MKTG1025 Lecture Notes - Lecture 7: Brand Equity

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MARKETING PRINCIPLES SUMMARY
CHAPTER 7&8
Level of products and services
3 levels
1. Core customer value
2. Actual product
a. Brand name
b. Quality level
c. Design
3. Augmented product
a. Delivery and credit
b. Warranty
c. After-sale service
Brand Equity
The differential effect that knowing the brand name has on customer responseto the
product and its marketing.
One measure of brand equity uses four consumer perception dimensions:
Differentiation
Relevance
Knowledge
Esteem
What makes the brand
stand out
How consumers feel it
meets their needs
How much consumers
know about the brand
How highly consumers regard
and respect the brand
Brand Positioning
Brands can position on:
Product attributes / features position
o Lowest level of positioning
Benefits Position
o Better level of positioning
Beliefs and values
o Best level of positioning
Product life-cycle strategies
The product life cycle has 5 distinct stages:
Product development
- A period of slow sales, no profits and high investment costs.
Introduction
- Slow sales growth but non-existent profits due to expense of introduction.
Growth A period of market acceptance and increasing profits.
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