Summary Uitgeschreven cursus marketing UA HIB | Chapter 1 - 12

Marketing
1e Bachelor Handelsingenieur in de beleidsinformatica
Marketing
2024 – 2025




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,Table of Contents
WHAT DOES MARKETING APPLY TO? ........................................................................................... 13
PYSICAL PRODUCTS: .......................................................................................................................... 13
SERVICES: ....................................................................................................................................... 13
RETAIL: ........................................................................................................................................... 14
EXPERIENCES: .................................................................................................................................. 14
EVENTS: .......................................................................................................................................... 15
PLACES: .......................................................................................................................................... 15
CHARITY AND NON-PROFIT: .................................................................................................................. 15
WHAT IS THE DIFFERENCE BETWEEN CUSTOMERS AND CONSUMERS? ........................................ 16
CONSUMERS’ BUYING ROLES ................................................................................................................ 16
MARKET ORIENTATION ............................................................................................................... 17
DEFINITION ...................................................................................................................................... 17
COMPONENTS OF MARKET ORIENTATION .................................................................................................. 17
CUSTOMER CENTRICITY DEFINED .......................................................................................................... 18
MARKETING’S INTELLECTUAL ROOTS .......................................................................................... 19
INDUSTRIAL ECONOMICS: .................................................................................................................... 19
PSYCHOLOGICAL INFLUENCES: ............................................................................................................. 19
SOCIOLOGICAL INFLUENCES:................................................................................................................ 19
ANTHROPOLOGICAL INFLUENCES:.......................................................................................................... 19
COMPUTER SCIENCE INFLUENCES: ........................................................................................................ 19
DIFFERENCES BETWEEN SALES AND MARKETING ....................................................................... 20
ACQUISITION VS RETENTION ................................................................................................................. 20
Acquisition: .............................................................................................................................. 20
Retention: ................................................................................................................................ 20
WHAT DO MARKETERS DO? ........................................................................................................ 21
CORE COMPETENCIES OF A MARKETER.................................................................................................... 21
TECHNICAL COMPETENCIES ................................................................................................................. 21
BEHAVIORS OF A MARKETER ................................................................................................................. 22
MARKETING WITHIN ORGANIZATIONS ....................................................................................................... 23
MARKETING AS EXCHANGE ........................................................................................................ 24
EXCHANGE: THE CORE OF MARKETING .................................................................................................... 24
VALUE? ........................................................................................................................................... 24
EXCHANGE OF VALUE .......................................................................................................................... 25
OUTCOMES OF CREATING CUSTOMER VALUE ............................................................................................. 25
THE MARKETING MIX AND THE 4PS ............................................................................................. 26
THE MARKETING MIX............................................................................................................................ 26
THE EXTENDED MARKETING MIX.............................................................................................................. 27
THE “NEW” P: PERSONALISATION .......................................................................................................... 27
RELATIONSHIP MARKETING, SERVICE-DOMINANT LOGIC, AND CO-CREATION ............................. 28
RELATIONSHIP MARKETING ................................................................................................................... 28
LOYAL CUSTOMERS… .......................................................................................................................... 28
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ...................................................................................... 29
MARKETING AUTOMATION..................................................................................................................... 30
CRM (CUSTOMER RELATIONSHIP MANAGEMENT) AND MARKETING AUTOMATION .............................................. 31
SELECTIVE RELATIONSHIP MANAGEMENT ................................................................................................. 31
CO-CREATION ................................................................................................................................... 32




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,MARKETING’S IMPACT ON SOCIETY ............................................................................................ 32
MACROMARKETING ............................................................................................................................ 32
THE MARKETING ENVIRONMENT ................................................................................................. 33
3 LEVELS.......................................................................................................................................... 33
UNDERSTANDING THE EXTERNAL ENVIRONMENT ....................................................................... 34
ENVIRONMENTAL SCANNING ................................................................................................................. 34
PESTLE .......................................................................................................................................... 34
DESTEP ......................................................................................................................................... 35
THE DEMOGRAPHIC ENVIRONMENT ........................................................................................................ 35
THE ECONOMIC ENVIRONMENT ............................................................................................................. 36
THE SOCIO-CULTURAL ENVIRONMENT ..................................................................................................... 37
Global consumer culture ........................................................................................................... 37
Glocalization ............................................................................................................................ 38
THE TECHNOLOGICAL ENVIRONMENT ...................................................................................................... 38
Disruptive innovation ................................................................................................................ 39
