Managing brand-based SCA Flashcards
What is the definition of a brand?
A name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers.
What are the three main benefits of strong brands?
Sales growth (easier to acquire new customers), profit enhancement (allowing to charge higher prices or reduce costs), loyalty effects
What are the dimensions in the the true loyalty matrix? Which types of loyalty are included in each square?
Behavioral loyalty (repeat purchase): Low or high
Attitude loyalty (Strong positive feelings): Low or high
True loyalty, spurious loyalty, latent loyalty or no loyalty.
What does the brand positioning reflect?
How and where the firm hopes to appear in the customers’ minds.
What is the essence of brand architecture?
It is how the brand is used on different levels in the organisation.
Is it house of brand architecture or branded house architecture when a firm focuses on branding each major product with its own unique set of brand elements?
House of brand architecture
What are brand line extensions?
The new offering is in the same product category but targets a different segment of customers
What are brand category extensions?
The new offering moves to a completely different product category
Can you give some examples of unsuccessful brand extensions?
Harley Davidson perfume, Colgate frozen food, Cheetos lip balm (from chat GPT)
What are the problem of vertical brand extensions to lower priced markets?
Vertical brand extension to lower priced markets.
It often undermines the image of the parent brands.
What are the three steps to building brand equity?
- Build a high level of brand awareness (provide an anchor point for linking meaning to a brand in later steps)
- Link the brand name to its points of parity and difference (Define the brand’s relative advantage=position against customers)
- Build a deep emotional connection between brand and targeted customers (moving beyond functional differentiation)
What is meant by integrated marketing communications? And what is crucial for understanding the optimal combinations of different formats?
It refers to the process of designing and delivering marketing messages to customers while ensuring that they are relevant and consistent over time and channels
We need to understand how customers process information and are persuaded by different communication formats:
- The customer must be exposed to the marketing message
- The message need to capture the customer’s attention
- The customer must understand the desired marketing message
- The customer needs to develop favorable attitude towards the message
- The customer must generate intentions to act
- The customer must behave in the desired way
Simplified: “Think –> Feel –> Act”
What is the difference between endorsed brands and sub-brands? Which one is closest to a house of brand architecture?
Endorsed brands is an architecture, where there are many individual brands linked to an endorsing brand (e.g., Polo by Ralph Lauren). Sub-brands have a closer link to the parent-brand than endorsed brands. Thus, endorsed brands are closest to a ‘house of brand’ architecture
What is the difference between endorsed brands and sub-brands? Which one is closest to a house of brand architecture?
Endorsed brands is an architecture, where there are many individual brands linked to an endorsing brand (e.g., Polo by Ralph Lauren). Sub-brands have a closer link to the parent-brand than endorsed brands. Thus, endorsed brands are closest to a ‘house of brand’ architecture
How to improve changes of succes of brand extensions?
*Consumers should perceive fit between parent brand’s image and extension
*Brands can be extended farther if done in incremental steps
*High-quality brand stretch farther
*Vertical extensions are best done with sub-brands (often hurt the parent brand)
