marketing chapter 11 notes - Chapter 11 Brand Equity- Added...

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Chapter 11 Brand Equity- Added value a given brand name gives to a product beyond the functional benefits provided Brand Name- Any word, device, or combination of these used to distinguish a seller’s goods or services Brand personality – Set of human characteristics associated with a brand name Capacity management- Integrating the service component of the marketing mix with efforts to influence consumer demand Multibranding – Branding strategy that gives each product a distinct name Multiproduct branding – Manufacturer’s branding strategy that uses one name for all products Off-peak pricing- Charging different prices during different times of the day or days of the week to reflect variations in demand for the service Packaging- Part of a product that refers to any contained in which it is offered for sale and on which label information is displayed Product life cycle- Stages a new product goes through in the market place: introduction, growth, maturing and decline The Product Life Cycle There are two curves: total industry sales dollar (revenue), and totally industry profit Introduction Stage —When first entered into target market. Sales grow slowly, and profit is minimal---lack of profit often due to large investment costs in development Marketing objective at this stage is to create consumer awareness and stimulate trial—the first purchase of product by a consumer Often spend heavily on advertising in this period Expenditures often made to stimulate primary demand or desire for the product class rather than for a specific brand since there are few competitors w same product. As more competitors bring their products, company attention is turned to selective demand —or demand for a specific brand. Gaining distribution can be a challenge because distributors are hesitant to carry product Resist making variations in this stage Pricing can be either high or low----high initial price may be used as part of skimming strategy to help company recover costs of development as well as take advantage of price insensitivity of early buyers High prices tend to attract competitors eager to enter the market To discourage competitive entry, low pricing, known as penetration pricing ---helps build unit volume, but company must closely monitor costs. Growth Stage-- --- Characterized by rapid sales increase and competitors appear Result of competition and more aggressive pricing is that profit usually peaks during growth stage— emphasis of advertising shifts to stimulate selective demand—in which product benefits are compared with the others Sales grow at an increasing rate because new people trying/using the product and a growing amount of repeat purchasers Changes in product appear---to differential against competitors---an improved version or new features added, proliferation occurs It is important to gain as much distribution as possible Maturity Stage -----
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This note was uploaded on 03/26/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Spring '07 term at Cornell University (Engineering School).

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marketing chapter 11 notes - Chapter 11 Brand Equity- Added...

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