Lecture 9 – BRANDS

Question 1

brand

Answer 1

= mark made to attest manufacture or quality or to designate ownership

Question 2

legal meaning of brand

Answer 2

= proprietary TM for a specific product/ service

Question 3

marketing meaning

Answer 3

= contract company-customers, promise of specific benefits, quality, value, experience & emotions

Question 4

brand perception

Answer 4

• takes a long time to be built
• not easy to change
• perceived in relation to competitors

Question 5

brand value for consumers

Answer 5

• reduces risk
• adds meaning
• simplifies decision making

Question 6

brand value for firms

Answer 6

• adds sales
• extends product life
• increases brand equity
• facilitates brand extension

Question 7

to test brand value

Answer 7

1. identified tests
2. blind tests
3. fMRI tests

Question 7

fMRI test

Answer 7

= measures small changes in blood flow that occur with brain activity bc of activation of areas related to emotions & memory retrieval

Question 8

brand equity

Answer 8

= the value of a company’s brand (measure of the overall perception)

Question 8

interbrand equity calculation

Answer 8

1. financial performance (benefits for sh according to EVA analysis)
2. role of the brand
3. brand strength (according to 10 paramenters)
4. brand value (NPV of the brand)

Question 9

positive branding facilitates

Answer 9

• customer loyalty
• premium pricing
• acceptance for new products
• brand extensions

Question 10

brand elements

Answer 10

• name
• logo
• colour
• slogan
• packaging

Question 11

brand elements are effective if

Answer 11

• memorable
• convey meaningful info about the brand
• aesthetic
• legally protected

Question 12

brand personality

Answer 12

= describing the brand as if it was a person

Question 13

5 personality dimensions

Answer 13

1. sincerity
2. excitement
3. competence
4. sophistication
5. ruggedness

Question 14

4 types of brand portfolios

Answer 14

1. house of brands
2. endorsed brands
3. sub-brands
4. branded house

Question 15

2 types of brand extensions

Answer 15

1. line extension
2. category extension

Question 16

line extension

Answer 16

= same product but with some feature changed

Question 17

category extension

Answer 17

= significantly different product but sold exploiting the associations with the brand

Question 18

co-branding is … (3)

Answer 18

• ideally, mutually beneficial
• very broad
• easier to do if brands are owned by the same company