THE ECOLOGICAL ENVIRONMENT ........................................................................................................... 39
Changing trends in sustainability ............................................................................................... 39
Ecological (natural) environment ............................................................................................... 40
Four green marketing strategies ................................................................................................. 40
POLITICAL-LEGAL ENVIRONMENT ........................................................................................................... 42
Trends ...................................................................................................................................... 42
Influence the political-legal environment? ................................................................................. 42
UNDERSTANDING THE PERFORMANCE ENVIRONMENT ............................................................... 43
THE PERFORMANCE ENVIRONMENT ......................................................................................................... 43
INTERMEDIARIES (=MIDDLEMAN) ............................................................................................................ 43
STAKEHOLDERS ................................................................................................................................. 44
ANALYZING INDUSTRIES ....................................................................................................................... 44
Industry .................................................................................................................................... 44
Industry analysis: Porter’s five forces model (on competition)...................................................... 45
COMPETITORS................................................................................................................................... 45
Understanding competitors ....................................................................................................... 45
Direct vs. indirect competitors ................................................................................................... 46
Blue Ocean Strategy.................................................................................................................. 46
UNDERSTANDING THE INTERNAL ENVIRONMENT ........................................................................ 46
INTERNAL ENVIRONMENT ..................................................................................................................... 46
STRATEGIC BUSINESS UNIT ................................................................................................................... 47
BOSTON BOX .................................................................................................................................... 47
MARKETING PERFORMANCE METRICS ...................................................................................................... 48
CONSUMER BEHAVIOUR: BETWEEN RATIONALITY, IRRATIONALITY AND HEDONISM ..................... 49
COGNITIVE PROCESSES ....................................................................................................................... 49
Automatic thinking vs. deliberate thinking................................................................................... 49
Confirmation bias ..................................................................................................................... 50
Availability Heuristic.................................................................................................................. 51
Likeability heuristic ................................................................................................................... 51
Endowment e]ect..................................................................................................................... 52
Present bias ............................................................................................................................. 52
Sunk cost fallacy ....................................................................................................................... 52
ALL THIS DOESN’T APPLY TO YOU? .......................................................................................................... 52
PROPOSITION ACQUISITION ....................................................................................................... 53
THE CONSUMER PROPOSITION ACQUISITION PROCESS ................................................................................. 53



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, ZMOT ............................................................................................................................................ 58
ROUTINE PURCHASES VS. SPECIALIZED PURCHASES ................................................................................... 58
Routine Purchases .................................................................................................................... 58
Specialized Purchases .............................................................................................................. 59
COGNITIVE DISSONANCE ..................................................................................................................... 59
How to reduce cognitive dissonance? ........................................................................................ 59
ADVOCACY ....................................................................................................................................... 60
THE TRADITIONAL MARKETING FUNNEL ..................................................................................................... 60
CONSUMER DECISION JOURNEY ............................................................................................................ 61
INFLUENCERS ................................................................................................................................... 62
PERCEPTION, LEARNING, AND MEMORY ..................................................................................... 63
PERCEPTIONS ................................................................................................................................... 63
SELECTIVE PROCEDURE ....................................................................................................................... 63
INVOLVEMENT ................................................................................................................................... 63
FOOT, CONE & BELDING GRID .............................................................................................................. 64
PERCEPTUAL MAPPING ........................................................................................................................ 64
LEARNING AND MEMORY ........................................................................................................... 64
LEARNING AND MEMORY ..................................................................................................................... 64
CLASSICAL CONDITIONING ................................................................................................................... 65
OPERANT CONDITIONING ..................................................................................................................... 65
SOCIAL LEARNING .............................................................................................................................. 65
IMPORTANCE OF REPETITION ................................................................................................................. 66
RECOGNITION VS. RECALL .................................................................................................................... 66
PERSONALITY ............................................................................................................................ 66
THE TRAIT APPROACH .......................................................................................................................... 66
BIG FIVE PERSONALITY TRAITS ............................................................................................................... 67
BRAND PERSONALITY .......................................................................................................................... 68
SELF-CONCEPT APPROACH................................................................................................................... 69
