FASH430 Lecture Notes - Lecture 2: American Marketing Association, Financial Risk, 18 Months
22 Feb 2018
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FASH430 Notes
What is a brand?
• Name
• Symbol
• Company/organization
• Actual product or service
• Set of characteristics and expectations
• Promise of benefits
o You know what you are getting based on the brand
• Trademark
• A campaign
• Positioning
Why are you loyal to a certain brand?
• Children recognize brands as early as 18 months of age
Brand Slogans
• Also called taglines (tags or brand lines)
• A memorable dramatic phrase
• Used in marketing materials and advertising
• Inspirational, like a product philosophy, or something fun and memorable
• To reinforce and strengthen the consumer memory of a product
What is a brand?
• Aodig to the Aeia Maketig Assoiatio AMA, a ad is a ae, te, sig,
symbol, design, or a combination of them, intended to identify the goods and services of
oe selle o goup of selle ad to diffeetiate the fo those of opetitio.
• These different components of a brand that identify and differentiate it are brand
elements
Brands Vs. Products
• A product is anything we can offer to a market for attention, acquisition, use or
consumption that might satisfy a need or want
• A product may be a physical good, service, retail outlet, person, organization, place or
idea
• A brand is more than a product, as it can have dimensions that differentiate it in some
way from other products designed to satisfy the same need
• Some brands create competitive advantages with product performance; other brands
create competitive advantages through non-product-relation means
Why are brands important?
• Consumers are willing to pay a premium
find more resources at oneclass.com
find more resources at oneclass.com
• Strong brands are the root of financial performance and corporate value
• A brand can differentiate a commodity
o Ex: Brands of oranges
Brand Basics
Why do brands matter?
• What functions do brands perform that make them so valuable to marketers?
Importance of brands to consumers
• Identification of the source of the product
• Assignment of responsibility to product maker
• Risk reducer
• Search cost reducer (an economic perspective)
• Promise, bond, or pact with product maker
• Symbolic device (associate with certain types of people, reflect values or traits
• Signal of quality
Types of risks in buying and consuming a product
- Functional risk: not perform up to expectations
- Physical risk: a threat to the physical well-being or health of the user
- Financial risk: not worth the price paid
- Social risk: results in embarrassment from others
- Psychological risk: affects the mental well-being of the user
- Time risk: an opportunity cost of finding another satisfactory product
Importance of brands to firms
- Identification to simplify handling or tracing
- Legally protecting unique features (ex: trademark)
- Signal of quality level
- Endowing products with unique associations
- Source of competitive advantage
- Source of financial returns
*Everything can be branded*
*Ultimately a brand is something that resides in the minds of consumers
*The key to branding is that consumers perceive differences among brands in a product
category
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
What is a brand: name, symbol, company/organization, actual product or service, set of characteristics and expectations, promise of benefits, you know what you are getting based on the brand, trademark, a campaign, positioning. Why are you loyal to a certain brand: children recognize brands as early as 18 months of age. Brand slogans: also called taglines (tags or brand lines, a memorable dramatic phrase, used in marketing materials and advertising, to reinforce and strengthen the consumer memory of a product. Inspirational, like a product philosophy, or something fun and memorable. Why are brands important: consumers are willing to pay a premium, strong brands are the root of financial performance and corporate value, a brand can differentiate a commodity, ex: brands of oranges. Types of risks in buying and consuming a product. Functional risk: not perform up to expectations. Physical risk: a threat to the physical well-being or health of the user. Financial risk: not worth the price paid.
