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ECON344 Study Guide - Brand Equity, Private Label, Frequency Distribution

11 Pages
92 Views
Winter 2012

Department
Economics
Course Code
ECON344
Professor
n/a

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Chapter 9-Marketing
What is the complexity of products?
When marketers involved with the development of new products,
they think of them in an interrelated fashion
oCentre-customer value
oActual product-customer value is converted to actual product
oAssociated services-nonphysical aspect
Types of products:
oconsumer products are products and services used by
people for their personal use
omarketers further classify these products by the way they are
used and purchased
Speciality-customer show strong preference that they
will extend effort to search for that supplier
Shopping-furniture, apparel, fragments spend time
comparing alternatives
Convenience-don’t spend much time searching
(soap, soda)
Unsought-don’t normally think of buying or don’t
know about, need lots of marketing efforts
Product Mix-complete set of all products offered by a firm
Product Line Decisions-Groups of associated items that
customers use together of that they see as reasonable part of
similar product group
oProduct mix-all of the different lines carried
oProduct Line-oral care
oProduct category- customers see as reasonable substitute
for one another ex. Colgate simply white vs. floss
Breath- is the number product LINESSS
Depth-is the number of product categories making up a LINE
Change the number of SKUs- individual items within each product
category; smallest unit available in the inventory control
oaddition or deletion of SKUs in existing categories
Designed to stimulate sales
React to consumer demand
Create shelf space
What makes a brand?
oBranding includes brand name, URLs, logos and symbols,
characters, slogans, Jingles/Sounds
Value of branding for the customer and the marketer
oValue of branding includes: brands facilitate purchasing,
brands impact market value, brands are assets, brands
establish loyalty, protect from competition, reduce marketing
costs, brands are assets.
oBrands add value to merchandise and services beyond
physical and functional characteristics
Branding includes 3 categories:
oBrand equity-set of assets and liabilities that add or
substract from value of the product or service: brand
awareness, perceived value, brand association, brand
loyalty
oBrand ownership strategies- manufacturer or national
brand, store or private label, generic
oBrand name strategies- Corporate or family brand,
corporate and product line brand, individual
Brand equity
oAwareness- when consumers recognize a need, they begin
with an internal search, which they typically consider brands
they already know first
oPerceived Value-relationship between product and service’s
benefits and its cost
oBrand Associations-metal link that consumers make
between brand and key product attributes (brand personality:
human characteristic associated w a brand)
oBrand loyalty-consumers are often less sensitive to price,
marketing costs are much lower, firm insulated from the
competition
Choosing a Brand Name: Desirable Qualities
oSuggest benefits and qualities
oEasy to pronounce recognize and remember
oCapable of registration and legal protection
oTranslated easily
Brand Extension
oUse of same brand name for new products being introduced
to the same or new market
oBenefits include…
Well established name
Brand known for high quality
Lower marketing cost
Synergy among products
Boost sales of the core brand
oBrand dilution
Occurs when a brand extension adversely affects
consumer perceptions about the attributes the core
brand holds
You must always:
oEvaluate the fit between the product
class of the core rband and the
extension
oEvaluate consumer perceptions of the
attributes of the core brand and seek out
extensions with similar attributes
oRefrain from extending the brand name
to too many product
oIn the brand extension distanced
enough from the core brand?
oCo-Branding
Benefits the participating brands by attracting the
consumers of one brand to the other (ex. Wendy’s
and timmies)
oBrand Licensing
Contractual arrangement between firms, whereby a
firm allows another to use its brand name, logo,
symbols for a fee
oPackaging-green and health related packaging is becoming
more popular, effective packaging can make a huge
difference
oProduct labeling-label information is determined by
regulations and labeling rules vary from country to country
Same products and made in Canada, natural and
organic tags must meet specific tests before placing
such terms on their label
Services: The intangible Product
Services- Intangible customer benefits that are produced by
people or machines and cannot be separated from the
producer
Customer Service: refers to human or mechanical activities
firms undertake to help satisfy their customer’s needs and
wants
oBy providing good costumer service, firms add value
to their products and services
Why customers leave- majority leave because of an attitude
of indifference toward the customer by some employee
The service product continuum
oMost offerings lie in middle service dominant and
product dominant (ex. Dry cleaner, restaurant)
Economic importance of service
oService sector is 70% of canada’s economy
oDeveloped economies are increasingly service
oriented economies
Production was cheaper in other countries
Household maintenance became more
specialized

