Mgt 252

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- One measure: the extent to which customers are willing to pay more for the brand

- Brand with strong equity contains many competitive advantages: High consumer awareness, Strong brand loyalty, Helps when introducing new products, Less susceptible to price competition

- Brand valuation is the process of estimating the total financial value of a brand

13. Building Strong Strategy

Brand Positioning: Three levels

- Product attributes: Least effective

- Benefits

- Beliefs and values: Taps into emotions

Brand Name Selection: Good Brand Names:

- Suggest something about the product or its benefits

- Are easy to say, recognize and remember

- Are distinctive

- Are extendable

- Translate well into other languages

- Can be registered and legally protected

14. Protecting a brand name

Once a brand becomes a generic, the owner of the brand name loses the exclusive right to use it.

Brand Sponsorship:

- National or Manufacture’s brands

- Private brands - Closely to establish and promote- Higher profit margins

- Licensed brands -Name and character licensing has grown

- Co-branding- Advantages/Disadvantages

Brand Development

- Line extensions – Minor changes to existing products

- Brand extensions –Successful brand names help introduce new products

- Multi-brands –Multiple product entries in a product category

- New brands –New product category

15. Managing Brands

- Brands are known through advertising, personal experience, word of mouth, the Internet

- Everyone in the company represents the brand

- Brands positioning need to be regularly communicated to the customers

- Companies need to periodically run a brand audit

Lecture 8 New Product Development and Distribution

1. New-product Development(NPD): As virtually all product eventually decline, a firm must be good at developing/acquiring new product to replace aging products

- Channel Design: How to bring the products to market and users?

- Channel Management: How to coordinate with channel members to produce desired services for end users?

2. New Product: be new to the company and market.

- New to the company

-However, the know-how and technology exists in the marketplace

-Acquisition or development

- New to the market

-New way of giving existing benefits co-benefit is existing

-New benefits

3. Reasons for flopping

- No customer value

- Poor positioning

- No systematic development process

- People problems

4. Product Development Process (4 stages)

- Idea generation and screening -Customer value? Profitable?

- Concept Development and testing –Market Feedback

- Physical product development and testing –Market Responses

- Commercialization –Tracking, modifying marketing plan