Lecture 4 - Brands Flashcards Preview

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Flashcards in Lecture 4 - Brands Deck (13):
1

CPM formula

= cost of advertising / total impressions * 1000

2

direct and effective CPM

direct
effective - take into account all other impressions (like from earned media)

3

judging creative execution of ad thru filters

1. core value proposition (derived from benefit/differentiation) should be communicated thru ad
2. who's the ad aimed at, and is it resonating with them?
3. is offering integrated into story?
4. creativity
5. is idea extendable? can it manifest on other platforms (can other ads run on the same concept/joke/etc)

4

product offering

often commoditized; it's really just a bunch of features; tangible value

5

brand value

-intangible value, both tangible and intangible benefits
-creates value for customer (trust, reduced risk)
-creates value for firm (brand equity, longer revenue streams/product life value)

6

brand

-a proprietary trademark for a specific product/service
-a contract from company to customers; a promise of specific benefits, quality, value, and experiences

7

brand equity

-commercial value that derives from customer perception of the brand name of a particular product/service, rather than from product/service itself
-best branded co's tend to outperform, and have higher MS, prices, and margins

8

for stronger brands, people are willing to...

-more willing to pay $$ (therefore enhancing margin and CLV)
-customers experience more satisfaction and loyalty
-B2B also sees this, but to a lesser effect

9

interbrand equity calculation

conjoint analysis to figure out how much of decision was attributed to brand

1. benefit to shareholders recognized thru EVA analysis of biz unit performance. Look @ future earnings, and assets required to generate those future earnings
2. % of purchase decision due to brand - leads to amount of earnings due to brand alone
3. level or risk associated with financial forecast; stronger brand = lower risk, less discount on earnings
4. brand value in terms of NPV, assuming brand will exist

10

power of the brand

-identifying brand has significant impact on your experience, and willingness to pay
-fMRI: actually has a neural effect (Coke loyalist had activated hippocampus and prefrontal cortex, suggesting emotional/physiological response)

11

brand identity

-includes identifying characteristics/elements, which should be memorable/likable, should be consist w/other elements and meaning of brand
-creating value beyond product characteristics of offering
-be flexible to adapt to change in market environment and company strategy

12

brand meaning

-exists in buyers' minds
-reflects brand-related perceptions and beliefs; buyer's understanding of value prop associated w/particular brand
-can signal quality of products, price image or savings associated w/brand
-can create additional emotional, social, self-expressive benefits

13

factors for designing brnads

5C's!
-customer needs are cornerstone
-co resources influence brand (ex. using reputation to build brand)
-collaborators can influence thru cobranding strategies
-competition affects ability to create unique and shared associations