FINAL EXAM- CH.12-16 Flashcards by Karmen Wood

Brand Architecture Strategy

helps marketers determine which product services to introduce, and which brand names, logos, and symbols etc. apply to new and existing products.

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3 Steps to Developing Brand Architecture Strategy

Define brand potential
Identify brand extension opportunities
Branding new products & services

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Product Mix

the set of all product lines and items that a particular seller makes available to buyers.

EX: Campbells sells tomato sauces, salsa, vegetable juices, and cookies, and crackers.

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Brand Mix

the set of all brand lines that a particular seller makes available to buyers.

EX: Campbells brand lines include Prego, V8, & Pepperidge Farm

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Brand Line

consists of all products–original as well as line and catagory extensions– sold under a particular brand.

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Product Line

a group of products within a product category that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.

(may include different brands, a single family brand, or individual brand that has been line extended)

EX: Campbells soup makes a variety of different soup products, varying in flavor, type, sizes..

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Brand-Product Matrix Design
(understand how to create one)

“Y” Axis- Brands (A,B,C)
“X” Axis- Products (1,2,3)

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Family (range/umbrella) Brand Level

used in more than one product category, but not necessarily the name of the company/corporation.

EX: Mountain Dew, Doritos, Quaker Foods (PepsiCo)

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Individual Brand Level

restricted to essentially one product category, although multiple product types may differ on the basis of model, package size, flavor..

EX: Salty snack product class= Frito-Lay offers: Fritos, Doritos, SunChips, Lays, Ruffles, Rold Gold Pretzels.

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Brand Extension

a new product introduced under an existing brand name

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What are the 2 types of Brand Extensions?

Line extensions & category extensions

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Line Extensions

new product introductions WITHIN existing categories

EX: Seasonal Oreos (Green cream, Orange, white, black, etc)

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Category Extensions

new product introductions OUTSIDE existing categories

EX: Dove Shampoo, Dove hand soap, Dove lotion

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What are the reasons for brand extensions?

Facilitate new product acceptance:
Improve Brand Image
Reduce Risk
Gaining Distribution and Trial
Promotional Expenditures
Marketing Programs
Avoid Cost of New Product Development
Packaging and Labeling Efficiencies
Variety Seeking

Provide feedback benefits to parent brand:
Clarify Brand Meaning
Enhance Parent Brand Image
Increase Market Coverage
Revitalize the Brand
Permit Subsequent Extensions

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What is a Brand-Product Matrix?

a graphical representation of all the brands and products sold by the firm. The matrix (grid) has the firm’s brands as rows and corresponding products as columns

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Sub-Branding

extremely popular form of brand extension in which the new product carries both the parent brand name and a new name.

EX: Apple iPad, Ford Fusion, American Express Blue card

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Brand Boundaries

strong brands stretched across multiple categories– based on the brand vision and positioning– Identifying the products or services the brand should offer, the benefits it should supply, and the needs it should satisfy.

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Brand Boundaries (broad)

focuses on increasing the size of consumers associative networks by adding favorable and relevant brand benefits.

EX: H&M= fashion, reasonable price, modern/trends, models…

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Brand Boundaries (narrow)

focuses on brand concept consistency. Fewer and more accessible associations

EX: Volvo associated with “safety” (rather than safety, design, comfort..)

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Brand Vision

management’s view of the brand’s long-term potential. influenced by how well the firm is able to recognize the current and possible future brand equity.

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Brand Portfolio

includes all brands sold by a company in a product category

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Why might a firm have multiple brands in the same product category?

Market coverage.
Multiple brands allow a firm to pursue various price segments, a variety of distribution channels, different geographic boundaries..

EX: P&G introducing Cheer detergent brand as an alternative to the already successful Tide detergent.

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Cash Cows

brands kept around despite declining sales because they still manage to keep a sufficient number of customers and maintain profitability with virtually no marketing support.

EX: Netflix DVD’s still offered, but not advertised and no money is spent on advertising aka cash cow.

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Brand Hierarchy

a graphical presentation of a firm’s branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing their explicit ordering.

EX:
1. Corporate/Company Brand (General Motors)
2. Family Brand (Buick)
3. Individual Brand (Regal)
4. Modifier-designating item or model- (GS)
5. Product Description (midsize luxury sport sedan automobile)

Brand hierarchy - brand naming

Dell Latitude E7450 consists of 3 different brand name elements

“Dell” -Corporate name
“Latitude” -type of computer
“E7450” -model of Latitude

Brand hierarchy- prominence

its relative visibility compared with other brand elements. Prominence depends on several factors, such as order, size, and appearance as well as semantic associations.

