8: Creating and Managing Products and Services, Brand Management Flashcards
What are the seven P’s?
- Product/service
- Price
- Promotion
- Place
- Physical evidence
- Process
- People
What is a brand?
A Brand is a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
What kinds of brands can be protected?
Words, pictures, three-dimensional forms, auditory brands, etc.
How many applications were there for the registrations of brands in Germany in 2014?
63.008
How many brands were registered in Germany in 2014?
793.704
What are the roles of brands?
- Identify the maker
- Create growth opportunities
- Consumer loyalty (e.g. make the company less vulnerable to crises)
- Offer legal protection
- Signify quality
- Create barriers to entry
- Serve as a competitive advantage
- Secure price premium
How are brands percieved?
A brand is not only defined by the characteristics that are visible and that can be protected (e.g. brand names, logos, slogans) but also by the knowledge and perception of stakeholders.
What is the difference between brand attitude and brand personality?
- Brand attitude: Individuals’ favorable or unfavorable evaluation of a brand (including cognitions and emotions) that drive actions tendencies.
- Brand personality: Set of human characteristics that individuals associate with a brand.
What is Brand Equity?
The added value endowed on products and services which may be reflected in the way consumers, think, feel and act with respect to the brand.
How can you diagnose how much a brand is worth?
Based on brand equity measures:
- Obtaining a quantitative indicator of the quality of brand management.
- Testing whether certain marketing mix instruments increase brand equity.
How can you evaluate hos much a brand is worth?
Based on brand equity measures:
- Providing arguments for selling branding rights or whole companies; or when negotiating licensing fees.
What is the difference between a House of Brands and a Branded house?
House of brands: one Brand leader owns a lot of different brands who produces different products. Each products has a different brand name, even though they all are owned by the same brand leader.
Branded house: When the same brand is used on many different products. E.g. Nivea produces a lot of different products.
A managerial decision to make, is to choose between innovation and differentiation. What’s the difference?
Innovation: Developing a new offering.
Differentiation: Modifying an existing offering; the characteristics are similar to the existing offering but address different needs in the target group.
What is the difference between Horizontal, Vertical and Lateral diversification?
- Horizontal: Same stage of production.
- Vertical: Different stage of production (prior to or after current stage.)
- Lateral: No technological or commercial synergies with current products; no relationship with the company’s business.
What is the difference between Product modification and product elimination?
- Modification: Altering product attributes (such as technocal or aesthetical features) to meet changing expectations.
- Product elimination: Dropping a product or service (or a whole product or service line)
