Chapter 6

Marketing

Product: anything capable of satisfying customer needs. (theme park visits)

Difference between products & brands

product Brands
1. an offering 1. sign of ownership
2. customer purchases a product to 2. protecting the image of a product in
satisfy needs the market
3. doesn’t have a trademark 3. has a trademark
4. doesn’t have multiple brand name 4. have multiple products under its
name

Alternative ways of differentiating products

exists on three levels:
1. Core
2. Actual
3. augmented

core actual augmented

Satisfies a Can be altered Can be altered
particular for product for product
need in differentiation differentiation
market (style, quality, (style, quality,
feature, feature,
delivery) delivery)
– The brand name
Key aspects of building and managing a successful brand – How the brand is developed
1. brand domain
2. brand heritage – How the brand is positioned in the
3. brand value
marketplace
4. brand assets
5. brand personality
6. brand reflection
role of brands in society
1. brands create an illusion of enhanced value
2. large amount of money is spent on brand creation
3. brand creation is unnecessary process which artificially enhances brand value

how to manage a diverse product or brand portfolio

portfolio is a process of managing groups of brands and product line;
1. Determination of width and depth of product line
2. Formulation of right product mix
3. Management of a group of a brand
4. Invest in right products

How product performance evolves over time

- Both individual brands and product lines need to be managed over time.
- A useful tool for conceptualizing the changes that may take place during the time the
product is on the market is called the product life cycle (PLC).
The classic PLC has four stages:
1. Introduction: when product is new
2. Growth: product is accepted in market
3. Maturity: product has attained max growth & continues to provide profit
4. Decline: product begins to gradually lose its value

Importance of innovation and new product development process

helps develop products that satisfy unique customer
needs and generate market share and profits.

Benefits of brands to organizations

1. Company value
2. Consumer preference and loyalty
3. Barrier to competition
4. High profits
5. Base for brand extensions

Branding decisions
1. Communicates features and benefits
2. Reduces the risk in purchasing
3. Simplifies the purchase decision
4. Symbolic value

Why branding is imp?

permits customers to develop associations with products,
which eases the purchase decision
the anatomy of brand positioning

1. Brand domain: the brand’s target market, i.e. where it competes in the marketplace.
2. brand heritage: the background to the brand and its culture.
3. Brand value: value of brand to the company
4. Brand assets: what makes the brand distinctive from other competing brands (symbols,
features, images)
5. Brand personality: the character of the brand described in terms of other entities, such
as people, animals or objects (some brands have its own personality)
6. Brand reflection: how the customer perceives him/herself as a result of buying/using the
brand. (reflect on consumer)