Marketing Multiple Choice and Short Answer Questions
mathwiz10101
Chp7PRODUCTSANDBRANDS.ppt© 2012 McGraw-Hill Ryerson Ltd.
Products and Brands
Chapter
7
© 2012 McGraw-Hill Ryerson Ltd.
Learning Objectives
Distinguish between goods and services
Describe and apply the total product concept
Differentiate between products, product lines, and product mixes
Indentify the ways consumer and business goods and services are classified
Explain the elements of branding and how these can be protected
Distinguish between the different types of brands that exist in the market
Apply product and brand knowledge to ongoing marketing strategies
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Product Levels
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LO 2
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Product
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LO 1
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Product
Tangible attributes
- Physical characteristics
Intangible attributes
- Attributes that can’t be touched
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LO 1
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Product
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The essence of marketing lies in managing and developing products that meet the needs of a target market
LO 1
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Three Categories of Product
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Nondurable Food and fuel
Durable Appliances and automobiles
Services Doctor’s appointments, banking
LO 1
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Services
- Differentiate from competition
- Add value
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LO 1
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Products
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Pure Service
Pure Product
LO 1
e.g. “Hiring a housepainter”
?
?
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The Uniqueness of Services
Intangibility
- Can’t be touched, held or seen, so…
- Must demonstrate the benefits of using the service
Inconsistency
- Quality is inconsistent
- Dependent on service provider
Inseparability
- Service provider cannot be separated from service
Inventory
- Fluctuating demand; perishability
- Results in idle production capacity
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LO 1
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Total Product Concept
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LO 2
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http://www.frederiksamuel.com
How do these advertisements communicate the CORE or BENEFITS of these products?
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http://www.frederiksamuel.com
How do these advertisements communicate the CORE or BENEFITS of these products?
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© 2012 McGraw-Hill Ryerson Ltd.
1936
1955
Let’s see how the promotion of luggage has changed in the last 75 years.
Back in the mid-century … features were most often promoted.
What are the features here?
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1965
1950’s
The 1960’s saw the rise in benefit-driven advertising.
What’s the core BENEFIT shown in this ad on the right?
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By the 1990’s and 2000’s, core BENEFIT and SELF-ACTUALIZATION was on the advertising radar.
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Louis Vuitton
By the 2010’s, we see the product as a backdrop to a desired lifestyle and its benefits.
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Prada
By the 2010’s, we see the product as a backdrop to a desired lifestyle and its benefits.
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Samsonite Black Label
Even though these Samsonite products have many exciting technical features … you can see how the ads speak to BENEFITS, not the features.
Where would a customer find out about the features?
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Packaging and Labelling
- Integrated part of product
- Differentiates from competition
- Reflects product positioning, brand equity, and image.
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LO 2
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http://pzrservices.typepad.com/vintageadvertising/2010/03/vintage-ad-for-tang-orange-drink.html
http://designkultur.wordpress.com/2010/05/15/food-%C2%ABsushi-popper%C2%BB-space-station-good/
Can a Redesign Revive Tang's Once-Starry Brand?
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Can a Redesign Revive Tang's Once-Starry Brand?
It was the unofficial drink of the Space Age. But stateside, it lost its starry cachet over the years, hidden in the powdered-drink aisle by the Kool-Aid Man and Crystal Light, its brand recognition reduced to this: In 2006, terrorists plotted to blow up a trans-Atlantic fight with homemade bombs made, in part, of Tang.
Now, a private equity firm is considering acquiring Tang and has hired Chicago-based Streng Design to give the juice a radical makeover. Their concept rests on recapturing consumers’ strongest association with the brand and infusing it with a new sense of delight. Naturally, they’re going with a space theme. And it is awesome.
The designers see Tang’s fundamental customer as parents in their 20s and 30s -- the hip, design-minded sort who maybe shop at Whole Foods and clean their sink with Method. “We didn’t want to pander the way you do with Lucky Charms or other sugary cereal, with the kid in the cart seeing the bright box and saying, ‘Mom, mom! I want that!’” says Daniel Streng, who co-founded Streng Design with his brother Christopher. “We wanted large even blocks on the shelf and a simple aesthetic that gives consumers immediate recognition and comfort.”
