Exam

Question 1

What is the definition of a brand?

Answer 1

A brand is a name, term, sign, symbol, or design intended to identify the goods and services of one seller and differentiate them from competitors.

Question 2

What is brand equity?

Answer 2

Brand equity is the goodwill that an established brand has built up over its existence.

Question 2

List four effects of increasing brand equity.

Answer 2

Higher market share,
increased brand loyalty,
the ability to charge premium prices,
earning a revenue premium.

Question 3

How is revenue premium calculated?

Answer 3

Revenue premium = (Volume of branded item)(Price of branded item) - (Volume of private-labeled item)(Price of private-labeled item).

Question 4

What does Young & Rubicam’s “DREK” sequence measure in terms of brand equity?

Answer 4

It measures differentiation, relevance, esteem, and knowledge in relation to brand equity.

Question 5

Define the concept of the “Brand Awareness Pyramid.”

Answer 5

The Brand Awareness Pyramid includes levels like “Top of Mind,” “Brand recall,” “Brand recognition,” and “Unaware of brand” to describe different levels of brand awareness.

Question 6

What is the purpose of brand concept management?

Answer 6

Brand concept management involves the analysis, planning, implementation, and control of a brand concept throughout the life of a brand.

Question 7

Name the five dimensions of brand personalities.

Answer 7

Sincerity, Excitement, Competence, Sophistication, Ruggedness.

Question 8

List three general ways to enhance brand equity.

Answer 8

Allowing the brand to speak for itself, creating message-driven associations, and leveraging current meanings or associations.

Question 9

What benefits can result from enhancing brand equity?

Answer 9

Increased consumer loyalty, long-term growth and profitability, maintaining brand differentiation, and insulating the brand from price competition.

Question 10

What are the three key measurements for assessing world-class brands?

Answer 10

Quality (on a scale from 0 to 10), Salience (on a scale from 0 to 100), and Equity (determined by multiplying quality and salience scores and dividing the product by 10).

Question 11

What does ROMI stand for, and what does it measure?

Answer 11

ROMI stands for “Return on Marketing Investment” and measures the revenue return on marketing investment.

Question 12

Name four challenges involved in measuring marcom (marketing communication) effectiveness.

Answer 12

Choosing a metric, gaining agreement on success measures, collecting accurate data, and calibrating special effects.

Question 13

What are the key elements in the “Power Grid” used for measuring brand equity?

Answer 13

Brand Strength (differentiation and relevance) and Brand Stature (esteem and knowledge).

Question 14

Explain the concept of co-branding.

Answer 14

Co-branding is a partnership between two brands to jointly promote and sell products.

Question 15

What is ingredient branding, and how does it differ from co-branding?

Answer 15

Ingredient branding is when one brand is incorporated into another to highlight the role of a particular ingredient or component in a product.

Question 16

Why is it important to measure marcom (marketing communication) effectiveness?

Answer 16

Measuring marcom effectiveness helps assess the impact of marketing efforts on consumer behavior and the return on marketing investment (ROMI).

Question 17

List four challenges in choosing a metric to measure marketing effectiveness.

Answer 17

Change in brand awareness,
improved consumer attitude toward the brand,
increased purchase intentions,
larger sales volume.

Question 18

Explain the concept of “Change in brand awareness” as a metric for measuring marketing effectiveness.

Answer 18

It measures how a marketing campaign influences consumer awareness of the brand.

Question 19

Why is collecting accurate data essential when measuring marketing effectiveness?

Answer 19

Accurate data is needed to quantify the impact of marketing efforts and make informed decisions.

Question 20

What is the purpose of calibrating special effects when measuring marketing effectiveness?

Answer 20

helps assess the relative impact of different marketing elements on sales volume, allowing for more accurate measurement.

Question 21

How is ROMI calculated, and why is it important in marketing assessment?

Answer 21

ROMI is calculated as the revenue return on marketing investment and is important for assessing the financial effectiveness of marketing efforts.

Question 22

What is marketing-mix modeling, and how can it help companies understand marketing effectiveness?

Answer 22

Marketing-mix modeling analyzes the influence of various marketing elements on sales volume, providing insights into which aspects of marketing are most effective.

Question 23

List three long-term goals that XYZ Electronics hopes to achieve with its brand equity enhancement strategy.

Answer 23

Higher market share, maintaining and strengthening brand loyalty, charging premium prices, and insulating the brand from price competition.

Question 23

What are the two components used to determine the “Equity” score for world-class brands?

Answer 23

Quality and Salience scores are multiplied, and the product is divided by 10 to calculate the Equity score.

Question 24

Explain the “Differentiation” dimension in the “DREK” sequence.

Answer 24

Differentiation measures how unique a brand is compared to competitors and how it stands out in the market.

Question 25

Why is it essential for XYZ Electronics to build esteem in their brand?

Answer 25

Building esteem can enhance the public’s trust in their brand, leading to increased consumer loyalty and premium pricing opportunities.