Read the methodology of Interbrand.com for brand valuations. How might you improve their methods and the sorts of measures th
Reflection and Discussion Forum Week 3
Reflection and Discussion Forum Week 3Assigned Readings:Chapter 6. Products: Goods and Services.Chapter 7. Brands.Chapter 8. New Products and Innovation.Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.Also, provide a graduate-level response to each of the following questions:
- Read the methodology of Interbrand.com for brand valuations. How might you improve their methods and the sorts of measures they use to assess brand equity?
- Consider the trends described in the chapter (e.g., aging, heightening environmental concern, or China). How will each affect the business you are in (or were in before coming to b-school)?
- Make a list of 3 of your favorite brands. What would be a great brand-, or line-extension that you would like to see developed as a new product?
[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student's own words – do not provide quotes!] [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]
Activity 3 – Marketing Project Proposal
The group will write-up their proposed idea for their Marketing Plan in a 3 - 5 paged paper that will be submitted at the end of the day. The purpose of the Proposal to ensure that the group is on the right path of success to complete the project. The group will work on their idea and tentative supplemental pieces for the plan. The final plan will be submitted at the end of the semester. This tells you some of the parameters you need to meet for the Marketing Plan. The following are other pieces you need to ensure you include:
- What is the PRODUCT you wish to introduce?
- What are the PRICES you want to charge and/or the including a discussion of what the profit looks like you intend to make
- What PROMOTIONS do you intend to use to get your Marketing message across to your target market?
- What PLACE/DISTRIBUTION methods do you intend to use to get your product to the masses?
- Who is the target market? Why?
- What specific methods of distribution do you want to use? Do you want to have a storefront? Online presence? Both? Direct Sales?
- Depending on the International City/Country you plan to target, why did you pick that area for that particular product? Why that target market?
- Where do you plan to be headquartered?
- Everything needs to be specific and spelled out directly.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
1
6
Products: Goods and Services
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6. 2
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
2
Marketing Framework
3
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Discussion Questions #1
Is Arnold Schwarzenegger a product?
What is a product?
4
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Products
A product can be either a good or a service
It is the most essential decision in the 4Ps because it is what the consumer is receiving in the exchange
5
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6.
Marketing Exchange (slide 1 of 2)
Exchange
The company offers something (product) that will benefit the customer
The product can be designed to be more or less attractive
Increase/decrease quality, service, etc.
The customer offers something in return (payment)
Customer can be more or less attractive
High/low loyalty, high/low maintenance, spreads positive word-of-mouth, etc.
6
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Marketing Exchange (slide 2 of 2)
Marketers need to
Determine what the customers want in order to increase the likelihood of exchange
Determine what the company can profitably offer
The goal is to create mutually beneficial exchanges that result in long-term customer relationships
7
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Discussion Questions #2
Discuss an example of a situation where a company is only looking for a discrete transaction with a customer.
Why do marketers want to create long-term relationships?
8
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6.
Goods vs. Services
Goods and services differ in terms of
Intangibility
Search, experience, credence
Perishability
Variability
9
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6.
Goods vs. Services: Intangibility
Intangibility:
Extent to which you have something concrete
Pure goods: e.g., paper & phone
Pure services: e.g., massage & babysitting
Hybrids: e.g., restaurant & beauty salon
Experience marketing
Consumers are buying the experience
e.g., ESPN Zone & Build-a-Bear
10
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6.
Goods vs. Services: Qualities (slide 1 of 2)
Search qualities
May be evaluated prior to purchase
Experience qualities
Need trial/consumption before evaluation
Credence qualities
Difficult to judge even post-consumption
11
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6.
Goods vs. Services: Qualities (slide 2 of 2)
Goods are dominated by search and experience qualities
Services are dominated by experience and credence qualities
Professional service providers are beginning to understand the value of marketing
Create professional appearance and setting, tap their networks, etc.
12
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6.
Goods vs. Services: Perishability
Perishability
Services are simultaneously produced and consumed; thus,
Services cannot be stored; goods can
Marketers need to even out demand
Services cannot be separated from the provider; goods can
Customer/service provider interaction becomes part of the service
13
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6.
Goods vs. Services: Variability
Variability
Goods are made by machines; services are usually people intensive
Services change across customers and across time
Marketers need to
Reduce bad variability
Enhance good variability
Self-service is advancing in many industries
14
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6.
Discussion Question #3
What steps can marketers take to reduce bad variability?
15
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Core vs. Value-Added (slide 1 of 3)
Core is essential to the product offering
Value-added is supplemental
Can use to differentiate & improve satisfaction
Can use to identify competition
16
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6.
Core vs. Value-Added (slide 2 of 3)
Core elements are expected by customers
If core elements are substandard, dissatisfaction can be triggered
Recall issued, poor quality, etc.
Marketers can compete/differentiate on value-addeds
Generous service plan, good staff, etc.
17
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6.