Developed by William Mitchell (who also invented Pop Rocks) in the 1950s for General Foods, Tang’s now owned by Kraft Foods, which has more or less neglected the tart drink mix in the United States over the past couple decades (though oddly not abroad, but more on that later). Its amateurish packaging has reflected as much; with giddy text thrown every which way, it looked like it hadn’t been redesigned since the late 1980s. Thankfully, that could change.
The new packaging is retro with a twist. It’s got a boot print under the catchphrase “one giant leap,” as if the mix itself were moon dust. (And the print is echoed on the lid.) The bright orange canister is minimally adorned, and it's a rounded rectangle instead of a tube for better visibility on the shelf. A scoop inside is designed like a rover.
The imagery is repeated in single-serve packets made to resemble Pixy Stix.
Tang, for the record, never made it to the moon. At least not to Buzz Aldrin’s knowledge. But that’s not the point. The point is that testing -- and there was loads of it, the client being a private equity firm -- showed that people identify Tang with outer space more than anything else. And since the moon mission is the zenith of the American space program, it emerged as the obvious choice for a logo -- which the product desperately needed. (When asked to cite Tang’s existing mascot, subjects’ answers varied wildly from polar bears, toucans, and monkeys to flamingos and astronauts.)
It’s also worth noting that the selection of iconography is obviously aimed at U.S. consumers. Tang is hugely popular in second and third world countries, because it provides Vitamin C at a low cost, something Kraft has deftly exploited. But to appeal to the U.S. market, it needs a different and distinctly American image.
The question now, is whether the private equity group, which Streng declined to name, goes through with the deal. “We’ve really identified a way to to take all these things we talk about in design thinking, and we’ve illustrated to a business how that provides value,” Streng says. “If they don’t end up acquiring Tang, I’m happy to go back and do this for Kraft directly.”
[Images courtesy of Streng Design]
http://www.fastcodesign.com/1662413/can-a-redesign-revive-tangs-once-starry-brand
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© 2012 McGraw-Hill Ryerson Ltd.
http://www.fastcodesign.com/1662413/can-a-redesign-revive-tangs-once-starry-brand
[Images courtesy of Streng Design]
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© 2012 McGraw-Hill Ryerson Ltd.
http://www.fastcodesign.com/1662413/can-a-redesign-revive-tangs-once-starry-brand
[Images courtesy of Streng Design]
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© 2012 McGraw-Hill Ryerson Ltd.
http://www.fastcodesign.com/1662413/can-a-redesign-revive-tangs-once-starry-brand
[Images courtesy of Streng Design]
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© 2012 McGraw-Hill Ryerson Ltd.
http://www.fastcodesign.com/1662413/can-a-redesign-revive-tangs-once-starry-brand
[Images courtesy of Streng Design]
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© 2012 McGraw-Hill Ryerson Ltd.
http://www.fastcodesign.com/1662413/can-a-redesign-revive-tangs-once-starry-brand
[Images courtesy of Streng Design]
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© 2012 McGraw-Hill Ryerson Ltd.
Think of how Packaging adds value
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Managing Products
Often groups of products that are closely related are managed together
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LO 3
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Managing Products
Product line Product items
Product line is part of product mix
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LO 3
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Managing Products
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Width
Depth
Product Mix
LO 3
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Managing Products
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LO 2
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Classification of Products
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LO 4
Consumer Products
Business Products
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Consumer Products
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Convenience Products
Shopping Products
Specialty Products
Unsought Products
** The classification of a good is dependent on the consumer
LO 4
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Consumer Products and the related strategy
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LO 4
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Branding
Brand
- Name, associated brand marks
Brand equity
- Brand plus marketing efforts
that results in consumer loyalty
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LO 5
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™
Brand Equity
Achieved through marketing investment
Important to protect brand equity:
- Patents
- Copyrights
- Trademarks
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LO 5
©
®
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Brand Loyalty
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Brand
Loyalty
LO 5
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Brand
Brand choice is influenced by brand personality
- Pepsi = youthful, exciting
- Dr. Pepper = nonconforming, unique and fun!
