Midterm

Question 1

What is strategy

Answer 1

the way in which a corporation endeavors to differentiate itself positively from its competitors, using its relative corporate strengths to better satisfy customer needs.

Question 2

Marketing strategy

Answer 2

subset of business strategy, has a narrow focus, driven by targeting a customer and developing a needs -satisfying marketing mix

Question 3

Customer Value Proposition

Answer 3

“For (target consumers), (brand name) provides (consumer benefits) compared to (competition) because (supporting facts).”

Question 4

What is a Market Segment?

Answer 4

consists of a group of customers who share a similar set of needs and wants.

Question 5

Why are demographics so popular?

Answer 5

They are easy to measure, useful to estimate the market size

Question 6

Millennials Market Segment

Answer 6

They influence younger and older age group.
They are the largest age-based segment worldwide
creativity, identity, fun

Question 7

Need to start segmenting based on

Answer 7

NEEDS and then determine which demographics influence those needs.

Question 8

demographic trap

Answer 8

too many variables and too many meaningless combinations. The demographics selected have to be relevant (the situation where a company overly relies on targeting customers based solely on demographic factors like age, gender, or income, potentially missing out on a wider customer base by neglecting other important aspects like lifestyle, values, and behaviors)

Question 9

What are some of variables that can be used to segment a market?

Answer 9

Demographics: Age, Life stage, Gender, Income, Generation, Social class, Race and Culture, Education, Religion, Nationality

Question 10

What Drives Customer Needs?

Answer 10

Demographic influences, lifestyle influences, usage behavior

Question 11

The Segmentation Process

Answer 11

1. need based segmentation - group customers into segments based on needs and benefits sought
2. segmentation identification - for each need based segment determine which demographics make the segment distinct
3. segment attractiveness
4. segment profitability
5. segment positioning - create a value proposition and product price positioning strategy
6. segment strategy “acid test” - create segment storyboards
7. Marketing Mix Strategy

Question 12

What is a Brand

Answer 12

a known name that promises valuable consumer benefits

Question 13

What are Brand Elements

Answer 13

Different components that identify and differentiate a brand (ex. Name, logo, symbol, package design, or other
characteristic)

Question 14

Product

Answer 14

Anything available in the market for use or consumption, that may satisfy a need or want (ex. Physical good, Service)

Question 15

When Does Branding Create Value?

Answer 15

When people believe that the branded offer will deliver
unique Functional consumer benefits, Hedonic consumer benefits, Symbolic consumer benefits

Question 16

Functional consumer benefits

Answer 16

(e.g., what the product or service promises to do)

Question 17

Hedonic consumer benefits

Answer 17

(how it will feel to experience the product/service)

Question 18

Symbolic consumer benefits

Answer 18

(what it will mean for self and others)

Question 19

How do you prove a brand is strong

Answer 19

Show that consumers know the brand and its promise, Show that consumers rely on the brand

Question 20

building strong brands

Answer 20

Figure out the brand promise; Deliver the promised benefits, even in times of crisis; Make a single promise to your target customers; Keep the same promise over time

Question 21

Functions provided by brands to consumers

Answer 21

 Identify the source or maker of the product
 Simplify product decisions
 Lower the search costs for products
 Helps set reasonable expectations about what
consumers may not know about the brand
It reduces perceived risk

Question 22

Why Do Brands Matter? Firms

Answer 22

 Simplify product handling and tracing
 Offer the firm legal protection for unique features or
aspects of the product
 Provide predictability and security of demand for the
firm and creates barriers of entry for competitors
 Provide a powerful means to secure competitive
advantage

Question 23

Asian Paradox

Answer 23

Despite market dominance, brands lack dream power and intrinsic desirability.

Question 24

High-tech Products Challenges

Answer 24

Struggle with branding due to lack of branding strategy, Brands are owned by customers, not engineers, innovation isn’t enough must market well.

