5 product and service strategy and brand management (Brand equity and…
5 product and service strategy and brand management
Brand equity and brand management
brand growth strategies
flanker/fighting brand strategy
presumptive cannibalism is better than losing share to competitor
fighting brand strategy
circumstances that calls out for a fighting brand
3) the organization wishes to preserve its profit margins in its existing brand(s)
2) its dominant brand is in danger of having its high share sliced by aggressive pricing/promotion
1) high relative share in product class
a brand which sole purpose is to combat competitive brands
flanker brand strategy
adding new brand on the high or low end of price-quality continuum
way of counteract competition
tap into specific consumer segment not attracted to an organizations existing products/brands
new brand for a product class already served by the company
new brand strategy
allows to enter promising product class even if current brands cant be extended
akin to diversification
costly and challenging
the development of a new brand and offering for a product class not previously served
brand extension strategy
reducing risk by leveraging brand awareness, brand familiarity and positive brand association when entering a new product category
the practis of using a current brand name to enter a completely diffrent product class
many products are more expensive to produce and distribute than fewer, and the total sales has to be higher to make up for that
high brand awareness at a relative low cost since the same brand is used on all products
introduction of additional offerings with the same brand in a product class that it currently serves
can lead to over dependence on private label revenue, which can be removed if the re-seller changes manufacturer or vertical integration
will lead to cannibalism, better us than someone else
can be a way of using excess manufacturing capacity
goodwill attributed to offering will transfer onto the re-seller brand raising brand equity and loyalty
avoid price competition
when a manufacturer spply a reseller with a product bearing a brand name choosen by the reseller
higher promotional costs, there is no established brand equity to get drag from
reduced risk that an individual brand failure will transfer and create bad associations toward the family brand
useful when each brand is intended for a different market segment uniquely positioned
giving each product or product line a distinct name
intent is to build on favorable associations that consumers have towards the family brand while differentiating the new offering
can delude the meaning of the brand
allows for creating a global brand
raising overall branding awareness, without having to advertise each product
transfer brand equity between products
a company uses one name for all its products in a product class
valuing brand equity
creating brand equity
create a consumer-brand resonance, where the consumer derives social and psychological value from associating and being associated with the brand
elicit the proper consumer responses to the brands identity and meaning
establish brand meaning (what the brand stands for)
functional performance related
1 develop positive brand awareness and an association with a product class or need to give the brand an identity
allows owner to charge a premium
provides competitive advantage
the added value a brand name bestows on a product or service beyond the functional benefits provided
making the positioning decision
do we have the marketing resources to occupy and hold the position?
what competitors must be outperformed if we are to establish the position?
what position do we want to own?
what position, if any, do we already have in the target segment?
what are the preferences of the target consumer sought and how do these consumers perceive the offerings of competitors?
who are the likely competitors, what positions have they stalked out, how strong are they?
crafting a position statement
price and quality
product or service class
product or brand user
use or application
attribute or benefit
an increase in aggressive pricing activities by competitors
increase in the standardization of product operations and product/service offerings
increase in portion of buyer who are repeat purchases (few new buyers)
plots sales of an offering or a product class over a period of time
the offering mix/portfolio
number of offerings in each line
number of offering lines
merging two bundles into one
value meals fast food
modifying the offering mix
additions to the offering mix
is there a viable market for the offering?
is there a distinct segment for which no offering is satisfactory?
does the new offering have a relative advantage over competitive offerings at a price buyers are willing and able to pay?
does the organization have the resources to introduce and sustain the offering?
how consistent is the new offering with existing offerings?
will it fit
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modifying, harvesting, and eliminating offerings
criteria for this to be a viable tactic
the offering provide some non financial value justifying it to be continued even though future prospect is faint
the offering has a market share that is becoming harder and more costly to defend
the offering is not producing good profits
market for the offering is stable
reducing investment in hope of reducing cost and increasing cash flow
what would be the effect on channel members and buyers?
how much could be gained by modifying the offering?
how much is the offering contributing to the sale of other offerings in the mix?
how much is the offering contribute to offering mix profitability?
what is the future sales potential of the offering?
reducing the value and the price
improving offering by adding new features or higher quality materials or augmenting the offering with services and raising the price
developing a new offering
two major factors that contribute to the success of new offerings
a fit with organizational strengths and resources
a fit with market needs
impacts of marketing programs can be assessed under actual market conditions
generate benchmark data for assessing sales volume when the product is introduced over a wider area
a scale down implementation of one or more alternative marketing strategies for introducing a new offering
are there immediate benefits to a buyer from the offering, once used?
can the offering be tested by prospective buyers?
is the offering simple enough for customers to buy and use?
is the offering compatible with buyers use och consumption behavior?
do the offering have a relative advantage over existing offerings?
is the idea congruent with business definition mission, and goals?
1 idea generation
warranties or guarantees
delivery and setup
tangible product or service
the benefits or satisfaction provided to target markets by an organisation