Focus: Relative Merits of Product or Brand?
* Kindle Fire vs. iPad
* iPad has a seamless integration of all of their products (brand) * Kindle users have a more utilitarian focus (product) * Ask “where is the power?” – it always depends
Brand or Product?
* Branding challenges
* Savvy customers – we can get information in an instant * Brand proliferation: more brands, and brands carry more product * Media fragmentation
* Increasing competition and costs
* Short-term demands
* Product as discussed in BA390
* What is a product? A complex bundle of satisfactions * Total product concept
A Product Dissected
* Actual product
Outside level = augmented product
* Factors – delivery, service, installation, warranty * Core benefit
Ex: Iacocca increasing Chrysler sales by expressing that Chrysler’s cars are the best and they will give a 5-year, 50,000 mile warranty * Middle level = actual product
* Factors – features, packaging, brand name, quality * Inside level = core benefit
* Potential product
Outside the circle = potential product
Keller: The Brand
* What is a brand? Something that makes us accountable and gives us the ability to differentiate our product from our competitors * When a product bares my brand, I’m accountable for it’s performance * Came from the idea of branding cows
* To whom is branding important? Manufacturers, consumers, government, retailers, god, family, and friends * Brand equity – differential impact that brand knowledge has upon customer response to the marketing of the brand * The premium we’re willing to pay for a product over the alternative * CBBE – customer based brand equity – the power of the brand lies in what resides in the minds of customers * Built into the conversations we have with our...
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