chapter 1: Brands and brand management

Question 1

What is a brand?

Answer 1

A name term, sign, symbol or a combination of them intended to identify the products of a seller. And to differentiate them from those competitors.

Can be defined as a seller’s promise to deliver set of features, benefits and services consistent to the buyers

Question 2

What are advantages of brands to consumers?

Answer 2

1. Consumers need risk reduction (every decision is a risk)
2. Consumers need simplification
3. Consumers want to express themselves (psychological needs)

Question 3

What are advatages of brands for companies?

Answer 3

1. Means of identification
2. customer loyalty
3. Price premiums
4. predicatble demand
5. robust to competitive actions
6. Yield licensing opportnunities
7. growth potential

Summarized:
- Brands increase communication effectiveness
- stronger support from supply chain partners
- Stronger support from search engines

Question 4

What are different perspectives on branding?

Answer 4

Firm perspective -> views brands as assets
Consumer perspective -> views brands as signals and mental knowlegde cues
Society perspective -> presents brands in societal and cultural contexts affecting individual consumers both directly and indirectly through social forces, structures and institution

Question 5

What are the different levels of meaning of a product?

Answer 5

1. Core benefit level = fundamental need or want
2. Generic product level = contains only necesary attributes for functioning
3. Expected product level = attributes customers expect when buying the product
4. augmented product level = includes additional product attributes to distinguish from competitors
5. Potential product level = all augmentations and transformations included

Question 6

What are different type of goods?

Answer 6

1. Search goods
2. Experience goods
3. Credence goods

Question 7

What are the different type if risks in buying and consuming a product?

Answer 7

1. Functional risk
2. Physical risk
3. Financial risk
4. Social risk
5. Psychological risk
6. Time risk

Question 8

What is disintermediation>

Answer 8

Reduction or elimination of intermediaries from the channel of distribution

Question 9

What is reintermediation?

Answer 9

Introduction of new intermediaries that perform some of the same functions or have additional roles in the channel of distribution

Question 10

What is the strategic brand process?

Answer 10

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

Question 11

What are 3 models to identify a brand plan?

Answer 11

1. Brand positioning model = maximize competitive advantages
2. Brand resonance model = Create intense loyalty
3. Brand value chain = trace value creation process

Question 12

What is all part of ‘designing and implementing brand marketing programs’?

Answer 12

• Choosing brand elements
• Integrating the brand into marketing activities and the supporting marketing program
• Leveraging secondary associations

Question 13

What are the key steps of measuring brand performance?

Answer 13

1. Conducting brand audits
2. Designing brand tracking studies
3. Establishing a brand equity management system

Question 14

What is brand portfolio?

Answer 14

Set of different brands that a particular firm offers

Question 15

What is brand hierarchy?

Answer 15

Displays the number and nature of common and distinctive brand components across frim’s set of brands

Question 16

What are the parts of ‘Growing and sustaining brand equity’’?

Answer 16

1. Defining brand architecture (Brand portfolio and brand hierarchy)
2. Managing brand equity over time
3. Managing brand equity over geographic boundaries, cultures and market segments