Keller (2013): Strategic Brand Management

Question 1

• Definition of a Brand:

Answer 1

• AMA Definition: A brand is a “name, term, sign, symbol, or design, or a combination of
  them” that identifies goods/services and differentiates them from competitors.

Question 2

What do brands create?

Answer 2

• Brands create awareness, reputation, and prominence in the market beyond mere
  identification.

Question 3

• Brand Elements:

Answer 3

• Include names, logos, symbols, packaging, and other identifiable features.

Question 4

• Brand vs. Product:

Answer 4

• A product satisfies a need/want; a brand differentiates itself with emotional, symbolic, and
  tangible associations.

Question 5

• Why Brands Matter:
• For Consumers:

Answer 5

Simplify decision-making.
Reduce risks (functional, financial, social, etc.).
Act as a symbolic device to reflect self-image.

Question 6

• Why Brands Matter:
• For Firms:

Answer 6

Simplify product handling.
Legally protect features.
Build loyalty and competitive advantages.

Question 7

• Brand Equity:

Answer 7

• Represents the added value a brand name gives to a product.

Question 8

core benefit level

Answer 8

the fundamental need or want that consumers satisfy by consuming the product or service.

Question 9

generic product level

Answer 9

a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing fea- tures. This is basically a stripped-down, no-frills version of the product that adequately per- forms the product function.

Question 10

expected product level

Answer 10

a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product.

Question 11

augmented product level

Answer 11

includes additional product attributes, benefits, or related ser- vices that distinguish the product from competitors.

Question 12

potential product level

Answer 12

includes all the augmentations and transformations that a prod- uct might ultimately undergo in the future.

Question 13

EXAMPLE: Cooling and comfort.

Answer 13

1. Core Benefit

Question 14

EXAMPLE: Sufficient cooling capacity (Btu per hour), an acceptable energy efficiency rating, adequate air intakes and exhausts, and so on.

Answer 14

2. Generic Product

Question 15

EXAMPLE: Consumer Reports states that for a typical large
air conditioner, consumers should expect at least two cooling speeds, expandable plastic side panels, adjustable louvers, removable air filter, vent for exhausting air, environmentally friendly R-410A refrigerant, power cord at least 60 inches long, one year parts-and-labor warranty on the entire unit, and a five-year parts-and-labor warranty on the refrigeration system.

Answer 15

3. Expected Product

Question 16

EXAMPLE: Optional features might include electric touch-pad controls, a display to show indoor and outdoor temperatures and the thermostat setting, an automatic mode to adjust fan speed based on the thermostat setting and room temperature, a toll-free 800 number for customer service, and so on.

Answer 16

4. Augmented Product

Question 17

EXAMPLE: Silently running, completely balanced throughout the room, and completely energy self-sufficient.

Answer 17

5. Potential Product

Question 18

Roles that brands play: Consumers

Answer 18

Identification of source of product
Assignment of responsibility to product maker
Risk reducer
Search cost reducer
Promise, bond, or pact with maker of product
Symbolic device
Signal of quality

Question 19

Roles that brands play: Manufacturers

Answer 19

Means of identification to simplify handling or tracing
Means of legally protecting unique features
Signal of quality level to satisfied customers
Means of endowing products with unique associations
Source of competitive advantage
Source of financial returns

Question 20

search goods

Answer 20

grocery produce, consumers can evaluate product attributes like stur- diness, size, color, style, design, weight, and ingredient composition by visual inspection.

Question 21

experience good

Answer 21

like automobile tires, consumers cannot assess product attributes like
durability, service quality, safety, and ease of handling or use so easily by inspection, and
actual product trial and experience is necessary

Question 22

credence goods

Answer 22

like insurance coverage, consumers may rarely learn product attributes.

Question 23

Functional risk

Answer 23

The product does not perform up to expectations.

Question 24

Physical risk

Answer 24

The product poses a threat to the physical well-being or health of the user or
others.

Question 25

Financial risk

Answer 25

The product is not worth the price paid.

Question 26

Social risk

Answer 26

The product results in embarrassment from others.

Question 27

Psychological risk

Answer 27

The product affects the mental well-being of the user.

Question 28

Time risk

Answer 28

The failure of the product results in an opportunity cost of finding another satis- factory product.

Question 29

Understanding Business to Business Branding

Answer 29

1. Ensure the entire organization understands and supports branding and brand management. 2. Adopt a corporate branding strategy if possible and create a well-defined brand hierarchy. 3. Frame value perceptions. 4. Link relevant non-product-related brand associations. 5. Find relevant emotional associations for the brand 6. Segment customers carefully both within and across companies.

