BSB126 Lecture Notes - Lecture 4: Rolex, Brand Equity, Kfc
Marketing – Products and Branding
- Branding is not just about the product itself but it also includes surrounding the product
- Product
oAnything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need
oIncludes physical objects, services, persons, places, organisations, and ideas
oA bundle of benefits (from a marketing perspective)
oLevels of product
oCore customer values (level 1)
Features that surround it
Actual product (level 2)
Brand name
Quality level
Styling
Packaging
Features/design
Associated services (level 3)
Financing
Product worthy
Product support
Outer layers become expected (become part of the core)
oTypes of products
Convenience
Relatively inexpensive
Merits little shopping effort
Distribution needs to match – need to be available everywhere
Tempted to make quick decisions regarding them
Impulse
Toothpaste, cake mix, hand soap, laundry detergent
Will accept substitutes
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Frequent
Shopping
Requires comparison shopping
Can be price sensitive
Cameras, TVs, briefcases, clothing
Large number of selective outlets
Prefer specific brands, but will accept substitutes
Infrequent
Specialty
A particular item/brand
Requires extensive searching (limited)
Substitutes hardly accepted
Less price sensitive (expensive)
Rolls Royce cars, Rolex watchers
Infrequent
Unsought
Unknown to the buyer
Buyer is not actively seeking the product
Burial insurance, thesaurus
Varies in price
Limited
Will accept substitutes
Infrequent
oAttributes
Benefits of product/service
Quality
Features
Design/Style
- Brand
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Document Summary
Branding is not just about the product itself but it also includes surrounding the product. Outer layers become expected (become part of the core: types of products. Distribution needs to match need to be available everywhere. Brand: name, term, sign, design that identifies that maker or seller of a product or service, equity differential effect that the brand name has on customer response to the product and its marketing. E. g. bottle of water how much would you pay for woolworths vs. acqua di. People willing to pay more for a branded is brand equity. Brand itself has value, not product: practically anything can be branded, regular items can be branded using the sticker of a well-known brand and it instantly becomes worth more, elements. Higher margins and can lift the image of the brand. High volume, high end brand helps adoption. Kfc repositioned in 1991 because the state of kentucky imposed a fee for using the word kentucky".
