Chapter 8 book

Question 1

Brand equity

Answer 1

Is the added value endowed on products and services.

Question 2

Brand

Answer 2

Brands identify the source or maker of a product or service and allow consumers to assign responsibility to its performance.

Question 3

Consumer based brand equity

Answer 3

Is the differential effect brand knowledge has on consumer response to that brands marketing

Question 4

Mention the 4 pillars of brand equity from the BrandAsset Valuator model

Answer 4

Brand energized differentiation
Brand relevance
Brand esteem
Brand knowledge

Question 5

3 main set of brand equity drivers from the marketing management perspective

Answer 5

• Initial brand identity
• All products/services/marketing activities/supporting programs associated with a brand
• Links to other entities (person, places, things, organisations)

Question 6

Brand elements

Answer 6

Brand elements are trade markable devices that identify and differentiate the brand

Question 7

What 3 of the 6 criteria for choosing brand elements help build the brand?

Answer 7

• Memorable
• Meaningful
• Likable

Question 8

What 3 of the 6 criteria for choosing brand elements help leverage and preserve the brand?

Answer 8

• Transferable
• Adaptable
• Protectable

Question 9

Internal branding

Answer 9

Internal branding consists of activities and processes that help inform and inspire employees

Question 10

Brand community

Answer 10

Brand community is a specialised community of consumers and employees whose identification and activities focus around the brand.
A strong brand community results in more loyal customers

Question 11

What three characteristics identify a brand community?

Answer 11

• A sense of connection to the brand/product/firm
• Shared rituals/stories/traditions
• Shared responsibility or duty to the community

Question 12

Brand audit

Answer 12

A brand audit is a consumer focussed series of procedures to asses the health of the brand, uncover its sources of brand equity and suggest ways to improve and leverage its equity.

Question 13

Brand valuation

Answer 13

The job of estimating the total financial value of the brand

Question 14

A firm has 3 main choices for devising a branding strategy, these are…;

Answer 14

• Develop new brand elements for the new product
• Apply some of its existing brand elements
• Use a combination of new and existing brand elements

Question 15

Brand portfolio

Answer 15

A brand portfolio is the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment.

Question 16

The 4 roles a brand can play as part of a portfolio

Answer 16

• Flankers (essentially ‘flank’ flagship brands)
• Cash cows (profitable brands that have no marketing support)
• Low end entry level (to attract customers to brand)
• High end prestige (adds credibility and prestige)

Question 17

Brand dilution

Answer 17

Brand dilution occurs when consumers no longer associate a brand with a specific product (or highly similar set of products) and start thinking less of the brand.

Question 18

What theme do brand equity and customer equity share?

Answer 18

• Both emphasise on customer loyalty with the notion that value is created by having as many customers possible pay a high as possible price

Question 19

Customer equity definition from customer relation management (CRM)

Answer 19

The sum of lifetime values of all customers

Question 20

What is a difference between brand equity and customer equity?

Answer 20

Customer equity is focussed on the bottom line financial value and offers limited guidance for market strategies and brand building.
Brand equity emphasises on strategic issues in brand management and creating/leveraging brand awareness and image to provide marketing activities.