Branding strategy

Question 1

Brand represents

Answer 1

Brand represent consumers’ perceptions and feelings about a product and its performance - what does it mean to customer

Question 2

Brand

Answer 2

a name, term, sign, symbol or design,
or combination of these
- identifies the products/services of one seller or group of sellers
- differentiates them from competitors

Question 3

Brand Equity

Answer 3

The impact of a brand name on customer response to a product and its marketing.

Question 4

Positive Brand Equity

Answer 4

When consumers prefer and react more favorably to a branded product than to an unbranded version.

Question 5

Brand Equity Significance

Answer 5

Measures a brand’s ability to capture consumer preference and loyalty.

Question 6

4 consumer perception for brand strength

Answer 6

differentiation, relevance, knowledge, and esteem.

Question 7

Brand Differentiation

Answer 7

What makes a brand unique and stand out from competitors.

Question 8

Brand Relevance

Answer 8

How well a brand meets consumer needs and resonates with them.

Question 9

Brand Knowledge

Answer 9

The extent to which consumers are aware and informed about the brand.

Question 10

Brand Esteem

Answer 10

How highly consumers regard and respect the brand.

Question 11

Brand Value

Answer 11

The overall financial value attributed to a brand.

Question 12

4 Competitive Advantages of High Brand Equity

Answer 12

• Increased consumer brand awareness and loyalty
• Enhanced bargaining power with resellers due to consumer expectations
• Easier launch of line and brand extensions owing to brand credibility
• Protection against intense price competition and competitor marketing actions

Question 13

Customer Equity

Answer 13

The value of customer relationships created by a brand, fundamental to brand equity

Question 14

4 main branding decisions

Answer 14

• brand positioning
• brand name selection
• brand sponsorship
• brand development

Question 15

3 Brand Positioning Levels

Answer 15

Product attributes,
benefits,
beliefs/values (emotional connection)

Question 16

Attribute Positioning
(def and con)

Answer 16

Focuses on product attributes (e.g., quality, selection) but is easily imitated by competitors

Question 17

Benefit Positioning

Answer 17

Associates brand name with desirable benefits beyond technical attributes (e.g., Whirlpool’s “power to get more done”)

Question 18

Emotional Brand Positioning

Answer 18

Strongest level, connects with customers on a deep emotional level (e.g., Whirlpool’s “Every Day, Care” campaign)

Question 19

Brand Positioning Foundation

Answer 19

Establishing a brand mission and vision guides its purpose and actions

Question 20

Brand Promise (a brand is a promise)

Answer 20

Company commitment to consistently deliver specific features, benefits, services, and experiences

Question 21

Characteristics of Brand Promise (3)

Answer 21

Should be clear, simple, and honest to set accurate buyer expectations

Question 22

6 Qualities of a Good Brand Name

Answer 22

(1) Suggests product benefits and qualities
(2) Easy to pronounce, recognize, and remember
(3) Distinctive
(4) Extendable for future product expansions
(5) Translates easily into foreign languages
(6) Capable of registration and legal protection

Question 23

Brand Name Protection (2)

Answer 23

• Building a brand name that becomes synonymous with the product category (e.g., Kleenex, JELL-O)
• Success might lead to the brand name becoming a generic term

Question 24

Brand Protection Measures (2)

Answer 24

• Marketers use the brand and registered trademark symbol to safeguard their brand names (e.g., “BAND-AID® Brand Adhesive Bandages”)
• Emphasizing the distinction between the brand and generic terms (e.g., “Kleenex® Brand Tissue”)

Question 25

4 Brand Sponsorship Options

Answer 25

- National brand (manufacturer's brand) - Private brand (store brand) - Licensed brand - Co-branded product

Question 26

National Brand

Answer 26

- Product sold under the manufacturer's own brand name (e.g., Samsung Galaxy, Kellogg's Frosted Flakes)

Question 27

Private Brand

Answer 27

A brand created and owned by a reseller of a product or service (Manufacturer sells to resellers who market the product under their own brand name)

Question 28

Licensed Brand

Answer 28

Manufacturers market brands that they've licensed from another company

Question 29

Co-branding

Answer 29

Collaboration between two companies to create and market a product together

Question 30

Brand Licensing

Answer 30

Companies license names, symbols, or characters from other manufacturers, celebrities, movies, or books for a fee

Question 31

Apparel and Accessories Licensing

Answer 31

Sellers pay royalties to use well-known fashion innovators' names like Calvin Klein, Tommy Hilfiger, Gucci, or Armani

Question 32

Children's Products Licensing

Answer 32

Numerous character names (e.g., Sesame Street, Disney, Star Wars, Hello Kitty) used in various products

