Introduction to BM (Why? Associations)

Question 1

Why do brands matter to the consumer?

Answer 1

For the reasons of:

• Simplification (saves time in decisions)
• Risk reduction (Brands reduce decision risks)
• Emotional trigger (Brands trigger positive emotions - a basic need).

Question 2

What is a brand?

Answer 2

A concept representing value with the ability to influence people.

Question 3

Why do brand matter to the companies?

Answer 3

Several reasons:

• Differentiation (attention to unique features)
• Legal protection
• Customer retention
• Source of competitive advantage.
• Resource of leverage - enabling new opportunities.
• Sustainable resource (very long life cycle)
• A driver for huge financial value if managed well.

Question 4

What three factors does a brand consist of?

Answer 4

Brand concept, name and symbols & the product/service experience.

Question 5

On what three dimensions can brand associations be expressed?

Answer 5

• Free associations (Spontaneous words such as “great”, “high quality”.)
• Storytelling (A short story of the experience with the brand.)
• Collages (expression of experience through given set of materials).

Question 6

What is a brand touch point?

Answer 6

A space or room where someone interacts with the brand. Could for example be stores, social media accounts, forums, customer service, but also secondary experiences through reputation, recommendations and media.

Question 7

What effect does the touch points have on the brand?

Answer 7

It is where brand associations are formed.