Auburn MKTG 3310 Exam 3 Wolter

What are the three elements to a product offering?

MVP- mixture, value pricing, products features

What is the difference between goods and service, on average, regarding quality?

What is the customer-value hierarchy? (pg 150)

5 product levels- each level adds more customer values. Levels- Core benefit, basic product, expected products, augmented products, potential products

What happens at each level of the customer-value hierarchy?

Core benefit- the service or benefit the customer is really buying. Basic product- marketer must turn the core benefit into a basic product- for example- a hotel must offer a bed, towels, desk, etc. Expected product- a set of attributes and conditions buyers normally expect when they purchase this product- example- clean bed. Augmented- exceeds customer expectation. Potential- encompasses all the possible augmentations and transformations the product or offering might undergo in the future.

What happens over time to augmented features?

They become standard

What happens over time as products gain more expected and augmented features?

Feature fatigue

What is feature fatigue?

Features that used to be unique become standard

Durable, non-durable and service products

Durable- tangible goods that normally survive many uses- normally require more personal selling and service, command higher margin, and require more seller guarantees. Ex- phones, clothing, refrigerator. Non-durable- tangible goods normally consumed in one or a few uses. 5-hour energy, fuel, paper towels- lower margins, usually chosen on convenience, needs to be available in many locations, advertise heavily. Service- intangible, inseparable, variable, and perishable products that normally require more quality control, supplier credibility and adaptability. Ex- haircuts, legal advice

Convenience, shopping, specialty, and unsought products

Convenience- purchased with frequently, immediately, and with minimal effort- ex- Q Tips. Shopping- consumer characteristically compares on such bases as suitability, quality, price and style- ex- Toms. Specialty- have unique characteristics or brand identification for which enough buyers are willing to make special purchasing effort. Ex- Oculus Virtual Reality head sets. Unsought- the things you buy because you absolutely have to- you don't want to buy it- ex- coffin, life insurance- Distribution is going to be limited

Know the types of product and service differentiation

Product- Form, features, performance quality, conformance quality, durability, reliability, reparability, style, customization. Service- ordering ease, delivery, installation, customer training, customer consulting, maintenance and repair, returns.

What is a product, product line, and product mix? (pg 162)

Product- anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. Product line- any group of products that serve a similar need- ex- line of angry bird games. Satisfy a class of needs, are used together. Are sold to the same customer group, or fall within the same price range. Each product line has its own marketing strategy. Product mix- width length, depth, consistency.

What is length, width, and depth in relation to a product mix?

Length- the distance down. Width- number of product lines I have. Depth- number of products within a single product on a line- how much variance it has- ex- tide.

In what ways can a line be stretched?

Down market stretch- lowering price market. Up-market stretch- going up in price market- ex- Kia trying to move into luxury car market. Two-way stretch. Line filling- taking care of a middle market area- Cannibalization can happen here- product within it needs to be differentiated enough for your products to not steal customers from each other. Line modernization. Line featuring. Line pruning.

What are the general strategies for handling luxury products in relation to distribution, price, competition, and and brand associations? (see Table 7.1)

Wrap personal experiences around the product. Besides brand names, other brand elements- logos, symbols, packaging, signage- can be important drivers of brand equity for luxury products. Control the image. Control distribution. Protect trademarks and combat counterfeits.

What are the 4 Ps of Luxury?

Patricians- have wealth but don't need status- don't want to associate themselves with others- want products that only other patricians will recognize. Parvenus- have wealth but need status- more likely to buy things that try to signal that they are part of the higher wealth groups. Posers- don't have wealth but need status- will try to buy products that have logos that they associate with wealth. Proletarians- don't have wealth, don't need status.

What is a brand?

A name, term, symbol, design, or combination of these items that are intended to identify and differentiate a seller or a seller's product for competitor

Where does the idea of branding stem from?

Cattle identifying what's yours

What is the point of branding (i.e., what does it do for a company)?

To differentiate yourself

What is customer-based brand equity (cbbe)?

The differential effect of brand knowledge on consumer responses to marketing. Building your brand, the things attached to your brand

Know the Brand Resonance Pyramid. What is each part and how do we define each part?

Top down

Resonance :connection

Judgment/feeling: response

Performance/ imagery: Meaning

Salience: awareness

What does awareness do for a brand?

How many people know you exist

What is a brand map?

The map of how things work together to make your brand according to customers

What can happen if you don't monitor your brand associations?

Can be attached to negative things

What is the difference between developing a complex vs simple brand personality?

The amount of things your brand is attached to

What is the difference between developing a smart and cold vs a nice and warm brand personality?

Human perception lumps brands into to categories. People decide what category you fit into based on product and things they associate your product with.

What is an underdog brand personality? How does it work?

External disadvantage is high. Passion is high. Underdog brands can be more morally oriented and they won't seem less competent. If you are an underdog brand, you must have high morality. Top brands do not get credit for morality and most top brands are viewed as less competent when displaying morality.

What part of brand response are companies focusing on?

