Chapter 2: Enhancing Brand Equity and Accountability

Question 1

Define brand.

Answer 1

Name, term, sign, symbol, design; identification/differentiation

Question 2

Define Brand Equity.

Answer 2

Goodwill; value

Question 3

What does Marketing Communications consist of?

Answer 3

1. How to enhance brand equity
2. How to affect customer behaviour
3. How to justify marcom investments.
4. How to demonstrate financial accountability

Question 4

Effects of Brand Equity increases.

Answer 4

1. Higher market share
2. Increased brand loyalty
3. Premium pricing
4. Revenue premiums

Question 5

Define revenue premium.

Answer 5

Revenue differential between branded and private.

Question 6

Describe the Brand Equity mode from top to bottom.

Answer 6

1. TOMA
2. Brand Recall
3. Brand recognition
4. Unawareness of Brand

Question 7

Define Brand Awareness.

Answer 7

Determined by whether a brand name comes into mind when consumers think about a particular product category.

Question 8

Define Brand Image.

Answer 8

Associations that are activated in memory when people think about a particular brand. (TFSU)

Question 9

List the brand-related personality dimensions.

Answer 9

1. Sincerity (disney)
2. Excitement (apple 4s)
3. Competence (toyota)
4. Sophistication (Rolex, BMW)
5. Ruggedness (kathmandu)

Question 10

Define Brand Concept.

Answer 10

The idea managers propose to their target market depending on their interests and media habits

Question 11

Define Brand Concept Management.

Answer 11

The analysis, planning, implementation, and control of a brand concept throughout the life of the brand.

Question 12

Define Brand Loyalty.

Answer 12

Consumer’s commitment to continue using/advocating a brand.

Question 13

Strategies to Enhance Brand Equity.

Answer 13

1. Having a brand speak for itself
2. Creating Appealing Messages
3. Leveraging

Question 14

Define leveraging.

Answer 14

Connecting brands with other objects that already possess well-known meaning.

Question 15

What benefits result from enhancing brand equity?

Answer 15

• Brand loyalty

- “favourite”

Question 16

List the characteristics of World-Class Brands.

Answer 16

1. delivers benefits consumers want
2. stays relevant
3. price = values
4. good positioning
5. consistency
6. fills into brand portfolio
7. brand helps build brand equity
8. brand’s managers understand what the brand means to consumers
9. support over long run
10. monitoring of the sources of brand equity

Question 17

What is the main Marcom Objective?

Answer 17

affect sales volume and revenue

Question 18

Define ROMI.

Answer 18

• Measures the effect of Marcom/ its specific elements such as advertising
• in terms of whether it generates a reasonable revenue return on the MARCOM investment.

Question 19

Why measure ROMI?

Answer 19

• demands for greater accountability on the marketing function
• to become better at marcom activities

Question 20

What to measure?

Answer 20

1. Change in brand awareness
2. Improvement in attitudes towards the brand
3. Increased purchase intentions
4. Larger sales volume

Question 21

How does Finance Dpt measure success?

Answer 21

• discounted cash flows

- npv of investment decisions

Question 22

How does Marketing Dpt measure success?

Answer 22

• brand awareness
• brand image
• brand equity