MARK1012 Lecture Notes - Lecture 6: Brand Loyalty, Brand Awareness
Chapter 8 – Value Creation: Product & Branding
Decisions
Complexity of Products
• Core customer value – basic problem-solving benefit consumers are seeking
• Actual product – brand name, quality level, packaging, features/design
• Associated services – financing, product warranty, product support
Non-physial also kow as augeted produt
Types of Products
• Consumer products – used by people for personal use
• Specialty –customers will expend considerable effort to search for best providers
• Shopping – consumers spend a fair amount of time comparing alternatives
• Convenience – consumer not willing to spend any effort on prior evaluation
• Unsought – consumers do not normally think of buying or know about at all
Product mix – complete set of all goods & services offered by a firm
• Usually consists of various product lines (groups of associated items that consumers
tend to use together or think of as part of a group of similar goods or services)
• Breadth – number of product lines
• Depth – number of products within a product line
Branding
• Brand names – spoken component
• URLs – location of pages on internet
• Logos & symbols – visual branding elements
• Characters – brand symbols that could be human, animal or animated
• Slogans – short phrases to describe brand or persuade consumers
• Jingles – audio messages about brand composed of words or distinctive music
Value of Branding for the Customer:
• Facilitate purchases – signify certain quality level & contain familiar attributes
Help consumers make quick purchase decisions
• Establish loyalty – consumers trust certain brands
• Protect from competition & price competition – established brands have strong, loyal
customer base
• Assets – legally protected through trademarks & copyrights
• Impact market value – helps earning potential & monetary worth
Brand Equity for the Owner:
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Document Summary
Chapter 8 value creation: product & branding. Complexity of products: core customer value basic problem-solving benefit consumers are seeking, actual product brand name, quality level, packaging, features/design, associated services financing, product warranty, product support. Value of branding for the customer: facilitate purchases signify certain quality level & contain familiar attributes. Jingles audio messages about brand composed of words or distinctive music. Help consumers make quick purchase decisions: establish loyalty consumers trust certain brands, protect from competition & price competition established brands have strong, loyal customer base, assets legally protected through trademarks & copyrights. Higher familiarity makes decision-making easier: perceived value relatio(cid:374)ship (cid:271)etwee(cid:374) the produ(cid:272)t(cid:859)s (cid:271)e(cid:374)efits a(cid:374)d its (cid:272)ost, brand associations mental links made between brand and its key attributes, brand loyalty (cid:272)o(cid:374)su(cid:373)er (cid:271)uys sa(cid:373)e (cid:271)ra(cid:374)d(cid:859)s produ(cid:272)t repeatedly. Brand ownership: manufacturer (national) brands owned & managed by manufacturer. More control over marketing strategy & brand image: retailer/store (private-label) brands products developed by retailers. Individual brands under brand umbrella but individually named.
