chapter 7 - branding & positioning

brand

the combination of name, symbol, term, or design to identify specific products, 2 parts:

1. Brand name: ex. Nike

2. brand mark: symbol, figures, design ex. Nike swoosh

advantages of selling manufacturer brands

• to reduce costs

• built in loyalty

• enhance image

• lower inventory costs

• less risk

advantages of selling private label brands

• to increase profit

• less competition

• gain total control

• merchant loyalty

individual branding (strategic branding decisions)

when each product gets a different brand name (less risk) Ex Coca-cola (has coca-cola, diet coke, powerade, sprite)

family branding (strategic branding decisions)

has the same name for every product in the line ex. Campbell’s soups (Campbell’s tomato soup, campbell’s chunky)

co-branding (strategic brand alliances)

2 or more brand on 1 product. can increase perceptions of quality & customer familiarity, leverage image & reputation Ex. doritos locos tacos at taco bell

brand licensing (strategic brand alliances)

a contract relationship allowing a company to use its brand on noncompeting products in return, the licensor gets a licensing fee Ex. disney+’s Star Wars to create a variety of products

brand loyalty

a positive attitude toward a brand that causes customers to have a consistent preference for that brand, has 3 degrees

brand recognition (brand loyalty degree)

when a customer knows about the brand and is considering it as one of several alternatives in the evoked set

brand preference (brand loyalty degree)

when a customer prefers one brand to competitive brands & will usually purchase this brand if it is available

brand insistence (brand loyalty degree)

when customers will go out of their way to find a brand & will not accept a substitute

brand associations

includes the brand’s image, attributes, or benefits that either directly or indirectly give the brand a certain personality

packaging & labelling

for protection, storage, and convenience. role in product modification & repositioning:

• improved functionality

• amplify branding

• more durable/reusable

• resealable packaging

• individual but sold in bulk

differentation

creating DIFFERENCES in product offerings that set it apart from the competition

• distinct product features, added services

positioning

creating a MENTAL IMAGE of the product offering that sets it apart from competitors

• differentiating features in consumers’ minds

the brand (bases of differentiation)

the most important

• real qualities: product characteristics, features, or style

• psychological qualities: perception and image

product descriptors (bases of differentiation)

features: description of product, characteristics

advantages: performance characteristics

benefits: need satisfaction

what are the 3 bases for differentation?

1. the brand

2. product descriptors

3. customer support services

What are 2 positioning strategies?

1. strengthening a current position

   • Monitor the target market’s wants & satisfaction

2. finding a new positioning

   • may require a focus on new products

development stage

• no revenue during innovation & development

• high financial, marketing, & opportunity risk

• begins with a concept

introduction stage

• ends when sales indicate that target customers accept the product

  goals:

• attract customers & raise awareness through promotion

• induce trial

• strengthen or expand supply chain relationships

• build availability & visibility of the product

• set pricing objectives

growth stage

an upward sales curve, profits should rapidly increase, then decline toward the end. time length varies. 2 main priorities:

1. establish a strong, defensible market position

2. achieve financial objectives that repay investment & earn profit to justify a long-term commitment to the product

maturity stage

the longest stage. 4 goals:

1. generate positive cash flow

2. hold market share…or exit

3. steal market share

4. increase share of customer

4 ways to achieve these goals:

1. develop new product image

2. find & attract new users to the product

3. discover new applications & uses for the product

4. apply new tech to the product

decline stage

when sales plateau & a decline in revenue begins, 2 options when in the decline stage:

1. harvesting: gradual cut in marketing spending

2. divesting: pull all marketing support. can keep the product or sell to another firm