Core vs. Value-Added (slide 3 of 3)
Core businesses may change as industries and firms change
e.g., Victoria’s Secret was 70% apparel but is now 70% beauty and fragrance
It is key to continually ask
What business are we really in?
Who are our true competitors?
18
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Competition through Customers’ Eyes
Define competition broadly
Car companies compete with other means of transportation (bus, taxi, etc.)
19
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Product Lines: Breadth and Depth
Product mix
A company’s product lines
Breadth
Number of product lines
Frigidaire sells refrigerators, washers, dryers, ranges, etc.
Depth
Number of products in a line
Frigidaire refrigerators have different sizes and features
20
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Discussion Questions #4
Which option has the least breadth?
Which option has the most depth?
21
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Product Line Strategies
Product line managers can prune or supplement existing lines
22
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Discussion Questions #5
Which firm(s) above is leveraging its segment knowledge efficiently?
Inefficiently?
23
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
Managerial Recap (slide 1 of 2)
Products are goods and services
Products are the central offering in the marketing exchange
Goods and services share similarities and differences
Services are relatively more intangible, inseparable, perishable, and variable
24
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6.
Managerial Recap (slide 2 of 2)
A firm’s market offering is comprised of the core and the value-addeds
Consider competition broadly
Competition can evolve over time as product lines are further developed in length and breadth
25
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6.
,
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
1
7
Brands
© 201 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7. 2
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
2
Marketing Framework
3
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
What Is a Brand?
Brand
Portfolio of qualities associated with a name
Brands immediately invoke certain images
Brands have value beyond the benefits of the product
4
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Associations
Marketers control some brand associations
Product shape and packaging
Logos, symbols, and colors
Jingles and slogans
Spokespeople
Marketers should control what they can
All outgoing messages should be positive
Marketers do not control all associations
e.g., Personal memories about brands
5
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Name
A brand starts with a name
Some names immediately convey information
e.g., YouTube
Some names suggest their benefits
e.g., Optical4less
Some names are those of their founder
e.g., Christian Dior
Marketer should choose a brand name that conveys its benefits
6
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Names, Logos, and Color
Brand name meaning is built over time through communications with customers
Brand names and logos are a shorthand way to communicate with customers
This is who we are and what we look like
Brand colors and fonts visually engage customers
e.g., The New York Times and Google
7
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Names and Logos
Some logos combine a brand name with a symbol meant to suggest the brand’s value proposition
8
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Discussion Questions #1
Should a brand name be adapted over time?
If so, when and why?
9
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Why Brand? (slide 1 of 2)
Customer benefits of branding
Brands identify company ownership
Brands allow for predictable quality
Brands make it easier for customers to make decisions; less perceived risk
Brands serve as status symbols
10
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Why Brand? (slide 2 of 2)
Company benefits of branding
Brands induce loyalty—increasing repeat purchasing
Brands allow premium prices
Brands allow a single firm to pursue multiple market segments
11
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7.
Hierarchy of Brand Associations
Concrete product attributes: 40 mpg
Abstract product benefits: Save money
Abstract emotional benefits: Feel good
Attributes are easy to communicate and easy for competitors to copy
Benefits are abstract; harder to create and communicate, but more meaningful
12
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7.
Brands Serve Social Functions
Brands help customers express their ideal selves
e.g., Certain school, car, and clothing
Brands become the focal point of bonding through brand communities
e.g., Subaru, Harley-Davidson, and Lego
13
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Association Network (slide 1 of 2)
Depiction of brand associations
Unlinked nodes have no or weak connection; strong links are bold
14
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Association Network (slide 2 of 2)
How it works
When brand name is activated, associations are triggered
Nodes closest to the brand are retrieved first
Customer satisfaction with the brand is most heavily influenced by the positivity or negativity of nearest links
Networks may be simple or complex
Depends on focus and consistency of advertising
15
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Discussion Question #2
What comes to mind first when Louis Vuitton is activated?
16
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Personalities
Brand can have a distinct personality
Personalities capture
Specific information about the brand
Holistic perceptions about the brand
17
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Types of Brand Experiences
Consumers experience brands
Affective (heart), intellectual (mind), and behavior (action)
18
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7.
Brand Communities
Brand communities
Customers who connect with like-minded customers
They have extreme attachments to brands
e.g., Apple, Nintendo, Harley-Davidson
Marketers should try to build and capitalize on these communities
19
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Branding Strategies (slide 1 of 2)
Umbrella approach
Attaching the same brand name to products
Subsequent product introductions are easier for the customer to understand and accept
Higher initial awareness levels
Builds stronger brand associations
Stronger financial outcomes
e.g., Nike, Canon, and GE
20
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Branding Strategies (slide 2 of 2)
House of brands approach
Introducing a new brand name for every product line
Any problems with one brand should not influence the other brands
Brand images do not need to be consistent, which allows for targeting multiple segments
Requires more advertising expense
e.g., Procter & Gamble has 80 major brands
21
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Extensions
Brand extensions
Leverages the brand’s good name to get customers to buy something new
Line extensions
Increase depth—new product within a line
e.g., Cheerios has various flavors
Product category extensions
Increase breadth—new product line
e.g., Amazon sells many different things
22
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7.
