Marketing II / Session 2

value above and beyond the benefits of the product itself.
Brands

are a portfolio of qualities associated with the name.
Brands are a visual manifestations. (Logo, shape, font, etc.)
Brands trigger associations.

Brands convey information
Brands signal consistent quality
Brands confer status

Brands reduce customer risk
Brands make purchasing decisions easier.

Brands enhance loyalty
Brands allow charging of premium prices
Brands

inoculate the company from some competitive
action
Brands assist in segmentation, targeting and positioning
Brands encourage channel partners’ support

name
let customers draw associations
pick up the company’s positioning
…

attributes
Product benefits
Emotional benefits

Goretex

A definition

“The state of great comfort and extravagant living: he

lived a life of luxury” “An inessential, desirable item that is expensive or difficult to obtain: luxuries like raspberry vinegar and state-of-the-art CD players he considers bananas a luxury” (Oxford Dictionaries, 2015)

luxury? A definition

“The state of great comfort and extravagant living:

he lived a life of luxury” “An inessential, desirable item that is expensive or difficult to obtain: luxuries like raspberry vinegar and state-of-the-art CD players he considers bananas a luxury” (Oxford Dictionaries, 2015)

“Luxury brands are regarded as images in the minds of consumers that comprise associations about a high level of price, quality, aesthetics, rarity, extraordinariness and a high degree of non-functional associations.” (Heine, K., 2012)

“me-too” product offering under a retailer’s own store or generic

brand.

Advantages for the customer:
Brands convey information
Lower prices compared to branded products
Brands signal consistent quality
Brands reduce customer risk
Brands make purchasing decisions easier

Advantages for the company:
Less entities in the value chain
Reduced expenses in R&D, package design, promotion
Ability to compete with discounter chains
…