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Description
Chapter 9-Marketing What is the complexity of products? • When marketers involved with the development of new products, they think of them in an interrelated fashion o Centre-customer value o Actual product-customer value is converted to actual product o Associated services-nonphysical aspect • Types of products: o consumer products are products and services used by people for their personal use o marketers further classify these products by the way they are used and purchased  Speciality-customer show strong preference that they will extend effort to search for that supplier  Shopping-furniture, apparel, fragments spend time comparing alternatives  Convenience-don’t spend much time searching (soap, soda)  Unsought-don’t normally think of buying or don’t know about, need lots of marketing efforts • Product Mix-complete set of all products offered by a firm • Product Line Decisions-Groups of associated items that customers use together of that they see as reasonable part of similar product group o Product mix-all of the different lines carried o Product Line-oral care o Product category- customers see as reasonable substitute for one another ex. Colgate simply white vs. floss • Breath- is the number product LINESSS • Depth-is the number of product categories making up a LINE • Change the number of SKUs- individual items within each product category; smallest unit available in the inventory control o addition or deletion of SKUs in existing categories  Designed to stimulate sales  React to consumer demand  Create shelf space • What makes a brand? o Branding includes brand name, URLs, logos and symbols, characters, slogans, Jingles/Sounds • Value of branding for the customer and the marketer o Value of branding includes: brands facilitate purchasing, brands impact market value, brands are assets, brands establish loyalty, protect from competition, reduce marketing costs, brands are assets. o Brands add value to merchandise and services beyond physical and functional characteristics • Branding includes 3 categories: o Brand equity-set of assets and liabilities that add or substract from value of the product or service: brand awareness, perceived value, brand association, brand loyalty o Brand ownership strategies- manufacturer or national brand, store or private label, generic o Brand name strategies- Corporate or family brand, corporate and product line brand, individual • Brand equity o Awareness- when consumers recognize a need, they begin with an internal search, which they typically consider brands they already know first o Perceived Value-relationship between product and service’s benefits and its cost o Brand Associations-metal link that consumers make between brand and key product attributes (brand personality: human characteristic associated w a brand) o Brand loyalty-consumers are often less sensitive to price, marketing costs are much lower, firm insulated from the competition • Choosing a Brand Name: Desirable Qualities o Suggest benefits and qualities o Easy to pronounce recognize and remember o Capable of registration and legal protection o Translated easily • Brand Extension o Use of same brand name for new products being introduced to the same or new market o Benefits include…  Well established name  Brand known for high quality  Lower marketing cost  Synergy among products  Boost sales of the core brand o Brand dilution  Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand holds • You must always: o Evaluate the fit between the product class of the core rband and the extension o Evaluate consumer perceptions of the attributes of the core brand and seek out extensions with similar attributes o Refrain from extending the brand name to too many product o In the brand extension distanced enough from the core brand? o Co-Branding  Benefits the participating brands by attracting the consumers of one brand to the other (ex. Wendy’s and timmies) o Brand Licensing  Contractual arrangement between firms, whereby a firm allows another to use its brand name, logo, symbols for a fee o Packaging-green and health related packaging is becoming more popular, effective packaging can make a huge difference o Product labeling-label information is determined by regulations and labeling rules vary from country to country  Same products and made in Canada, natural and organic tags must meet specific tests before placing such terms on their label Services: The intangible Product • Services- Intangible customer benefits that are produced by people or machines and cannot be separated from the producer • Customer Service: refers to human or mechanical activities firms undertake to help satisfy their customer’s needs and wants o By providing good costumer service, firms add value to their products and services • Why customers leave- majority leave because of an attitude of indifference toward the customer by some employee • The service product continuum o Most offerings lie in middle service dominant and product dominant (ex. Dry cleaner, restaurant) • Economic importance of service o Service sector is 70% of canada’s economy o Developed economies are increasingly service oriented economies  Production was cheaper in other countries  Household maintenance became more specialized  High value placed on convenience and leisure o There are 4 unique characterisitics affecting service  Intangible- a characteristic where a service cannot be touched, tasted or seen like a pure product can • Requires using cues to aid customers, atmosphere is important to convey value, images are used to convey benefit of value  Inseparable- it is produced and consumed at the same time, that is, service and consumption are inseparable • Little opportunity to test a service before use, lower risk by offering guarantees or warranties  Inconsistent(variable)-quality may vary because it is provided by humans • Because of technology, training, automation, attitude • Increasing use of self checkout machines to add convenience  Inventory (perishable)- a characteristic of a se
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