How are the customers responding to your brand- Judgments, quality, value, ubiquity, healthiness. Feelings, happiness, safety, relaxation, exhilaration. A lot of companies have a general sense that you have to operate on an emotional level. But you need judgments too. Example- Coke friendship commercial- emotional connection as it shows people forming friendship through opening coke bottles. Samsung fear commercial- no information- just shows people conquering their fears.

What are the outcomes of brand equity as explained by the Brand Dynamics model?

Power- volume you sell. Premium- Price. Potential- ability to grow.

Know the tactics for developing brand equity (brand elements, holistic marketing activities, and leveraging secondary activities)

Points of difference - set you apart from your competitors. Points of parity - the ways that you are the same as your competitors Memorable (building)- how easily do customers recall and recognize the brand element. Meaningful (building)- is the brand element credible? Does it suggest the corresponding category and a product ingredient or the type of person who might use the brand? (ex. lean cuisine meals). Transferable (defense)- can the brand element introduce new products in the same or different categories? Adaptable (defense)- how adaptable and unadaptable is the element? Logos can easily be updated. The past 100 years have seen the Shell logo updated 10 times. Protectable (defense)- how legally protected is the brand element? Competitively protectable? When names are in danger of becoming synonyms with product categories—as happened to Kleenex, Kitty Litter, Jell-O, Scotch Tape, Xerox

What do these things say in unison about building brand equity?

What are points-of-parity and points-of-difference? (pg 180)

Points of difference - set you apart from your competitors. Points of parity - the ways that you are the same as your competitors

What does Chevrolet, Levis, and and Coca-Cola tell us about creating a powerful brand?

The power of branding is important because brands can literally change the physical way consumers interpret product offerings (taste testing and brain imaging). Chevy: there isn't consistency in the themes that they have marketed over the years. Basically they have marketing people coming in saying things need to be fixed and they come up with completely new ones. Since Chevy has done this so much they have lost the meaning of their market. Coke: they have consistency in the themes that they have marketed. That's why coke is such a powerful brand. You have to be consistent over time... that doesn't mean you can't evolve it, but it has to make sense and go with the theme that is already there. Going from point A to point B in branding has to make sense.

What does the Pespi Taste Challenge tell us about the power of branding?

They blind folded people and asked them to taste the sodas. The outcome was that most people liked Pepsi when they were blindfolded but chose Coke if they weren't. So what happens is that brand influences their taste buds. The second test that they did was hooking them up to scanners and watching their brains light up when they drank the drink. They found that different areas of the brain would light up with they drank coke. It's basically re-wiring your brain and how you react when you drink it. This is what coke has been able to do overtime. How does Pepsi overcome this? Good luck... with brown soda, Pepsi is going to be in second place until something major happens

What does Oldsmobile and Howard Johnsons tell us about the power of branding?

From marketing standpoint, not around anymore because it has the word "old" in it. People thought it was old because the name was misleading. "Victim of its own brand": the olds identity had become so clearly and widely understood that it would have been almost impossible to overcome. When the cultural moment passes, a brand can quickly become an object of nostalgia.

Can you tie the last three questions together into a cohesive idea?

(Branding can make or brake your product) tentative answer

Know the difference between corporate branding, separate branding, and sub-branding strategies

Corporate branding- (aka family or umbrella branding which means everything you do has your name on it) many firms, such as Heinz and GE, use their corporate brand as an umbrella brand across their entire range of products. Development costs are lower with umbrella because there's no need to research a name or spend heavily on advertising to create recognition -meaning could start to get lost (ex. virgin) (ex. trump: water, ice, vodka, steak). Separate branding- branding different products by different names (ex. general mills uses individual brand names, such as bisquick and nature valley granola bars) reduces risks but costs a lot. Sub-branding- combine two or more of the corporate brand, family brand, or individual product brand names. Kellogg employs a sub-brand or hybrid branding strategy by combining the corporate brand with individual product brands as with Kellogg's rice krispies-combination (ex. Marriott: luxury-ritz(corporate), townplace, Fairfield)

What are the positive and negative outcomes of brand extensions?

Brand extensions- When you take one brand name and hope that associations extend to new product. (ex. Sunmaid raisins makes sunmaid biscuits/bagels, dr. pepper marinade, starburst shampoo/conditioner, paula dean furniture). Positive: they can facilitate new-product acceptance and provide positive feedback to the parent-brand and company. improves odds of new product success, positive feedback effects. Negative: line extensions may cause the brand name to be less strongly identified with any one product. brand dilution (occurs when consumers no longer associate a brand with a specific or highly similar set of products and start thinking less of the brand), negative feedback effects meaning if sunmaid English muffins fail, then people may start to second guess sunmaid raisins

What determines if a brand extension works?

Based on: fit (does the brand make sense in the category), strength of brand (has to be widely understood. Clear meaning), amount of successful extensions (how well it works in the past means better chance it will work in future. The more brand is extended, it gets a little credibility)

How can fit backfire?

If the product fails, then the brand didn't conceptually make sense to customers and therefore it will blow back on the brand or corporation. (Visa versa)