Chapter 3 Flashcards
what is brand communication?
the promotional mix available for communicating the brand’s presence identity and value through advertising & other channels
What are the 3 reasons for brand communication?
Inform, remind, and convice
what does it mean to inform?
to deliver info about a brand, such as announcing the launch of a new product
what does it mean to remind?
to make people not forget about the brand
what does it mean to convice?
attempt to convince people that the brand & its products are better than the competition
What are the 2 options for brand communication?
advertising and publicity
what is the most common channel for promotion?
Advertising
what does advertising usually deliver?
a focused message about the brand & its products in addition to promoting the brand’s identity
what is publicity?
a non-paid, non-commissioned promotional activities such as magazine editorials or word-of-mouth
why is publicity effective?
it is perceived as unbiased and not self-servicing
What is public relation?
refers to activities held by the company to enhance the brand’s image & gain favorable publicity
PR activities include:
press release kits & special events such as charities
why is PR effective?
- it minimizes effects of any negative publicity or clarifies mishandled info.
- establishes the brand’s image as a socially conscious brand
What is outdoor marketing?
includes billboards & busses & guerrilla marketing
what is guerrilla marketing?
a low-cost, unconventional means are used in a localized fashion to draw attention to an idea, or service
what are the pros to outdoor marketing?
- high exposure frequency
- moderate cost
- flexibility
- geographic selectivity
- broad, diverse
what are the cons of outdoor marketing
- short messages
- lack of demographic selectivity
- high “noise” level
what are promotion activities (price promotions)?
choosing the right promotional activity & the right timing essential
promotional activities are effective in what segment?
mass-market
how are celebrities used in promotions?
they give their endorsement and become a spokesperson
what is product placement?
the strategy of visibly integrating into the scenes of movies products to be used or worn by the characters
what is co-branding?
the practice of using multiple brand names together on a single product or service
what are the pros of co-branding?
- The more famous brand may earn credits & publicity, & the smaller name is exposed to a wider market
- Both benefit from an increase in sales & promotion
- Expanding into new, products, markets & segments
- Enforces positioning & image-building through associations w/ a strong established brand
- Can form the basis of loyalty programs
what are the cons of co-branding?
- Lack of total understanding or compatibility between both partners
- Potential difficulty dismantling the co-branding association
- The possibility that one brand might overpower & overshadow the other
-Legal headaches if anything goes wrong
what are some growth strategies?
brand extension and fashion licensing
what is brand extension mean?
refers to increasing range & type of product lines under the brand’s umbrella
what are some advantages of brand extensions?
- Allow for the creation of supportive products, such as socks w/ pants
- Make the brand more visible & powerful
- Reach various markets & segments through trading up or down
- A good strategy to respond to competition
what are the cons of brand extensions?
- Brand extensions still require large investments
- The brand needs to possess enough credibility & value as a lifestyle brand
- Extensions must make sense w/in the larger brand philosophy
- All extensions should follow the same rules for delivering value
what is fashion licensing?
an agreement which the legal owner of a brand or trademark (the licensor) gives another party (the licensee) the legal right to use the brand’s name & identity in return for a compensation AKA a royalty fee
what are operational expansions?
vertical and horizontal
what is vertical expansion?
organization is taking over & controlling various stages of the production or distribution chain
what is horizontal expansion?
refers to expanding at the same level & stage of the production stage
what is international expansion?
any form of presence in foreign markets even if it is inconsistent in types of products or size of operation
what is global expansion?
having a branding proposal in all foreign markets w/ the option of some level of adaptation, but the brand more or less remains intact
what type of brands are more likely to be global brands?
luxury brands
why is going global good for a luxury brand?
- offsets their limited quantity & exclusive distribution
- their customers are affluent travelers who want to be able to find their favorite brands in all fashion capitals of the world
what are the benefits of expanding globally?
- New business opportunities, resources & sources of revenue
- Benefit from economies of scale (the more you produce the lower your cost)
- Boost reputation & brand image
- Opportunities for forms of extensions
what are the challenges of expanding globally?
- Pricing strategy issues: how to price the product in different markets?
- Counterfeit problems & grey market (product was sold in a market that it wasn’t supposed to)
- Cultural & taste differences
- As businesses usually start locally before going global, the initial strategy is generally tailored to local markets w/ no provisions for going global
what are global expansion patterns?
- same brand/ same product
- same brand/ adapted products
- same brand/ different positioning
what is same brand/same product pattern mean?
Implementing minor complementary adaptations to the brand offerings for different markets such as changes in sizing
what is same brand/adapted products pattern mean?
Market differences whether cultural, social, or economic require some adaption of the product offering
what does same bran/different positioning pattern mean?
Zara is a brand that is positioned differently in different markets around the world
what is re-positioning?
Sometimes as the brand gets older, so it’s customers, & as result the need for change. Thus, it needs to establish a new relationship & relevance with a new group of customers
what is relaunch?
when a brand is reintroduced after a period of demise
what is re-vitalization?
Differs in that it does not necessarily include a repositioning strategy & is not meant to appeal to a different customers
