Brand Equity

Question 1

Customer-Based Brand Equity

Answer 1

The (1) differential effect that (2) brand knowledge has on (3) consumer response to the marketing of that brand (ex. painkillers, beer taste perception)

Question 2

Advantages of Strong Brands (9)

Answer 2

1. Improved perception of product performance
2. Greater loyalty
3. Less vulnerability to competitive marketing / crises
4. Larger margins
5. Increased inelastic consumer response to price increase
6. Increased elastic consumer response to price decrease
7. Greater trade cooperation
8. Licensing opportunities
9. Increased marketing effectiveness

Question 3

Models of Brand Building (3)

Answer 3

1. Brand Positioning Model - establishing a competitive advantage in the minds of consumers
2. Brand Resonance Model - taking the competitive advantage to create intense, active, loyalty relationships with customers
3. Brand Value Chain Model - Tracing value creation process to understand the financial impact of creating strong brands

Question 4

Associative Network Memory Model

Answer 4

Memory as nodes (information) and connecting links (strength of associations)

Question 5

Brand equity is made of (1) and (2)

Answer 5

1. Brand awareness [especially in low-involvement decisions, lack of purchase motivation (perceived difference, consideration set), lack of purchase ability (knowledge), choice set]
2. Brand image

Question 6

Two Types of Brand Awareness

Answer 6

1. Brand Recognition - consumers’ ability to confirm prior exposure to the brand after seeing the brand as a cue
2. Brand Recall - consumer’s ability ot retrieve the brand from memory when given the product category/usage situation

Question 7

Two Aspects of brand Image

Answer 7

1. Brand Attributes - descriptive features characterizing the product/service
2. Brand Benefits - meaning/value attached to the product/service

Question 8

KSF of Brand Associations (3)

Answer 8

SFU

1. Strength - the more deeply a person thinks about product information and relates it to existing brand knowledge
2. Favourability - convincing consumers that brand has relevant attributes/benefits that satisfy needs to form a positive brand judgment
3. Uniqueness - sustainable competitive advantage

Question 9

Brand Positioning (Def’n + 3 aspects)

Answer 9

Designing the company’s offer/image so that it occupies a distinct and valued place in the target consumer’s mind
STP: Segmentation, Target, Position

Question 10

Market Segmentation

Answer 10

Divides the market into distinct groups of homogenous consumers who have similar needs/consumer behaviour
Ex. geographic, demographic, psychographic, behavioural

Question 11

Choosing a Target (4)

Answer 11

1. Identifiability
2. Size
3. Accessibility
4. Responsiveness
   Aka attractiveness of market segment

Question 12

Points-of-Difference (PODs)

Answer 12

Attributes/benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand
–> Align w/ consumers (desirability), company (deliverability) and competitor (differentiation)

Question 13

Points-of-Parity (POPs, 3)

Answer 13

Attributes/benefits shared with other brands

1. Categorical (necessary conditions for brand choice)
2. Competitive (designed to negate competitor’s PODs)
3. Correlational (potentially -ve associations from the existence of more +ve associations; ex. inexpensive + high quality)

Question 14

Positioning (3 parts)

Answer 14

1. Creates a clear, distinctive, and desirable space in the minds of consumers (frame of reference)
2. Convinces consumers of category membership
3. Develops and deepens over time (attributes to benefits to values)