7. value through brands

Question 1

What is the product?

Answer 1

First, and most basic, marketing consideration
▪ Anything that is capable of satisfying customer needs
▪ Physical products = tangible
▪ Service products = intangible

Question 2

product line

Answer 2

Group of brands that are closely related in terms of their
functions and the benefits they provide

Question 3

product mix

Answer 3

Total set of brands marketed in a company

Question 4

brand potential

Answer 4

Brand name and images Service
Guarantees
Quality and Delivery
design
packaging

Question 5

branding

Answer 5

Branding is the process by which companies distinguish their
product offerings from the competition

Question 6

benefits from strong branding

Answer 6

Add value to companies
▪ Positively affect consumer perceptions
▪ Act as a barrier to competition
▪ Improve profits
▪ Provide a base for brand extensions

Question 7

brand equity

Answer 7

Brand equity is a measure of the strength of a brand in the
marketplace by adding tangible value to a company through the
resulting sales and profits

Question 8

customer based brand equity

Answer 8

= differential effect that brand knowledge has on consumer
responses to the marketing of a brand

Question 9

proprietary based brand equity

Answer 9

= derived from company attributes that deliver value to the brand

Question 10

creating brand equity

Answer 10

1. Develop Positive Brand Awareness
2. Establish a Brand’s Meaning
3. Elicit the Proper Response
4. Create Intense Brand Loyalty

Question 11

Customer-based brand equity leads to

Answer 11

High customer loyalty
▪ Low price sensitivity
▪ High willingness for customers to visit more than one outlet
to purchase the brand
▪ Strong base for brand-extensions

Question 12

Proprietary-based brand equity

Answer 12

Patents
* Give certainty to future revenue streams
* Brand equity drops at the end of lifetime of patent
* Channel relationships
* Experience, knowledge, relationships with distributors and suppliers
* Enhance value of company brands

Question 13

brand building

Answer 13

1. quality
2. positioning
3. repositioning
4. well blended communications
5. being first
6. internal marketing
7. long term perspective

Question 14

building a strong brand (key decisions)

Answer 14

Key decisions
* Brand name strategies and choices
* Rebranding
* Brand Extension and stretching
* Co-branding

Question 15

family brand names

Answer 15

Brand name is used for all products
* Helps promotion of all the brands carrying the family name
* Risk: when one brand receives unfavorable publicity, all
products within brand are potentially affected

Question 16

choosing a brand name

Answer 16

Should evoke positive associations
2. Should be easy to pronounce
3. May suggest product benefits
4. Technological products: (alpha-)numeric branding
5. Should be transferable (check cultural meaning)
6. Capable of registration and legal protection

Question 17

renaming

Answer 17

Brand name changes
* Cosmetic
* Tactic moment focused on
creating and producing
communications
* Performance < perception
* Is about “packaging”
You change:
your name

Question 18

rebranding

Answer 18

Brand content changes
* Fundamental
* Strategic moment of truth,
confronting the organizational,
structural and cultural
implications
* Performance > perception
* Is about ‘repositioning’
You change:
their minds

Question 19

reasons for rebranding

Answer 19

Merger or acquisition
* Desire to create a new image/position in the marketplace
* The sale or acquisition of parts of a business
* Corporate strategy changes
* Brand familiarity
* International marketing considerations
* Legal problems

Question 20

brand extension

Answer 20

= Use of an established brand name on a new brand within a
different product category

Question 21

line extension

Answer 21

= Use of an established name on a new brand within the same
product category

Question 22

benefits brand / line extension

Answer 22

Leverage by parent brand image & associations
* Less perceived risk for consumers
* Smaller financial investment & risk for company
* More efficient use of communication efforts
* Expand variety
* Reach new customers
* More bargaining power throughout channel
* Command more shelf space
* Strengthen parent brand image

Question 23

risks brand / line extension

Answer 23

Loss of meaning and clear positioning (brand dilution)
* Risk of cannibalization
* In general, there should be a reasonable amount of ‘fit’
* Unsuccessful extension can harm parent brand
* More than half of brand extensions fail

Question 24

Product-based co-branding

Answer 24

Linking of two (or more) brands to form a product in which
both brand names are visible to consumers
1. Parallel product-based co-branding
* Two or more independent brands join forces to produce
a combined brand
2. Ingredient product-based co-branding
* One supplier explicitly chooses to position its brand as an ingredient
of a product

Question 25

Product-based co-branding risks/benefits

Answer 25

Benefits
* Added value and differentiation
* Positioning
* Reduction of cost of product introduction
▪ Risks
* Loss of control
* Loss of brand equity

Question 26

Communications-based co-branding

Answer 26

Linking two or more existing brands for the purpose of joint
communication
1. Recommendation
* Endorsement for one of the brands from the other
2. Provide promotional opportunities
* Alliance to stimulate awareness and interest

Question 27

global branding

Answer 27

= achievement of worldwide brand penetration
▪ Globally consumers seek
* Reliable, quality products
* At low price
▪ Marketing task
* Offer products and service in the same way
* Achieving global economies of scale

Question 28

global branding risks/benefits

Answer 28

Benefits
▪ Reducing time-consuming local modifications
▪ Perception of global increases perceived prestige and quality which increases purchase
intentions
▪ Easier to coordinate and to control
▪ Risks
▪ Taste and consumption patterns varies nationally
▪ Adaptation increases self-brand congruity which causes an increased attention to ad and
brand