MOTIVATION .............................................................................................................................. 69
MASLOW'S HIERARCHY NEEDS .............................................................................................................. 69
MOTIVATION ..................................................................................................................................... 70
EXTRINSIC VS INTRINSIC MOTIVATION ....................................................................................................... 70
EXTRINSIC REASONS FOR PURCHASE ....................................................................................................... 71
THE THEORY OF PLANNED BEHAVIOR ...................................................................................................... 72
THE IMPORTANCE OF SOCIAL CONTEXTS .................................................................................... 73
GROUP INFLUENCE ............................................................................................................................ 73
ASSOCIATIVE GROUPS ......................................................................................................................... 74
BRAND COMMUNITIES ......................................................................................................................... 74
DISSOCIATIVE GROUPS ........................................................................................................................ 74
OPINION LEADERS.............................................................................................................................. 74
BUZZ MARKETING ............................................................................................................................... 75
SOCIAL GRADE .................................................................................................................................. 75
CULTURE AND ETHNIC GROUP ............................................................................................................... 76
WHAT IS BUSINESS-TO-BUSINESS MARKETING? .......................................................................... 77
BUSINESS MARKETS ................................................................................................................... 77
THE CHARACTERISTICS OF BUSINESS MARKETS ......................................................................... 78
NATURE OF DEMAND ........................................................................................................................... 78
Derived demand ....................................................................................................................... 78
Volatility of demand .................................................................................................................. 78
Elasticity of demand.................................................................................................................. 78


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, THE BUYING PROCESSES ..................................................................................................................... 79
INTERNATIONAL DIMENSIONS................................................................................................................ 79
RELATIONSHIPS ................................................................................................................................. 80
In what market are relationships more likely? B2C or B2B ........................................................... 80
Relationships in B2B ................................................................................................................. 80
Key components to build professional relations .......................................................................... 81
TYPES OF B2B CUSTOMERS, GOODS, AND SERVICES................................................................... 82
TYPES OF ORGANIZATIONAL CUSTOMERS ................................................................................................. 82
TYPES OF BUSINESS GOODS AND SERVICE ................................................................................................ 82
MAKE OR BUY DECISION:..................................................................................................................... 83
ORGANIZATIONAL BUYING BEHAVIOUR ...................................................................................... 83
ORGANIZATIONAL BUYING BEHAVIOUR .................................................................................................... 83
DECISION-MAKING UNITS .................................................................................................................... 84
THE PROCESSES OF DECISION - MAKING UNITS ......................................................................................... 84
BUY PHASES ..................................................................................................................................... 85
Need/Problem Recognition: ...................................................................................................... 85
Product Specification: ............................................................................................................... 85
Supplier and Proposition Search: ............................................................................................... 85
Evaluation of Proposals: ............................................................................................................ 85
Supplier Selection:.................................................................................................................... 85
Evaluation: ............................................................................................................................... 85
E-PROCUREMENT .............................................................................................................................. 86
PURCHASING IN ORGANIZATIONS ........................................................................................................... 86
KEY ACCOUNT MANAGEMENT .................................................................................................... 87
KEY ACCOUNTMANAGEMENT (KAM) ....................................................................................................... 87
CHANGES IN THE COMPETITIVE ENVIRONMENT .......................................................................................... 87
CHANGES IN INDUSTRY STRUCTURE........................................................................................................ 87
CORPORATE SOCIAL RESPONSIBILITY ........................................................................................ 88
CORPORATE SOCIAL RESPONSIBILITY (CSR) ............................................................................................. 88
BUSINESS PRACTICE CSR .................................................................................................................... 88
PHILANTROPIC CSR ........................................................................................................................... 88
THE UNIQUE CHARACTERISTICS OF SERVICES ............................................................................ 89
WHAT IS A SERVICE? ........................................................................................................................... 89
WHY ARE SERVICES IMPORTANT? ........................................................................................................... 89
DISTINGUISHING CHARACTERISTICS OF SERVICES ....................................................................................... 90
Intangibility ............................................................................................................................... 90
Perishability .............................................................................................................................. 91
Variability ................................................................................................................................. 92
Service inseparability ................................................................................................................ 93
Lack of ownership ..................................................................................................................... 94