Discussion Questions #3
How might Oscar Meyer extend its line?
How might Oscar Meyer implement a product category extension?
Why would it do either?
23
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Co-branding (slide 1 of 2)
Co-branding
Two companies form a joint venture to create a product from both companies
e.g., Tevlar fabric
Ingredient branding
Form of co-branding in which one company adds value to a host product
One company dominates the other
e.g., Intel in many PCs
24
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Co-branding (slide 2 of 2)
Co-branding works well when a company is introducing a new product attribute
e.g., Adding cough medicine to candy
Self-branding
Branding own ingredient to differentiate its quality from competitors
Works better when tweaking a minor attribute
e.g., Tide’s EverFresh scent
25
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7.
Global Brands
Global brand
30% of revenues from other countries
Global strategies
Glocalization
Different names in different countries
“Manufacturer globally, brand locally”
Global brands
Same brand in all countries
More advantageous
e.g., Amazon.com and Amazon.co.uk
26
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7.
Store Brands
Private label brands
Good for price-sensitive markets
Can be more of a “me-too” product offering
Can be premium private label
e.g., Walmart’s “Sam’s Choice”
Retailer can offer decent quality for lower prices due to reduced advertising costs
Manufacturers are launching second labels to compete with store brands
27
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Equity (slide 1 of 2)
Brand equity
The worth of a brand
Measurement approaches
Determining the price premium of brand
“How much are you willing to pay for gas at Shell?” vs.
“How much are you willing to pay at a local station?”
Comparing branded and unbranded
“How much do you like this $499 Sony flat screen with screen-within-a-screen?” vs.
“How much do you like this $499 unknown brand flat screen sharing the same features?”
28
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Brand Equity (slide 2 of 2)
Measurement approaches (continued)
Interbrand: assess the value of a firm, subtract its physical and financial assets
Brand contribution index varies by product category: high for cologne, lower for retailers
29
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Discussion Questions #4
What do you think are the top U.S. brands?
What do you think are the top non-U.S. brands?
30
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7.
Top Brands
31
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Managerial Recap (slide 1 of 2)
Brands are promises to customers; they include names, logos, colors, and fonts
Brands signal information to customers about predictability
Anticipated reliability and expected quality
Brands can command higher prices because they offset risk
32
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
Managerial Recap (slide 2 of 2)
Brand associations are cognitive and emotional
Companies can employ umbrella branding or house of brand strategies
Brand valuation, the measure of the worth of brand, is important to marketers
33
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.
,
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
‹#›
8.
1
8
New Products and Innovation
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8. 2
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
2
Marketing Framework
3
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
Discussion Questions #1
List three new products.
Why do you think companies introduce new products?
4
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
Why Improve Products?
For corporate pride
To be consistent with innovative image
To better attract/satisfy customers
To stave off competition
Because the macroenvironment changes
Consumer tastes, natural resources, demographics, cultural changes, etc.
5
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
Approaches to Developing New Products
Top-down (inside-out)
Idea generation
Design and development
Commercialization
Customer feedback is sought later in the process; marketing supports product launch
Works well in industries where internal R&D has expertise that end-customers lack
Co-creation (bottom-up or outside-in)
Customer & company co-create products
6
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
New Product Development Process (slide 1 of 2)
7
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
New Product Development Process (slide 2 of 2)
The NPD process is not entirely linear
It is important to continually revisit prior decisions and change when necessary
e.g., A good decision in stage 2 may not be a good decision in later stages
Marketing is involved throughout process
Idea generation, refinement, marketing mix decisions, etc.
8
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
Where Do New Ideas Come From?
9
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
Idea Creation & Market Potential (slide 1 of 2)
Idea generation
Brainstorming: “No idea’s a bad idea; let’s get everything up on the white board”
Firms may allocate time for employees to work on pet projects
10
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
Idea Creation & Market Potential (slide 2 of 2)
In-house winnowing & refinement
Screen ideas for plausibility using
Internal experts’ knowledge
Marketers’ target knowledge
Management’s company knowledge
Feasibility assessments & business analyses are somewhat fuzzy at this stage
11
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
11
Concept Testing, Design, & Development (slide 1 of 4)
Obtain feedback on plausible ideas
Use marketing research to
Save a company from a bad idea
Yield information to tweak an idea
Encourage pursuit of good idea
Research may include focus groups, online surveys, etc.
Conjoint analysis may also be used to determine trade-offs
12
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
Concept Testing, Design, & Development (slide 2 of 4)
Focus groups
2–3 groups (per segment) of 8–10 customers
Usually last 1.5–2 hours
Goal is background information to improve product development or product positioning
Participants give feedback on product concepts
13
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8.
Concept Testing, Design,
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