...Chapter 8 PRODUCTS, SERVICES, AND BRANDS: BUILDING CUSTOMER VALUE MARKETING STARTER: CHAPTER 8 Nike: Building Deep-Down Brand-Customer Relationships Synopsis Marketing is all about creating brands that connect with customers, and few marketers have done that as well as Nike. During the past several decades, Nike has built the Nike swoosh into one of the world’s best-known brand symbols. During the 1980s, Nike revolutionized sports marketing. It powered its way through the early 1990s, aggressively adding products in a dozen new sports, including baseball, golf, skateboarding, wall climbing, bicycling, and hiking. In the late 1990s, however, Nike stumbled and its sales slipped. Nike needed to rekindle the brand’s meaning to consumers. To turn things around, Nike returned to its roots: new-product innovation and a focus on customer relationships. This time, Nike shifted toward cutting-edge digital and social marketing tools to interact with customers to build brand experiences and community. Nike is now building communities of customers who talk not just with the company about the brand, but with each other as well. Thanks to efforts like Nike+, along with a host of other new digital and social media approaches, Nike has built a new kinship and sense of community with and between the brand and its customers. The company’s outstanding success results from much more than just making and selling good sports gear. It’s based on a deep-down connection between the iconic Nike brand and...
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...between Service Brand and Product Brand Contents Introduction 1. What is brand 1.1. Elements of Brand 1.2. Benefits of branding 1.3. Significance Of Adopting Proper Branding Strategy 2. Service brand: 2.1. Features Of Service Brand 2.2. Role Of Employers In Success Of Service Brand 2.3. Role Of Consumer In Success Of Service Brand 2.4. Challenges Service Branding Is Facing 3. Product Brand: 3.1. Features Of Product Branding 3.2. Role Of Manufacturers In Success Of Product Brand 3.3. Role Of Consumers In Success Of Product Brand 3.4. Challenges Product Branding Is Facing 4.1. Brand Positioning 4.2. Brand Equity 4.3. Brand Identity And Personality 4.4. Brand Image 4.5. Brand Audit 5. Recommendation References Introduction: The current era is considered the age of competition and the branding is one of the most convenient ways to establish a positive image in the mind of the consumers. However, it is rather difficult task to formulate an image without pondering upon each element that is indulged in the promulgation of some brand. Nevertheless, the brand can be promulgated if proper strategy is applied after selecting the best brand type. This paper throws light upon the significance of brand and two types of brands. The first section is the clear cut mouthpiece of what the brand actually is and what the benefits of using this term. Furthermore, this section also throws light upon two types of brand, ie service brand and product brand. The...
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...Marketing Chapter 7 Notes Product, Services, and Brands: Building Customer Value I. What is a product? * Product: anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. * can include events, persons, places, organizations, ideas. * Services: An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. * Examples: banking, hotel, airline travel, retail, wireless communication * A company’s market offering often includes both intangible and tangible goods and services. Two extreme ends: pure tangible goods, pure services. * In order for companies to differentiate their offers, they are creating and managing customer experiences with their brands or companies. * Levels of Product and Services: three main levels 1. Core customer value. “What is the buyer really buying?” Most basic level. 2. Actual Product. Need to develop product and service features, a design, a quality level, a brand name, and packaging. 3. Augmented product. Must build an augmented product around the core benefit and actual product services and benefits. * “Consumers see products as a complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core customer value that consumers seed from the product. They must then design the actual product and find ways to augment...
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...Brand Identity: Major Influence on Consumer Decision Making Introduction: Building a brand driven culture is a lifelong commitment to a mindset and a way of life that takes time, planning and perseverance that produces intangible outputs which include greater customer satisfaction, reduced price sensitivity, fewer customer defections, a greater share of customers’ wallets, more referrals, and a higher percentage of repeat business (Knapp, 2000). Customers value their relationships with their branded possessions and with marketing agents and institutions that own and manage the brand (Alexander et al., 2002). The brand identity needs to focus on points of differentiation that offer sustainable competitive advantage to the firm. Brand identity is based on a thorough understanding of the firm’s customers, competitors, and business environment. The brand identity needs to reflect the business strategy and the firm’s willingness to invest in the programs needed for the brand to live up to its promise to customers (Aaker and Joachimsthaler, 2000). Strong brands enjoy customer loyalty, the potential to charge premium prices, and considerable brand power to support new product and service launches. Companies need to have thorough understanding of customer beliefs, behaviors, product or service attributes, and competitors. This paper presents a conceptual framework in the form of PCDL model for building brands that is based on literature review and case studies of very prominent...
