chapter 8

Question 1

strategic brand management

Answer 1

combines the design and implementation of marketing activities and programs to build, measure, and manage brands to maximise their value. it has four main steps:
1. identify and establish brand positioning.
2. plan and implement brand marketing.
3. measure and interpret brand performance.
4. grow and sustain brand value.

Question 2

brand

Answer 2

a name term, sign, symbol, or design, or combination of them intended to identify goods or services of one seller or group of sellers and to differentiate them from those of competitors. it identifies the maker of the product and allows consumers to assign responsibility for its performance to that maker or distributor.

Question 3

a brand’s role for consumers

Answer 3

a brand is a promise between the firm and the customers. it is a way to meet the expectations of the customer and to reduce risk.

Question 4

a brand’s role for firms

Answer 4

brands simplify products by helping sort inventory and accounting records. brands provide the product with trademarks, patents, and copyrights.

Question 5

branding

Answer 5

the process of endowing products and services with the power of a brand. creating differences between products. for branding strategies to be successful and brand value to be created, consumers must be convinced there are meaningful differences among brands in the product or service category.

Question 6

brand equity

Answer 6

the added value endowed to products and services with consumers. it may be reflected in the way consumers think, feel, and act with respect to the brand as well as in the prices, market share, and profitability it commands. the customer-based approach views brand equity from the customer’s perspective and recognises the power of a brand.

Question 7

customer-based brand equity

Answer 7

the differential effect that brand knowledge has on consumer response to the marketing of that brand. there are three ingredients:
1. brand equity arises from differences in consumer response.
2. these differences are a result of consumers’ brand knowledge. brands must create strong, favorable, and unique brand associations with customers.
3. it is reflected in perceptions, preferences, and behaviour related to all aspects of marketing of a brand.

Question 8

brand knowledge

Answer 8

all the thoughts, feelings, images, experiences, and beliefs associated with the brand.

Question 9

brand promise

Answer 9

the marketer’s vision of what the brand must be and do for consumers.

Question 10

brand asset valuator (BAV)

Answer 10

according to the BAV there are four key components of brand equity:
1. energised differentiation: the brand’s point of difference. relates to margins and cultural currency.
2. relevance: how appropriate the brand is to you. relates to consideration and trial.
3. esteem: how you regard the brand. relates to perceptions of quality and loyalty.
4. knowledge: an intimate understanding of the brand. relates to awareness and consumer experience.

Question 11

brand strength

Answer 11

made up of energised differentiation and relevance. leading indicator and future growth value.

Question 12

brand stature

Answer 12

made up of esteem and knowledge. current indicator and current operating value.

Question 13

brandz and branddynamics

Answer 13

maintain that three different types of brand associations are crucial for building customer predisposition to buy a brand. this brand equity model is based on a system of brand associations: meaningful, different, and salient. the associations have three outcome measures: power, premium, and potential.

Question 14

power

Answer 14

prediction of the brand’s volume share.

Question 15

premium

Answer 15

a brand’s ability to command a price premium relative to the category average.

Question 16

potential

Answer 16

the probability that a brand will grow value share.

Question 17

brand resonance model

Answer 17

the brand resonance model views brand building as an ascending series of steps, from bottom to top:
1. ensuring customers identify the brand and associate it with a specific product class or need.
2. firmly establishing brand meaning in customers’ minds by linking tangible and intangible brand associations.
3. eliciting prober customer responses in terms of brand-related judgement and feelings.
4. converting customers’ brand responses to intense, active loyalty.

Question 18

brand equity drivers

Answer 18

1. initial choices for the brand elements or identities making up the brand (eg. brand names, URLs, logos).
2. product and service and all accompanying marketing activities and supporting marketing programs.
3. other associations indirectly transferred to the brand by linking it to some other entity (person, place, thing).

Question 19

brand elements

Answer 19

trademarkable devices that identify and differentiate a brand.

Question 20

criteria for choosing brand elements

Answer 20

brand building:
1. memorable
2. meaningful
3. likable
defensive and help leverage and preserve brand equity against challenges:
4. transferable (introduce new products in same or different categories).
5. adaptable
6. protectable

Question 21

brand contact

Answer 21

any information-bearing experience, whether positive or negative, a customer or prospect has with the brand, its product category, or its market.

Question 22

integrated marketing

Answer 22

about mixing and matching marketing activities to maximise their individual and collective effects.

Question 23

secondary brand associations

Answer 23

“borrowing” brand equity by linking the brand to other information in memory that conveys meaning to consumers. people, places, things, and other brands are secondary sources of brand knowledge. it can be risky because anything bad that happens to that other entity can also be linked to the brand.

Question 24

internal branding

Answer 24

activities and processes that help inform and inspire employees about brands. marketers need to have an internal perspective to be sure employees and marketing partners appreciate and understand basic branding notions and how they can help or hurt brand equity.

Question 25

indirect approach to measuring brand equity

Answer 25

assesses the potential sources of brand equity by identifying and tracking consumer brand knowledge structures.

Question 26

direct approach to measuring brand equity

Answer 26

assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.

Question 27

brand audit

Answer 27

a focused series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity. a good brand audit provides insights into consumers, brands, and the relationship between the two. this is important to understand the sources of brand equity and how they affect outcomes of interest.

