Brand Management Flashcards
(110 cards)
1
Q
What are secondary associations?
A
those associations relation to other nodes to which a brand is linked
2
Q
What do secondary associations lead the consumer?
A
the consumer to assume / infer beliefs they have for external sources also holds for the brand. “The associations of the association.”
3
Q
secondary associations require what of the consumer?
A
to relinquish control over the branding process
4
Q
What becomes relevant in secondary associations?
A
SURF
5
Q
How do you leverage secondary associations to build on brand equity?
A
1.Geography-of origin (including country-of-origin)
- Companies/Brands
3.Spokesperson (including celebrity endorsers)
- Events
- Characters (usually via licensing
- Third party source
6
Q
factors in predicting the extent to leverage from linking the brand to another entity?
A
- awareness and knowledge of the entity
- meaningfulness of the knowledge of the entity
- Transferability of the knowledge of the entity
7
Q
What does leveraging secondary brand association allow marketers to do?
A
- Create or reinforce an important point-of-difference
- create or reinforce a necessary or competitive point-of-parity versus competitors
8
Q
What is a commonality leveraging strategy?
A
Makes sense when consumers have associations to another entity that are congruent with the brand
9
Q
What is a complementary branding strategy?
A
makes sense when entities represent a departure for the brand because there are few if any common or similar associations
10
Q
Country of Origin or Other Geographic Areas
A
A country of geographic location from which a product originates may
- become linked to the brand
- may generate secondary associations
11
Q
Why might consumers choose brands that originate in a different country?
A
- their belief about the quality of certain types of products from certain countries
- the image that these brands or products communicate
12
Q
What are examples of country-of-origin products?
A
Belgian chocolates, german engineering
13
Q
A litmus test on geographic origin?
A
If the label reads “made in x” would you pay more for the product. Does it add anything to the brand?
14
Q
What makes a great celebrity endorser?
A
- Relevant to the target market
- Relevant to the product
- Credible in terms of expertise, trustworthiness and/or likeability or attractiveness
- Draws attention to the brand (but not overpowering)
- shapes the perceptions of the brand by virtue of the inference that consumer make based on the knowledge that they have about the famous person
- Not linked to a number of other brands or overexposed
- Vetted
15
Q
What is co-branding?
A
when two or more existing brands are combined into a joint product or are marketed together in some fashion
16
Q
What are other names for co-branding?
A
Brand budling or brand alliance
17
Q
What questions must branders ask when deciding to do co-branding?
A
What capabilities dow we not have?
What resource constraints do we face (people, time, money)?
What growth goals or revenue needs do we have?
18
Q
What is ingredient branding?
A
A special type of co-branding. Ingredient branding creates brand equity for components, materials, or parts of a larger branded product
19
Q
Third-Party sources secondary association ways?
A
Liks the brand to various third party sources
- third party sources can be credible
- marketers can feature them in advertising campaigns and selling efforts
20
Q
What is the value of high credibility secondary associations and examples
A
securing endorsements, testimonials, reviews and certifications have the added bonus of credibility
- certifications
- organizations approval
- leading magazines and blogs
- expert testimonials
21
Q
Brand value
A
more of a company-based perspective
22
Q
brand equity
A
a consumer based perspective, multi-dimensional
23
Q
brand valuation
A
calculating the value of a brand to determine its financial value
24
Q
What are comparative methods?
A
Research studies that speak to consumers attitudes towards a brand
25
What are the types of comparative methods?
1. Brand-based comparative approaches
2. Marketing based comparative approaches
3. Conjoined Analysis
26
What is a brand-based comparative methods?
Competitive brand used a benchmarks by consumers
Example: category leader or some other brand that the consumer feel is representative of the category, like their most preferred brand
27
What is the application of Brand-based comparative methods?
Classic example is blind testing research
- consumers examine or use a product with or without brand identification
- differences typically emerge
28
What is a critique on brand based comparative methods?
Learning is limited by the number of different applications examined and objective of buyer
29
What is marketing-based comparative approach?
Hold the brand fixed and examine consumers response based on changes in the marketing program .
The point where they would abandon loyalty (whats the breaking point)
30
What is the application of marketing based comparative approaches?
Long academic and industry tradition of exploring price premiums using marketing based comparative approaches
- variation to derive similar types of demand curves
- many firms now try to assess price sensitivity and willingness-to-pay threshold for different brand
31
What is the critique on marketing brand based comparative approaches?
May be difficult to discern whether consumers responses to changes in the marketing stimuli are being cause by brand knowledge or by more generic product knowledge
32
What is a conjoint analysis?