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...Chapter 8 Products, Services, and Brands: Building Customer Value What is a Product? • A product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need Physical Goods Services (activities, benefits, etc. that are intangible -- do not result in ownership of a physical good) Events Persons Places Organizations Ideas Experiences Combinations of the above Products, Services, and Experiences • • • • • Pure tangible good Tangible good with accompanying services Hybrid offer Service with accompanying minor goods Pure service Levels of Product and Services 1. Core customer value • What the consumer is really buying (addresses underlying need or problem ) 2. Actual Product • The physical product or service 3. Augmented Product • Additional (unexpected) services & benefits to provide the most satisfying customer experience Consumer Product/Services Classification Convenience Products • Buy frequently & immediately with minimum purchase effort • Intensive/widespread distribution • Mass promotion by producer Shopping Products • Buy less frequently, planned, carefully compare alternatives • Selective distribution • Promotion by producer & retailers Specialty Products • Special purchase effort, but little comparison of brands • Unique characteristics or brand identification • Exclusive distribution • Carefully targeted promotions by producer & retailer • E.g., Lamborghini, Rolex, Prada...
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... Abstract A brand is the visual, emotional, rational, and cultural image that one can associate with a company product goods and/or services. A brand is a strategic element of a company’s overall marketing organization as it provides a structure to influence strong brands into other markets, integrate newer brands, and rationalize the company’s value based on the product and/or service the business offers. Introduction Living in a modernized era, with accelerating numbers of businesses built to satisfy consumer needs and wants, branding has become more of an important value in building a company’s image for its products or service. In conjunction with the company’s goals, employees, vendors, reporters, communities, target customers and consumer mix, which all are contributing factors in making the proper representation of what the business would like for people to see them as; furthermore the company’s branding will ultimately represent the understanding of the needs and wants of the customers and prospects the company seeks to target by incorporating the company’s brand at every point of public contact and with every marketing opportunity. Therefore, branding helps to establish the firm's identity in the market place, and develop a solid...
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...given brand or company. There are two types of awareness: spontaneous, which measures the percentage of people who spontaneously mention a particular brand when asked to name brands in a certain category; and prompted, which measures the percentage of people who recognise a brand from a particular category when shown a list. Brand A brand is a mixture of attributes, tangible and intangible, symbolised in a trademark, which, if managed properly, creates value and influence. "Value" has different interpretations: from a marketing or consumer perspective it is "the promise and delivery of an experience"; from a business perspective it is "the security of future earnings"; from a legal perspective it is "a separable piece of intellectual property." Brands offer customers a means to choose and enable recognition within cluttered markets. Brand Architecture How an organization structures and names the brands within its portfolio. There are three main types of brand architecture system: monolithic, where the corporate name is used on all products and services offered by the company; endorsed, where all sub-brands are linked to the corporate brand by means of either a verbal or visual endorsement; and freestanding, where the corporate brand operates merely as a holding company, and each product or service is individually branded for its target market. Brand Associations The feelings, beliefs and knowledge that consumers (customers) have about brands. These...
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...BRAND IMAGE: HOW DO THE COMPONENTS DIFFER FOR A PRODUCT VERSUS A SERVICE ABSTRACT Despite a common finding that brand image is a subjective concept, invariably changing from one individual to another; recent thinking regarding this topic has emphasised the varying components by which consumers perceive a brand, especially between products and services. This article disseminates and scrutinises the various literature that contribute to these components of brand image and applies it to a real world case study. The aspects of intangibility of services, variability of quality, instantaneous consumption of services , inseparability of service and service provider as well as the service environment were explored with relation to “Australia” the movie (product) and Australia as a tourist destination (service). Through exploring this case study it was clear that brand image for “Australia” the movie was significantly based on benefits it could offer its consumers including quality aspects and trust through use of Hollywood’s biggest stars, as well as the strength of the films brand image through strong emotive and unique cultural cues. In contrast, the brand image of Australia as tourist destination has several additional elements and boundaries that it must overcome. Interestingly, it was found that Australia the movie was the perfect tool to use for Australian Tourisms greatest hurdle - overcoming the intangible aspect of the business. Suddenly, Tourism Australia as a service...
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...Chapter 7: Products, Services and Branding Strategy What is a product? Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. - Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof. What is a service? Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything can referred as a Service. Eg: banking industry, tourism industry, Information Technology services etc. Levels of a Product ▪ Core benefit – What the consumer is really buying. ▪ Actual product – Includes the brand name, features, design, packaging, quality level. ▪ Augmented product – Additional services and benefits such as delivery and credit, instructions, installation, warranty, service. Core benefit:- Each level adds more customer value. The most basic level is the CORE BENEFIT which answers the question “What is the buyer really buying?” When designing the products, marketers must first define the core, problem solving benefits or services that consumers seek. People buying a SONY Handycam are buying more than a digital camcorder. They are buying a convenient, high quality way to capture important moments and memories. Actual product:- At this second level, product planners must turn the core benefit into actual product. They need to...
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...BRAND SWITCHING INTRODUCTION Sometimes known as brand jumping, brand switching is the process of choosing to switch from routine use of one product or brand to steady usage of a different but similar product. Much of the advertising process is aimed at encouraging brand switching among consumers, thus helping to grow market share for a given brand or set of brands. Brand loyalty is when consumers become committed to your brand and make repeat purchases over time. It is a result of consumer behavior and is affected by a person's preferences. Loyal customers will consistently purchase products from their preferred brands, regardless of convenience or price. Companies will often use different marketing strategies to cultivate loyal customers, be it is through loyalty programs (i.e. rewards programs) or trials and incentives (ex. samples and free gifts). | | Convincing consumers to switch brands is sometimes a difficult task. It is not unusual for customers to build up a great deal of brand loyalty due to such factors as quality, price, and availability. To encourage switching brands, advertisers will often target these three areas as part of the strategy of encouraging brand switching.Price is often an important factor to consumers who are tight budgets. For this reason, advertisers will often use a price comparison model to entice long time users of one brand to try a new one. The idea is to convince the end user that it is possible to purchase the same amount of product...