SERVICE PROCESSES ................................................................................................................. 95
SERVICE PROCESSES .......................................................................................................................... 95
SERVICE ENCOUNTER ......................................................................................................................... 95
KEY DIMENSIONS OF SERVICES MARKETING ............................................................................... 96
CONSUMERS USE SEARCH, EXPERIENCE, AND CREDENCE PROPERTIES TO EVALUATE SERVICES ............................... 96
THE SERVICE MARKETING TRIANGLE ........................................................................................................ 97
SERVICE DIFFERENTIATION ................................................................................................................... 97
7 PS OF SERVICES MARKETING: .............................................................................................................. 98
PHYSICAL EVIDENCE ........................................................................................................................... 98
DIFFERENTIATION SERVICES: PHYSICAL EVIDENCE ...................................................................................... 99


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, DIFFERENTIATING SERVICES: PROCESS .................................................................................................... 99
DIFFERENTIATING SERVICES: PEOPLE ...................................................................................................... 99
DIFFERENTIATION SERVICES: PLACE...................................................................................................... 100
DIFFERENTIATING SERVICES: COMMUNICATION ....................................................................................... 100
PERSONALIZATION ........................................................................................................................... 100
MEASURING SERVICE QUALITY AND PERFORMANCE ..................................................................101
“GAPS” THAT CAUSE UNSUCCEDFUL SERVICE DELIVERY ...........................................................101
THE FIVE DIMENSIONS OF SERVICE QUALITY............................................................................................. 102
SERVICE FAILURE AND SERVICE RECOVERY .............................................................................................. 102
THE PRINCIPLES OF RELATIONSHIP MARKETING ........................................................................103
RELATIONSHIP MARKETING ................................................................................................................. 103
THE CUSTOMER RELATIONSHIP LIFE CYCLE ............................................................................................ 103
CUSTOMER RELATIONSHIP INTENSITY .................................................................................................... 105
LOYALTY AND RETENTION ..........................................................................................................106
TYPES OF LOYALTY ............................................................................................................................ 106
RELATIONSHIP TRUST, COMMITMENT, AND SATISFACTION .......................................................................... 106
CUSTOMER EXPERIENCE .................................................................................................................... 107
EXPERIENCE QUALITY ........................................................................................................................ 107
CUSTOMER ENGAGEMENT .................................................................................................................. 108
Types of Customer Engagement:.............................................................................................. 108
THE STRATEGIC CONTEXT ..........................................................................................................109
STRATEGIC MARKETING PLANNING ...........................................................................................110
MISSION ........................................................................................................................................ 110
VISION .......................................................................................................................................... 110
GOOD MISSION STATEMENTS ............................................................................................................... 111
PRODUCT VS. MARKET ORIENTATION .................................................................................................... 112
IMPORTANCE OF THE MISSION ............................................................................................................. 113
ORGANIZATIONAL VALUES .................................................................................................................. 113
ORGANIZATIONAL GOALS ................................................................................................................... 113
CORPORATE STRATEGY ...................................................................................................................... 113
LINKING MARKETING AND CORPORATE STRATEGIES .................................................................................. 114
PROCESS AND ACTIVITIES .........................................................................................................115
PROCESS ....................................................................................................................................... 115
ANALYZING COMPETITIVE INDUSTRY STRUCTURE ..................................................................................... 116
SWOT .......................................................................................................................................... 117
STRATEGIC MARKETING GOALS............................................................................................................ 119
STRATEGIC THRUST OBJECTIVES ........................................................................................................... 121
DIVERSIFICATION ............................................................................................................................. 123
Horizontal Diversification ........................................................................................................ 123
Vertical Diversification (Vertical Integration) ............................................................................. 123
STRATEGIC MARKET ACTION ......................................................................................................124
COMPETITIVE POSITIONING ................................................................................................................. 125
MARKET LEADERS............................................................................................................................. 125
MARKET CHALLENGERS ..................................................................................................................... 125
MARKET FOLLOWERS ........................................................................................................................ 126
MARKET NICHERS ............................................................................................................................ 126
COOPERATING ................................................................................................................................ 126
STRATEGIC MARKETING IMPLEMENTATION ................................................................................127
IMPLEMENTING MARKETING PLANS ....................................................................................................... 127


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, MARKETING METRICS ........................................................................................................................ 127
KEY MARKETING PERFORMANCE METRICS ............................................................................................... 127
CUSTOMER ADVOCACY: NET PROMOTER SCORE ...................................................................................... 128
DEFINITIONS OF MARKETING RESEARCH, ANALYTICS, AND CUSTOMER INSIGHT ........................129
