brand Resonance Pyramid

salience > [performance, imagery] > [judgements, feelings] > resonance

Stages of Brand Development

Identity > Meaning > Response > Relationships

Brand Salience

Brand Recognition, Depth of Brand Recall (how likely it is for a brand to come to mind), Breadth of Brand Recall (in what situations a brand is likely to come to mind)

Product Category Structure

Product class > Product category > product type > brand

Brand Performance

Describes how well the product/service meets customer's more functional needs

What does Brand Performance rely on?

Reliability

Durability

Serviceability

Service Effectiveness

Service Efficiency

Service Empathy

Style and Design

Price

Brand Imagery

The way people think about a brand abstractly, rather than what they think the brand actually does

What does Brand Imagery rely on?

User Imagery

Purchase Imagery

Brand Personality and Values

Brand History, Heritage

Brand Judgements

Personal Opinions and Evaluations of the brand

What does Brand Judgements rely on?

Brand Quality

Brand Credibility

Brand Consideration

Brand Superiority

What makes a brand credible?

Brand Expertise: how competent and innovative

Trustworthy: dependable and keeping customers interests

Likeability: fun, interesting

Brand Feelings

Customers emotional responses and reactions to the brand

Six brand feelings

warmth

fun

excitement

security

social approval

self-respect

Brand Resonance

a consumer's intense and actively loyal relationship with a brand

What does brand resonance depend on?

Behavioral Loyalty

Attitudinal Attachment

Sense of Community

Active Engagement