COMM 296 Chapter Notes - Chapter 10: Brand Equity, Brand Loyalty, Brand Awareness

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Published on 15 Jul 2016
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PRODUCT, BRANDING, AND PACKAGING DECISIONS
COMM 296: Introduction to Marketing Jenny Tao
- Product: anything that is of value to a consumer and can be offered through a
voluntary marketing exchange
o Goods, services, places, organizations, ideas, people, communities
(1) Describe the components of a product
- Core customer value: the basic problem solving benefits that consumers are
seeking what are customers’ looking for?
- Convert core customer values into:
o Actual products: brand name; quality level; packaging; features/design
o Associated services/augmented product: the non-physical attributes of the
product including product warranties, financing, product support, and after-
sale service
(2) Identify the types of consumer products
- Products are either for consumers or businesses
- Consumer products: products and services used by people for their personal use
o Specialty products/services: products or services toward which the
customer shows a strong preference and for which he or she will expend
considerable effort to search for the best suppliers (ie. luxury cars)
o Shopping products/services: those for which consumers will spend time
comparing alternatives (ie. apparel, fragrances, and appliance)
o Convenience products/services: Those for which the consumer is not
willing to spend any effort to evaluate prior to purchase (ie. soap, bread)
o Unsought products/services: products or services consumers either do not
normally think of buying or do not know about
(3) Explain the difference between a product mix’s breadth and a product line’s depth
- Product mix/product assortment: the complete set of all products offered by a
firm; includes many product lines
- Product lines: groups of associated items, such as those that consumers use
together or think of as part of a group of similar products
- Breadth/variety: the number of product lines offered by a firm
- Depth: the number of categories within a product line
- Factors to consider when deciding on launching new lines: low entry barriers;
substantial market opportunities; can earn sales and profit
- Adding too much breadth in product mix can be costly and many brands may
weaken company reputation
- Change product mix breadth:
o Increase breadth: new product line to capture new/evolving markets and
increase sales
o Decrease breadth: eliminate product line to address changing market
conditions; meet internal strategic priorities
- Change a product line’s depth:
o Increase depth: add items to address changing consumer preferences or
preempt competitors while boosting sales
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PRODUCT, BRANDING, AND PACKAGING DECISIONS
COMM 296: Introduction to Marketing Jenny Tao
o Decrease depth: delete products to realign firm’s resources; eliminate
unprofitable/low margin items
- Product lines for services are similar
o ie. RBC offers different product lines for consumers and businesses; different
services for consumers is its depth (savings and chequing)
(4) Identify the advantage that brands provide firms and consumers
- Brand awarenessimportant; consumers need to know what products are available
- Value of branding
o Brands facilitate purchases: easily recognized by consumers (brand can
identify quality) help consumers make quick decisions about purchases
between two brands
o Brands establish loyalty: trust certain brands; choose one over another
o Brands protect from competition and price competition: more established
brands have more loyal customer base that can protect from the threat of
competition
o Brands can reduce marketing costs: people are familiar with brands = brand
sells itself; only advertise new products
o Brands are assets: brands can be legally protected through trademark and
copyrights
o Brands impact market value: value of brand refers to the earning potential of
the brand
(5) Explain the various components of brand equity
- Brand equity: the set of assets and liabilities linked to a brand that add to or
subtract from the value provided by the product or service
o Brands are assets firms build, manage, maintain over time to increase
revenue, profitability and overall value through greater brand awareness
and consumer loyalty
- Licensed brand: an agreement allows one brand to use another’s name, image,
and/or logo for a fee
o Manufactured/distributed by firms other than the brand firm but brand
association continues to earn company value and brand equity
- Four aspects of brand to determine its equity:
o Brand awareness: measures how many consumers in a market are familiar
with the brand and what it stands for; created through repeated exposures of
the various brand elements (name, logo, symbol, character, slogan,
packaging) in the firm’s communications to consumers
Help consumers make purchasing choices
Brand awareness important for infrequently purchased items/items
customer has never purchased before became a choice they would
consider when making purchase
Some brands are so predominant they are synonymous with
product itself (Kleenex, Band-Aids)
o Perceived value: the relationship between a product’s or service’s benefits
and its cost
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Document Summary

Product: anything that is of value to a consumer and can be offered through a voluntary marketing exchange: goods, services, places, organizations, ideas, people, communities. Products are either for consumers or businesses. Product mix/product assortment: the complete set of all products offered by a firm; includes many product lines. Product lines: groups of associated items, such as those that consumers use together or think of as part of a group of similar products. Breadth/variety: the number of product lines offered by a firm. Depth: the number of categories within a product line. Factors to consider when deciding on launching new lines: low entry barriers; substantial market opportunities; can earn sales and profit. Adding too much breadth in product mix can be costly and many brands may weaken company reputation. Change product mix breadth: increase breadth: new product line to capture new/evolving markets and increase sales, decrease breadth: eliminate product line to address changing market conditions; meet internal strategic priorities.

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