MARKET RESEARCH .......................................................................................................................... 129
MARKET OR MARKETING RESEARCH ....................................................................................................... 129
MARKETING ANALYTICS ...................................................................................................................... 130
MARKETING ANALYTICS EXAMPLES ....................................................................................................... 130
CUSTOMER INSIGHTS................................................................................................................131
CUSTOMER INSIGHTS ........................................................................................................................ 131
MARKETING INFORMATION SYSTEM ....................................................................................................... 131
COMPETITIVE INTELLIGENCE ............................................................................................................... 133
BIG DATA AND MARKETING ANALYTICS ......................................................................................133
BIG DATA ....................................................................................................................................... 133
THE MARKETING RESEARCH PROCESS ......................................................................................134
PROBLEM-SOLVING .......................................................................................................................... 134
RESEARCH PLAN .............................................................................................................................. 135
Type of Marketing Research: Objectives ................................................................................... 135
Type of Marketing Research: Source ......................................................................................... 135
Key Considerations ................................................................................................................. 135
Internal (Secondary) Data ........................................................................................................ 136
External (Secondary) Data ....................................................................................................... 136
Type of Marketing Research: Methodology ................................................................................ 137
Qualitative research: Purpose .................................................................................................. 137
Projective techniques.............................................................................................................. 138
In-depth Interviews & Focus Group Discussions ....................................................................... 139
Focus group ........................................................................................................................... 139
Qualitative research: Pros & Cons ............................................................................................ 140
DESIGNING THE RESEARCH PROJECT ........................................................................................141
UNDERTAKE THE DATA COLLECTION ...................................................................................................... 142
Data collection and sampling .................................................................................................. 142
Sample size ............................................................................................................................ 144
Stimulating response .............................................................................................................. 145
Sampling method ................................................................................................................... 146
Data collection and sampling .................................................................................................. 152
Reliance on internet panels ..................................................................................................... 152
Pros and cons of online research ............................................................................................. 154
Important in drafting questionnaires ........................................................................................ 154
Neuromarketing ...................................................................................................................... 154
Subconscious Processes: ....................................................................................................... 155
Eye tracking ............................................................................................................................ 156
Implicit association test .......................................................................................................... 156
UNDERTAKE THE DATA COLLECTION ...................................................................................................... 157
Analysing qualitative data ........................................................................................................ 157
WRITE THE REPORT AND DELIVER THE PRESENTATION ................................................................................. 161
Technical report ...................................................................................................................... 161
Interpretation of results ........................................................................................................... 161
MARKETING RESEARCH AND ETHICS .........................................................................................162
MARKET RESEARCH SOCIETY (MRS) KEY PRINCIPLES ................................................................................ 162
GDP ............................................................................................................................................ 162
INTERNATIONAL MARKETING RESEARCH ................................................................................................. 163


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,THE STP PROCESS .....................................................................................................................164
BENEFITS OF STP PROCESS .......................................................................................................166
THE CONCEPT OF MARKET SEGMENTATION ...............................................................................167
MARKET SEGMENTATION .................................................................................................................... 167
MARKET SEGMENTATION AND PRODUCT DIFFERENTIATION........................................................................... 167
THE PROCESS OF MARKET SEGMENTATION ................................................................................168
MARKET SEGMENTATION IN CONSUMER MARKETS .....................................................................169
PROFILE SEGMENTATION .................................................................................................................... 170
BMRB-TGI LIFE-STAGE ANALYSIS ......................................................................................................... 171
PSYCHOGRAPHIC SEGMENTATION ........................................................................................................ 171
BEHAVIOURAL SEGMENTATION ............................................................................................................. 172
RFM metrics ........................................................................................................................... 172
Segmenting Consumer Markets ............................................................................................... 172
SEGMENTATION IN BUSINESS MARKETS.....................................................................................173
SEGMENTATION OF BUSINESS MARKETS: ORGANIZATIONAL CHARACTERISTICS .................................................. 173
SEGMENTATION OF BUSINESS MARKETS: CUSTOMER CHARACTERISTICS .......................................................... 174
TARGET MARKETS......................................................................................................................174
WHY TARGETING? ............................................................................................................................ 174