Survey based multivariate technique that enables markets to profile the consumer decision process with respect to products and brands
You are looking for trade off between attributes (air Canada will get be there faster, but Air France has better food)
33
What is part worth?
The value consumers attach to each attribute level, as statistically derived by the conjoint formula
34
What is the application of conjoint analysis?
Allows study of different brands and different aspects of the product or marketing program simultaneously
(product composition, price, distribution outlets)
35
What is the critique of a conjoint analysis?
Marketing profiles may violate consumers expectations based on what they already know about the brands
How come you can't get me there fast and give me good food?
36
What is the 2 holistic methods?
Residual approach
Valuation approach
37
What is the residual approach?
Examines the value of the brand by subtracting consumers preferences for the brand from their overall brand preferences
- based on physical product attributes alone
Looking at everything that sets brand a part from the competition
38
What is the valuation approach?
Places financial value on brand equity
(accounting purposes, mergers and aquisitions, or other such reasons)
39
What is brand equity?
value premium that a company generates from a product with a recognizable name when compared to a generic equivalent.
40
What are residual approaches?
Subtract all physical effects
- scanner panel
- choice experiments
- general approaches
41
What are ways to look at valuation?
Accounting background
Historical Perspectives
General Approaches
42
What is the academic approach to brand valuation?
Seminal academic research study proposed estimating a firm’s brand equity derived from financial market estimates of brand-related profits
43
What are 3 brand valuation approaches that are well-established?
Interbrand
Brand Z
Brand Finance
44
What is Interbrand?
Leading brand valuation firms
how a brand benefits an organization
Internally and externally
Company that makes brand valuation
45
3 components to Interbrand?
1. Financial Forecast
2. Role of brand
3. Strength of Analysis
46
What are the concerns with Interbrand?
does not consider the potential of the brand to support extension into other product classes
47
What is brand Z?
Based on the meaningful different framework
Suggests brands create value if they offer 3 key benefits:
- meaningful
- different
- salient (top of mind)
48
What are the 3 key benefits that Brand Z suggests?
Meaningful
Different
Salient (top of mind)
49
What are the key steps in brand z valuation?
Calculating financial value
Calculating brand contribution
Calculating brand value
50
What is brand finance?
Based on the "relief from royalty" approach
Brand value is based on the royalties that the company would have paid for licensing that brand from a third party
Assuming it was not the brand owner
51
What do all 3 major brand valuation approaches have in common?
All are based on some variation of the income-based approach to brand valuation
Compute the present value of projected future earnings
Use available financial and market data
52
What is the difference between the 3 valuation approaches?
Types of data used to measure brand perceptions
53
What is the 3 branding approaches available when a firm introduces a new product?
1. Develop a new brand
2. Apply one of its existing brands
3. Use a combination of new and existing
54
What is a sub-brand?
A new brand combined with existing brand
55
What is a family brand?
Parent brand is involved in multiple extensions of the brand
56
What is a brand extension? (line extension)
Applying an existing brand name to a new product in the same product category
- apply parent brand to new product
- flavours, different application, form, size
(Different types of coke)
57
What is a brand extension? (category extension)
Applying an existing brand name to a new product in a different product category
(the million dove products)
58
What is Ansoff's Growth Matrix
a strategic planning tool that shows four different ways companies can grow through product or market expansion.
59
4 boxes of Ansoff's Growth Matrix?
Market Penetration Strategy (current products, current market)
Product Development Strategy (new products, current market)
Diversification Strategy (new products, new markets)
Market Development Strategy (current products, new markets)
60
What are advantages of extensions?
Advantages in two categories
Facilitate new product acceptance
provide feedback benefits to a parent brand
61
Why is it important to facilitate new product acceptance?
- improve brand image
- reduce risk perceived by customers
- increase the probability of gaining distribution and trial
- increase the efficiency of promotional expenditures
- reduce costs of introductory and follow-up marketing programs
- avoid the cost of developing a new brand
- allow for packaging and labeling efficiencies
- permit consumer variety-seeking
62
What is the benefits of providing feedback benefits to the parent brand and company?
- clarify brand meaning
- enhance the parent brand image
- bring new customers into the brand franchise and increase market coverage
- revitalize the brand
- permit subsequent extensions
63
What are the disadvantages of brand extensions?
- can confuse or frustrate consumers
- can encounter retailer resistance
- can fail and hurt the parent brand image
- Can succeed but cannibalize sales of the parent brand
- can succeed but diminish identification with any one category
- can succeed but hurt the image of the parent brand
- can dilute the brand's meaning
- can cause the company to forgo the chance to develop a new brand
64
How do consumers evaluate brand extensions?