Principle of prominence

the relative prominence of brand elements affects perceptions of product distance and the type of image created for new products

Corporate Credibility

Measures the extent to which consumers believe a firm can design and deliver products and services that satisfy their needs and wants

What 3 factors does corporate credibility depend on?

Corporate Expertise: The extent to which consumers see the company as able to competently make and sell its products or conduct its services.
Corporate Trustworthiness: The extent to which consumers believe the company is motivated to be honest, dependable, and sensitive to customer needs.
Corporate Likability: The extent to which consumers see the company as likable, attractive, prestigious, dynamic, and so forth.

Corporate Social Responsibility

a type of business self-regulation with the aim of social accountability and making a positive impact on society.

Corporate name changes

Corporate names may have to change for many reasons, but should be the right reasons pursued in the right way. A merger or acquisition is often the driving force to reevaluate naming strategies and weigh the existing and potential equity of each brand in its new context.

EX:
Merger & Acquisition:
FedEx and Kinkos → FedExKinko’s
J.P. Morgan & Co and Chase → J.P Morgan Chase.

EX:
Name Changes:
*Dunkin’ (formerly Dunkin’ Donuts)
*KFC (formerly Kentucky Fried Chicken)
*WW (formerly Weight Watchers)
*Apple (formerly Apple Computers)

If there is an imbalance of brand equity, the firm typically chooses the name with more inherent brand equity and downgrades the other to a sub-brand role or eliminates it all together.

EX:
United’s name was combined with Continental’s globe logo when the 2 air carriers merged.
When Citicorp merged with Travelers, the latters name was dropped, although its familiar red umbrella symbol was retained as part of the new CitiGroup brand look.

Reasons for Corporate name changes:
–Merger or acquisition is often the driving force to reevaluate naming strategies.
–Result of divestitures, leveraged buyouts, or the sale of assets.
–To correct public misperceptions about the nature of the company’s business.
–Due to significant shifts in corporate strategy.
–Based on a desire to create distance from scandal.

Flagship Brand

the main product/service in the company’s portfolio and to which the customer most relates or identifies the company.

Flanker Brand

a new brand introduced into the market by a company that already has an established brand in the same product category. The purpose is to protect the more important/more profitable flagship brand so that the flagship can maintain its position.

EX:
General Mills markets both Gold Medal and Robin Hood brand flours. Gold Medal serves as a premium product and commands a premium price from consumers who value quality. However, Robin Hood offers a lower-priced product with a slightly lower level of quality for those who are more heavily influenced by the price of products within a category.
In some cases, firms reposition brands in their portfolio to play the role of a flanker brand.

EX:
P&G repositioned its Luvs brand of diapers to protect the premium Pampers brand.

Fighter Brand

A TYPE OF FLANKER BRAND that is produced by the company, usually has a separate brand identity and is sold on price. Fighting brands are not supported by promotion and are USED TO PROTECT THE FIRMS’ MAIN BRAND FROM PRICE COMPETITION. Its quality is usually lower than that of the main brand, it may only be temporarily on the market, and its purpose is to hold customers without having to lower the price of the main brand.

Brand Extension vs. New Products

BRAND EXTENSION involves using an EXISTING brand to enter a new product category.

NEW PRODUCT involves introducing new products within the same category under the existing brand.

Upward Extension

Higher quality level/price

can improve brand image, because a premium version of a brand often brings positive associations with it

Downward Extension

Lower quality level/price

has the possibility of harming the parent’s brand image by introducing associations common to lower-priced brands, such as inferior quality or reduced service

Category Extension

Marketers apply the parent brand to enter a different product category from the one it currently serves.

EX: Oprah Winfrey leveraged the success of her show to introduce the successful publication called O, The Oprah Magazine.

Ex: Snackwell’s cookies and crackers extended to Snackwell’s puddings

EX: Dove hand soap, Dove shampoo, Dove lotion

EX: Oreo cookies, Oreo ice cream cones, Oreo pie crust

Counter Extension

a competing brand in the extension category chooses to launch its own extension into the parent brand’s category—can pose a significant threat.

Cannibalization

Even if sales from a brand extension are high and meet targets, success may result from consumers switching from existing offerings of the parent brand–cannibalizing it.

