Chapter 7 - 12 Flashcards
How many % of consumers use a search engine when buying and search using their mobile phone?
95%
How many % of millennials expect brands to be on Facebook?
95%
How many % of consumers do online research prior to an in-store purchase?
89%
What is showrooming?
Physical location for trying the product before purchase (often buying online after)
What is the volume of Ecommerce sales in 2021
$810 billion
How many % of adults prefer not to shop in a store?
60%
How many % of shoppers belive that they get a better deal online?
71%
In 2020, how many % larger are online channels projected to be compared to TV advertising?
50%
What is one-to-many communication?
One-way communication from one brand to many potential customers. An example is TV advertising.
What is one-to-one communication?
Relationship-building communication between the brand and the potential customers. In this model, there is a dialog between the customer and brand. For this model, we talk about the creation of a relational relationship economy
What are the two advertising metrics for online promotion, which are laid out in class?
CTR (click-through rate) & CPC (cost per click)
What does the digitalization of advertising allow for?
personalization of products and messaging on scale
What is dynamic pricing?
The same product can become available at different prices (e.g. flight industry)
What are the three pillars of co-created brand meaning?
- Firm-generated brand meaning
- Consumer generated brand meaning
- Media and cultural influences
What are the three levels in the brand engagement pyramid? (Linked to the customer engagement)
1.. Highly engaged
2. Moderately engaged
3. Not very engaged
Brand marketing and non-brand influence are affecting all layers. The goal is to keep customers at the top.
What are negative brand engagement and its performance effects?
We say this in the interview with the CEO of Cristal champagne, where he talked badly about colored people. This resulted in a negative effect on its brand equity
What is the tree digital communication channels?
- Paid channels
- Owned channels
- Earned channels
What is mobile marketing?
Marketing on mobiles such as SMS marketing, in-app advertising, and proximity marketing (geofencing).
The professor splits influencer marketing into two blocks. What are the name of those?
- Sponsored bloggers
- Celebrity influencers
What is content marketing?
The creation and distribution of relevant, valuable, and consistent content to attract and retain a clearlu defined audience.
What is the intersection theory by Frans Johanson?
The biggest innovations arise when we combine two things that we didn’t expect to fit together to invent something new
brand associations may be linked to which three other entities? (in the lecture notes on “leveraging secondary associations”)
- Company
- Country of origin
- Channels of distribution
E.g. if a watch is produced in Switzerland, we associate it with high quality before even seeing the product.
What are the five ways in which we can leverage secondary associations?
- Other brands ( through co-branding and ingredient branding)
- Characters (through licensing)
- Celebrity spokesperson (Through endorsements)
- Events (through sponsorship)
- Other thrid-party sources (through awards and reviews)
What are response-type associations (linked to secondary associations)
Judgment (especially credibility) and feelings
What are meaning-type associations?
Product performance and product imagery
What is co-branding?
When two or more brands are combined into a joint product or are market together in some fashion.
What are co-branding and its five advantages?
Meaning: When two or more brands are combined into a joint product or are marketed together in some fashion.
Advantages:
1. Borrow needed expertise
2. Leverage partner’s equity
3. Reduce costs of product introduction
4. Expand brand meaning into broaden meaning and increase access points
5. Source of additional revenue
What is the five disadvantages of co-branding?
- Loss of control
- Risk of brand equity dilution
- Negative feedback effects
- Lack of brand focus and clarity
- Organizational distractions
What is ingredient branding?
A special case of co-branding that involves creating brand equity for materials, components, or parts that are necessarily contained within other brand products.
What is licensing?
Involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands for some type of payment.
What is celebrity endorsement?
It’s the public endorsement of the brand by a celebrity. The endorsement draws attention to the brand and shapes the perceptions of the brand. When doing this, the celebrity should have a high level of visibility and favorability (Q-rating). Moreover, the celebrity needs to be a reasonable match with the brand and the product.
What is the Q-rating?
A 60 point scale for rate the quality of celebrities
What is a brand equity measurement system?
A set of procedures designed to provide timely, accurate, and actionable information, so marketers can make the best possible strategic and tactical decisions.
What is the 5 traditional tools for building a marketing strategy?
- People
- Place
- Price
- Product
- Promotion
What is a brand audit?
A comprehensive examination of brand health. It uncovers a brand’s sources or equity and suggests ways to improve and leverage that equity. It includes brand vision, mission, promise, values, position, personality, and performance.
What is the four areas of a brand audit?
