Product differentiation must not be viewed as a static concept Marketers

Product differentiation must not be viewed as a

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pricing, promotion and distribution. Product differentiation must not be viewed as a static concept. Marketers usually modify, upgrade and position products during their life cycle to try to ensure their competitive advantage is maintained or improved. Branding: - Brand: refers to a collection of symbols, such as the name, logo, slogan and design, intended to create an image in the customer’s mind that differentiates a product from competitors’ products. A brand can identify one item, a family of items, or all the items of a seller - Brand image: is the set of beliefs that a consumer has regarding a particular brand. When marketers make decisions about products, the decisions must relate to the product’s brand and brand image. - Brand name: organisations with a well-known brand name are very protective of it and will be willing to spend large amounts of money to ensure it is not used or abused by other individuals or organisations. A brand name is part of a brand that can be spoken and can include works, letters and numbers. To protect the brand, an organisation can register it as a trade mark with the relevant body. Brand Name Selection: - The brand name should be carefully chosen. A good name can add greatly to a product’s success. Desirable qualities for a brand name include: o Should suggest something about the product’s benefits and qualities (Devondale) o Should be easy to pronounce, recognise and remember (Coles) o Name should be distinctive (Nike) o Should translate easily into foreign languages o Should be capable of registration and legal protection Brand equity: A well-known brand can be very valuable to an organisation in both financial and non- financial terms. The added value that a brand gives a product is known as brand equity.
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All of the value in products arises from the choices that consumers make among those brands offered to them for purchase; brand equity is therefore a consumer-based product. - Brand loyalty – how loyal you are to a brand – manufacturer wants if the item isn’t available in the shop, you’ll walk out and won’t buy a replacement at all - Brand metrics – how we measure brand and the value of the brand Brand strategies: - Individual branding: uses a different brand on each product, giving each its own specific identity (hotel companies – own a 5 star hotel and a budget hotel but don’t have them under the same name) - Family branding: uses the same brand on several of the organisation’s products (Ford, then has another brand name – ford focus, ford fiesta) - Brand extension: gives an existing brand name to new product in a different category (ice creams that are named for chocolate bars – snickers or mars ice-cream) Brand ownership: - Manufacturer brands: most manufacturers also own/make the product and name the product (ford) - Private label brands: manufacturers make products for other people and put their own brand on them (woolworths – select is made by a different manufacturer and named ‘select’ for woolworths) - Generic brands: no brand names, only had the name of the good printed (ie. Salt) -
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