Marketing Final Review

2 Branding Elements and Strategies A brand is a name, term, design, or symbol (or combinations of them) that identifies a business or organization and the products that they offer. Brands are divided into two categories:  corporate brands  product brands Branding Slide 1 of 6

3 Branding Elements and Strategies Branding Corporate brands identify the business and reflect quality, value, and reliability.  Example: Coca-Cola, Disney, McDonald's, and Citibank Product brands connote quality and reliability for a particular product.  Example: Pepsi, Coke, Barbie, Whopper, and Big Mac Slide 2 of 6

4 Branding Elements and Strategies Branding A brand name is the word, group of words, letters, or numbers of a brand that can be spoken.  Example: PT Cruiser, Mountain Dew, SnackWells, and K2 A brand mark is a symbol, design, or distinctive coloring or lettering that identifies a brand.  Example: U.S. Postal Service's eagle, Apple Computer's apple Slide 3 of 6

5 Branding Elements and Strategies Branding A trade name is the legal name under which a company or division of a corporation does business.  Example: Amex, Dell, Kellogg's, and Xerox A trade character is a brand mark with human form or characteristics.  Example: The Jolly Green Giant, the Pillsbury Doughboy Slide 4 of 6

6 Branding Elements and Strategies A trademark is a brand name, brand mark, trade name, trade character, or a combination of these given legal protection by the federal government and noted by the trademark symbol (  ). Branding Slide 5 of 6

7 Branding Elements and Strategies Top Ten Brands Brands are often a company’s most valuable asset. What is the total 1999 advertising spending for these top ten brands? Do you think these brands would continue to be valuable if the companies reduced or eliminated their advertising? RankBrand Company 1999 Advertising (in millions of dollars) 1ChevroletGeneral762.4 vehiclesMotors Corp. 2AT&TAT&T Corp telephone services 3DodgeDaimler vehicles Chrysler 4FordFord Motor629.5 vehicles Company 5McDonald'sMcDonald's restaurants Corp. 6ToyotaToyota Motor vehicles Corp. 7SearsSears, department stores Roebuck & Co. 8SprintSprint Corp telephone services 9ChryslerDaimler vehicles Chrysler 10NissanNissan Motor vehicles Co.

8 Branding Elements and Strategies Generating Brands Seventy-five percent of companies introduce a new product name each year. Brand names are generated by:  company employees  specialized computer software programs  branding agencies, naming consultants, and public relations agencies Half of all corporate name changes occur because of company mergers and acquisitions.

9 Branding Elements and Strategies Brand extension is a branding strategy that uses an existing brand name for an improved or new product in the product line.  Example: Ocean Spray Cranberry Juice extended to Cran-Apple, Cran-Raspberry, etc. Advantages: Reduces risk of new product failure Disadvantages: Over-extending a product line can cause brand dilution Brand Extension

10 Branding Elements and Strategies A co-branding strategy combines one or more brands to increase customer loyalty and sales for each individual brand.  Example: Kellogg’s Pop-Tarts are made only with Smucker’s fruit filling. Starbucks Coffee Co. opens coffee shops inside Barnes & Noble bookstores. Co-Branding

11 Packaging and Labeling Labeling A label is an information tag, wrapper, seal, or imprinted message that is attached to a product or its package. A label’s purpose is to:  inform about a product’s contents and direction for use  protect companies from legal liability  contain a brand name, logo, ingredients, special promotional messages, and other useful information

12 Packaging and Labeling Labeling Laws Many package labels must meet local, state, and federal standards to prevent manufacturers from misleading consumers.

