Brand Management

Question 1

when used as a noun, can refer to a
company name, a product name, or a unique
identifier such as a logo or trademark.

Answer 1

Brand

Question 2

Derived from the Old Norse word
BRANDR which means “to burn”.

Answer 2

Brand

Question 3

today is used to create emotional
attachment to products and companies. Branding
efforts create a feeling of involvement, a sense of
higher quality, and an aura of intangible qualities
that surround the brand name, mark, or symbol.

Answer 3

Brand

Question 4

a brand is a
“name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods
and services of one seller or group of sellers and to
differentiate them from those of competition.”

Answer 4

•American Marketing Association (AMA),

Question 5

is anything we can offer to a market for
attention, acquisition, use, or consumption that might
satisfy a need or want.

Answer 5

Product

Question 6

may be a physical good, a service, a retail
outlet, a person, an organization, a place, or even an
idea.

Answer 6

Product

Question 7

is the fundamental need or
want that consumers satisfy by consuming the product
or service.
• Example:Air Conditioner
Cooling and comfort.

Answer 7

core benefit level

Question 8

is a basic version of the
product containing only those attributes or
characteristics absolutely necessary for its
functioning but with no distinguishing features. This is
basically a stripped-down, no-frills version of the
product that adequately performs the product
function.
• Example:Air Conditioner
Sufficient cooling capacity, an acceptable energy
efficiency rating, adequate air intakes and exhausts,
and so on.

Answer 8

generic product level

Question 9

includes additional
product attributes, benefits, or related services that
distinguish the product from competitors.
• Example:Air Conditioner
Optional features might include electric touch-pad
controls, a display to show indoor and outdoor
temperatures and the thermostat setting, an automatic
mode to adjust fan speed based on the thermostat
setting and room temperature, a toll-free 800 number
for customer service, and so on.

Answer 9

augmented product level

Question 10

includes all the
augmentations and transformations that a product
might ultimately undergo in the future.
• Example:Air Conditioner
Silently running, completely balanced throughout
the room, and completely energy self-sufficient.

Answer 10

potential product level

Question 11

brand is therefore more than a product, as it can
have dimensions that differentiate it in some way from
other products designed to satisfy the same need.
• Some brands create competitive advantages with
product performance; other brands create
competitive advantages through non-product-related
means.

Answer 11

Brands vs product

Question 12

•Identification of source of product
•Assignment of responsibility to product maker
•Risk reducer
•Search cost reducer
•Promise, bond, or pact with maker of product
•Symbolic device
•Signal of quality

Answer 12

Why do brands matter: consumer

Question 13

Brands can reduce the risks in product decisions.

Answer 13

Why do brands matter?

Question 14

The product does not perform up to
expectations

Answer 14

Functional risk

Question 15

The product poses a threat to the
physical well-being or health of the user or others.

Answer 15

Physical risk

Question 16

The product is not worth the price paid

Answer 16

Financial risk

Question 17

Brands can reduce the risks in product decisions.

Answer 17

Why do brands matter

Question 18

The product results in embarrassment from
others.

Answer 18

Social risk

Question 19

The product affects the mental
well-being of the user.

Answer 19

Psychological risk:

Question 20

The failure of the product results in an
opportunity cost of finding another satisfactory
product.

Answer 20

Time risk

Question 21

Brands can also play a significant role in signaling certain
product characteristics to consumers.

Answer 21

Why do brands matter

Question 22

consumers can evaluate product
attributes like sturdiness, size, color, style, design, weight,
and ingredient composition by visual inspection.

Answer 22

For search goods

Question 23

consumers cannot assess product
attributes like durability, service quality, safety, and ease of
handling or use so easily by inspection, and actual product
trial and experience is necessary.

Answer 23

For experience goods

Question 24

consumers may rarely learn product
attributes.

Answer 24

For credence goods

Question 25

•Identification to simplify handling or tracing •Legally protecting unique features •Signal of quality level •Endowing products with unique associations •Source of competitive advantage •Source of financial returns

Answer 25

Why do brands matter: firms

Question 26

Ultimately a brand is something that resides in the minds of consumers. • Marketers must give consumers a label for the product and provide meaning for the brand. • The key to branding is that consumers perceive differences among brands in a product category.

Answer 26

Can everything be branded

Question 27

• Physical Goods • Services • Retailers and Distributors • Online Products and Services • People and Organizations • Sports,Arts and Entertainment • Geographic Locations •Ideas and Causes

Answer 27

What can be branded

Question 28

Savvy customers • Economic Downturns • Brand proliferation • Media Fragmentation •Increased competition •Increased costs • Greater accountability

Answer 28

Branding challenges and opportunities

Question 29

• One of the key challenges in today’s marketing environment is the vast number of sources of information consumers may consult. For these and other reasons, many believe that it is more difficult to persuade consumers with traditional communications than it used to be.

Answer 29

Savvy customers

Question 30

• A severe recession that commenced in 2008 threatened the fortunes of many brands. One research study of consumers at the end of 2009 found the following sobering facts: • 18 percent of consumers reported that they had bought lower-priced brands of consumer packaged goods in the past two years. • 46 percent of the switchers to less expensive products said “they found better performance than they expected,” with the vast majority saying performance was actually much better than expected. • 34 percent of the switchers said “they no longer preferred higher-priced products.