1. Managerial Assumptions
2. Brand extensions and brand equity
3. vertical brand extensions
65
(Consumers evaluate brand extensions) What are managerial assumptions?
- consumers have some awareness of and positive associations with the parent brand in memory
- some of these positive associations will be evoked by the brand extension
- negative associations are not transferred from the parent brand
- negative associations are not created by the brand extension
66
Creating a positive image for an extension depends on (brand extensions and brand equity)?
- How salient parent brands associations are
- How favourable any inferred associations are
- How unique any inferred associations are
67
The effects of an extension on consumer brand knowledge depend's on what?
- How compelling the evidence is about the corresponding attribute or benefit association
- how relevant or diagnostic the extension evidence is
- how consistent the extension evidence is
- how strongly existing attribute or benefit associations are
68
What are the 2 types of brand extensions
Horizontal Brand Extension (category extension)
- same brand
- new product category
Vertical Brand Extension (line extension)
- same brand
- same product category
69
What are the advantages of a vertical branding strategy?
- simple sale proposition. Displaying a sat and noting that it is the best in the market is the simplest way to differentiate a product
- free promotion in media. Often trade magazines and websites will write about the latest product
- halo effect on other products in the brand portfolio
70
What is the Halo Effect?
when one trait of a person or thing is used to make an overall judgment of that person or thing
71
What are the disadvantages of a vertical branding strategy?
- hard to maintain. Competitors may release a product that beats the brand product, and the sales advantage evaporates overnight.
- Never a permanent strategy. A company cannot be the best forever, so brands need to think about 2.0 versions
- a product may be the best on a feature customers do not care about. Often objective measures do not translate to better customer experiences. Sometimes no one cares about the stat a brand is promoting
72
What are the advantages of a horizontal branding strategy
- customer loyalty. People will be loyal to a brand that makes products specifically tailored to their needs
- market less sensitive to price
- defensible position. While maintaining a technical advantage can be impossible, staking out a unique value proposition can be maintained for decades
73
What are the disadvantages of a horizontal branding strategy?
- requires media spending
- subject to ups and downs of the category (popularity dies down)
- Consumers' taste changes
- Demographics will force it to rebrand eventually
74
What to do when evaluating brand extension opportunities?
- define actual and desire consumer knowledge about the brand
- identify possible extension candidates
- design marketing programs to launch extension
- evaluate extension success and effects on parent brand equity
75
What is brand architecture?
relationship between brands within an organization and how they interact with one another
76
What's the importance of developing a brand architecture strategy?
- helps marketers determine which products and services to introduce
- which brand names, logos, symbols to apply to new and existing products
77
What are the steps in developing brand architecture strategy?
Step 1. Defining brand potential
Step 2. Identifying brand extension opportunities
Step 3: Branding new products and services
78
What are the 3 parts of defining brand potential (brand architecture strategy)?
- Brand vision
- brand boundaries
- broad brand
79
What are the key ingredients in brand positioning (brand potential - brand architecture)?
- competitive frame of reference
- POD
- POP
- brand mantra
80
What do you need to know for identifying brand extension opportunities (brand architecture)?
Brand extension is a new product introduced under an existing brand name
Line extension
Category Extension
Equity implications of each extension need to be understood in terms of:
- POP
-POD
81
What to know when specifying branding new elements for brand (brand architecture)?
- new products and services
- products/services maximize brand clarity
Branded House Strategy
House of Brands Strategy
Sub Brand
Broad Brand
82
What are the types of brand architecture?
Branded House Strategy
House of Brands Strategy
Sub-brands
Broad Brand/Endorsed Brands
83
What is house of brands
It's a strategy where each brand has its own brand identity, often representing a separate demographic, need, or occasion.
e.g ) P&G owns different companies in different segments
84
What is the biggest problem with house of brands
Budget. Each individual brand has a different marketing plan. Parent acting as holding company
there are also legal complexities
85
What is a sub-brand?
Sub-branding is when a business creates a secondary brand within its own brand. The secondary brand usually has its own distinct voice and personality.
- no spill over from one product to another
86
What is branded house?
A Branded House is a strategy where more than one company's products are sold under one name/branding umbrella.
Fedex
87
What is the problem with branded hosue?
Dilution, when you have problem with one area the whole corporation reputation, is impacted
Parent brand impacts overall situation
88
What is a brand portfolio?
