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MGMA01H3 (184)
Chapter 10

Chapter 10

8 Pages
128 Views

Department
Management (MGM)
Course Code
MGMA01H3
Professor
Ingrid L.Stefanovic

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INTRODUCTION
Product: A Definition
Core product is the physical or functional characteristics of a good
Brand image, warranty, and service are all parts of the product as seen by the consumer
They are buying want satisfaction
oMarketing decision makers must have this broader concept mind and realize that
people purchase more than just the physical features of products
Retailers should be aware whether consumers see something as a product or not before
investing huge sums of money into making it better (ex. Gasoline)
Shopper’s conception of a product may be altered by such features as packaging,
labelling, or the retail outlets in which the product may be purchased
Some products have no physical ingredients
oEx. Haircut, tax advice
Total Product is a total bundle of physical, service, and symbolic characteristics
designed to produce customer want satisfaction
The Warranty
Warranty is a guarantee to the buyer that the supplier will replace a defective product (or
part of a product) or refund its purchase price during a specified period of time
oIncreases consumer purchase confidence
BRAND MANAGEMENT
Choosing the means of identification for the firms outputs often represents a major
decision area for the marketing manager
Brands, Brand Names, and Trademarks
Brand is a name, term, sign, symbol, or design (or a combination of these) used to
identify the products of one firm and to differentiate them from competitive offerings
Brand name is the part of the brand consisting of words, letters, or symbols that make up
a name used to identify and distinguish the firms offerings from those of its competitors
Trademark is a brand that has been given legal protection and has been granted solely to
its owner
oIncludes pictorial design and brand name
For consumers, brands facilitate repeat purchases of products that have been found
satisfactory
What Constitutes a Good Brand Name?
Good brand names are easy to pronounce, recognize and remember
A brand name that works terrifically well in one country may prove disastrous in another
due to language problems
The brand name should give the buyer the right connotation
The Brand Name Should Be Legally Protectable
www.notesolution.com
Generic name is a brand name over which the original owner has lost exclusive claim
because all offerings in the associated class of products have become generally known by
the brand name (usually that of first or leading brand in that product class)
oExample: nylon, zipper, escalator, shredded wheat
Difference between brand names that are legally generic and those that are perceived to
be generic
oJell-O is a brand named exclusively owned by General Foods but all gelatine
desserts are referred to as Jell-O
Legal Brand names ( Kodak, Frisbee, Scotch Tape, Kleenex, Band-Aid ) are often used by
consumers in a descriptive manner
oSome brand names are also used as verbs such as Hoover in Britain.
Companies may face the ironic dilemma of attempting to retain the exclusive rights to a
brand name that, chiefly due to the success of their own marketing efforts, could become
generic to a large market segment if they do not take the appropriate steps to protect their
trademarks.
Some companies create new words to use for brand names
Once consumers have been made aware of a particular brand, its appearance becomes
further advertising for the firm
Well-known brands also allow the firm to escape some of the rigours of price competition
Brand Equity represents the value customers (and the stock markets) place on the sum of
the history the customer has had with a brand
oSony has high brand equity because of high quality electronic products
oBrand Equity has 4 components
Brand Awareness
How well widely a brand is known
Perceived Quality
Reflects customers’ assessments of the quality of the product that
carries a particular brand
Brand association
The connection customers make between the brand and other
aspects of their experience and understands
Brand Loyalty (Important)
Reflects the level of commitment a customer has to a particular
brand
Brand Loyalty Categories
Brand loyalty may be measured in three stages: Brand Familiarity, brand preference, and
brand insistence
Brand Familiarity is a company’s first objective for newly introduced products- to make
them familiar to consumers
oAchieved through advertising
oMay use discounts, free samples
www.notesolution.com
Brand Preference is the second stage of brand loyalty, when, based on previous
experience, consumers will chose a product rather than one of its competitors - if it is
available
ocompanies with products at brand preference stage are in a favourable position
with respect to competing in their industries
Brand Insistence is the ultimate stage of brand loyalty, when consumers will accept no
alternatives and will search extensively for the product
oProduct has reached a monopoly position with this group of consumers
oSeldom achieved
The Importance of Brand Loyalty
Beer consumers were very loyal, with 48% refusing to switch when there was a 50% cost
savings available from generic products
Building Strong Brands
Four factors contribute to strong brands
oThe organizations structure and processes must be supportive of the brand
oThere must be intentional brand building programs in the form of integrated
communication plans
oThe brand’s identity and position must be clearly understood
oThe brand’s architecture must be consistent with the overall brand strategy
Brand architecture refers to relationships that a company’s brands have with each other -
the structure of the companys brands
Family brand is one brand name used for several related products
oExample. Johnson & Johnson
oAllows promotional outlays to benefit all products in the line
oFacilitate the task of introducing the product - for both the customer and retailer
oOnly should be used when the associated products are of similar quality, or the
firm risks the danger of harming its product image
Individual Brands are a brand that is known by its own brand name rather than by the
name of the company producing it or an umbrella name covering similar items
oExample: Tide, Cheer, Crest
oMore expensive to market
oShould be used for dissimilar products
Unique brands also allow the firm to stimulate competition within the organization and to
increase total company sales
Brand extension is the decision to use a popular brand name for a new product entry in
an unrelated product category
in other situations, companies will choose a new brand name for related products
oreason is, to protect the image of the established brand in case the new one fails
Flanker Brands: are brands that are intended to protect an established brand from attacks
National Brands or Private Brands?
www.notesolution.com

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Description
INTRODUCTION Product: A Definition Core product is the physical or functional characteristics of a good Brand image, warranty, and service are all parts of the product as seen by the consumer They are buying want satisfaction o Marketing decision makers must have this broader concept mind and realize that people purchase more than just the physical features of products Retailers should be aware whether consumers see something as a product or not before investing huge sums of money into making it better (ex. Gasoline) Shoppers conception of a product may be altered by such features as packaging, labelling, or the retail outlets in which the product may be purchased Some products have no physical ingredients o Ex. Haircut, tax advice Total Product is a total bundle of physical, service, and symbolic characteristics designed to produce customer want satisfaction The Warranty Warranty is a guarantee to the buyer that the supplier will replace a defective product (or part of a product) or refund its purchase price during a specified period of time o Increases consumer purchase confidence BRAND MANAGEMENT Choosing the means of identification for the firms outputs often represents a major decision area for the marketing manager Brands, Brand Names, and Trademarks Brand is a name, term, sign, symbol, or design (or a combination of these) used to identify the products of one firm and to differentiate them from competitive offerings Brand name is the part of the brand consisting of words, letters, or symbols that make up a name used to identify and distinguish the firms offerings from those of its competitors Trademark is a brand that has been given legal protection and has been granted solely to its owner o Includes pictorial design and brand name For consumers, brands facilitate repeat purchases of products that have been found satisfactory What Constitutes a Good Brand Name? Good brand names are easy to pronounce, recognize and remember A brand name that works terrifically well in one country may prove disastrous in another due to language problems The brand name should give the buyer the right connotation The Brand Name Should Be Legally Protectable www.notesolution.com
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