L3 International Marketing

What is a product and its types?

Product: A good, service, or idea with both tangible and intangible attributes that collectively create value for a buyer or user. Types include services, experience and people which also include product warranties, packaging, labeling or aesthetics.

What 2 functions does a brand have?

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 e.g. Volvo and Safety.

Brand equity:

Represents the total value attached to a product based on the brand e.g. the price of a laptop would be valued less if the apple logo wasn’t there.

Benefits of strong brand:

-        Greater loyalty: Rebuy is not enough for loyalty because if there is a better option they will change. However, if they have a favorite soccer team they will suffer and comeback with them due to an associated emotional connection.

-        Less vulnerable to marketing actions: By other competitors.

-        Less vulnerable to marketing crises: E.g. by pandemic.

-        Larger margins

-        More inelastic consumer response to price increases: If price increase a little, consumers will still buy.

-        More elastic consumer response to price decreases: If price decreases, consumers will buy more.

-        Increased marketing communication effectiveness: Knowing a brand is coca cola and can put it on all other products e.g. Yamaha selling pianos and motorbikes.

Brand choice criteria: Checklist for creating a brand

-        Memorable: E.g. international brands may be harder to pronounce.

-        Meaningful: Attach meaning to market proposition e.g. in campaigns.

-        Likeable

-        Transferable: Easy to put everywhere e.g on packaging, store, seen.

-        Adaptable: Put it with different colors based on e.g. nations, pride, seasons.

-        Protectable: Must name the product based on a brand and not what it’s called e.g. branding it as energy drinks and not redbull.

Positioning statement:

Internal document defining a brand’s target market, product category, and unique value proposition, setting it apart from competitors to create positioning and ads.

Before we start crafting a positioning statement it we must know 2 things_

Points of difference and Points of parity.

Points of difference

-        Gives the competitive advantage, people forget about this because they focus on giving what is unique. 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:

-        Not necessarily unique to fulfill the need. Associations that are not necessarily unique to the brand but may be shared with other brands and are not necessary to compete in the category; e.g., hygiene factor

Value proposition:

How does the use of product/service provide value to the lives of their Target Market consumers. E.g. Ferrari and Royce are both cars but on provide speed while the other provide uniqueness and quality. E.g. starbucks offer the experience while Juan Valdez offer the coffee.

The elements of a positioning statement:

-        Target market: Whom is the product for. (for people who enjoy skateboarding)

-        Value proposition: Explain what we offer: key benefits.

-        Frame of reference: The competitors with which you want to be compared.

-        Reasons to believe: E.g. explaining we have the right competence to provide good service or say we have the fastest computer due to advanced technology which are reasons to make consumers believe in a brand (our company has this technology, competence that will be reasons for consumers to believe).