Includes all brands sold by a company in a product category
Brand portfolio is judged by its ability to maximize brand equity
89
What is ideal in a brand portfolio?
Any one brand in a portfolio should not harm. or deacrease the equity of the others
Ideally, each brand maximizes equity in combination with others
90
Reasons for introducing multiple brands in a category?
- increase shelf presence and retailer dependence in the store
- attract consumers seeking variety who may otherwise switch to another brand
- increase internal competition within the firm
- yield economies of scale in advertising, sales, merchandising, and physical distribution
91
What are some roles that brands play in the portfolio?
- attract a particular market segment that is not being covered
- serve as a flanker and protect flagship brands
- to serve as a cash cow and be milked for profits
- to serve as a low-end entry-level product to attract new customers to brand
- to serve as a high-end prestige product to add credibility to the brand portfolio
- increase shelf presence and retailer dependence in the store
- to attract consumers seeking variety who may otherwise have switched to another brand
- to increase internal competition within the firm
- to yield economies of scale
92
Brand Portfolio: Flankers
lower-priced offering launched by a company to take on, and ideally take out, specific competitors that are attempting to under-price them.
- augment market share
- limit low price competitors
- not be so attractive
93
Brand Portfolio: Cash Cows
a product or strategic business unit within the organization's mix which is characterized by high market share and low market growth
- milked by capitalizing on their reservoir of existing brand equity
94
Brand Portfolio: Low-end, Entry Level
Role of a relatively low-priced brand is to attract customers to the brand franchise
Product offered at lower price to ensure purchase at least once and brings you into the brand family so you will purchase one of their higher priced products later on
95
Brand Portfolio: High-End, Prestige Brands
- relatively high-priced brand
- add prestige and credibility to the entire portfolio
- halo effect on product line
96
What are the levels of Brand Hierarchy?
- Corporate or Company Brand Level
- Family brand level
- Individual Brand Level
- Modifier level
- Product Descriptor
97
What is corporate image
- consumers' associations with the company or corporation making the product or providing the service
- Relevant when the corporate or company plays a prominent role in the branding strategy
98
What is a family brand?
If the corporate brand is applied to a range of products, then it functions as a family brand
But is not necessarily the name of the company or corporation
Also called a range brand or umbrella brand
e.g) Pepsi Co
99
What is an Individual brand?
- restricted to one product category
- customization of the brand and all its supporting activity
- if brand runs into difficulty or fails, the risk to other brands and the company is minimal
e.g) Frito-Lay
100
What is a modifier level?
- distinguish brands according to different types of items
- designate a specific item or model type or a particular version or configuration of product
- shows brand variation
e.g) Yoplait light, Yoplait strawberry, Yoplait light strawberry
101
What is a product descriptor?
Helps consumers understand what the product is and does
Helps define relevant competition in consumers' minds
In the case of a new product, introducing a familiar product name may facilitate basic familiarity and comprehension
102
What is the challenge in setting up a brand hierarchy?
- specific products to be introduced for any one brand
- number of levels of the hierarchy to use
- desired brand awareness and image at each level
- combinations of brand elements from different levels of the hierarchy
- best way to link any one brand element to multiple products
103
5 Guidelines for Brand Hierarchy
1. Decide on which products are to be introduced
2. Decide on the number of levels
3. Decide on the levels of awareness and types of associations to be created at each level
4. Decide on how to link brands from different levels for the product
5. Decide on how to link a brand across products
104
What must you think about when deciding which products are to be introduced?
Principle of growth: Invest in market penetration or expansion versus product development according to R O I opportunities.
Principle of survival: Brand extensions must achieve brand equity in their categories.
Principle of synergy: Brand extensions should enhance the equity of the parent brand.
105
What to think about when deciding the number of levels (brand hierarchy)?
Principle of simplicity: Employ as few levels as possible.
Principle of clarity: Logic and relationship of all brand elements employed must be obvious and transparent.
106
What to think about when deciding the level of awareness (brand hierarchy)?
Principle of relevance: Create abstract associations that are relevant across as many individual items as possible.
107
What to think about when deciding how to link brands (brand hierarchy)?
Principle of prominence: The relative prominence of brand elements affects perceptions of product distance and the type of image created for new products.
108
What to think about when deciding how to link brand across products? (brand hierarchy)
Principle of commonality: The more common elements products share, the stronger the linkages.
109
What to ensure when managing the corporate brand?
- Corporate social responsibility
- corporate image campaigns
- corporate name changes
110
What is a brand product matrix?
Product category on one side and brand on the other
- overview of activities available for each consumer
- understanding market segment