Repositioning

requires that we establish more compelling Points of Difference. updating a brand

Reasons for unsuccessful brand extensions

Can confuse or frustrate consumers
Can encounter retailer resistance
Can fail and hurt parent brand image
Can succeed but cannibalize sales of parent brand
Can succeed but diminish identification with any one category
Can succeed but hurt the image of parent brand
Can dilute brand meaning
Can cause the company to forgo the chance to develop a new brand

Reinforcing brand equity over time requirements

Generally, we reinforce brand equity by marketing actions that consistently convey the meaning of the brand to consumers in terms of brand awareness and brand image.

What 3 key issues does brand reinforcement examine?

(1) advantages of maintaining brand consistency
(2) importance of protecting sources of brand equity
(3) trade-offs between fortifying and leveraging brands.

If there is one rule for modern branding, however, it is that brands can never stand still. Brands must be constantly moving forward.

Migration Strategies

helps consumers understand how various brands in the portfolio can satisfy their needs as they change over time, or as the products and brands themselves change over time.

Managing brand transitions is especially important in rapidly changing, technologically intensive markets. Ideally, brands will be organized in consumers’ minds so they know at least implicitly how they can switch among them as their needs or desires change.

Strategies for revitalizing or building VS. Reinforcing brand equity

*Expand the depth or breadth of brand awareness, or both, by improving consumer recall.
*Improve the strength, favorability, and uniqueness of the brand associations making up the brand image.

Options for failing products

Retiring brands
*The first step in retrenching a fading brand is to reduce the number of its product types. This reduces the cost of supporting the brand and allows it to concentrate on its stronger versions.
*An orphan brand is a brand where the parent company withdraws marketing support (e.g,. reduces promotional expenditures) and allows it to float. Companies often spin off their orphan brands when sales fall too far.
*When a brand is beyond repair, marketers have to take more drastic measures, such as consolidating it into a stronger brand. For example, White Cloud toilet paper was merged into Charmin.
*A permanent solution is to discontinue the product altogether.

Ex. Coca-Cola (2020) retired many of its product versions. The company is phasing out Tab Coca-Cola Life, Diet Coke Feisty Cherry, Odwalla (announced in July), and Zico Coconut Water. Kuat (Brazil) and Vegitabeta (Japan) are two products from abroad leaving its international portfolio

Revitalizing brands & Revitalization strategies

The most appropriate strategy is therefore to increase usage in one of two ways:
Identifying additional or new usage opportunities
To identify additional or new opportunities for consumers

*Communicate the advantage of using the brand more frequently in existing situations or in new situations. (e.g., Increasing usage of V-8 by the tagline ‘Wow, I could have had V-8!’
*Remind consumers to actually use the brand as close as possible in time to those situations for which it could be used. For example, remind consumers to buy barbecue sauce right before July 4th.

*Tie the act of replacing the product to a certain holiday, event, or time of year. (For example, Oral-B toothbrushes remind customers to replace their toothbrushes when the daylight savings time changes.)

*Increase the frequency of usage for products of short life spans (ex. battery life indicators on products)

*Provide consumers with better information about:
oWhen they first used the product or need to replace it (Ex. Under sink water filter systems need to be dated so they are replaced every ten years).

oThe current level of product performance (how much charge remains in the battery?).

*Consumers can be convinced of the merits of more regular usage and overcome any potential hurdles to increased usage by, for example, making product designs and packaging more convenient and easier to use.
*Identifying new and completely different ways to use the brand
*For example, there are many ways to use Arm & Hammer Baking Soda.
*New usage applications may require more than just new ad campaigns or merchandising approaches.

Standardization vs adaptation of international brand expansion

the most fundamental issue when expanding into new international markets is to what extent the marketing mix can be standardized vs adapted.

Product strategy
*Due to the relative expense, many smaller companies try to sell their products without sufficient market research.
*As a result, they sometimes become aware of consumer differences only after the introduction of the product.
*Marketing research reveals that product differences are not justified for certain countries.
*From a corporate perspective, a solution to the trade-off between global and local brands is to sell both types of brands as part of the brand portfolio in a category.
Communication strategy
*Although the brand positioning may be the same in different countries, creative strategies in advertising may have to differ to some degree.
*Each country has its own unique media challenges and opportunities.
*Marketers can execute sponsorship in a global basis.
Entertainment and sports sponsorships can be an especially effective way to reach a younger
Distribution strategy
*Lacking many global retail powerhouses, companies often differ in their approach to distribution, and the results can be dramatic.
*Coca-Cola vending machines in Japan
*As in domestic markets, firms will want to blend push and pull strategies internationally to build brand equity.
*Sometimes companies mistakenly adapt strategies that were critical factors to success, only to discover that they erode the brand’s competitive advantage.
Pricing strategy
*Marketers need to understand in each country what consumer perceptions of the value of the brand are, their willingness to pay, and their elasticities with respect to price changes.
*Pressures for international price alignment have arisen, in part because of the increasing numbers of legitimate imports and exports and the ability of retailers and suppliers to exploit price differences through “gray imports” across borders.