Question 28

brand-tracking studies

Answer 28

use the brand audit as input to collect quantitative data from consumers over time, providing consistent, baseline information about how brands and marketing programs are performing. tracking studies help understand where, how much, and in what ways brand value is being created to facilitate day-to-day decision-making. this is important to understand how the sources of brand equity and outcomes change over time.

Question 29

brand valuation

Answer 29

the job of estimating the total financial value of the brand. interbrand has developed a five-step model to estimate the dollar value of a brand and help maximise return on brand investment.

Question 30

brand reinforcement

Answer 30

marketers can reinforce brand equity by consistently conveying the brand’s meaning in terms of what product it represents, what core benefits it supplies, and what needs it satisfies and how the brand makes products superior, and which strong, favourable, and unique brand associations should exist in consumers’ minds.

Question 31

brand revitalisation

Answer 31

understand what the sources of brand equity were to begin with. any new development in the marketing environment can affect a brand’s fortunes. the challenge is to change enough to attract some new customers, but not enough to alienate old customers. brand revitalisation of almost any kind starts with the product.

Question 32

branding strategy/brand architecture

Answer 32

reflects the number and nature of both common and distinctive brand elements. a firm has three choices:
1. develop new brand elements for a new product.
2. apply some of its existing brand elements.
3. use a combination of new and existing brand elements.

Question 33

house of brands strategy

Answer 33

the use of individual or separate family brand names. companies often use different brand names for different quality lines within the same product class. advantage is that if a product fails or appears low quality, the company has not tied its reputation to it.

Question 34

branded house strategy

Answer 34

the use of an umbrella corporate or company brand name. development costs are lower, and sales of the new product are likely to be strong if the manufacturer’s name is good.

Question 35

sub-brand strategy

Answer 35

sub-brands combine two or more of the corporate brand, family brand, or individual product brand names. the house of brands strategy and branded house strategy are the ends of a brand relationship continuum. the sub-brand strategy falls somewhere in between.

Question 36

brand extension

Answer 36

using an established brand to launch a new product.
advantages: (1) can facilitate new-product acceptance (2) provide positive feedback to the parent brand and company. disadvantage: line extensions may cause the name to be less strongly identified with any other product.

Question 37

sub-brand

Answer 37

combining a new brand with an existing brand.

Question 38

parent brand

Answer 38

an existing brand that gives birth to a brand extension or sub-brand.

Question 39

master (or family) brand

Answer 39

a parent brand that is already associated with multiple products through brand extensions.

Question 40

line extension

Answer 40

using a parent brand on a new product within a category it currently serves (such as new flavours or colours).

Question 41

category extension

Answer 41

using a parent brand on a new product to enter a new category, different from the one it currently serves.

Question 42

brand line

Answer 42

all the products (including line and category extensions) sold under a particular brand.

Question 43

brand mix

Answer 43

the set of all brand lines sold by a particular seller.

Question 44

branded variants

Answer 44

specific brand lines supplied to specific retailers or distribution channels.

Question 45

licensed product

Answer 45

using the brand name licensed from one firm on a product made by another firm.

Question 46

flagship product

Answer 46

one that best represents or embodies the brand as a whole to consumers. this is often the first product by which the brand gained fame, a widely accepted best-seller, or an award-winning product. often useful with a branded house strategy.

Question 47

brand portfolio

Answer 47

the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment. the basic principle in designing a brand portfolio is to maximise market coverage so no potential consumers are being ignored. brands can play different roles as part of a portfolio: flanker/fighter brands, cash cows, low-end entry level, and high-end prestige.

Question 48

flanker/fighter brands

Answer 48

positioned with respect to competitors’ brands so that more important flagship brands can retain their desired positioning.

Question 49

cash cows

Answer 49

when some brands may be kept around despite dwindling sales because they manage to maintain their profitability with virtually no marketing support.

Question 50

low-end entry level

Answer 50

the role of a relatively low-priced brand in the portfolio often may be to attract customers to the brand franchise.

Question 51

high-end prestige

Answer 51

the role of a relatively high-priced brand often is to add prestige and credibility to the entire portfolio.

Question 52

brand dilution

Answer 52

occurs when consumers no longer associate a brand with a specific or highly similar set of products and start thinking less of the brand.

Question 53

customer equity

Answer 53

related to CRM and can be defined as the sum of lifetime values of all customers. this is affected by the revenue and costs of Acquisition, Retention, and Add on spending.

brand equity and customer equity both emphasise the importance of customer loyalty and the notion that we create value by having as many customers as possible pay as high a price as possible.

Question 54

growth strategies

Answer 54

1. building market share.
2. develop committed customers and stakeholders.
3. build a powerful brand.
4. innovate new products, services, and experiences.
5. international expansion.
6. acquisition, mergers, and alliances.
7. building an outstanding reputation for social responsibility.
8. partnering with government and NGOs.

Question 55

growing the core

Answer 55

growth strategy that focuses on the most successful existing products and markets. it is a less risky alternative and strengthens a brand’s credentials as a source of authority and credibility and can yield economies of scale.
1. make the core as distinctive as possible.
2. drive distribution through existing and new channels.
3. offer the core product in new formats or versions.