Marketing Management Tutorials PDF

# Marketing Management ## Tutorial 1 ### What is a product? Anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want. This includes: Physical goods, Services, People, Places, Ideas Product: Tangible, Consistent, Ownership and separation o...

# Marketing Management ## Tutorial 1 ### What is a product? Anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want. This includes: Physical goods, Services, People, Places, Ideas Product: Tangible, Consistent, Ownership and separation of Production and Consumption ### The Five Product Levels: * **Core Benefit** * **Generic Product** * **Expected Product** * **Augmented Product** * **Potential Product** ### What is a service? Service: Intangible, Variability, no ownership and simultaneous production and consumption ### What is a brand? A brand is more than a product, because it can have dimensions that differentiate it in some way from other products designed to satisfy the same need. These differences may be rational and tangible (related to product performance of the brand) or more symbolic, emotional, and intangible (related to what the brand represents). ### Brand Equity Refers to the value that a brand adds to a product or service. * **Firm benefits:** higher prices and/or sales, bargaining power with suppliers, customer loyalty * **Brand Value:** The monetary worth of your brand, if you were to sell it (Measured with Financial Forecast, Role of Brand and Brand Strength). ## Tutorial 2 ### Kapferer (2008), The new strategic brand management (pp. 171 - 199) A brand is not just a name, it represents a vision and a set of core values that create loyalty among consumers. ### Identity vs. Positioning * **Brand identity** is the brand's core essence, defining its uniqueness, while positioning focuses on differentiating it in the market at a specific time. ### What is identity? * **Meaning:** Identity in branding is similar to a personal identity card, representing distinctive, permanent traits that the brand projects. It aligns the brand's actions and communications toward a coherent message. * **Elements:** Brand identity consists of key attributes, values, and a consistent nature that customers recognize. It answers what makes a brand unique, its purpose, and its core beliefs. * **Brand identity specifies the facets of a brands uniqueness and value.** (Kapferer, p.173) * **Brands with a clear identity have a longer lifespan because they remain consistent in their messaging and offerings.** (Kapferer p. 175) * **Brands need comprehensive guidelines to maintain their essence and navigate today's complex communication landscape.** ### Brand identity is defined after these questions are answered: * What is the brand's particular vision and aim? * What makes it different? * What need is the brand fulfilling? * What is its permanent nature? * What are its value or values? * What is its field of competence? Of legitimacy? * What are the signs which make the brand recognisable? ### Identity and Image An image is a synthesis made by the public of all the various brand messages. ### The Brand Identity Prism Kapferer's Brand Identity Prism is a framework for analyzing brand identity through six facets: 1. **Physique:** Physical characteristics or features associated with the brand, such as design and unique product elements. 2. **Personality:** The character or personality traits a brand would have if it were a person. 3. **Culture:** The values and beliefs that drive the brand, which influence its appeal and its actions. 4. **Relationship:** The type of interaction or bond the brand has with its customers. 5. **Reflection:** How customers perceive themselves through the brand. 6. **Self-Image:** How customers feel about themselves when using the brand. ### Brand Positioning * **Purpose:** Positioning differentiates a brand by defining a unique selling point that appeals to its target market. It establishes a brand's relevance and advantage over competitors. #### Two-stage process: 1. First, indicate to what 'competitive set' the brand should be associated and compared. 2. Second, indicate what the brand's essential difference and raison d'être is in comparison to the other products and brands of that set. #### Effective positioning involves defining: * The benefit it offers * The target audience it serves * The reason behind its promises * Its competitive edge in the market **A brand's positioning is a key concept in its management. It is based on one fundamental principle: all choices are comparative.** #### Practical Applications * **Brand Essence:** This term captures the brand's core promise or value in a concise way, representing what the brand fundamentally stands for (e.g., Volvo's essence is "safety"). * **Brand Symbols and Characters:** Many brands use visual symbols, emblems, or characters to reinforce identity and facilitate recognition. * **Adaptability in Identity and Positioning:** Brands need a stable identity to maintain coherence but should adapt their positioning over time to respond to changing market conditions. * **The product is the first source of brand identity.