princ_q4sty_s08 - 1) 2) 3) 4) Marketing Principles Prelim 4...

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Marketing Principles Prelim 4 1) Branding, brand loyalty, brand equity a) Brand – a name, term, design, symbol, or other feature that identifies a seller’s products and differentiates them from the competitors’ products b) Brand Equity – the marketing and financial value associated with a brand’s strength in a market i) Major elements of brand equity (1) Brand name, brand loyalty, perceived brand quality, and brand associations brand equity c) Brand Loyalty – a customer’s favorable attitude toward a specific brand; CRM (customer relationship management); 3 basic lvs.: i) Lower lvs: brand recognition – the degree of brand loyalty in which the customer is aware the brand exists and views the brand as an alternative purchase if their preferred brand is unavailable ii) Mid lvs: brand preference – the degree of brand loyalty in which a customer prefers one brand over competitive offerings iii) Higher lvs: brand insistence (this is the one that I want and nothing else) – the degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute d) Co-branding – taking 2 or more brands and putting them together for the consumer; organization can take advantage of strength of both brands; weakness: if one goes down, so does the other i) ii) (1) Consumers recognize brand through packaging and labeling (2) Packaging Functions: should be obvious what it’s selling, should be “on message” with company goals, protects product from damage (stale, decay, leakage, breakage), protect people who should be using product (child caps) (3) Labeling Functions: most must contain health info (allergies, cholesterol) 2) Brand loyalty as a relationship (i.e., AAA, AABB, ADACA… a) Brand Loyalty – CRM, popular modern marketing concept, little literature on how to manage this “relationship” i) Married (Undivided loyalist): (1) AAAAA only buys product A (2) What’s required to satisfy individual? Consistency? Reliability? ii) Married but not fully committed to monogamy (occasional switcher) (1) AABAACAADAAA (2) What triggers these purchases away form product A? Maybe you were away from home and used a temporary replacement of the product. Consumer keeps on coming back to product. iii) Remarried (switching loyalist) (1) AAAABBBB (2) Something catastrophic happens (product changed or is withdrawn) (3) Loyalist originally committed, something bad happened, became loyal to something else (4) Low-risk people, your regulars iv) Divorced-beginning to date (1) AAAACDBEF (2) “e-harmony”-phase (3) Product failed, looked for next brand to be loyal to v) Dating (Indifference) (1) Brand Slut ACDEFBCDAEF (2) Completely randomized, always brand hopping. You want to convert this person. 3)
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This note was uploaded on 07/13/2008 for the course H ADM 243 taught by Professor Rkwortnik during the Spring '06 term at Cornell University (Engineering School).

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princ_q4sty_s08 - 1) 2) 3) 4) Marketing Principles Prelim 4...

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