Management and Organizational Studies 1021A/B Chapter Notes - Chapter 9: Product Differentiation, Inbound Marketing, Ultima Foods
1 Jul 2018
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Lecture 9:
Idle production capacity: is formally defined as a situation when the supply of a service exceeds
it demand
Product width: the number of different categories offered by the company
Product depth: the variety of product lines and products sold with its product categories groups
and lines.
Bussiness products may be classified as production goods and services or support goods and
services:
Production goods and services: items used in manufacturing process that become part of the
final product. Ex. raw materials like grain, lumber
Support goods and services: items used to assist in producing other goods and services.Ex.
installations,accessory equipment, supplies
Installations consist of buildings and fixed equipment.
Accessory equipment: includes tools and office equipment and is usually purchased in small-
order sizes by buyers.
Supplies: are the bussiness equivalent of consumer convenience goods and services.Ex.
stationary,paper clips, brooms.
Services: intangible activities to assist a business in its operations and in producing goods and
services
5 key variables that “define determine and ultimately drive brand influence. In order of
importance the categories are trustworthy, engagement, leading edge, corporate citizenship,
and presence.
Trustworthiness: the consistently dependable image that consumers have for a brand and
fosters their ongoing confidence in recommending it to others
Engagement: engage consumers to encourage brand loyalty so they can learn about the brand
and ultimately share it with others.
Leading edge: Brands that stand out are often unique, innovative, and forward thinking. Their
approach tends to be edgy and somewhat different and stands as a benchmark for other
brands.
Corporate citizenship: These brands involved in community intitiative that focus on the
environment and social well-being of society
Presence: need to have high profile with consumers. Through marketing, they are often top of
mind with consumers and are used regularly in consumers and are used regularly in consumers
daily lives. These brands make a statement about themselves and the people that use them.
The top 10 most influetial brands in canada in 2013:
1. Google
2. Facebook
3. Microsoft
4. Apple
5. Visa
6. Time Hortons
7. Youtube
8. President’s Choice
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9. Walmart
10. MasterCard
Individual brand: When a company uses a brand name solely for a specific product category Ex.
Yop brand name use by Ultima Foods Inc. only for this milky based beverage and twitter solely
for the social networking site
Family brand: when a company uses a brand name to cover a number of different product
categories Ex. crest used by procter and gamble for toothpaste, dental floss, mouthwash
Brand extension: when new goods or services are introduced under an existing flagship brand
name Ex. presidents choice brand name has been extended into a number of subbrands such
as PC blue menu for healthier products, PC Organics for organic products
Sub-brand: a brand that uses the family brand name as well as its own brand name and identity
so that it can take on the strengths of the parent brand but also differentiate itself
Advantage of using established family brand name: brand equity is easily transferred from the
flagship brand to the new product saving the company marketing funds
Disadvantage: if new product doesnt live up t image of flagship brand or doesnt share values
then brand equity built up over time can be eroded for all products under this family brand name
Patents: used to legally protect new technologies, new processes, or specific formulations from
other companies that may wish to benefit from their use
Copyrights: used to legally protect the written word, a sound recording, or a form of
communication from being copied by others. It covers music, literature, performance, and can
include slogans.
Trademarks: used by people or organizations to protect brand images, names, and designs
from usage by others. Limited by a period of 15 yrs from date of registration but can be renewed
by owners.
Brand names should have 5 things:
1. The name should suggest the product benefits
2. The name should be memorable distinctive and positive
3. The name should fit the company or product image
4. The name should have the ability to be legally protected
5. The name should be simple
Outbound marketing: marketers seek out consumers by widely broadcasting messages using
advertising, direct email, email marketing, telemarketing, and personal-selling approaches
Inbound marketing: when consumers find a product and its messaging by using online
techniques that marketers facilitate, including search engine optimization, pay-per-click ads, and
the use of social media to connect with consumers
Marketing communication tools: advertising, public relations, sales promotion, direct response,
event marketing and sponsorship, and personal selling
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Document Summary
Idle production capacity: is formally defined as a situation when the supply of a service exceeds it demand. Product width: the number of different categories offered by the company. Product depth: the variety of product lines and products sold with its product categories groups and lines. Bussiness products may be classified as production goods and services or support goods and services: Production goods and services: items used in manufacturing process that become part of the final product. Support goods and services: items used to assist in producing other goods and services. ex. installations,accessory equipment, supplies. Accessory equipment: includes tools and office equipment and is usually purchased in small- order sizes by buyers. Supplies: are the bussiness equivalent of consumer convenience goods and services. ex. stationary,paper clips, brooms. Services: intangible activities to assist a business in its operations and in producing goods and services. 5 key variables that define determine and ultimately drive brand influence.