Brand Name should:
- Suggest the product benefits
- Memorable, distinctive, and positive
- Fit the company or product image
- Have no legal or regulatory restrictions
- Simple
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LO 5
© 2012 McGraw-Hill Ryerson Ltd.
Remember spelling, secondary meanings & pronunciation around the world
Miele
Hyundai
FNAC
Renault
CocaCola
sappi
Pschitt
Gratte
Krapp’s
Federal Express
Enteron
Pequod
Ishibashi
M-Brace
Sony
Silver Mist
YKK
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Important for direct Internet searches
Sappi – is a brand name for fine paper
CocaCola – spells phonetically in other alphabets for many languages
Pschitt – Italian soda
Krapp’s – Norwegian toilet paper
Federal Express – changed to FedEx due to latin negative connotation with “los federales”
Enteron – became Enron after they realized “enteron” was the medical name for “entrails”
Pequod – boat in Moby Dick; then suggested Starbos, the name of an old mining camp on Mt Rainier; then owners suggested Starbucks, the first mate on the Pequod
Ishibashi – translated into English as Stonebridge tires
Sony – trade on prefix “son” root of sound in many languages and easy to pronouce brand
Silver Mist – was to be the name of a car, until mist = manure in German
Nike – greek goddess of victory
© 2012 McGraw-Hill Ryerson Ltd.
Gratte
Pequod
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The Concise and Correct Explanation of the Starbucks Naming Myth
What was the inspiration for the naming of Starbucks Coffee? If you look almost anywhere on the web, you will find statements that explain Moby Dick was the founder's favorite novel, and in it was a coffee-loving First Mate named Starbuck. Having recently read Moby Dick, I knew this couldn't be correct: the First Mate in Moby Dick is named Starbuck, but he is not a (known) coffee lover. When I heard Susan Stamberg perpetuate the myth on NPR, I knew it was time to take action.
So I searched the Starbucks web site, expecting to find the true and official explanation. Surprisingly, there was nothing of the sort. So I emailed Starbucks, asking for the explanation. They did write back, but the response I received was incomplete. However, it cited the book "Pour Your Heart into It : How Starbucks Built a Company One Cup at a Time", by Howard Schultz, who became Starbucks sole owner when he bought out the three Starbucks founders, in 1987. That gave me the idea to consult the book myself. Herewith, then, is my concise explanation, gleaned from Schultz' book.
Moby Dick was indeed a book beloved of one of the Starbucks founders. He proposed naming the company Pequod, after the ship. "Pee-quod" was nixed by his partners, and they cast about for a name with some local flavor (local to Seattle, Washington). They came upon the name Starbo, from an old mining camp on Mt. Rainier, and liked it. Then the Moby Dick fan drew a phonetic connection between "Starbo" and the novel--the Pequod's First Mate named Starbuck. And Starbucks it was.
So it is not so hard to imagine how the urban legend might have evolved. Known fact: the name of the company came from the name of a mate in Moby Dick. Dim recollection from high school: one of the mates in Moby Dick had an uncommon passion for a substance of oral fixation (Stubb, not Starbuck; for his pipe, not for coffee). Voila, the brain connects up a plausible, internally consistent explanation; better than the original, except that it isn't correct (1). Like many urban legends, this one contains an element of truth. Unlike many, it seems to me that it probably arose from an innocent "false memory" (2), rather than a more deliberate perversion of fact.
© 2012 McGraw-Hill Ryerson Ltd.
Some classically difficult English words for an international market (l, r, gh, ei, homonyms, etc.)
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Ought – a killer
Silent “k” – distinctively English
ie vs ei
L’s and R’s – inversed in asian languages
“ou” in French = oo … Loud = lewd
Nova was renamed “Caribe” for hispanic market
Tough to spell into domain searches
© 2012 McGraw-Hill Ryerson Ltd.
Types of Brands
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LO 6
| Manufacturer’s Brand | Johnson & Johnson |
| Private Label Brand | Life Brand |
| Generic Brand | Dollar store brand |
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Types of Brands
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LO 6
| Individual Brand | YOP |
| Family Brand | CREST |
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A Practical Look at Marketing Products & Brands
Marketers have a plan but…
- Must understand marketing dynamics
- Be able to assess the impact
- Be able to adjust plans accordingly
- Constantly changing process
Requires:
Analytical skills
Creativity
Strategic understanding of the brand
Strategic understanding of the competition
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LO 7
How do these advertisements communicate the CORE or BENEFITS of these products?