Question 25

Services Challenges

Answer 25

Less tangible than products and vary in quality

Question 26

Strong Brands: Advantages

Answer 26

Improved perception of product performance, Greater loyalty, Less vulnerable to marketing crisis or competitors actions, Brand extension and licensing opportunities

Question 27

Branding Challenges

Answer 27

Consumers have become more experienced with marketing, more knowledgeable about how it works, and more demanding. Brand proliferation; As large number of brands engage in expansion, channels of distribution become clogged, and brands struggle to get products on the shelf, Greater importance short term profit

Question 28

Brand Equity

Answer 28

Incremental consumer response compared to the unbranded offer

Question 29

Brand value

Answer 29

brand equity x profits due to the brand

Question 30

Brand Knowledge

Answer 30

Brand awareness & Brand Image

Question 31

Brand Knowledge Pyramid

Answer 31

presence, relevance, performance, advantage, bonding (bottom --> top)

Question 32

Points-of-parity associations

Answer 32

Attributes shared with other brands (shared association; ex. toothpaste = Cavity protection)

Question 33

Points-of-difference associations

Answer 33

Attributes or benefits that consumers strongly associate with a brand.

Question 34

brand identity

Answer 34

Intended brand promise and physique

Question 35

Brand recognition

Answer 35

Consumers’ ability to confirm prior exposure to the brand when given the brand as a cue

Question 36

Brand recall

Answer 36

Consumers’ ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue.

Question 37

Depth

Answer 37

describes the likelihood that consumers can recognize or recall the brand

Question 38

Breadth

Answer 38

describes the variety of purchase and consumption situations in which the brand comes to mind.

Question 39

Brand image

Answer 39

Consumers’ perceptions about a brand. Perceived associations of the brand in the customer's mind.

Question 40

Kapferer’s 6 facets model

Answer 40

1. What are the signs which make the brand recognizable (physique)? 2. What is its personality? 3. What are its values? 4. How do they see themselves when they buy the product? 5. Who are its prototypical buyers? 6. What is its relationship with the consumer?

Question 41

Creating Brand Identity

Answer 41

brand elements must be memorable, meaningful, likable, transferable, adaptable, protectable.

Question 42

Brand Orientation advantages

Answer 42

shapes consumer preferences, consistent branding, differentiation

Question 43

Customer Orientation shortcomings

Answer 43

chasing fads; more copycats, lose brand identity

Question 44

Brand Orientation =

Answer 44

Focusing on Brand Identity

Question 45

Customer Orientation =

Answer 45

Focusing on the Customer Tastes

Question 46

Private labels

Answer 46

products that encompass all merchandise sold under a retailer's brand. That brand can be the retailer's own name or a name created exclusively by that retailer.

Question 47

Private labels advantages

Answer 47

They own the canvas where consumers shop. They are guaranteed full distribution and good shelf placement.

Question 48

Ways national brands compete with private labels

Answer 48

innovate, give more for the money, reduce price gap, introduce fighter brand, wait and do nothing

Question 49

Top 3 most valuable brands where they from

Answer 49

Apple, Microsoft, Amazon, all from America

Question 50

Commonalities between the top 3 most valuable brands

Answer 50

High awareness all over the world, Provide consistent quality (in general high quality), The positioning of the brand is the same, consistent message, They address the same customer needs, or the same target segment, in every market

Question 51

Why go international?

Answer 51

Perception of slow growth and increased competition in domestic markets  Belief in enhanced overseas growth and profit opportunities  Desire to reduce costs from economies of scale  Need to diversify risk and increase product life cycle  Converging consumer needs (global teenagers, global elite)  New markets opening to capitalism  International agreements on tariff reduction (WTO)

Question 52

Why not go international?

Answer 52

Government barriers Barriers imposed by competition Culture Nationalism

Question 53

Standardization advantages

Answer 53

Encourages global branding and consistency in brand image (same brand name, logo, and positioning everywhere in the world)  Global brands are more prestigious, signaling that the company has the resources to back the brand Allows for economies of scale  Lower marketing costs  Effective in meeting the needs of global consumers Facilitated by international travel

Question 54

Standardization disadvantages

Answer 54

Inflexible: cannot perfectly meet the needs of all target consumers  Strong local competitors who are capable and manage to mount a strong defense  Risk of over-stretching of resources and managerial focus Risk of contamination of local conflicts to global brand equity Differences in consumer responses to marketing mix elements Differences in the legal environment Differences in marketing research (preferences for data collection methods, variations in privacy concerns, response style, technology literacy, etc.)

Question 55

Country-of-Origin Effect

Answer 55

The origin of a product may have a strong effect on consumer perceptions and biases about foreign products

Question 56

Nation Brand Index top 3

Answer 56

Japan, Germany, Canada