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COMM 131 Sessions 11-12 Textbook Notes

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COMM 131

WEEK 8 Chapter 9 Pg. 329-351 What is a Brand? Brand: name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or a service. -brand can add value to a product -trade name, if used for the firm as a whole -brands help consumers identify products that might benefit themsay something about quality and consistency Brand Meaning -trademarks and logos often represent brands Brand Relationships -brands are a key element in the relationship with consumers -represent the perceptions and feelings about a product and its performance -brands exist in the heads of consumers -consumers bond very closely with specific brand Brand Advocacy -create and communicate stories about their brands -Brand advocates: customers, employees, and others who willingly and voluntarily promote their favorite brands. -Advocacy begins with trust: build with potential advocates by nurturing their recommendations and opinions -Advocacy starts close to home: must start by creating advocates in the world around themgain passionate support of customers and employee, their enthusiasm pass on through words and actions -Make customers and employees part of the brand story: transform customer and employees into advocates -Deliver an experience that gets them talking: creating brand advocates require persistence and effort— loyalty is not enough -Outperform where they care the most People as Brands -Oprah, Martha Stewart, etc. Brand Characteristics -brands have personality, status, and value (brand equity) Brand Representations: -logos can support positioning and add personality to the brand -brand personality: the sum total of all the attributes of a brand, and the emotions it inspires in the minds of consumers -brands have status: occupy a level of social regard with respect to one another; not be confused with value or popularity Brand Equity: the dollar amount attributed to the value of the brand, based on all the intangible qualities that create that value -measure is the extent to which people are willing to pay more for the brand -measure brand strength on differentiation (stand out), relevance (how it meets the needs), knowledge (how much consumer knows about the brand) and esteem (how highly they regard and respect the brand) -brand carries credibilityeasier to establish new lines, products, etc. Strong basis for strong and profitable customer relationships -powerful brand represents loyal customers -companies should think of themselves as a portfolio of customers Branding Strategy -3 main branding strategies: 1. Brand Name Selection: good name add to success, finding the brand name begin with a review of the product and its benefits, the target market and proposed marketing strategies. -should: suggest something about the type of product it will brand, easy to pronounce, recognize and remember, should be distinctive, extendable, pronounceable in many languages and capable of registration and protection as a trademark. 2. Brand Positioning: position at 3 levels: product attributes (lowest level, attributes can easily be copied), benefit, and beliefs and values (strongest level, emotional attachment, rely more on creating surprise, passion and excitement surrounding a brand). -should establish a mission or the brand and a vision of what the brand must be and do -brand is the promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers 3. Brand Sponsorship: not all products are brandednational or private brands -can license to brand or co-brand the product a. National Brands Versus Store Brands: -national brand/manufacturer’s brand: a brand created and owned by the manufacturer of the product -private brand/store brand: a brand created and owned by a reseller of a product or a service -store brands are growing faster than national brands -usually private label products are manufactured by companies that also manufacture national brands. battle of the brands: between national and private brandsretailers have advantages in controlling what products they stock, where to put it, what price to charge, which product to feature in local circulars -private brands are usually priced lower than national brands, harder to establish, costly to stock yield higher profit margins, give reseller exclusive products and promote. -national brands need to sharpen value propositions in low-margin product categories, invest in R&D, etc. b. Licensing: selling the rights to apply a brand name, logo, or image to another manufacturer c. Co-branding: 2 established brand names of different companies are used on the same product -financial services firms partner with other companies to create co-branded credit cards -company licenses another company’s well-known brand to use in combination with its own -combined brands created broader consumer appeal and greater brand equityexpand its existing brand into a category it might otherwise have difficulty entering alone -limitations: complex legal contracts and licenses, must coordinate advertising, sales promo, etc. Trust is also important Brand Management -management of the brand: brand communications and brand development Brand Development: 4 choices to develop brands 1. Line Extensions: extending an existing brand name to new forms, colours, sizes, ingredients or flavour of an existing product category -used as a low-cost, low-risk way to introduce new products -overextending can lose specific meaning in brand, can be extended at the expense of another products in the line 2. Brand Extensions: extending an existing brand name to new product categories -gives new product instant recognition and faster acceptance, save high advertising costs -may confuse the image of the main brandfailure of new product harms original brand -brand name may not be appropriate to a particular new product 3. Multibrands: a brand development strategy in which the same manufacturer produces many different brands in the same product category -way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share -each brand would only obtain a small market share, and none may be very profitable -company end up spreading resources over many brands instead of focusing to build up a single brand. 