Chapter 3

Question 1

what is brand communication?

Answer 1

the promotional mix available for communicating the brand’s presence identity and value through advertising & other channels

Question 2

What are the 3 reasons for brand communication?

Answer 2

Inform, remind, and convice

Question 3

what does it mean to inform?

Answer 3

to deliver info about a brand, such as announcing the launch of a new product

Question 4

what does it mean to remind?

Answer 4

to make people not forget about the brand

Question 5

what does it mean to convice?

Answer 5

attempt to convince people that the brand & its products are better than the competition

Question 6

What are the 2 options for brand communication?

Answer 6

advertising and publicity

Question 7

what is the most common channel for promotion?

Answer 7

Advertising

Question 8

what does advertising usually deliver?

Answer 8

a focused message about the brand & its products in addition to promoting the brand’s identity

Question 9

what is publicity?

Answer 9

a non-paid, non-commissioned promotional activities such as magazine editorials or word-of-mouth

Question 10

why is publicity effective?

Answer 10

it is perceived as unbiased and not self-servicing

Question 11

What is public relation?

Answer 11

refers to activities held by the company to enhance the brand’s image & gain favorable publicity

Question 12

PR activities include:

Answer 12

press release kits & special events such as charities

Question 13

why is PR effective?

Answer 13

• it minimizes effects of any negative publicity or clarifies mishandled info.
• establishes the brand’s image as a socially conscious brand

Question 14

What is outdoor marketing?

Answer 14

includes billboards & busses & guerrilla marketing

Question 15

what is guerrilla marketing?

Answer 15

a low-cost, unconventional means are used in a localized fashion to draw attention to an idea, or service

Question 16

what are the pros to outdoor marketing?

Answer 16

• high exposure frequency
• moderate cost
• flexibility
• geographic selectivity
• broad, diverse

Question 17

what are the cons of outdoor marketing

Answer 17

• short messages
• lack of demographic selectivity
• high “noise” level

Question 18

what are promotion activities (price promotions)?

Answer 18

choosing the right promotional activity & the right timing essential

Question 19

promotional activities are effective in what segment?

Answer 19

mass-market

Question 20

how are celebrities used in promotions?

Answer 20

they give their endorsement and become a spokesperson

Question 21

what is product placement?

Answer 21

the strategy of visibly integrating into the scenes of movies products to be used or worn by the characters

Question 22

what is co-branding?

Answer 22

the practice of using multiple brand names together on a single product or service

Question 23

what are the pros of co-branding?

Answer 23

• The more famous brand may earn credits & publicity, & the smaller name is exposed to a wider market
• Both benefit from an increase in sales & promotion
• Expanding into new, products, markets & segments
• Enforces positioning & image-building through associations w/ a strong established brand
• Can form the basis of loyalty programs

Question 24

what are the cons of co-branding?

Answer 24

• Lack of total understanding or compatibility between both partners
• Potential difficulty dismantling the co-branding association
• The possibility that one brand might overpower & overshadow the other
  -Legal headaches if anything goes wrong

Question 25

what are some growth strategies?

Answer 25

brand extension and fashion licensing

Question 26

what is brand extension mean?

Answer 26

refers to increasing range & type of product lines under the brand's umbrella

Question 27

what are some advantages of brand extensions?

Answer 27

- Allow for the creation of supportive products, such as socks w/ pants - Make the brand more visible & powerful - Reach various markets & segments through trading up or down - A good strategy to respond to competition

Question 28

what are the cons of brand extensions?

Answer 28

- Brand extensions still require large investments - The brand needs to possess enough credibility & value as a lifestyle brand - Extensions must make sense w/in the larger brand philosophy - All extensions should follow the same rules for delivering value

Question 29

what is fashion licensing?

Answer 29

an agreement which the legal owner of a brand or trademark (the licensor) gives another party (the licensee) the legal right to use the brand's name & identity in return for a compensation AKA a royalty fee

Question 30

what are operational expansions?

Answer 30

vertical and horizontal

Question 31

what is vertical expansion?

Answer 31

organization is taking over & controlling various stages of the production or distribution chain

Question 32

what is horizontal expansion?

Answer 32

refers to expanding at the same level & stage of the production stage

Question 33

what is international expansion?

Answer 33

any form of presence in foreign markets even if it is inconsistent in types of products or size of operation

Question 34

what is global expansion?

Answer 34

having a branding proposal in all foreign markets w/ the option of some level of adaptation, but the brand more or less remains intact

Question 35

what type of brands are more likely to be global brands?

Answer 35

luxury brands

Question 36

why is going global good for a luxury brand?

Answer 36

- offsets their limited quantity & exclusive distribution - their customers are affluent travelers who want to be able to find their favorite brands in all fashion capitals of the world

Question 37

what are the benefits of expanding globally?

Answer 37

- New business opportunities, resources & sources of revenue - Benefit from economies of scale (the more you produce the lower your cost) - Boost reputation & brand image - Opportunities for forms of extensions

Question 38

what are the challenges of expanding globally?

Answer 38

- Pricing strategy issues: how to price the product in different markets? - Counterfeit problems & grey market (product was sold in a market that it wasn’t supposed to) - Cultural & taste differences - As businesses usually start locally before going global, the initial strategy is generally tailored to local markets w/ no provisions for going global

Question 39

what are global expansion patterns?

Answer 39

- same brand/ same product - same brand/ adapted products - same brand/ different positioning

Question 40

what is same brand/same product pattern mean?

Answer 40

Implementing minor complementary adaptations to the brand offerings for different markets such as changes in sizing

Question 41

what is same brand/adapted products pattern mean?

Answer 41

Market differences whether cultural, social, or economic require some adaption of the product offering

Question 42

what does same bran/different positioning pattern mean?

Answer 42

Zara is a brand that is positioned differently in different markets around the world

Question 43

what is re-positioning?

Answer 43

Sometimes as the brand gets older, so it's customers, & as result the need for change. Thus, it needs to establish a new relationship & relevance with a new group of customers

Question 44

what is relaunch?

Answer 44

when a brand is reintroduced after a period of demise

Question 45

what is re-vitalization?

Answer 45

Differs in that it does not necessarily include a repositioning strategy & is not meant to appeal to a different customers