Chapter 11 Vocab

Question 1

Brand Equity

Answer 1

The added value a brand name gives to a product beyond the functional benefits provided.

Question 2

Brand Licensing

Answer 2

A contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee.

Question 3

Brand Name

Answer 3

Any word, device (design, song, shape, or color), or combination of these used to distinguish a seller’s products or services.

Question 4

Brand Personality

Answer 4

A set of human characteristics associated with a brand name.

Question 5

Branding

Answer 5

A marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors.

Question 6

Label

Answer 6

An integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients.

Question 7

Market Modification

Answer 7

Strategies by which a company tries to find new customers, increase a product’s use among existing customers, or create new use situations.

Question 8

Mixed Branding

Answer 8

A branding strategy where a firm marketing products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market.

Question 9

Multibranding

Answer 9

A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment.

Question 10

Multiproduct Branding

Answer 10

A branding strategy in which a company uses one name for all its products in a product class.

Question 11

Packaging

Answer 11

A component of a product that refers to any container in which it is offered for sale and on which label information is conveyed.

Question 12

Private Branding

Answer 12

A branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer. Also called “private labeling” or “reseller branding”.

Question 13

Product Class

Answer 13

Refers to the entire product category or industry.

Question 14

Product Form

Answer 14

Pertains to variations of a product within the product class.

Question 15

Product Life Cycle

Answer 15

Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.

Question 16

Product Modification

Answer 16

Strategies that alter one or more of a product’s characteristics, such as its quality, performance, or appearance, to increase the product’s value to customers and increase sales.

Question 17

Trade Name

Answer 17

A commercial, legal name under which a company does business.

Question 18

Trademark

Answer 18

Identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.

Question 19

Trading Down

Answer 19

Reducing a product’s number of features, quality, or price of the product.

Question 20

Trading Up

Answer 20

Adding value to the product (or line) through additional features or higher-quality materials.

Question 21

Warranty

Answer 21

A statement indicating the liability of the manufacturer for product deficiencies.