DAMP: FOUR CRITERIA FOR EFFECTIVE TARGETING ................................................................................... 175
SEGMENT ATTRACTIVENESS FACTORS..................................................................................................... 177
MISSION FIT.................................................................................................................................... 177
TARGETING APPROACHES ................................................................................................................... 178
UNDIFFERENTIATED MARKETING ........................................................................................................... 179
DIFFERENTIATED MARKETING .............................................................................................................. 179
CONTENTRATED MARKETING (= NICHE MARKETING).................................................................................. 181
FULL MARKET COVERAGE: .................................................................................................................. 182
TARGET GROUPS .............................................................................................................................. 182
HOLISTIC CONSUMER PROFILE ............................................................................................................ 184
PERSONA....................................................................................................................................... 185
POSITIONING ............................................................................................................................186
PERCEPTUAL MAPPING ...................................................................................................................... 186
C-D MAP ....................................................................................................................................... 187
VALUE PROPOSITION ......................................................................................................................... 188
KEYS TO SUCCESSFUL POSITIONING ...................................................................................................... 189
UNIQUE SELLING PROPOSITION (USP).................................................................................................. 190
COMMUNICATING POSITIONING ........................................................................................................... 191
PROPOSITION POSITIONING STRATEGIES ................................................................................................. 192
Functional Positioning ............................................................................................................. 192
Expressive Positioning ............................................................................................................. 192
PROPOSITION POSITIONING................................................................................................................ 193
Benefits: ................................................................................................................................. 193
Values: ................................................................................................................................... 193
Heritage: ................................................................................................................................ 193
Dunkin donuts vs. Starbucks ................................................................................................... 195
CHAPTER 9: INTERNATIONAL MARKET DEVELOPMENT ................................................................196
THE DRIVERS OF INTERNATIONAL MARKET DEVELOPMENT .........................................................196
THE INTERNATIONAL MARKETING ENVIRONMENT ......................................................................196
INTERNATIONAL MARKET ENVIRONMENT ................................................................................................. 196
Social factors ......................................................................................................................... 196


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, Cultural factors ....................................................................................................................... 197
Hofstede’s Cultural Dimensions Theory.................................................................................... 197
Examples of international brand blunders ................................................................................ 198
Economic factors .................................................................................................................... 198
Technological factors .............................................................................................................. 199
Political and legal factors......................................................................................................... 200
Consumers and International Marketing ................................................................................... 200
INTERNATIONAL MARKET SELECTION ........................................................................................201
MARKET ENTRY SELECTION CRITERIA .................................................................................................... 201
TYPES OF MARKET ENTRY METHODS ..................................................................................................... 202
FRANCHISING ................................................................................................................................. 203
EPRG CLASSIFICATION FOR INTERNATIONAL MARKETING........................................................................... 204
THE INTERNATIONAL MARKET DEVELOPMENT .......................................................................................... 205
1. Market Penetration (Existing Product, Existing Market) ..................................................... 205
2. Market Development (Existing Product, New Market) ........................................................ 205
3. Product Development (New Product, Existing Market) ...................................................... 205
4. Diversification (New Product, New Market) ....................................................................... 205
Summary: .............................................................................................................................. 205
INTERNATIONAL COMPETITIVE STRATEGY ..................................................................................206
INTERNATIONAL COMPETITIVE STRATEGY ................................................................................................. 206
STANDARDIZATION ........................................................................................................................... 206
ADAPTATION ................................................................................................................................... 207
MULTI-DOMESTIC ............................................................................................................................ 207
CHAPTER 10: BRANDING DECISIONS .........................................................................................208
THE THREE BRAND P’S ..............................................................................................................208
WHAT IS A BRAND?....................................................................................................................208
BRAND .......................................................................................................................................... 208
DIMENSIONS OF BRAND ..................................................................................................................... 209
TYPES OF BRANDS ....................................................................................................................209
MANUFACTURER BRANDS ................................................................................................................... 209
DISTRIBUTOR BRANDS ....................................................................................................................... 209
PRIVATE LABELS ............................................................................................................................... 210