- Summary of competitor analysis
- SWOT analysis
- BRand equity evaluation
- Brand management recommentation
What is the brand inventory (in the brand audit)?
Brand inventory is the supply-side perspective of the audit. It looks at the POPs, PODs, and current marketing programs.
What is the brand exploratory (in the brand audit)?
It’s the demand side perspective. It looks at brand associations, brand positioning analysis, and consumer perception analysis).
What are brand tracking studies?
Information is collected from consumers on a routine basis over time. It’s often done on a continuous basis and provides descriptive (qualitative) or diagnostic information (quantitative).
What are the three types of tracking?
- Product-brand tracking
- Corporate or family brand tracking
- Global tracking
What three questions should be answered when designing a tracking study?
- Who to track (target market)
- When and were to track (reach and frequency)
- How to interpret brand tracking
What is the purpose of a brand equity charter?
It provides general guidelines to company managers and marketing partners outside the company. It should be updated at least annually
What are the seven components of a brand equity charter?
- Define the firm’s view of the brand equity
- Describe the scope of key brands
- Specify actual and desired equity for the brand
- Explain how brand equity is measured
- Suggest how brand equity should be measured
- Outline/devise firm’s marketing programs
- Specify the proper treatment for the brand in terms of trademark usage, packaging, and communication
What is a brand equity report?
Assembles the results of the tracking survey and other relevant performance measures. It’s to be developed monthly, quarterly, or annually and provide both descriptive information as to what is happening with the brand, as well as diagnostic information on why it is happening
What is a free association (qualitative research technique)?
Subject evaluation of what comes to mind when he/she think of a brand
What is the nature of qualitative research?
Explaniatory
What is the nature of quantitative research?
Exploratory
What are the seven attributes of free associations?
- Product-related
- User imagery
- Usage imagery
- Functional
- Experiential
- Credential or synbilic
- Brand personality
What are projective techniques (qualitative research techniques)?
A diagnostic tool to uncover the true opinions and feelings of consumers when they are unable or unwilling to express themselves on these matters. We can ask them to project themself onto someone else to make them more comfortable to make the answers more true.
What is ZMET?
Zaltman Metaphor Elicitation Technique - “a technique for eliciting interconnected constructs that influence through and behavior.
What is brand personality?
Brand personality refers to the human characteristics or traits that can be attributed to a brand
What are the Big Five Brand personality dimensions?
- Sincerity ( down-to-earth, wholesome, and cheerful)
- Excitement (daring, spirited, imaginative, and up-to-date)
- Competence (reliable, intelligent, and successful)
- Sophisticated (upper class and charming)
- Ruggedness (outdoorsy and tough)
OBS: the first three are valid globally, but the last two can vairy from area to area. However, these five is fairly valid for the Western countries.
How many measures are there on each level in the brand personality scale model?
Top level = big five = 5
Middle level = level facets = 15
Lower level = traits = 42
When using these in practise, we always ask questions related to the lowest level.
What are the nine core values of the list of values?
- Self-respect
- Security
- Being well-respected
- Fun & enjoyment in life
- Sense of accomplishment
- Self-fulfillment
- Sense of beloning
- Warm relationship with others
- Exitment
What is the two types of experiential methodes?
- Observational research
- Ethnography (not change or disturb the environment, but observe)
Empirical tests (quantitative research) should focus on finding the how, not the why. Moreover, the tests should demonstrate which three things?
- Validity: Measuring what we think we are measuring
- Reliability: 1) free form errors 2) getting the same result when redoing
- Generalizability: Expactable to the general population
What is consumer response bias?
Any research much consider the issue of consumers making up responses or guessing
Why do we use an odd scale for measuring when doing marketing research?
It gives the consumer an opportunity for being neutral. Often we use a 5 or 7 point scale
What is a perceptual map?
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in consumers’ minds. Often, we use price and quality when constructing the maps.
What are the two measures for brand responses?
Purchase intent & likelihood to recommend
What are the three areas of brand relationships?
- Behavioral loyalty
- Brand subsititutability
- Other brand resonance dimensions ( e.g. word-of-mouth behavior, online behaviour, etc.)
What are the three alternate models of consumer-based brand equity?
- Brand dynamics model
- Equity engine model
- Young & Rubicam’s brand asset valuator (BAV) - most common alternate model
For the exam, we need to know the names and what goes into each model.
What is the brand dynamics model?
The brand dynamic model adopts a hierarchical approach to determine the strength of the relationship a consumer has with a brand.
The model moves from the weak shares of the wallet to the strong shares of the wallet. The elements are presence, relevance, performance, advantage, and bonding.