*
How do these advertisements communicate the CORE or BENEFITS of these products?
*
Let’s see how the promotion of luggage has changed in the last 75 years.
Back in the mid-century … features were most often promoted.
What are the features here?
*
The 1960’s saw the rise in benefit-driven advertising.
What’s the core BENEFIT shown in this ad on the right?
*
By the 1990’s and 2000’s, core BENEFIT and SELF-ACTUALIZATION was on the advertising radar.
*
By the 2010’s, we see the product as a backdrop to a desired lifestyle and its benefits.
*
By the 2010’s, we see the product as a backdrop to a desired lifestyle and its benefits.
*
Even though these Samsonite products have many exciting technical features … you can see how the ads speak to BENEFITS, not the features.
Where would a customer find out about the features?
*
*
*
*
*
*
*
*
*
Important for direct Internet searches
Sappi – is a brand name for fine paper
CocaCola – spells phonetically in other alphabets for many languages
Pschitt – Italian soda
Krapp’s – Norwegian toilet paper
Federal Express – changed to FedEx due to latin negative connotation with “los federales”
Enteron – became Enron after they realized “enteron” was the medical name for “entrails”
Pequod – boat in Moby Dick; then suggested Starbos, the name of an old mining camp on Mt Rainier; then owners suggested Starbucks, the first mate on the Pequod
Ishibashi – translated into English as Stonebridge tires
Sony – trade on prefix “son” root of sound in many languages and easy to pronouce brand
Silver Mist – was to be the name of a car, until mist = manure in German
Nike – greek goddess of victory
*
The Concise and Correct Explanation of the Starbucks Naming Myth
What was the inspiration for the naming of Starbucks Coffee? If you look almost anywhere on the web, you will find statements that explain Moby Dick was the founder's favorite novel, and in it was a coffee-loving First Mate named Starbuck. Having recently read Moby Dick, I knew this couldn't be correct: the First Mate in Moby Dick is named Starbuck, but he is not a (known) coffee lover. When I heard Susan Stamberg perpetuate the myth on NPR, I knew it was time to take action.
So I searched the Starbucks web site, expecting to find the true and official explanation. Surprisingly, there was nothing of the sort. So I emailed Starbucks, asking for the explanation. They did write back, but the response I received was incomplete. However, it cited the book "Pour Your Heart into It : How Starbucks Built a Company One Cup at a Time", by Howard Schultz, who became Starbucks sole owner when he bought out the three Starbucks founders, in 1987. That gave me the idea to consult the book myself. Herewith, then, is my concise explanation, gleaned from Schultz' book.
Moby Dick was indeed a book beloved of one of the Starbucks founders. He proposed naming the company Pequod, after the ship. "Pee-quod" was nixed by his partners, and they cast about for a name with some local flavor (local to Seattle, Washington). They came upon the name Starbo, from an old mining camp on Mt. Rainier, and liked it. Then the Moby Dick fan drew a phonetic connection between "Starbo" and the novel--the Pequod's First Mate named Starbuck. And Starbucks it was.
So it is not so hard to imagine how the urban legend might have evolved. Known fact: the name of the company came from the name of a mate in Moby Dick. Dim recollection from high school: one of the mates in Moby Dick had an uncommon passion for a substance of oral fixation (Stubb, not Starbuck; for his pipe, not for coffee). Voila, the brain connects up a plausible, internally consistent explanation; better than the original, except that it isn't correct (1). Like many urban legends, this one contains an element of truth. Unlike many, it seems to me that it probably arose from an innocent "false memory" (2), rather than a more deliberate perversion of fact.
*
Ought – a killer
Silent “k” – distinctively English
ie vs ei
L’s and R’s – inversed in asian languages
“ou” in French = oo … Loud = lewd
Nova was renamed “Caribe” for hispanic market
Tough to spell into domain searches
