BUS 343 Lecture Notes - Brand Equity, Comparative Advantage, Clorox
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Published on 20 Nov 2012
School
Department
Course
Professor
By Mark Liangco | BUS 343
Chapter 8 (Week 8 and 9)
Brand Extension
- A new product sold with the same brand name as a strong existing brand.
- Application of stimulus generalization
- Leverage your brand equity
- Extension limited to similar products
o Unless the brand is REALLY strong (ie: GE)
Brand equity
- Value in the brand alone
Changing the logo
- Distancing yourself from the original logo. It minimizes the risk involve as it decreases the damage it can
potentially do to the original brand.
Complementary
- The value of one increases when you have the other (product)
Substitution
- The value of having one decreases when you have the other
Cannibalization
- Loss of sales of an existing product when a new item in a product line is introduced because customers
switch to the new product.
Customer Alienation:
- Loss of existing customers when a product is modified or repositioned.
To avoid Cannibalization and customer alienation, do the research, estimate the demand, make a decision on the
best evidence available
Branding Strategies:
Co branding
- Using your brand power to get more money!
Family Brand
- A brand that a group of individual products or individual brands share.
National or manufacturer brands
- Brands that the manufacturer of the product owns.
Store or private-level products
- Brands that are owned and sold by a specific retailer or distributor.
PRODUCT LIFE CYCLE
- expected nature of competition over time, and
- planning of tactics to manage the product at each stage
Introduction
- slow growth follows the launch of a new product in the
marketplace & low/no profits
Competition
- Nonexistent if this is a really new product