Marketing Study Guide Final

Definition of Brand

• Name, term, sign, or symbol that is intended to identify the good or services of one seller and differentiate from other brands

• brand = identity

Importance of Brand

• Adds emotion and trust to products and services → helps simplify consumer choice

• Emotions and trust help create relationships between brands and consumers → consumer loyalty.

• Brand creates an aspiration lifestyle based on consumer relationships → lifestyle transfers over onto consumers

• Brand lifestyles focus on values that make it easier to expand into other markets → avoid the cost and effort of creating new brands but still enter profitable markets.

• The combo of emotions, relationships, lifestyles, and values lets brand owners charge a price premium (example: Supreme brick)

Advantages of Brand

• improved perception of the product

• greater loyalty

• less vulnerable to competitive marketing actions and crises

• Larger margins; more inelastic

• greater trade cooperation

• Increase marketing communications effectiveness → possible licensing opportunities

Positioning, Reposition, Differentiation

• Positioning = a clear and concise statement of how a company wants its brand to be perceived in the target market’s mind.

• must have Elements of a positioning statement

  • target market

  • frame of reference - helps understand what you are talking about

    • ex: snickers - candy

  • point of difference

    • ex: affordable car brands vs expensive luxury car brands

  • Reason to believe - “How do I know what ur saying is true?”

• Repositioning: slight change or variation in a brand

3 reasons reposition happens:

• competition

  • ex: scope vs listerine - Listerine came up with other flavors and made it taste less mediciney

• change - consumer taste change

  • ex: xerox - reproducing documents, copying → office automation (radical change)

• crisis -

  • ex: Toyota - had unintended acceleration → had to pay fines and restore public trust

Differentiation

• What are good differentiation options ( Jak Trout Slides)

  • Need to stand out in a meaningful way

• Options:

  • Being the first - pioneer- make sure to be good

    • ex: cola

  • Heritage

    • family-owned business

  • preferences

  • being the lateness

  • How product or services is conducted

Place and Distribution

Functions performed by Intermediaries:

• Transactional function: buying, selling, supply of products, promoting, taking inventory

• Logistical function: point a → point b (transit)

• facilitating function: financing, credit to customers, testing, marketing info, and research

Marketing Channels

• 2 channels

  • direct - no middlemen

  • indirect - middlemen (intermediaries)

• NOTE: BE AWARE INTERMEDIARIES HAVE SPECIFIC NAMES

  • Agent, industrial distributor, wholesaler, and retailer would all be considered intermediaries

3 Factors Affecting Channel Choice

1. Consumer factors

   1. timeliness, type of care i need, specifications i need (b to c and b to b)

   2. indirect will help address these needs

   3. ex: moderna

   4. the more factors = more intermediaries needed

2. Product factors

   1. specialties? Special package? Special handling? Sensitivity?

3. Company Factors

   1. abilities, what they are good at, what they are limited at

Target Market Coverage

• Intensive - widely available

  • ex: water, soda, chips (retail outlets)

• Selective: less widely available but still accessible

  • ex: dealerships Toyota

  • ex: appliances

• Exclusive- one-of-a-kind, not very accessible

  • ex: expensive luxury cars

Pricing:

Importance and purpose of pricing

• Generates potential revenue

Pricing Objectives

• pricing for profit

• pricing for marketing share

• pricing for survival

Price sensitivity - how the price of a product or service influences consumer purchases

• some people can be more or less sensitive to the price because of the brand

  • ex: apple; people still buy apple even tho is super expensive

• Sometimes, if the price goes up, people will look for substitutes

• in the case they consumer accept substitutions, price sensitivity is less of an issue

Considerations in selecting a pricing method

• Consider costs (variable and fixed costs)

• Consider Target markets relationship to price (consumer loyalty) - “If you increase price, will your consumers abandon you?”

Substitute for Price Hikes

• Shrinking product size

• less expensive materials (product and packaging material)

• reducing or removing product features

• creating more economy brands

NOTE: PRICING OBJECTIVES ARE IMPORTANT IN DETERMINING WHAT PRICING STRATEGY TO USE

6 Elements of Communications Process

1. source

2. encoding

3. message

4. decode

5. receiver

6. feedback

Strategic Objectives of Advertising

• Pioneering/Informational

  • first time doing it - never done it before

  • sharing information - public service announcement

• competitive or persuasive

  • Insurance ads

  • Why they are better - comparing themselves to other competitors to show how they are better

• Reminder advertising

  • “hey do this for your pookie”

  • “dont forget to pick up a ring for ur pookie bear”

5 Elements of Promotional Mix:

1. Advertising (mass)

2. Personal Selling(customized)

3. Public relations(mass)

4. Sale promotion(mass)

5. Direct Marketing(customized)

Strengths of Advertising:

• can reach large numbers of people

Strengths of Personal Selling:

• instant feedback

• persuasive

• can pick audience

• can give complex info

Strengths of Public Relations:

• most credible source for consumers

Strengths of Sales Promotion:

• can change behavior in short run

• flexible

Strengths of Direct Marketing:

• messages can be prepared quickly

• helps with relationship with customer

Weaknesses of Advertising:

• High costs

• hard to get feedback

Weaknesses of Personal Selling:

• expensive per exposure

• messages may differ between salespeople

Weaknesses of Public Relations:

• hard to get media cooperation

Weaknesses of Sales Promotion:

• easily abused

• lead to promotion wars

• easily duplicated

Weaknesses of Direct Marketing:

• declining customer response

• database management is expensive

4 Types of Advertising Appeals

1. Fear - showing egg frying on pan and say “this is ur brain on drugs”

2. Sex - sex appeal of outfit - Calvin Klein

3. Humor - Funny ad - all-state

4. Cuteness - babies and animals (puppies, kitties)

3 main types of media:

1. TV

2. Radio

3. Newspaper

Advantages of TV:

• reaches large audience

• visual

• can target specific audiences

Advantages of Radio:

• Low cost

• can target specific local audiences

• can quickly place ads

• auditory

Advantages of Newspaper:

• Excellent coverage of local markets

• can quickly place and change ads

• ads can be saved

• fast consumer response

• low cost