international marketing 3

A product is?

a good, service, or idea with both tangible and intangible attributes that collectively create value for a buyer or user.

• Product types: service, experiences, people (?)

• Product warranties

• Packaging

• Labeling

Brands perform two important functions:

First, a brand represents a promise by a particular company

about a particular product; it is a type of quality certification.

Second, brands enable customers to better organize their

shopping experience by helping them seek out and find a

particular product. Thus, an important brand function is to

differentiate a particular company’s offering from all others.

Brand image

perceptions about a brand as reflected by brand

associations that consumers hold in their memories.

Brand equity

represents the total value attached to a product based on the brand.

Benefits of strong brand

Greater loyalty

Less vulnerability to marketing actions

Less vulnerability to marketing crises

Larger margins

More inelastic consumer response to price increases

More elastic consumer response to price decreases

Increased marketing communication effectiveness

BRAND CHOICE CRITERIA

• Memorability – Easy to recognize and recall.

• Meaningfulness – Communicates brand values and messaging.

• Likability – Visually appealing and engaging.

• Transferability – Works across different markets and categories.

• Adaptability – Can evolve with trends and brand growth.

• Protectability -Without legal protection, a brand’s identity can be copied or misused (trademark, uniqness)

Points-of-difference

Attributes or benefits consumers strongly associate with a brand,

positively evaluate, are unique to the brand, or that consumers believe they cannot find to the same extent with a competitive brand

Points-of-parity

Associations that are not necessarily unique to the brand but may be

shared with other brands and are necessary to compete in the category; e.g., hygiene factors

Value Proposition

How does the use of the product/service provide value to the lives of their Target Market consumers? Our company or brand offers… (key benefits)

Key Elements in a positioning statement

Target Market - For (target market)

Value Proposition - Our company or brand offers… (key benefits)

Frame of Reference - Compared to..

Reasons to Believe - Our company or brand..

example

SOUTHWEST AIRLINES

“ For short-route travelers, Southwest Airlines offers the best prices with reasonable and dependable services because compared to big name airlines, we don’t charge customers for amenities