MKTG 311 1st EditionExam # 3 Study Guide Lectures: 16 - 23Lecture 16 (March 4)What is the Brand Equity Pyramid?I. Brand Equity Pyramid- There are escalating levels of attachment to a brand, this is known as brand equity, or a brand’s value to the organization. Brand Awareness (brand salience): At this level, consumers are simply aware of the brand’s existence.Brand Imagery: This is where consumers begin to think about what can the brand do for me and how does it perform relative to the competitors.Consumer Feelings: 3rd level, Consumers develop deeper feelings, beliefs, and emotional reactions to the brand.Consumer Brand Connection: Smallest number of consumers. Consumers develop lifelong loyalty to the brand. BONDWhat are the Branding Strategies?II. Types of Branding Strategies1. Individual Brand Strategy: Creates a unique brand name for each product item created. Example- Crest and Zest2. Family Brand Strategy (Umbrella Branding): Market multiple product items under the same family brand name. Example- Kraft and Campbell’s3. Retailers can choose a National Brand or Store Brand: A private label or store brand with the retail store trade name. 1970’s it began.Store BrandsGreat Value- Walmart, largest group brand in nation. 30% of all food productsbought.Value line- KrogerArcher Farms, Market Pantry- TargetHarris Teeter- HT traders- Harris Teeter Organics, Harris Teeter- Your baby4. Generic Brands: Less population, no branding. White labeling, with name of product and picture.5. Licensing: One firm sells the right to another firm for use of the brand for a specific purpose and specific period of time. In return for Royalties. Example- Disney, Dora the Explorer6. Co-Branding: Combines two or more brands for added recognition power. Example- Betty Crocker7. Ingredient Branding: Specific type of co-branding, where the branded materials become component parts of a larger super brand. Example- LunchablesLecture 17 (March 6) Name and Explain the 4 I’s of service:I. The 4 I’s of Services- Intangibility: characteristic of the service that customers can’t see, touch, or hold good service. (Services are very difficult to evaluate prior to service) ex. Obtaining a primary care physician- Inconsistency: characteristic of the services that even the same service performed by the same individual for the same customer can vary. Ex. Hairstylist (TQM- Total Quality Management program consistency)- Inseparability: characteristics of the service that it is impossible to separate the deliverer of the service from the service itself. Ex. Burger King cheeseburger (service encounter-looks at issues like the service associate interacting w/ the customer) Ex. of industries limiting the service encounter-banking industry- Inventory: this is much more subjective than goods, must consider the carrying costs of employees and equipment w/ services. Some services like airlines have very high carrying costs, whether the plane is partially full or full; compared to a hair salon (lower carrying costs)How services may be classified: focus on whether the service is delivered by people or equipmentII. Classification of services- Is the service delivered by people or equipment?- A profit or nonprofit organization- Is it government sponsored?Name the Goods/Services Continuum: basic conceptsIII. Goods/Services Continuum3 Types Product/Services1. Goods dominated products: tangible product supported by supporter services ex:automobile industry, appliance 2. Facility/equipment based services heavy reliance on equipment and personnel. Ex: Fast food restaurant, health club3. People based service: all intangible Ex: teaching, realtor, decoration- Most products are a combo of a good and service- Some products are clearly dominated by tangible or intangible elements (tan-good and little emphasis on service; int-service and characteristics of services apply)How search, experience and credence properties are used to evaluate services:IV. Ways to Evaluate Services- Tangible goods & high search properties: easy to evaluate prior to the purchase. Ex: car and its color, style, design- Services & experience properties: these services can’t be evaluated until theservice is rendered or after service is received- Other services & credence properties: These are the most difficult to evaluate; consumers often can’t evaluate the service offering even after service is rendered b/c it is a professional service. Ex: root canal or medical diagnosis*Other service issues - Capacity management: process by which orgs adjust their services in an attempt to match demand. Ex: Preseason checkupLecture 18 (March 16)Name the pricing objectivesI. Step 1: Developing Pricing ObjectivesPricing Objectives: involve specifying the role of price in an organization’s marketing and strategic plans.- Sales objectives- Given that a firm’s profit is high enough for it to remain in business, an objective may be to increase sales revenue, which can lead to increases in market share and profit.- Market share objectives- The ratio of the firm’s sales revenues or unit sales to those of the industry (competitors plus the firm itself).- Profit objectives-1. Managing for long-run profits: In which companies give up immediate profit by developing quality products to penetrate competitive markets over the long term.2. Maximizing current profit objective: Such as for a quarter or year, is common in many firms because the targets can be set and performance measured quickly.3. Target return objective: Occurs when a firm sets a profit goal, usually determined by its board of directors.- Unit volume- The quantity produced or sold, as a pricing objective.- Survival- Profits, sales, and market share are less important objectives of the firmthan mere survival.- Social responsibility- A firm may forgo higher profit on sales and follow a pricing objective that recognizes its obligations to customers and society in general.Explain the Pricing EnvironmentThe Competition/Structure of the Market:Lecture 19 (March 18) Explain the Price Elasticity of Demand and elastic demand and inelastic demandA. Price elasticity of demand- A measure of the sensitivity of customers to changes in price- Elastic versus Inelastic Demand- Influences on price elasticity- Elastic/Inelastic Demand CurvesElastic Demand- There is an inverse relationship between price and quantity demanded. Price decreases Qd (a bit) (quantity demand) Increase R (revenue) increases w/ inelastic