should touch upon all the ways brands deliver value to buyers and sellers (as per the questions below).Question 2Branding helps buyers in many ways. Brand names help consumers identify products that might benefit them. Brands also say something about product quality and consistency—buyers who always buy the same brand know that they will get the same features, benefits, and quality each time they buy. Branding also gives the seller several advantages. The brand name becomes the basis on which a whole story can be built about a product’s specialqualities. The seller’s brand name and trademark provide legal protection for unique productfeatures that otherwise might be copied by competitors. And branding helps the seller to segment markets. For example, Toyota Motor Corporation can offer the major Lexus, Toyota, and Scion brands, each with numerous sub-brands—such as Camry, Corolla, Prius, Matrix, Yaris, Tundra, Land Cruiser, and others—not just one general product for all consumers.Question 3Responses will vary depending on the car, but almost everyone has strong feelings (one wayor another) about car brands they love or hate. If you don’t own a car, what car would you purchase if you win the lottery? This exercise illustrates the influence of brand on aspirational purchases.Lesson 8: PricingPricing is one of the tactical tools a firm can use to construct marketing programs that deliver superior value to consumers. From a seller perspective, pricing is the only element ofthe marketing mix that generates revenue, while buyers consider a price as a cost that may reduce the value of an offering. Normally, consumers will be better off when the prices are set at the lowest possible levels, while marketers will prefer the highest possible prices that offer them maximum profits without any other environmental consideration. To build and maintain long term, mutually profitable relationships with customers, marketers need to findthe right balance between customer expectations of low prices and the marketer’s own desire to extract more value from customers through higher prices.In Lesson 8, you will learn that finding this balance is not as easy as it might seem. Marketers have to take into accountinternal factors,such as the firm’s marketing objectives,marketing mix strategy, costs, and organizational factors;external factors, including the nature of the market, demand, and competition; and otherenvironmental factors,like the
economy, the requirements of intermediaries, and government actions. Setting prices may not be a hard science, but proven approaches and strategies, as well as established guidelines, do exist to find the best prices that create value for both seller and buyer and that comply with legal and ethical issues surrounding pricing.
- Spring '15