Answer 30

Economic Downturns

Question 31

•Another important change in the branding environment is the .... of new brands and products and this encouraged by the rise in line and brand extensions. As a result, a brand name may now be identified with a number of different products with varying degrees of similarity. Marketers of brands have added a host of new products under their brand umbrellas in recent years.

Answer 31

Brand proliferation

Question 32

•Another important change in the marketing environment is the erosion or fragmentation of traditional advertising media and the emergence of interactive and nontraditional media, promotion, and other communication alternatives. For several reasons related to media cost, clutter, and fragmentation, marketers have become dissatisfied with traditional advertising media, especially network television.

Answer 32

Media Transformation

Question 33

•One reason marketers have been forced to use so many financial incentives or discounts is that the marketplace has become more competitive. Both demand-side and supply-side factors have contributed to the increase in competitive intensity. •Demand side - consumption for many products and services has flattened and hit the maturity stage, or even the decline stage, of the product life cycle. •Supply side – Globalization, Low-priced competitors, Brand Extensions, Deregulation

Answer 33

•Increased competition

Question 34

•Marketers often find themselves responsible for meeting ambitious short-term profit targets because of financial market pressures and senior management imperatives. Stock analysts value strong and consistent earnings reports as an indication of the long-term financial health of a firm. As a result, marketing managers may find themselves in the dilemma of having to make decisions with short-term benefits but long-term costs (such as cutting advertising expenditures).

Answer 34

Greater Accountability

Question 35

•At the same time that competition is increasing, the cost of introducing a new product or supporting an existing product has increased rapidly, making it difficult to match the investment and level of support that brands were able to receive in previous years.

Answer 35

Increased Costs

Question 36

•The sum of all distinguishing qualities of a brand, drawn from all relevant stakeholders, that results in personal commitment to and demand for the brand; these differentiating thoughts and feelings make the brand valued and valuable.

Answer 36

Brand equity concept

Question 37

Brand equity elevated the importance of the brand in marketing strategy and provided focus for managerial interest and research activity

Answer 37

Good News

Question 38

the concept has been defined a number of different ways for a number of different purposes.

Answer 38

Bad News

Question 39

Strong brand equity allows us to retain customers better, service their needs more effectively, and increase profits.

Answer 39

The brand equity concept

Question 40

Strong ____allows us to retain customers better, service their needs more effectively, and increase profits. can be increased by successfully implementing and managing an ongoing relationship marketing effort by offering value to the customer, and listening to their needs.

Answer 40

Brand equity

Question 41

•It involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.

Answer 41

Strategic brand management

Question 42

1. Identifying and developing brand plans 2. Designing and implementing brand marketing programs 3. Measuring and interpreting brand performance 4. Growing and sustaining brand equity

Answer 42

4 main steps of Strategic Brand Management Process

Question 43

•brand positioning model •brand resonance model •brand value chain

Answer 43

Step 1 - Identifying and Developing Brand Plans

Question 44

1. The initial choices of the brand elements making up the brand and how they are mixed and matched; 2. The marketing activities and supporting marketing programs and the way the brand is integrated into them; 3. Other associations indirectly transferred to or leveraged by the brand as a result of linking it to some other entity (such as the company, country of origin, channel of distribution, or another brand)

Answer 44

•Step 2 - Designing and Implementing Brand Marketing Programs

Question 45

• Choosing Brand Elements • Integrating the Brand into Marketing Activities and the Supporting Marketing Program. • Leveraging Secondary Associations.

Answer 45

•Step 2 - Designing and Implementing Brand Marketing Programs Some important considerations of each of these three factors are as follows:

Question 46

•A brand equity measurement system is a set of research procedures designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and the best strategic decisions in the long run. •Implementing such a system involves three key steps— conducting brand audits, designing brand tracking studies, and establishing a brand equity management system.

Answer 46

•Step 3 - Measuring and Interpreting Brand Performance

Question 47

is a comprehensive examination of a brand to assess its health, uncover its sources of equity, and suggest ways to improve and leverage that equity. A brand audit requires understanding sources of brand equity from the perspective of both the firm and the consumer.

Answer 47

Brand Audit

Question 48

collect information from consumers on a routine basis over time, typically through quantitative measures of brand performance on a number of key dimensions marketers can identify in the brand audit or other means.

Answer 48

Brand tracking studies

Question 49

is a set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm. Three major steps help implement a brand equity management system: creating brand equity charters, assembling brand equity reports, and defining brand equity responsibilities.

Answer 49

brand equity management system

Question 50

• Defining Brand Architecture. The firm’s brand architecture provides general guidelines about its branding strategy and which brand elements to apply across all the different products sold by the firm. Two key concepts in defining brand architecture are brand portfolios and the brand hierarchy.

Answer 50

•Step 4 – Growing and Sustaining Brand Equity

Question 51

Managing Brand Equity over Time. Effective brand management also requires taking a long-term view of marketing decisions. A long-term perspective of brand management recognizes that any changes in the supporting marketing program for a brand may, by changing consumer knowledge, affect the success of future marketing programs.

Answer 51

Managing Brand Equity over Time.

Question 52

Another important consideration in managing brand equity is recognizing and accounting for different types of consumers in developing branding and marketing programs.

Answer 52

• Managing Brand Equity over Geographic Boundaries, Cultures, and Market Segments.