Tactical guidelines for Building brand equity

1.Through the initial choice of the brand elements that make up the brand
2.Through the design of the marketing program (4 Ps)
3.Through the leverage of secondary associations that link the brand to other entities, like a company, geographic region, or other brand, person or event.

CBBE Framework

to recognize the importance of the customer in the creation and management of brand equity.

7 deadly sins of brand management

Failure to fully understand the meaning of the brand
Failure to live up to the brand promise
Failure to adequately support the brand
Failure to be patient with the brand
Failure to adequately control the brand
Failure to properly balance consistency and change with the brand
Failure to understand the complexity of brand equity measurement and management

Carolyn Edwards, Vice President of Marketing for Proctor and Gamble (which is the parent corporation), wants to graphically represent the brand architecture for her firm. If she creates a brand-product matrix in Excel (and based on the assumption that Proctor and Gamble does in fact own all of the brands mentioned below), which of the following would NOT be appropriate for such a representation?

A. Column headings might include, for example, Oral Care, Laundry Products, and Home Cleaners.
B. The product mix is represented by the column headings while the brand mix is represented by the row headings.
C. Row headings might include Gain Laundry Detergent, Gain Scent Boosters and Gain Dish Detergent.
D. Row headings might include, for example, Crest, Gain and Mr. Clean

C. Row headings might include Gain Laundry Detergent, Gain Scent Boosters and Gain Dish Detergent.

When Carsen Edwards was looking at a car buying guide, he noticed how complicated brand names can be for cars. For example: “Daimler Ag Mercedes Benz SL Class 63 AMG Model.” Initially, this only confused him further. Then, as an astute brand strategy student, he realized he was actually examining the ‘brand hierarchy.’ Which of the following statements would be correct with regard to the brand hierarchy of this product?

A. SL Class is the individual brand.
B. Daimler AG is the product descriptor.
C. SL Class 63 AMG is the corporate brand.
D. Mercedes Benz is the modifier.

A. SL Class is the individual brand.

Brands that are designed with strong points of parity with competitive brands so that the company’s more important and more profitable brands can retain their desired positioning are called:
A. fighter brands
B. flagship brands
C. cash cows
D. traffic builders

A. fighter brands

A number of brands, such as Polaroid, have been able to make comebacks in recent years. Assuming the brand has a reasonable amount of brand awareness and a positive brand image, the most appropriate starting point for revitalizing a brand is to:
A. change the brand packaging
B. lower the price of the brand to boost sales
C. develop strategies to increase usage of the brand, either by increasing the quantity of consumption or increasing the frequency of consumption
D. change the name of the brand

C. develop strategies to increase usage of the brand , either by increasing the quantity of consumption or increasing the frequency of consumption

Gerber offers infant formula (0-4 months) and My First starter kits (4-6 months), as well as product lines specific to 6-8 months, 8-12 months, 12+ months and 24 months. By providing products ordered in this logical manner, Gerber is using a brand _____ strategy.
A. relationship
B. follower
C. chronology
D. migration

C. Chronology

According to the Customer-Based Brand Equity Framework, which of the following is NOT true?
A. Managing brand equity requires a narrow and focused perspective of brands.
B. CBBE occurs when the consumer has a high level of brand awareness and familiarity with the brand and holds some strong, favorable and unique associations in memory.
C. The basic premise of CBBE is that the power of a brand lies in the minds and hearts of consumers, in what they’ve experienced, learned, and felt about the brand over time.
D. Brand awareness has depth (the likelihood that the consumer can recognize or recall the brand) and breadth (the variety of purchase and consumption situations in which the brand comes to mind).

A. Managing brand equity requires a narrow and focused perspective of brands.

Laura Bingham was hired as the brand manager for the Rockin Horse dude ranch. One of her initial goals is to build brand equity. To this end, which of the following marketing strategies would Laura NOT do in order to build brand equity?
A. Laura could hire a local country singer to compose a jingle to be used in advertising the ranch to reinforce brand positioning for the ranch.
B. Laura could develop a brand equity charter.
C. Laura could design a logo and create a slogan for the ranch that reinforce each other as well as the brand name of the ranch.
D. Laura could leverage secondary associations by hiring a world-famous Texas Ambassador trick-roper to endorse the ranch.

B. Laura could develop a brand equity charter

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FINAL EXAM- CH.12-16 Flashcards

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