BUS 346 Ch 11
Terms in this set (43)
Core customer value
the basic problem solving benefits that consumers are seeking
The physical attributes
brand name, quality, packaging, design features
the non-physical attributes of the product including product warranties, financing, product support, and after-sale service (also called augmented product)
Products purchased for personal use or consumption
Consumer product types
Specialty: strong preference, lot of effort to search for best suppliers
Shopping: fair amount of time searching and comparing alt. clothes, shoes, travel
Convenience: no effort searching, commodity
Unsought: do not normally thinking about it, or do not know about it require heavy promotion (dictionary medical supplies)
the complete set of all products offered by firm
Breadth: number of product lines offered by firm,variety
groups of associated items, such as those that consumers use together or think of as part of a group of similar products
Depth: equals the number of products within a product line
boost sales and changing consumer preferences
Add items or SKUs to address changing consumer preferences or preempt competitors while boosting sales
realign firms resources
delete products within a product line to realign the firm's resources
Delete entire product lines to address changing market conditions or meet internal strategic priorities
add new product categories to capture new or evolving markets, increase sales and compete in new venues
Branding is Valuable because..
Facilitates purchases: easily recognized by consumers and bc they signify quality
Protect from competition/price competition
Assets: legally protected through trademarks and copyrights
Affect market value
logos and symbols
visual elements that stand for brands or trademarks
Brand symbols that could be human, animal, or animated
short phrases to describe or persuade
assets and liabilities linked to brand that add to or subtract from the value provided by product or service
not spending millions of dollars on marketing but a decent amount
how many consumers in a market are familiar with the brand and what it stands for, created through repeated exposures of various brand elements
familiarity improves purchases
relationship between a products or services benefits
Reflect mental and emotional links between brand and key product attributes
repeated consumers, money does not buy loyalty
Manufacturing brands: national, most in US, develops merchandise to ensure quality
spend millions on promotions
Retailer brands: private label, developed by retailers,
Brand and Line Extensions
Brand Ext.:Same brand name for new products being introduced to same or new markets
Line Ext.: same brand name in different product line
brand extension adversely affects consumer perceptions about attributes the core brand it believed to hold
it can be bad to extend it to a product that doesn't fit
attributes need to align
too many product lines
placing two or more brand names on a product or its package
risk: opposite values of each brand
Contractural agreement where by one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee.
use a successful brand then make more revenues
a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences
the packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumption
the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package
communication tool: Product labeling-laws fed gov, agencies, groups
About 30% of packaged goods have lost content recently. How have consumers reacted?
a. Consumers have demanded that companies reduce their prices accordingly.
b. As long as the price is also reduced, they don't seem to mind.
c. In a few cases, consumer outrage has caused manufacturers to go back to the original packaging.
d. A number of lawsuits are pending.
e. Most of the changes have gone unnoticed by consumers.
The basic reason manufacturers spend time and money building their own brands is to
a. offset the power of private label manufacturers.
b. create positioning possibilities for their generic product lines.
c. maximize product line depth.
d. create brand awareness.
e. build brand equity.
Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line.
a. product mix depth
b. product line depth
c. product mix breadth
d. product line breadth
e. brand equity
Product line depth is the number of items in a product line. Zappos promises its customers a huge selection, and so it must maintain great product line depth.
Which of the following is NOT true regarding secondary packaging?
a. It can be an important positioning tool to convey the brand image.
b. It can allow for cost efficiencies due to larger order and shipment sizes.
c. It can provide information to consumers not found on the primary packaging.
d. It is of little value to the average consumer.
e. It is important to the retailer in terms of convenience in handling.
Secondary packaging—the wrapper or exterior carton that contains the primary package—fills many roles, including all of those listed here. It is therefore of value to the consumer.
In a competitive market, perceived value is determined by consumers mostly
a. through brand association and brand licensing.
b. by trying out different products.
c. by weighing primary versus secondary benefits.
d. by quantitative analysis of brand personalities.
e. in relationship to the value of competitors' offerings.
The perceived value of a good or service is the relationship between its benefits and its costs. In a competitive market, these benefits and costs will be easiest to evaluate in comparison to competitive offerings.
Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because
a. brand equity can only be obtained by means of product line depth.
b. brands protect corporate copyrights.
c. people already know what the brand means.
d. well-known brands are less likely to introduce brand extensions.
e. consumer loyalty can be bought for less now compared to the past.
Once a brand has established strong associations with its name, the firm may be able to spend less on promoting new products since consumers already recognize the brand and know what it stands for.
When a salesperson calls you to sell a cemetery plot, this is most likely what type of product?
a. unsought product
b. convenience product
c. line extension
d. shopping product
e. secondary product
Which of the following is the best example of a family brand?
a. Lifesavers Soda, Coca Cola, and Diet Coke
b. Cadillac, GMC, and Chevrolet
c. KFC/Taco Bell Fast Foods
d. Tostitos Multigrain Scoops and Tostitos Chunky Salsa
e. Kellogg's Special K and Famous Amos Chocolate Chip Cookies
Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line?
a. The firm must respond to evolving markets.
b. The firm has decided to capture new markets.
c. The product being eliminated is unprofitable.
d. The product undermined its own brand.
e. The firm decided to refocus marketing efforts elsewhere.
Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head & Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an anti-dandruff shampoo. The new ads suggest that Head & Shoulders has been
b. extended as a brand.
c. licensed to a premium shampoo manufacturer.
Lionel Smith Ltd. is a traditional men's clothing store. Every fall the owner sends an embossed invitation (much like a wedding invitation) to his regular customers, inviting them to a private reception showing the new fall line of clothes. For Lionel Smith Ltd., one of the benefits of having established a loyal customer base is
a. lower marketing costs associated with reaching loyal customers.
b. recognition through industry awards.
c. less need for concern about product quality.
d. increased price sensitivity among loyal customers.
e. that he can be less concerned about competitors' actions.
Firms spend millions of dollars annually to build brand equity, that recognizing brand equity contributes to
a. brand liability.
b. perceived brand personality.
d. corporate stakeholder relations.
e. product mix breadth.
Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product?
a. line extension
b. brand dilution
d. brand extension
same brand name
One of the categories of products for which brand extension is especially logical is
b. generic goods.
c. generic services.
d. complementary goods.
e. licensed brands.
Complementary products are those that are used together—for example, chips and dip, or toothbrushes and toothpaste. It can often make sense to extend a brand to offer a complementary product under the same brand name.