Question 33

3+ 1 Advantages of Co-Branding

Answer 33

- Broadened consumer appeal - increased brand equity, - leveraging different brand strengths (- Example: Google and Oreo's collaboration with Android Oreo, Sherwin-Williams & Pottery Barn's paint collection, Taco Bell and Doritos' Doritos Locos Tacos) - Allows entry into new categories, leveraging partner brand strengths (Example: Nike and Apple's Nike+iPod Sport Kit giving Apple entry into sports market and enhancing Nike's customer value)

Question 34

2 limitations of co-branding

Answer 34

- Involves complex legal contracts, requires coordination in marketing efforts - Trust between partners crucial as damage to one brand can affect the co-branded product's reputation

Question 35

4 Brand Development Choices

Answer 35

- Line extensions - brand extensions - multibrands - new brands

Question 36

Line Extensions

Answer 36

Extending existing brand names to new forms, colors, sizes, ingredients, or flavors within the same product category

Question 37

3 Purpose of Line Extensions

Answer 37

- Low-cost, low-risk introduction of new products - Meeting consumer demand for variety - utilizing excess capacity

Question 38

3 Risks of Line Extensions

Answer 38

- Potential consumer confusion - loss of brand specificity due to overextension - Diminishing returns when additional extensions offer little value or "cannibalize" existing products

Question 39

Brand Extensions

Answer 39

Extending a current brand name to new or modified products in a different category

Question 40

Advantages of Brand Extensions

Answer 40

- Immediate familiarity and acceptance for new products with lower development costs compared to building new brands - Examples include Duracell Powermat and Vicks ZzzQuil, connecting with core brand values and strengths

Question 41

3 Risks of Brand Extensions

Answer 41

- Risk of **confusing** the main brand's image (e.g., Zippo perfume, Fruit of the Loom detergent) - **Failures** of brand extensions (e.g., Cheetos lip balm, Heinz pet food, Colgate ready meals, Life Savers gum) - **Inappropriateness** of brand name for a new product's image (e.g., Hooters Air, Evian water-filled padded bra)

Question 42

Impact of Brand Extension Failure

Answer 42

- Potential **harm to consumer attitudes** toward **other products** carrying the same brand name

Question 43

Multibrands

Answer 43

Companies market **multiple brands within a product category** (e.g., PepsiCo's various beverage brands)

Question 44

2 Purpose of Multibranding

Answer 44

- Establishes **different features** for **diverse customer segments** - Captures **more shelf space**, increases **market share** (e.g., PepsiCo's strategy with various beverage brands)

Question 45

2 Advantages of Multibranding

Answer 45

- Combined brands generate **greater overall market share** than a single brand could alone - Offers **flexibility** and **appeals** to different **customer preferences**

Question 46

2 Disadvantages of Multibranding

Answer 46

- **Each** brand might hold only a **small market share**, impacting **profitability** - **Resource allocation** spread across numerous brands instead of focusing on a few highly profitable ones

Question 47

2 reasons for creating New Brands

Answer 47

**Created** when **existing brand power weakens** or for **entry into a new product category**

Question 48

Benefit of New Brand Creation

Answer 48

Provides a **fresh identity** for products when existing brand names aren't suitable - Example: Toyota introducing the luxury brand Lexus for luxury car consumers

Question 49

2 Challenges with New Brands

Answer 49

- **Over-proliferation** of new brands can strain company resources - Concerns in industries like consumer packaged goods about **numerous brands with few distinguishing features**

Question 50

Megabrand Strategy

Answer 50

weeding out weaker or slower-growing brands and focusing on **dominant** brands with **top market shares and growth potential**

Question 51

Brand Management (3)

Answer 51

- Continuously communicate with consumers (advertising) - Brand experiences (manage touchpoint and internal brand buiding) - Brand audit (evaluate strength and weakness)

Question 52

Brand Communications

Answer 52

focus on communicating information about brands, but more importantly, that are designed to create specific emotional responses in consumers.

Question 53

Brand experiences and touchpoints

Answer 53

**encompass every iinstances** in which a **consumer comes into contact with a brand**, from walking into a store, to seeing a branded product on a shelf, to seeing a TV commercial or a billboard, to engaging with a brand on social media. Brand managers must **manage, and to the greatest extent possible control, these interactions. **This is becoming increasingly** difficult with the rise of social media**, because consumer comments can’t be completely controlled.

Question 54

Brand icons and characters 2

Answer 54

objects and shapes (the Nike swoosh, the Coca-Cola bottle, the VW Beetle) and cartoon characters (as opposed to real people) that represent brands, and embody some aspect of the brand’s personality For each brand icon or character, have them state a characteristic about the brand that it represents.

Question 55

Brand ambassadors

Answer 55

celebrities that are carefully and strategically selected by the marketer because their personality and character is similar to the personality and character of the brand.

Question 56

Brand Advocates

Answer 56

Brand advocates are people (as opposed to celebrities) who voluntarily take actions that promote brands. Brand managers can encourage these people to spread favourable communications about their brand, for example by sending product samples to bloggers, but they cannot control what these people say about their brands.