13 Packaging and Labeling The FDA administers the Federal Nutrition Labeling and Education Act passed in 1990, which protects consumers from deceptive labeling and establishes standards for use of terms and health warnings. The Federal Food and Drug Administration

14 Packaging and Labeling The FTC passed the Care Labeling Rule in 1972 to require that care labels be placed in clothing. The FTC also released guidelines for making environmental claims on labels, such as made from recycled materials or recyclable. The Federal Trade Commission

15 Warranties A warranty is a promise or guarantee given to a customer that a product will meet certain standards. It is usually applied to materials, workmanship, and/or performance, and comes in two forms:  express  implied Warranties

16 Warranties Express Warranties An express warranty is a warranty that is explicitly stated (written or spoken), to induce a customer to buy. There are two types:  A full warranty covers repairs or replacement of a defective product at no cost.  A limited warranty excludes certain parts of the product from coverage, or requires the customer to pay some portion of repairs.

17 Warranties Implied Warranties An implied warranty exists automatically by state law whenever a purchase takes place. They are made by sellers. There are two types of implied warranties:  warranty of merchantability  warranty of fitness for a particular purpose Slide 1 of 2

18 Warranties A warranty of merchantability is a promise that the product is fit for its intended purpose. A warranty of fitness for a particular purpose arises when the seller advises a customer that a product is suitable for a particular use and the customer acts on that advice. Implied Warranties Slide 2 of 2

19 Warranties A disclaimer is a statement that contains exceptions to and exclusions from a warranty. Disclaimers are used to limit damages that can be recovered by a customer. Warranty Disclaimer

20 Warranties Many states have passed their own consumer protection laws aimed at poorly made or poorly serviced products.  Lemon laws are designed to protect consumers from poorly built cars.  Licensing and certification laws require certain individuals—e.g., auto mechanics, realtors, and building contractors—to meet training requirements. State Statutes

21 Warranties Consumers have a right to expect quality products at fair prices. If not, consumers should :  Contact the seller or the manufacturer.  If the problem is still unresolved, contact the government agencies that assist with consumer complaints.  If the problem is still not resolved, consumers can take legal action. Consumer Rights and Responsibilities

22 Credit Types of Accounts There are four major consumer credit plans in use today:  regular, or 30-day accounts  installment accounts  revolving accounts  budget accounts Slide 1 of 5

23 The Business Plan A business plan is a proposal that describes a new business to potential investors and lenders. A business plan should contain three main sections:  description and analysis of the proposed business situation  organizational and marketing plan  financial plan Developing the Business Plan

24 The Business Plan The description and analysis section introduces the proposed business concept. This section should clearly include:  the products and services the business will sell  your personal business philosophy  a self-analysis that describes your business experience, education, and training  a trading area analysis, a market segment analysis, and an analysis of potential locations Description and Analysis of the Proposed Business

25 The Business Plan A trading area is the geographical area from which a business draws its customers. Before going into business, you must analyze the trading area with respect to geographic, demographic, and economic data, as well as competition. Trading Area Analysis

26 The Marketing Plan This table shows the typical functions performed in most businesses in three general categories: administration (running the business), production (making the product), and marketing (selling the product). Choose any of the above functions, such as purchasing. What are two positions you would find in this area? Business Functions Administration ProductionMarketing Operations Personnel Financial Legal Public Relations Operations Purchasing Manufacturing Distribution Service Advertising Sales Public Relations Service

27 The Business Plan The description and analysis section introduces the proposed business concept. This section should clearly include:  the products and services the business will sell  your personal business philosophy  a self-analysis that describes your business experience, education, and training  a trading area analysis, a market segment analysis, and an analysis of potential locations Description and Analysis of the Proposed Business

28 The Business Plan The type of business you plan to open includes marketing research data or significant trends that will influence the success of your business. Your business philosophy tells how you think the business should be run and shows your understanding of your business’s role in the marketplace. The product or service you will offer should meet a consumer need and provide consumer benefits. Type of Business, Business Philosophy, and Type of Products

29 keiretsu A keiretsu ( 系列 ?, lit. system, series, grouping of enterprises, order of succession) is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. ?companies businessshareholdings business group Source:

30 Intra- vs. inter Intra – within Inter – between