Chapter 11 (Marketing Plans, Branding and Communication) Flashcards
What are the advantages of branding for an organization?
Increases visibility and makes the brand memorable.
Builds trust and customer loyalty.
Helps the brand stand out from competitors.
Justifies higher prices and supports growth.
Positions the brand as a leader and attracts talent.
What is brand extension?
Using an existing brand name to launch new products in different categories (e.g., a clothing brand launching accessories).
What is multi-branding?
A company markets several distinct brands to target different customer groups (e.g., Procter & Gamble’s Tide, Gain, Cheer).
What is family branding?
Multiple products under one brand name, strengthening the brand’s image and loyalty (e.g., Apple’s iPhone, iPad, and MacBook).
What are the elements of a product portfolio?
Product Line: Related products under one brand (e.g., skincare, makeup).
Product Mix: Variety of products a company offers.
Product Lifecycle: Stages a product goes through (introduction, growth, maturity, decline).
Product Diversification: Adding new products to reduce risk.
Product Positioning: How a product is seen compared to competitors.
How can a new organization find marketing opportunities?
Conduct market research to study customer needs and trends.
Use target audience segmentation to focus on specific groups.
Build a digital presence through social media and online marketing.
What is the income approach to valuing a brand?
It values a brand by predicting future profits.
Steps:
Forecast future cash flows.
Choose a discount rate for risk and time.
Calculate the brand’s value by discounting future profits.
What are the types of branding?
Personal Branding: Focuses on individuals (e.g., celebrities, entrepreneurs).
Corporate Branding: Promotes a company’s overall identity and values.
Product Branding: Creates a unique identity for individual products.
Service Branding: Builds a brand around services (e.g., hospitality, finance).
What is the cost method of brand valuation?
It values a brand based on the costs to create or replace it.
Key components:
Historical Cost: Past expenses to develop the brand.
Reproduction Cost: Cost to recreate the brand.
Replacement Cost: Cost to create a similar brand from scratch.
What are the benefits of effective brand management?
Builds customer loyalty and trust.
Creates a competitive advantage.
Improves financial performance (sales, market share, profitability).
