Chapter 8

Question 1

Define brand

Answer 1

Name, term, sign or symbol intended to identify goods or services of a particular seller

Question 2

What are the 2 major roles of brands?

Answer 2

• Simplify product handling

- Offer legal protection

Question 3

Define branding

Answer 3

Creating differences between products

Question 4

Define brand equity

Answer 4

The added value endowed on products and services

Question 5

Define consumer-based brand equity

Answer 5

The differential effect brand knowledge has on consumers response to that brand’s marketing

Question 6

What are the 3 key ingredients of consumer-based brand equity?

Answer 6

• Brand equity arises from differences in consumer response
• Differences in response are a result of consumer’s brand knowledge
• Brand equity is reflected in behavior related to all aspects of the brands marketing

Question 7

What are the 3 main sets of brand equity drives?

Answer 7

• All brand elements making up the brand (logo, url, name)
• Product, service and marketing activities
• Other associations to the brand (person, place, thing)

Question 8

What are the 6 criteria for choosing brand elements

Answer 8

• Memorable
• Meaningful
• Likable
• Transferable
• Adaptable
• Protectable

Question 9

Define brand contact

Answer 9

Any information-bearing experience a person has with the brand

Question 10

Define internal branding

Answer 10

Consists of activities and processes that help inform and inspire employees

Question 11

Define brand community

Answer 11

A specialized community of consumers and employees whose identification and activities focus around the brand

Question 12

What are 3 major characteristics of a brand community?

Answer 12

• Sense of connection to the brand
• Shared rituals, stories and traditions
• Shared responsibility to the community

Question 13

Define brand audit

Answer 13

A consumer-focused series of procedures to assess the health of the brand

Question 14

Define brand valuation

Answer 14

Estimating the total financial value of a brand

Question 15

What are 2 parts of brand reinforcement?

Answer 15

Show the brands meaning by consistently showing:

• the core benefits and what needs it satisfies
• the strong and unique brand associations

Question 16

How does one revitalize a brand?

Answer 16

Decide whether to remain with the original sources of brand equity or create new ones

Question 17

What are the 3 main brand strategy choices?

Answer 17

• Develop new brand elements (when fail, no harm to main brand)
• Apply some existing brand elements (save costs, high sales through good name of main brand)
• Use a combination

Question 18

What different roles can brands have inside a brand portfolio?

Answer 18

• Flankers (not too attractive that it steals sales from major brand, but not too cheap either)
• Cash cows (profitable without marketing costs)
• Low-end entry level (cheap to attract new customers to brand portfolio)
• High-end entry level (adds prestige and credibility to brand portfolio)

Question 19

What are advantages of brand extentions

Answer 19

• Improves new-product success, because expectations of parent brand
• Reduce risk
• Reduce launch costs of new products
• Renew interest and liking for the parent brand

Question 20

What are the disadvantages of brand extentions?

Answer 20

• Less strong identification of parent brand with their main product
• Reflect badly on parent brand
• Firm itself becomes overwhelmed