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  1. Describe branding strategy – the decisions companies make in building and managing their brands

Some analysts see brands as the major enduring asset of a company. Brands are more than just names and symbols; they embody everything that the product or the service means to consumers. Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or the service. A brand with strong brand equity is a very valuable asset. In building brands, companies need to make decisions about brand positioning, brand name selection, brand sponsorship, and brand development. The most powerful brand positioning builds around strong consumer beliefs and values. Brand name selection involves finding the best brand name based on a careful review of product benefits, the target market, and proposed marketing strategies. A manufacturer has four brand sponsorship options: it can launch a national brand (or manufacturer’s brand), sell to resellers who use a private brand, market licensed brands, or join forces with another company to co-brand a product. A company also has four choices when it comes to developing brands. It can introduce line extensions, brand extensions, multibrands, or new brands.

  1. Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require

Services are characterized by four key characteristics: they are intangible, inseparable, variable, and perishable. Each characteristic poses problems and marketing requirements. Marketers work to find ways to make the service more tangible, increase the productivity of providers who are inseparable from their products, standardize quality in the face of variability, and improve demand movements and supply capacities in the face of service perishability. Good service companies focus attention on both customers and employees. They understand the service profit chain, which links service firm profits with employee and customer satisfaction. Services marketing strategy calls not only for external marketing

but also for internal marketing to motivate employees and interactive marketing to create service delivery skills among service providers. To succeed, service marketers must create competitive differentiation, offer high service quality, and find ways to increase service productivity.

  1. Explain how companies find and develop new-product ideas

Companies find and develop new-product ideas from a variety of sources. Many new-product ideas stem from internal sources. Companies conduct formal R&D. Or they pick the brains of their employees, urging them to think up and develop new-product ideas. Other ideas come from external sources. Companies track competitors’ offerings and obtain ideas from distributors and suppliers who are close to the market and can pass along information about consumer problems and new-product possibilities. Many companies are now developing crowdsourcing or open-innovation new-product idea programs, which invite broad communities of people—customers, employees, independent scientists and researchers, and even the general public—into the new-product innovation process. Truly innovative companies do not rely only on one source or another for new-product ideas.