4. New Brands: may be introduced when old brands are waning, or to introduce a new product category where current brand name is inappropriate -others are now pursuing megabrandsweeding out weaker or slower-growing brands and focusing money only on brands that can achieve top share position with good growth prospects Brand Communication: brand position must be continuously communicated to consumers Brand Experiences and Touchpoints: any and all points of contact a consumer has with a brand, including word of mouth, company webpages, points of purchase, and advertising -focus on touchpoints and consumer experience with the brand Branded Entertainment: a form of entertainment, usually video, that is created with the co-oeration or financial support of a marketer -can partner with filmmakers, musicians and other artists to created branded content/entertainment Ongoing Brand Management -brand managers need to continually audit their brands’ strengths and weaknesses and ask questions. -carefully manage the marketing communications and advertising that communicates the brand’s attributes and positioning to the market -brands must be maintained, images and logos must be consistent and exact to be recognizable Chapter 11 Pg. 403-431 Marketing Channels and the Supply Chain -supply chain consists of ‘upstream’ and ‘downstream’ partnerssupply raw materials ; distribution channels -supply chain suggests make-and-sell view =demand chain suggesting a sense-and-respond view -most large companies use value delivery network: network made up of the company, suppliers, distributors and customers who ‘partner’ with each other to improve the performance of the entire system in delivering customer value. The Nature and Importance of Marketing Channels -most use intermediaries to bring products to market -use of marketing channel/distribution channel: set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user -channel decision directly affect marketing decisions—pricing, sales force and communications, new products, etc -can use distribution channel to gain advantageFedEx, Enterprise, Apple etc -distribution channel decisions involve long-term commitments to other firms; contracts with other dealers, retailers, etc, difficult to change How Channel Members Add Value -role of marketing intermediaries is to transform the assortmets of products made by producters into the asortments wated by consumers -marketing channel member buy large quantities from many producers and break them into smaller quantities and larger selections to consumers -members of the marketing channel perform key functions: To complete transactions 1. Information: gathering and distributing marketing research and intelligence information about factors and forces in the marketing environment needed for planning and aiding exchange 2. Promotion: developing and spreading persuasive communications about an offer 3. Contact: finding and communicating with prospective buyers 4. Matching: shaping and fitting the offer to the byer’s neds 5. Negotiation: reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred Completed transactions 6. Physical Distribution: transporting and storing goods 7. Financing: Acquiring and using funds to cover the costs of the channel work 8. Risk Taking: assuming the risks of carrying out the channel work -who performs them? -if manufacturer perform them, costs go up Channel Levels -channel level: a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer -number of intermediary levels indicate the length of a brand -direct marketing channel> has no intermediary levels -indirect marketing channels: contains one or more intermediaries -producer: greater number of levels=less control and greater channel complexity. All institutions in the channel are connected by several types of flows (physical flow, flow of ownership, payment flow, information flow and promotion flow) Channel Behaviour and Organization -distribution channels are complex behavioural systems in which people and companies interact to accomplish individual, company and channel goals Channel Behaviour: -each channel member plays a specialized role in the channel -cooperating to achieve overall channel goals sometimes means giving up individual company goals; often act alone in their own short-run best interests -channel conflict: disagreement among marketing channel members on goals, roles and rewards-who should do what and for what rewards -come conflict in the channel can be healthy competitionvs. passive and less innovative channels, vs. disrupt channel effectiveness and lasting harm to relationships Vertical Marketing Systems: -each member’s role must be specified and channel conflict must be managed—perform better if it includes a firm. Agency or mechanism that provides leadership and assigns roles and manages conflict -conventional distribution channels: consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole. -vertical marketing system: structure where producers, wholesalers, and retailers act as a unified system. -3 types of VMS: 1. Corporate VMS: a vertical marketing system that combines successive stages of production and distribution under single ownership—channel leadership is established through common ownership 2. Contractual VMS: vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone. -channel members coordinate activities and manage conflict through contractual agreements -common type: franchise organization: a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in production-distribution process a. Manufacturer sponsored retailer franchise system Ford b. Manufacturer sponsored wholesaler franchise system Coca Cola c. Service-firm sponsored retailer franchise system Boston Pizza 3. Administered VMS: a vertical marketing system t
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