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...SUBJECT: PRODUCT MANAGEMENT “A STUDY ON THE “VIRTUAL BRANDING”” | | | | | | | | | VIRTUAL BRANDING The paper places emphasis on two aspects of the future of branding: 1. The ultimate limit of branding, that the authors have baptised as V-Branding (Virtual Branding), and 2. The development of a framework, process and assessment tool that allows companies to evaluate and steer their brand(s). The assessment tool, denominated as the RIB matrix-graph (Real-Imaginary Branding matrix-graph) can be used in 2D format (with Awareness and Degree of Diffusion forming the two axes or dimensions) and 3D format i.e. with an additional dimension such as age group, social status, period, time frame etc. Tool applicability stretches from the small business to transnational companies and from products to services. The paper also looks at the transition from lifestyles to mindstyles, the evolution of the consumer and how these link to branding evolution INTRODUCTION The chapter proceeds to describe the influence of brands on the buying process, and the importance of customer satisfaction...
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...CONCEPTS Brand A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name. Brand Architecture How an organization structures and names the brands within its portfolio. There are three main types of brand architecture system: monolithic, where the corporate name is used on all products and services offered by the company; endorsed, where all sub-brands are linked to the corporate brand by means of either a verbal or visual endorsement; and freestanding, where the corporate brand operates merely as a holding company, and each product or service is individually branded for its target market. Brand Associations The feelings, beliefs and knowledge that consumers (customers) have about brands. These associations are derived as a result of experiences and must be consistent with the brand positioning and the basis of differentiation. Brand Commitment The degree to which a customer is committed to a given brand in that they are likely to re-purchase/re-use in the future. The level of commitment indicates the degree to which a brand's customer franchise is protected form competitors Brand Earnings The share of a brand-owning business's cash-flow that can be attributed to the brand alone. Brand Equity The sum...
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...^^ rives . Customer Equity A company's current customers provide the most reliable source of future revenues and profits. t By Katherine N. Lemon, Roland T. Rust, and Valarie A. ZeithamI 20 I MM S p r i n g 2001 C o n s i d e r t h e i s s u e s facing a typical brand manager, product manager, or marketing-oriented CEO: How do I manage the brand? How will my customers react to changes in the product or service offering? Should 1 raise price? What is the best way to enhance the relationships with my current customers? Where should I focus my efforts? Business executives can answer such questions by focusing on customer equitythe total of the discounted lifetime values of all the firm's customers. A strategy based on customer equity allows firms to trade off between customer value, brand equity, and customer relationship management. We have developed a new strategic framework, the Customer Equity Diagnostic, that reveals the key drivers increasing the firm's customer equity. This new framework will enable managers to determine what is most important to the customer and to begin to identify the firm's criticai strengths and hidden vulnerabilities. Customer equity is a new approach to marketing and corporate strategy that finally puts the customer and, more important, strategies that grow the value of the customer, at the heart of the organization. For most firms, customer equity is certain to be the most important determinant of the long-term value of the firm....
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...BRAND IMAGEBrand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers’ perception about the product. It is the manner in which a specific brand is positioned in the market. Brand image conveys emotional value and not just a mental image. Brand image is nothing but an organization’s character. It is an accumulation of contact and observation by people external to an organization. It should highlight an organization’s mission and vision to all. The main elements of positive brand image are- unique logo reflecting organization’s image, slogan describing organization’s business in brief and brand identifier supporting the key values.Brand image is the overall impression in consumers’ mind that is formed from all sources. Consumers develop various associations with the brand. Based on these associations, they form brand image. An image is formed about the brand on the basis of subjective perceptions of associations bundle that the consumers have about the brand. Volvo is associated with safety. Toyota is associated with reliability. | The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated with that product/service. Brand images should be positive, unique and instant. Brand images...
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...Brand is the "name, term, design, symbol, or any other feature that identifies one seller's product distinct from those of other sellers."[1] Brands are used in business, marketing, and advertising. Initially, livestock branding was adopted to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hot branding iron. A modern example of a brand is Coca Cola which belongs to the Coca-Cola Company. In accounting, a brand defined as an intangible asset is often the most valuable asset on a corporation's balance sheet. Brand owners manage their brands carefully to create shareholder value, and brand valuation is an important management technique that ascribes a money value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value. Although only acquired brands appear on a company's balance sheet, the notion of putting a value on a brand forces marketing leaders to be focused on long term stewardship of the brand and managing for value. The word "brand" is often used as a metonym referring to the company that is strongly identified with a brand. Marque or make are often used to denote a brand of motor vehicle, which may be distinguished from a car model. A concept brand is a brand that is associated with an abstract concept, likebreast cancer awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is...
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