Chapter 1

Question 1

What is a brand?

Answer 1

name, term, symbol, or deisgn, or combination of them intended to identify the goods and services of one seller to differentiate them from those of the competition

Question 2

Brands vs products

Answer 2

a brand is more than a product since it can have dimensions that differentiate it from other products

Question 3

What is a brand element?

Answer 3

name, logo, slogan, symbol, packaging design, or otehr attribute that identifies a product and distinguishes it from all others

Question 4

What is brand equity?

Answer 4

the worth of a brand in and of itself
- the social value of a well-known brand name

Question 5

Why do brands matter? (consumers, 4)

Answer 5

1. Identify the source or maker of the product
2. Simplify product decisions
3. Lower the search costs for products internally and externally
4. Helps set reasonable expectations about what consumers may not know about the brand

Question 6

Types of goods (3)

Answer 6

Search goods: evaluate product attributes by visual inspection

Experience goods: actual product trial and experience needed

Credence goods: rarely needed product attributes

Question 7

What are the types of risks (6)

Answer 7

Functional risk: does not perform up to expectations
Physical risk: threat to the physical health
Financial risk: not worth the price paid
Social risk: results in embarrassment from others
Psychological risk: affects mental health
Time risk: opportunity cost of finding another product

Question 8

Why do brands matter? (firms, 5)

Answer 8

1. Simplify product handling and tracing
2. Help organizing inventory and accounting records
3. Offer the firms legal protection for unique features or aspects of the product
4. Provide predictability and security of demand for the firm and creates barriers of entry for competitors
5. Provide a powerful means to secure competitive advantage

Question 9

Educating consumers

Answer 9

it is necessary to teach consumers “who” the brand is
- having a name and brand elements to identify it
- providing label for the product and meaning for the brand
- creating a connection

Question 10

Why do brands matter? (retailers and distributors, 3)

Answer 10

1. Generate consumer interest, patronage, loyalty
2. Create an image and establish positioning
3. Yield higher price margins, increased sales volumes, and greater profits

Question 11

How did digital brands become important?

Answer 11

they created unique aspects of their brand and performed satisfactorily

Question 12

What is a product category, and what is its key to work?

Answer 12

A product category can be a person or an organization.

The key is that people outside your industry know who you are and recognize your skills, talents, and attitude

Question 13

What has contributed to the rise in place marketing? (3)

Answer 13

1. Increased mobility of people
2. Increased mobility of businesses
3. Growth in tourism

Question 14

What are winner-takes-all markets?

Answer 14

brands which are market leaders within categories, which are likely to be chosen at an even greater rate

Question 15

What does the strategic brand management process consist of? (4)

Answer 15

1. Identifying and developing brand plans
2. Designing and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. growing and sustaining brand equity

Question 16

Identifying and developing brand plans (3 models)

Answer 16

1. Brand positioning model: integrated marketing
2. Brand resonance model: intense loyalty and strong customer relationships
3. Brand value chain: value creation process for brands

Question 17

Designing and implementing brand marketing programs (3)

Answer 17

1. Choosing brand elements
2. Integrating the brand into marketing activities and the supporting marketing program
3. Leveraging secondary associations

Question 18

Measuring and interpreting brand performance

Answer 18

brand equity measurement system
- brand audits: examination of a brand to assess its health, uncover its sources of equity, and suggest ways to improve that equity

• brand tracking studies: collect information from consumers on a routine basis over time through quantitative measures
• brand equity management system: set of org processes to improve the understanding and use of the brand’s equity concept
  • brand equity charters, reports, responsbilities

Question 19

Growing and sustaining brand equity (3)

Answer 19

Brand architecture: brand portfolio (different brands) and brand hierarchy (common and distinctive brand components)

Managing brand equity over time: proactive strategies to maintain and enhance customer-based brand equity over time; reactive strategies to revitalize a brand with problems

Managing brand equity over geographic boundaries, cultures, and market segments: specific knowledge about the experience and behaviours of international market segments