MKT 3320 Quiz 1 - Fang Wu

What is branding?

Branding occurs when an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors.

Brand elements

Components that identify and differentiate a brand

Key to creating a brand

-Able to choose a name, logo, symbol, package design, or other characteristic that identifies a product

-Distinguishes it from other products

Difference between a brand and a product

•A product is anything we can offer to a market for attention, acquisition, use, or consumption:

-That might satisfy a need or want

-Physical good like a cereal, tennis racquet, or car

•A brand is more than a product since it can have dimensions that differentiate it from other products

Brand equity

-Differences in outcomes arise from the "added value" endowed to a product

-The added value can be created for a brand in many different ways

-Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand

Ex: The same shirt with Nike and Russell and people will pay more for Nike

Benefits of Branding - Consumers vs firms

Consumers:

•Encompass all types of customers, including individuals as well as organizations

•Functions provided by brands to consumers

-Identify the source or maker of the product

-Simplify product decisions and reduces risk

-Lower the search costs for products internally (how much to think) and externally (how much to search)

-Helps set reasonable expectations about what consumers may not know about the brand

-Promise, bond or pact with maker of product

-Can be a symbolic device

-Signal of quality

-Signal product characteristics and attributes

▪On the basis of attributes products can be classified as:

-Search goods (grocery produce - evaluate on size, weight, etc.)

-Experience goods (tires - durability, ease of handling)

-Credence goods (insurance; real estate)

-Reduce risks in product decision

-Functional, physical, financial, social, psychological, and time

Firms:

•Brands provide valuable functions to a firm:

-Simplify product handling and tracing

-Help organizing inventory and accounting records

-Offer the firm legal protection for unique features or aspects of the product

-Provide predictability and security of demand for the firm and creates barriers of entry for competitors

-Provide a powerful means to secure competitive advantage

Steps in Strategic brand management process

1. Identify and develop brand plans

2. design and implement brand marketing programs

3. measure and interpret brand performance

4. Grow and sustain brand equity

Brand positioning

•"Act of designing the company's offer and image so that it occupies a distinct and valued place in the target customer's minds"

•Clarifies what the brand is about. How is unique and how is similar to competitive brands and why should consumers purchase and use it.

Perceptual map

displays, in two or more dimensions, the position of products or brands in the consumer's mind

Steps in establishing brand positioning

basic concepts

target market

nature of competition

points of parity and points of difference

brand equity

the added value a brand name gives to a product beyond the functional benefits provided

Brand knowledge

the set of associations that consumers hold in memory regarding the brand's features, benefits, users, perceived quality, and overall attitude as a result of prior brand marketing activities

brand awareness

how quickly or easily a given brand name comes to mind when a product category is mentioned

brand recognition

Consumer awareness and identification of a brand

brand recall

consumers' ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue

Customer segmentation basis and target market

•Market segmentation: Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior

•Involves identifying segmentation bases and criteria:

-Criteria:

▪Identifiability

▪Size

▪Accessibility

▪Responsiveness

▪Target: 18-34 commuting/working

Points of Parity vs Points of Difference

▪Points-of-difference (P O D s):

-Formally defined as attributes or benefits that consumers strongly associate with a brand

▪Points-of-parity associations:

-Not necessarily unique to the brand but may be shared with other brands

Brand mantra

A short, three to five word phrase that captures the irrefutable essence or spirit of the brand positioning

-Nike - Authentic, Athletic, Performance

customer-based brand equity

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

4 steps in building brand resonance model

1. Ensure identification of the brand and association in the customers' minds with a product class, benefit or need

2. Establish the totality of brand meaning by linking tangible and intangible brand associations

3. Elicit the proper responses to the brand

4. Convert responses intense relationships

Branding Pyramid. Know difference between left and right side

emotions are on the right

Brand salience

consumers' abilities to recognize, or have awareness of, any particular brand

Nike's just do it logo

Brand performance

how well the product or service meets customers' functional needs

Brand judgements

customers' personal opinions about and evaluations of the brand, which consumers form by putting together all the different brand performance and imagery associations

Brand resonance

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