Chapter 11 mkt

Question 1

What is brand equity?

Answer 1

Added value a brand name name gives besides the functional benefits provided

Question 2

What are two advantages of brand equity?

Answer 2

1) Provides competitive advantage (Apple smartwatch is immediately perceived as high-quality product)
2) Consumers are willing to pay a higher price for a product with brand equity.

Question 3

What are the four main branding strategies?

Answer 3

1) Multiproduct branding
2) Multibranding Strategy
3) Private branding strategy
4) Mixed branding strategy

Question 4

Explain Multiproduct branding strategy and give examples and advantages and risks.

Answer 4

Multiproduct- firm uses one name for all its products; also known as family branding

Examples : microsoft, samsung, sony

Advantages:
1) capitalize brand equity, which means consumers will like another product of that same brand

2) lower advertising and promotional costs ; brand awareness is raised
3) brand extension; honda owns planes now

Risks: brand equity could be harmed in long run as the brand name’s meaning is diluted

Question 5

Explain Multibranding branding strategy and give examples and advantages and risks.

Answer 5

Multibranding- each product has distinict name for purposes of associating each brand with its market segment

Examples: dewalt (professional), black + decker (home)

Advantages:

1) no risk product failure affects other products in line
2) each brand is unique to each market segment

Risks:

1) complex and expensive to implement

Question 6

Explain private branding strategy and give examples and advantages and risks.

Answer 6

Private branding- company manufactures and sells products to retailer under their brand name

Example: Trader Joes, which orders its products from PepsiCo and other third-party manufacturers

Question 7

Mixed branding

Answer 7

firm markets product under its own name and that of a reseller

example: Michelin: Sear-brand tires are actually michelin tires with the sears name