** **Products increase customer choice; brands simplify it.** (Kapferer, p.178) ### Identity and Graphic Charters * **Visual Identity Guides:** Many companies use brand charters or graphic identity guides to ensure that the brand's visual elements consistently represent its identity. * To help identity and recognise the brand. * To guarantee the brand. * To give the brand durability. * To help differentiate and personalise: an emblem transfers its personality to the brand. ### Aaker (1997), Dimensions of Brand Personality #### Brand Personality A set of human characteristics associated with a brand. Brand personality is the set of human characteristics associated with a brand. This includes traits like being "cool" or "reliable," which allow consumers to connect with brands in a human-like way. * **Purpose:** Brand personality helps differentiate a brand in the market. It goes beyond product attributes, offering symbolic value, allowing consumers to express their identity, values, or desired traits through brand association. #### Aaker developed a universal measure of brand personality. 1. **Stage 1:** 309 personality traits based on human personality traits, qualitative interviews, etc. 2. **Stage 2:** Selection of 114 personality traits from the original list based on their descriptiveness. 3. **Stage 3:** Using factor analysis to identify five personality dimensions, with 15 facets and 42 traits #### Dimensions of Brand Personality Aaker identifies five major brand personality dimensions. These dimensions capture different aspects of brand character, allowing companies to craft brand identities that resonate with specific consumer traits. 1. **Sincerity:** Reflects warmth, honesty, and a family-oriented image. Brands with this personality are seen as genuine, wholesome, and down-to-earth, often appealing to emotions of trust and reliability. (Dove) 2. **Excitement:** Associated with daring, spirited, and imaginative qualities. Brands with this personality often aim to be seen as youthful, trendy, and dynamic. (Red Bull) 3. **Competence:** Represents reliability, intelligence, and successfulness. Brands here are often perceived as secure and efficient, appealing to consumers' need for trust and assurance. (WSJ) 4. **Sophistication:** Conveys luxury, charm, and elegance. Brands with this personality are often associated with high status, aiming to appeal to aspirations for an upper-class lifestyle. (Mercedes Benz) 5. **Ruggedness:** Involves toughness and outdoorsy traits. Brands with a rugged personality appeal to a sense of masculinity and strength. (Land Rover) **Brands should not attempt to max out all five dimensions:** * Trying to maximise every aspect would dilute the brands identity * Should focus on the dimensions that best reflect their core values and positioning #### Building Brand Personality * **Direct associations:** People linked to the brand, such as users, employees, and endorsers, contribute traits to the brand. * **Indirect associations:** Product-related attributes, logo, advertising, and distribution also shape the brand personality. For instance, Coca-Cola's associations with being "cool" and "all-American" stem from both its advertising and symbolic elements. **Brands must create detailed guidelines covering both tangible elements and intangible values to maintain their identity.** ### Measurement and Validation of Brand Personality * **Scale Development:** To reliably measure these traits, Aaker created a standardized scale. Initial traits were gathered from psychological scales, marketing practices, and consumer responses. This set was then refined to a manageable number for practical use. * **Reliability Tests:** The brand personality scale was tested for stability using demographic variety (age, gender) and high reliability scores, ensuring consistency across consumer groups. #### How to use the scale: * Participants respond to each trait (e.g., "this brand is down-to-earth") using a 1 = strongly disagree to 7 = strongly agree scale. * For each personality dimension, the ratings are averaged into a single score. For example, the sincerity dimension is the average of traits 1-11. #### Applications and Practical Implications * **Consumer Preferences:** Brand personality influences consumer preference by enabling consumers to express elements of their self-identity or aspirations. For instance, someone valuing ruggedness might prefer a brand like Harley-Davidson, symbolizing strength and masculinity. * **Cultural Differences:** Brand personality may vary across cultures due to differing values. In individualistic cultures, brands might symbolize uniqueness, while in collectivist cultures, brands may represent conformity to group standards.