CLEP Principles of Marketing Study Notes

1 manufacturer brands aka national brands initiated

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1. Manufacturer brands (aka National Brands) - initiated by producers, and allow customers to associate the producer with its product at the point of purchase. Created by the product manufacturers. 2. Dealer Brands (aka Private brands) - initiated and owned by resellers. Created by resellers--wholesalers or retailers. Allow retailers or wholesalers to purchase products at a low price and sell them without disclosing the identity of the manufacturer. 3. Family Brand Strategy - same brand is used for several of the firm's products which are of comparable type and quality. 4. Individual Brand strategy - significant differences in product types and quality, so each product gets its own brand. There are two major types of branding strategies an organization can use: Family Brand and Individual Brand. Brand Familiarity - describes how consumers react to a brand name, and includes 5 Levels: 1. Brand Insistence - strongest positive reaction. Consumer will accept no substitutes for that brand 2. Brand Preference – target customers will usually choose 1 specific brand over others.
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3. Brand Recognition – customers remember brand name. 4. Brand Non-Recognition – consumers do not recall brand name. 5. Brand Rejection - Consumer recognizes the brand name and refuses to buy it. Brand equity refers to the value of a well known brand. Company or product's reputation in the marketplace. It is based on customer perceptions of quality based on experience and it translates into brand loyalty and repeat sales. Inelastic - If a company doubles the price of its product, and it barely affects its number of sales, then demand for its product is said to be inelastic. When demand curve is inelastic – both changes in price and revenues move in the same direction. Elastic - On the other hand, if there was a significant drop in sales, then demand would be elastic. When demand is elastic, a small change in price can mean a noticeable change in sales. Licensed Brand – well established brand name that other sellers pay to use. (giving another firm the right to a trademark/brand name in exchange for a yearly fee (royalty). Trademark - a legal designation, such as a brand name, symbol or other device used to indicate that the owner has exclusive use of a brand or part of a brand. Used to identify products. Registered trademarks are legally protected. 3 benefits of product packaging: 1. Protection – protects the contents 2. Promotion last chance to influence customer’s decision. Packaging seeks to promote the product through convenient packaging or by communicating its features and benefits. 3. Information - involves providing product contents, nutritional information, etc. Some information is required by law; other information allows consumers to compare brands and evaluate a product by its packaging. PART IV
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1 Manufacturer brands aka National Brands initiated by...

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