This is the least used of the three alternative models in practise. For the exam we need to remember the five stages in the model.
What is the equity engine model?
The model delineates three key dimensions of brand affinity - the emotional and intangible benefits of a brand: Authority, identification, and approval.
The model combines the three above key dimensions with two dimensions of a brand’s perceived functional performance: perceived product performance and perceived service performance.
What is Young & Rubicam’s brand asset valuator (BAV) model?
The model looks at how brands are built by looking a four pillars of brand health: Differentiation, relevance, esteem, and knowledge.
This means:
1. The relevance of a brand’s strength and basis for consumer choice; the essence of the brand the source of margin
2. Related to use and subsumes the five Ps of marketing, related to sales
3. Consumer respect, regard, reputation; a fulfillment of perceived consumer promise
4. The culmination of brand-building efforts; acquisition of consumer experience
What is the BAV powergrid brand health
Stage 1: New fading brands
Stage 2: Aspiring brands
Stage 3: Power brands
Stage 4: Eroding brands
This model can be connected to the brand lifetime model
Measuring brand equity is … ?
A multi-dimensional concept
What are the three comparative methods for measuring brand equity?
- Brand-based comparative approach
- Marketing-based comparative approach
- Conjoint analysis
What is the brand-based approach for measuring brand equity?
We look at the effectiveness of the product without the brand. The marketing element under consideration is fixed. Consumer response is examined based on changes in brand identification.
One application of this is blind testing from class.
Advantage: Isolates the value of the brand.
Disadvantage: The totality of what is learned depends on how many applications are examined.
What is the marketing-based approach for measuring brand equity?
We look at the effectiveness of marketing of the brand.
The brand is held fixed and consumer response is examined based on changes in the marketing program.
Applications: Explore price premium’s effect on switching, consumer evaluations of marketing activities, brand extensions, etc.
Advantage: Ease of implementation
Disadvantage: Difficult to determine if consumer responses are caused by specific brand knowledge or generic product knowledge
Example. Honda commercial from the class. Focused on the quality of product attributes.
What is a conjoint analysis approach for measuring brand equity?
Conjoint analysis is a survey-based multivariable technique that helps researchers determine the trade-offs consumers make between brand attributes.
Applications: Assess advertising effectiveness and brand value; analyze brand/price trade-offs.
Advantage: Allows for different brands or different aspects of the product to be analyzed simultaneously.
Disadvantage: May violate consumers’ expectations based on what they already know about brands.
What are the two holistic methods for measuring brand equity?
Residual & valuation approaches
What is the residual approach for measuring brand equity?
For the residual approach, we examine the value fo the brand by subtracting consumers’ preferences based on physical product attributes.
Advantage: Useful benchmark for interpreting brand equity, especially form a financially oriented perspective.
Disadvantage: Static view. Limited diagnostic value for strategic decision making.
What is the valuation approach for measuring brand equity?
The value approach is an attempt to place a financial value on brand equity for accounting purposes. The approach is useful in cases of M&A, brand licensing, fundraising, and brand management decisions.
What are the four perspectives/approaches for valuation approached measuring brand equity?
- Accounting background
- Historical perspectives approach
- General approaches
- Interbrand’s brand valuation methodology approach
What is the accounting background for the valuation approach of measuring brand equity?
Intangible assets are typically lumped under the heading of goodwill. In an acquisition, the goodwill item often includes a premium paid to gain control, which may even exceed the value of tangible assets.
What is the historical perspectives for the valuation approach of measuring brand equity?
In the U.S., generally accepted accounting principles (blanket amortization principles) mean that placing a brand on the balance sheet would require amortization of that asset for up to 40 years. Such a change would severely hamper firm profitability, thus most firms avoid it.
In other countries such as Australia and the UK, the brand value is added to boost the value of the balance sheet.
What is the general approach for the valuation approach of measuring brand equity?
In determining the value of a brand in an acquisition or merger, firms can choose form three main approaches:
1. Cost approach: Brand equity is the amount of money that would be required to reproduce or replace the brand.
2. Market approach: The present value of the future economic benefits to be derived by the owner of the asset.
3. Income approach: The discounted future cash flow from the future earnings stream for the brand.
What is Interbrand’s brand valuation approach for the valuation approach of measuring brand equity?
The approach assumes that the brand value is the present worth of the benefits of future ownership. It follows five valuation steps:
1. Market segmentation
2. Financial (role of branding) analysis
3. Demand (brand strength) analysis
4. Competitive benchmarking
5. Brand value calculaiton
