chapter 10 Flashcards
Chapter 10
Building Strong Brands
one of the most valuable intangible assets of a firm, and it is incumbent on marketers
to properly manage their value
brands
combines the design and implementation of marketing activities and
programs to build, measure, and manage brands to maximize their value.
Strategic brand management
as “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
brand
The ultimate purpose of the brand is to create,
for consumers, the company, and its collaborators, value that goes beyond the value created by the
product and service aspects of the offering.
the process of endowing products and services with the power of a brand. It’s all about
creating differences between product
Branding
brand is a promise the firm makes to the consumer. It is a
means to set consumers’ expectations and reduce their risk
Brands’ Role for Consumers.
Brands also perform valuable functions for firms.10 First, they simplify
product handling by helping to organize inventory and accounting records.
Brands’ Role for Firms.
The monetary value of a brand and reflects the premium that is placed on a company’s valuation because of its ownership of the brand
brand equity
the monetary value of all
intangible assets of a company
goodwill
three most common methods of measuring brand
equity
financial approach
cost approach,
market approach,
also referred to as customer-based brand equity, is the ancillary
value contributed by the brand to a product or a service
Brand Power
Measuring Brand Power
- brand audit is a focused series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity.
- brand tracking, the brand audit is used as input to collect quantitative data from consumers
three- to five-word articulation of the heart
and soul of the brand and is closely related to other branding concepts like “brand essence” and “core
brand promise.”
brand mantra
several factors to consider when choosing brand elements
memorable,
meaningful
likable
transferable
adaptable
protectable
the specific mix of human traits that we can attribute to a particular brand.
brand
personality
reflects the way in which a company’s brands are related to a company’s prod-
ucts and services, as well as to one another
brand hierarchy
the set of all brands and brand lines that a particular firm offers for sale in
a particular category or market segment
brand portfolio
Three general brand portfolio strategies
house-of-brands strategy
branded-house strategy
sub-brand strategy
one that best represents or embodies the brand as a whole to consumers. It
often is the first product by which the brand gained fame, a widely accepted best-seller, or a highly
admired or award-winning product
flagship product
also called dual branding—involves two or more brands marketed together.
Cobranding
The Essence of Cobranding
same-company cobranding
joint-venture cobranding
multiple-sponsor cobranding
special case of cobranding. It creates brand equity
for materials, components, or parts that are necessarily contained within other branded products.
Ingredient Branding
Most brands don’t stay the same; they evolve over time
Brand Dynamics
two most common ways in which brands
evolve
brand repositioning and brand extensions.
to make impressive comebacks in recent years
Often, the first thing to do in repositioning a brand is to understand what the sources of brand
equity were to begin with.
Sometimes the actual marketing program is the source of the problem because it fails to deliver
on the brand promise. Then a “back to basics” strategy may make sense.
brand repositioning
When a firm uses an established brand to introduce a new product in a different category or price
tier, the resulting offering is called
brand extension
Priced significantly higher than typical items in their categories, luxury brands for years were about
social status and who a customer was—or perhaps wanted to be.
luxury brands
