Entrepreneurial Marketing- UCF

What is a brand?
name, sign, symbol, design, or combination of elements intended to identify products and services of one marketer and to differentiate from competitors
A blend of what you say about your company and what others say about your company
Major brands were once
small ventures
Why is branding important?
1. sets you apart from competitors
2. creates core values you will deliver to customers
3. sharpens your biz model
4. customer acquisition, customer loyalty
5. improves access to suppliers/channel support
Branding allows customers to be
more efficient shoppers and to recognize and avoid products
Brand loyalty often eases
customer decision making and eliminates need for external search
Branding helps
customers visualize and understand products and services
Characteristics of a good brand
1. effectively communicates the distinctive value you wish to offer the customer
2. is relevant to the customer
3. resonates with the customer
4. reinforces the company’s intended positioning in the marketplace
5. is consistent and unifying
6. serves as an umbrella for current/future brands in the company’s portfolio
7. allows for the building of strong brand equity
8. enables you to command premium pricing
9. is easily understood by your customers and your employees
10. can be sustained over time
Five stages of branding
1. conduct brand analysis
2. determine your brand positioning
3. select a brand name and identity
4. select a branding strategy
5. construct a brand communications plan
Corporate branding
The branded house
Individual product and services branding
House of brands
Hybrid
sub-branding
Brand equity
added value a given brand name provides to a product beyond the functional benefits it offers
Creating a brand equity
1. develop positive brand awareness
2. establish brand’s meaning in the mind of the customers
3. elicit the proper customer response to the brand
4. create customer brand resonance
– active loyalty relationship
Bzz Agent
tracking
verification
Can negative WOM be created
yes
What does STP stand for?
segmentation, targeting, positioning
Segment
aggregate customers into two groups:
– common needs
– common response to specific marketing offers
Ways to segment
geographic
demographic
psychographic
behavioral
*Customer need benefits not features
When selecting segments, look at:
1. size of segment
2. expected growth of segment
3. competitive position
4. cost of reaching segment
5. compatibility with resources and objectives
Undifferentiated targeting
assume more commonalities than differences among segments
Differentiated targeting
target more than one segment, but specially design marketing mixes for each segment
Concentrated targeting
pick one segment to focus on
Continuous innovations
approximately 80% of products
new products but not disruptive
minor product modifications
-flavors, colors, packaging
simple product extensions
-light beer
Dynamically continuous innovations
approximately 20% of new products
some disruptive effects
new products but not major tech breakthrough
-battery powered toothbrush
Discontinuous innovations
<1% of new products new products, major tech breakthroughs fundamental changes in consumer consumption patterns can create new markets
Major service innovations
entirely new concepts
discontinuous innovations
new markets
– FedEx overnight delivery, eBay online auctions
Major process innovations
new processes to deliver existing services
virtual universities
-full degree completion w/o traveling to campus
Service-line extensions
additions to existing lines of services
Supplementary service innovations
adds new elements to core service
improves existing supplementary services
Basic service improvements
most common type of service innovation
modest changes in performance of existing services
Superior advantage
customer should perceive product or service to be superior to existing alternatives
real or perceived
based on better price or outstanding performance
Compatibility
products or services aligned with values, attitudes and norms of customers is more likely to succeed than one that lack compatibility
Simplicity
failure is likely if products or services difficult to understand or use
Observability
the product or service innovative characteristics can be easily observed by or communicated to customer
Trialability
ability to purchase products or services on trial basis
small amounts of time
most consumers want to try before they buy
Low perceived risk
low-risk purchase
warranties or guarantees
Intellectual property protection
protection for company
potentially creates a competitive advantage
Purple cow
something phenomenal, counterintuitive, exciting, flat out unbelievable
New product/service process
1. idea generation
2. screening and evaluation
3. business analysis
4. development
5. market testing
6. launch
Five steps of adoption
1. awareness
2. interest
3. evaluation
4. trial
5. adoption/rejection
Five categories of adopters
1. innovators 2.5%
2. early adopters 13.5%
3. early majority 34%
4. late majority 34%
5. laggards 16%
Product life cycle
introduction
growth
maturity
decline
Diffusion
manner in which customers accept new products/services and the speed of the new product/service adoption by various customer groups
Study found that 70% of people would pay
a 20% premium for their brand of choice;
40% said they would pay a 50% premium
What is the % of brands that don’t make it in the long run?
90%