GENERIC BRANDS ............................................................................................................................ 210
NON-COMMERCIAL BRANDS ............................................................................................................... 210
PERSON BRANDS ............................................................................................................................. 210
WHY BRAND?............................................................................................................................211
CONSUMERS LIKE BRANDS BECAUSE… .................................................................................................. 211
BRANDS AS A MEANS OF SELF-EXPRESSION ............................................................................................. 211
MARKETERS AND RETAILERS USE BRANDS BECAUSE THEY… ......................................................................... 212
HOW TO BUILD BRANDS ............................................................................................................212
BUILDING BRANDS ........................................................................................................................... 212
HOW TO BUILD A BRAND .................................................................................................................... 213
BRAND NAMES ..........................................................................................................................214
GOOD BRAND NAMES........................................................................................................................ 214
IMPORTANCE OF BRAND NAME ............................................................................................................. 214
CRITERIA FOR CHOOSING BRAND NAMES................................................................................................ 215
OTHER BRANDING ELEMENTS .............................................................................................................. 215
DIFFERENT TYPES OF LOGOS ............................................................................................................... 215




9

, BRAND MEANING ......................................................................................................................216
BRAND PERSONALITY ........................................................................................................................ 216
BRAND RESPONSE AND RELATIONSHIP .....................................................................................217
BRANDING STRATEGIES.............................................................................................................218
INDIVIDUAL BRANDING ...................................................................................................................... 219
FAMILY BRANDING ............................................................................................................................ 219
CORPORATE BRANDING ..................................................................................................................... 220
LINE EXTENSION .............................................................................................................................. 220
BRAND EXTENSION ........................................................................................................................... 221
ENDORSEMENT BRANDING ................................................................................................................. 221
LINE AND BRAND EXTENSIONS: RISKS .................................................................................................... 222
POOR BRAND EXTENSIONS ................................................................................................................. 223
Why Poor Brand Extensions Fail ............................................................................................... 223
Lessons for Brands ................................................................................................................. 223
CO-BRANDING ................................................................................................................................ 224
Benefits of Co-Branding .......................................................................................................... 224
Risks of Co-Branding ............................................................................................................... 224
Examples of Successful Co-Branding ....................................................................................... 224
INGREDIENT BRANDING ..................................................................................................................... 225
Key Aspects of Ingredient Branding .......................................................................................... 225
PRODUCT-BASED CO-BRANDING: BENEFITS AND RISKS .............................................................................. 225
BRAND SCOPE ................................................................................................................................ 226
GLOBAL BRANDING .......................................................................................................................... 227
CONTEMPORARY BRAND BUILDING ...........................................................................................228
CO-CREATION ................................................................................................................................. 228
SEMIOTICS PERSPECTIVE .................................................................................................................... 228
BRAND EQUITY ................................................................................................................................ 229
THE BRAND-VALUE CHAIN .................................................................................................................. 230
POWER OF BRANDING ....................................................................................................................... 231
CHAPTER 11: NEW PROPOSITION DEVELOPMENT AND INNOVATION ...........................................233
INTRODUCTION ........................................................................................................................233
PROPOSITION ................................................................................................................................. 233
THE (NON-)PHYSICAL NATURE OF PROPOSITIONS ......................................................................233
THE THREE LEVELS OF A PROPOSITION ......................................................................................234
THREE PRODUCT LEVELS .................................................................................................................... 234
CORE PROPOSTION .......................................................................................................................... 235
EMBODIED PROPOSITION ................................................................................................................... 235
AUGMENTED PROPOSITION ................................................................................................................ 236
CLASSIFYING PHYSICAL PROPOSITIONS....................................................................................236
PRODUCT RANGE, LINE, AND MIX ..............................................................................................237
PRODUCT LINE AND PRODUCT MIX ....................................................................................................... 237
Product Line ........................................................................................................................... 237
Product Mix ............................................................................................................................ 237
Product line ............................................................................................................................ 237
PRODUCT LIFE CYCLES .............................................................................................................238
THE PRODUCT LIFE CYCLE .................................................................................................................. 238
LIMITATIONS OF PRODUCT LIFECYCLE .......................................................................................240




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