chapter 2

Question 1

BRAND

Answer 1

Is a name, term, sign, symbol, design, or a combination of these intended to identify the goods or services of a seller and to differentiate them from competitors

Question 2

BRAND MARK

Answer 2

element of a brand that cannot be spoken, often a symbol, design or specific packaging
a symbol, mark, or image representing a brand that helps instantly identify a specific company

Question 3

TRADEMARK

Answer 3

is the legal designation indicating that the owner has exclusive use of the brand
a type of intellectual property that helps to protect your brand by distinguishing it from competitors

Question 4

BRANDS AND CONSUMERS

Answer 4

Brands are used by consumers to express their actual or desired self. People develop relationships with brands: there is attachment, intimacy, commitment, love, loyalty

Question 5

BRAND ASSOCIATIONS

Answer 5

Intrinsic and extrinsic

Question 6

INTRINSIC

Answer 6

functional: shape, taste, price, performance

Question 7

EXTRINSIC

Answer 7

imagery, lifestyle, symbolism, personality

Question 8

GLOBAL BRAND NAME

Answer 8

have to be culture- or language neutral in the sense that they do not evoke strange or undesirable connotations in foreign languages

Question 9

3 TYPES OF BRANDS

Answer 9

Manufacturer brand, Own-label brands or private label brand, Generic brands

Question 10

MANUFACTURER BRAND

Answer 10

Are developed and distributed by manufacturers of the product. Levi’s, Danone, BMW.

Question 11

Own-label brands or private label brand

Answer 11

Are developed and marketed by retailers. Tesco brand, Great Value (Walmart, US). These brands enables to enhance store image, higher margins and be less dependant on premium brands

Question 12

GENERIC BRANDS

Answer 12

Indicate a product category. Generics are in fact brandless products usually sold at low prices

Question 13

3 INGREDIENTS FOR SUCCESSFUL BRANDING:

Answer 13

Differentiation, Positioning, Innovative

Question 14

Differentiation:

Answer 14

Successful brands are perceived as having unique benefits and being different from competition

Question 15

Positioning:

Answer 15

Superior product quality and service is a must for successful branding

Question 16

Innovative:

Answer 16

Leading brands continually innovate to meet trends, developments and customer needs

Question 17

BRAND STRATEGIES

Answer 17

Brand extension, Line extension, Multi branding, Co-Branding

Question 18

Brand extension

Answer 18

Brand extension is when a brand uses its established name to enter a new product category.
Dove- introducing new products- starting from shower gel and ending with hair production
+
-limiting the risk of failure of new product introductions (people trust more)
-If brand image does not fit well with the new product category or the new market segments the new introduction may not be successful (+it can damage brand name)

Question 19

Line extension

Answer 19

Line extension is the introduction of additional items in the same product category under the same brand name, often in new flavors, forms, colors, sizes, or ingredients.
Coca cola- providing different flavours
+
- Improves the competitive position of the brand by offering consumer more variety
-The favourable image of the brand is carried over to the new products

-
-Risk of cannibalisation (new product may cannibalize the company’s other products)
-Loss of clear positioning

Question 20

Multi branding

Answer 20

Multi-branding involves a company marketing multiple brands within the same product category, each aimed at a distinct segment.
+
Each brand is fully capable of building its own personality and perceived benefit and of appealing to the specific segment it is targeted at.
Targets different market segments without brand conflict.

• High cost of managing multiple brands.
  Potential internal competition between brands.
  Complex brand management and marketing efforts.

Question 21

Co-Branding

Answer 21

two or more brands strategically cooperate. The name of the company is used for all the company’s products
+
Potential customers have more faith in a long-established and experienced company with a good reputation
Combining strengths of both brands
-
Dependence on both brands’ reputations—one brand’s failure affects the other.
Possible brand mismatch leading to confused customers.

Question 22

BRAND PORTFOLIO:

Answer 22

is a set of all brands and brand lines that a company possesses

Question 23

3 important points for brand portfolio

Answer 23

• a company should aim to reach as many customer groups as possible by offering products or services that meet the needs of different types of customers.
  -make sure that brands are not competing between each other
• Every brand in the brand portfolio should have an added value for the company

Question 24

Different brands in brand portfolio:

Answer 24

Bastion Brands, Flanker Brands, Fighter brand, Prestige brands

Question 25

Bastion brands

Answer 25

main brand in the company which provide most profit for the company, often follow a premium price strategy are characterized by a high level of psycho-social meaning and are generally considered as high-performance brands

Question 26

Flanker brands

Answer 26

A brand added to reach different customer needs or compete in the same category. Protects the main brand by targeting other segments without changing the core brand’s image. Diet Coke complements Coca-Cola by targeting health-conscious consumers.

Question 27

Fighter brand

Answer 27

are sold at a lower price, situated between the price of the bastion and discount brands. Their quality perception is lower Competes with budget brands to protect the main brand’s premium position. Fanta, as a budget option, helps Coca-Cola compete with local, low-cost sodas.

Question 28

Prestige brands

Answer 28

are high-quality, luxury brands targeted as at smaller segment, looking for status and high psycho-social meaning Enhances the brand’s overall image and attracts premium customers.

Question 29

EQUITY- Brand Awareness

Answer 29

how familiar consumers are with a brand and how easily they can recognize it. It’s the first step in building brand equity because if consumers are not aware of a brand, they can’t develop any associations or loyalty toward it. High brand awareness makes it more likely that consumers will think of a brand when making purchase decisions. It also helps create trust as people tend to choose brands they know. When people think of soft drinks, Coca-Cola often comes to mind immediately, reflecting its high brand awareness.

Question 30

EQUITY- Perceived Quality

Answer 30

consumer’s perception of the overall quality or superiority of a product or service compared to alternatives. It’s not just about actual quality but how quality is perceived in the eyes of customers. Perceived quality drives brand preference and influences consumers' willingness to pay premium prices. If a brand is consistently seen as high quality, it becomes a strong differentiator in the marketplace. Apple products are often seen as high-quality, even if competitors offer similar features, allowing Apple to maintain a premium pricing strategy.

Question 31

EQUITY- Brand Associations

Answer 31

These are the mental and emotional connections consumers make with a brand. Brand associations can include images, emotions, experiences, or qualities that come to mind when thinking about a brand. Positive brand associations strengthen the brand’s image and help differentiate it from competitors. Strong associations can influence customer decisions and loyalty. Nike is associated with athleticism, performance, and innovation, largely due to its "Just Do It" campaign and endorsements from top athletes.

Question 32

BRAND LOYALTY

Answer 32

Brand loyalty refers to the degree to which consumers consistently prefer and purchase a particular brand over others. Loyal customers not only repeat their purchases but may also advocate for the brand and recommend it to others. Strong brand loyalty reduces customer acquisition costs because retaining existing customers is cheaper than acquiring new ones. Loyal customers are also less likely to switch to competitors, even in the face of price increases or competing offers. Starbucks has a loyal customer base that regularly buys its products and continues to choose Starbucks despite the many alternatives in the coffee market.

Question 33

in summary

Answer 33

Brand Awareness gets consumers to recognize and recall your brand. Perceived Quality makes consumers trust your brand's performance and worth. Brand Associations build the emotional and psychological connections that make a brand meaningful. Brand Loyalty keeps customers coming back and advocating for your brand, boosting long-term success.