Management and Organizational Studies 2320A/B Lecture Notes - Lecture 7: Brand Loyalty, Tcby, Brand Awareness
16 Sep 2016
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MOS 2320 Lecture 7
June 7, 2016
Chapter 9 Product, Branding, and Packaging Decisions
Organization, Services, People, Place, Social causes all could be products, brand.
➢ What is a product?
❖ Products
❖ Organizations
❖ People
❖ Places
❖ Social causes
➢ Complexity of Products and Types of Products
❖ Complexity of Products
▪ Core customer value
The basic problem-solving benefits that consumers
are seeking.
▪ Actual product
Marketers convert core customer value into an
actual product.
▪ Associated services (or augmented product)
The nonphysical attributes of the product, including product warranties,
financing, product support, and after-sale service.
❖ Types of Products
▪ Consumer Product
Products and services used by people for their personal use.
i. Convenience
Products or services for which the consumer is not willing to spend
any effort to evaluate prior to purchase.
ii. Shopping (compare)
Products or services, such as apparel, fragrances, and appliances, for
which consumers will spend time comparing alternatives.
iii. Specialty
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.
iv. Unsought
Products consumers either do not normally think of buying or do not
know about.
E.g., funeral services, fire extinguishers, insurances
➢ Product Mix and Product Line Decisions
Product mix
Product line
Product category
Brands
find more resources at oneclass.com
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▪ Brand does NOT equal logo.
▪ The names, terms, design, symbols, characters, slogans, jingles, packaging,
culture, people, histo o a othe featues that idetif oe selles goods
or service as distinct from those of other sellers.
Product Mix Breadth
Product Line Depth
Stock-keeping Units (SKUs)
❖ Change Product Mix Breadth
Increase breadth
True religion brand jeans now are a lifestyle brand with apparel, belt, swimwear and
fragrances
Decrease breadth
Due to competitive changes, TCBY is now focusing on Yogurt
❖ Change Product Mix (Line) Depth
❖ Change number of SKUs
❖ Products Line Decisions for Services
➢ Branding
❖ What makes a brand?
❖ Value of branding
▪ Brands Facilitate
Purchasing
▪ Brands Establish Loyalty
▪ Brands Protect from
Competition
▪ Brands Reduce
Marketing Costs
▪ Brands Are Assets
▪ Brands Impact Market
Value
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find more resources at oneclass.com
❖ Brand Equity
▪ Brand awareness
▪ Perceived value
▪ Brand associations
▪ Brand loyalty
• Consumers are often less sensitive to price
• Marketing costs are much lower
• Loyal customers praise the virtues of their favorite products, retailers
or services
• High level of brand loyalty insulates the firm from competition
➢ Branding strategies
❖ Brand ownership
▪ Manufacturer or National Brand
▪ Store or Private Label
▪ Generic
❖ Naming brands and product lines
Desirable qualities:
▪ Suggest benefits and qualities
▪ Easy to pronounce recognize and
remember
▪ Capable of registration and legal
protection
▪ Translated easily
▪ Corporate Brands
▪ Family brands
▪ Individual brands
▪ Choosing a Name
❖ Brand extension
Use of the same brand name for new products.
Existing brand name – new product
Benefits
▪ Well established name
▪ Perception of high quality carries over
▪ Lower marketing costs
▪ Synergy among complementary products
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Organization, services, people, place, social causes all could be products, brand. Complexity of products and types of products. Complexity of products: core customer value. The basic problem-solving benefits that consumers are seeking: actual product. Marketers convert core customer value into an actual product: associated services (or augmented product) The nonphysical attributes of the product, including product warranties, financing, product support, and after-sale service. Products and services used by people for their personal use: convenience. Products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase: shopping (compare) Products or services, such as apparel, fragrances, and appliances, for which consumers will spend time comparing alternatives: specialty. 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: unsought. Products consumers either do not normally think of buying or do not know about.
