3

Question 1

A product is

Answer 1

a good, service, or idea with both tangible and intangible attributes that collectively create value for a buyer or user.

Question 2

Brands perform two important functions

Answer 2

First, a brand represents a promise by a particular company about a particular product; it is a type of quality certification.

Second, brands enable customers to better organize their shopping experience by helping them seek out and find a particular product. Thus, an important brand function is to
differentiate a particular company’s offering from all others.

Question 3

Brand image

Answer 3

perceptions about a brand as reflected by brand
associations that consumers hold in their memories.

Question 4

Brand equity

Answer 4

represents the total value attached to a product based on the brand.

Question 5

Benefits of strong brand

Answer 5

✓Greater loyalty
✓Less vulnerability to marketing actions
✓Less vulnerability to marketing crises
✓Larger margins
✓More inelastic consumer response to price increases
✓More elastic consumer response to price decreases
✓Increased marketing communication effectiveness

Question 6

Positioning

Answer 6

The act of differentiating a product or brand in the mind of consumers or prospects relative to competing products or brands. It has to do with associations.

Question 7

Points of difference

Answer 7

Attributes or benefits consumers strongly associate with a brand, positively evaluate, are unique to the brand, or that consumers believe they cannot find to the same extent with a competitive brand.

Question 8

Points of parity

Answer 8

Associations that are not necessarily unique to the brand but may be shared with other brands and are necessary to compete in the category; e.g., hygiene factors.

Question 9

Satisfaction always depends on … The happiest consumer is those who … Building … between the brand and customer in the process.

Answer 9

expectations (aka. anchoring)

have a small problem and the brand perfectly and fast solve it.

trust

Question 10

Writing a Positioning Statement formula

Answer 10

For … xxx brand is/has …, because compared to … , we …

Question 11

For … xxx brand is/has …, because compared to … , we/our company or brand …

Answer 11

our target market

value proposition

Frame of reference

reasons to belive

Question 12

Positioning statement example: southwest airlines

Answer 12

“ For short-route travelers, Southwest Airlines
offers the best prices with reasonable and
dependable services because compared to big
name airlines, we don’t charge customers for
amenities”