Question 30

Understanding High-Tech Branding

Answer 30

1. It is important to have a brand strategy that provides a roadmap for the future. 2. Understand your brand hierarchy and manage it appropriately over time. 3. Know who your customer is and build an appropriate brand strategy. 4. Realize that building brand equity and selling products are two different exercises. 5. Brands are owned by customers, not engineers 6. Brand strategies need to account for the attributes of the CEO and adjust accordingly. 7. Brand building on a small budget necessitates lever- aging every possible positive association. 8. Technology categories are created by customers and external forces, not by companies themselves 9. The rapidly changing environment demands that you stay in tune with your internal and external environment. 10. Invest the time to understand the technology and value proposition and do not be afraid to ask questions

Question 31

Understanding market leadership

Answer 31

* Leading brands are more likely to persist during economic slowdowns and when inflation is high, and less likely to per- sist during economic expansion and when inflation is low. * Half the leading brands in the sample lost their leadership over periods ranging from 12 to 39 years. * The rate of brand leadership persistence has been substantially lower in recent eras than in earlier eras. * Once brand leadership is lost, it is rarely regained. * Category types with above-average rates of brand leader- ship persistence are food and household supplies; category types with below-average rates of brand leadership persistence are durables and clothing.

Question 32

Science of branding: Vision of the Mass Market

Answer 32

Companies with a keen eye for mass market tastes are more likely to build a broad and sustainable customer base. Although Pampers was not the market leader in the disposable diaper category during its first several years, it spent significantly on research and development in order to design an affordable and effective disposable diaper. Pampers quickly became the market leader.

Question 33

Science of Branding: Managerial Persistence

Answer 33

The “breakthrough” technology that can drive market leadership often requires the commitment of company resources over long periods of time. For example, JVC spent 21 years researching the VHS video recorder before launching it in 1976 and becoming a market leader

Question 34

Science of Branding: Financial Commitment

Answer 34

The cost of maintaining leadership is high because of the demands for research and development and marketing. Companies that aim for short-term profitability rather than long-term leadership, as Rheingold Brewery did when it curtailed support of its Gablinger’s light beer a year after the 1967 introduction of the product, are unlikely to enjoy enduring leadership

Question 35

Science of Branding: Relentless Innovation

Answer 35

Due to changes in consumer tastes and competition from other firms, companies that wish to maintain leadership positions must continually innovate. Gillette, both a long-term leader and historically an innovator, typically has at least 20 shaving products on the drawing board at any given time.

Question 36

Science of Branding: Asset Leverage

Answer 36

Companies can become leaders in some categories if they hold a leadership position in a related category. For instance, Coca-Cola leveraged its success and experience with cola (Coke) and diet cola (Tab) to introduce Diet Coke in 1982. Within one year of its introduction, Diet Coke became the market leader.

Question 37

Challenges to Brand Builders

Answer 37

Savvy customers More complex brand families and portfolios Maturing markets More sophisticated and increasing competition Difficulty in differentiating Decreasing brand loyalty in many categories Growth of private labels Increasing trade power Fragmenting media coverage Eroding traditional media effectiveness Emerging new communication options Increasing promotional expenditures Decreasing advertising expenditures Increasing cost of product introduction and support Short-term performance orientation Increasing job turnover Pronounced economic cycles

Question 38

Marketing Brands in a Recession

Answer 38

- Explore the Upside of Actually Increasing Investment - Now, More Than Ever, Get Closer to Your Consumer - Rethink How You Spend Your Money - Put Forth the Most Compelling Value Proposition - Fine-Tune Your Brand and Product Offerings

Question 39

Strategic brand management process

Answer 39

1. Identifying and developing brand plans 2. Designing and implementing brand marketing programs 3. Measuring and interpreting brand performance 4. Growing and sustaining brand equity

Question 40

brand positioning model

Answer 40

describes how to guide integrated marketing to maximize competitive advantages.

Question 41

brand resonance model

Answer 41

describes how to create intense,**activity loyalty relationships** with customers.

Question 42

brand value chain

Answer 42

is a means to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditures and investments.

Question 43

brand equity measurement system

Answer 43

A set of research proce- dures designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and the best strategic decisions in the long run

Question 44

Implementing a brand equity measurement system:

Answer 44

1. conduct brand audits 2. design brand tracking studies 3. establish brand equity management system

Question 45

Brand audit

Answer 45

A comprehensive examination of a brand to assess its health, uncover its sources of equity, and suggest ways to improve and leverage that equity. A brand audit requires understanding sources of brand equity from the perspective of both the firm and the consumer.

Question 46

Brand tracking studies

Answer 46

Collect information from consumers on a routine basis over time, typically through quanti- tative measures of brand performance on a number of key dimensions marketers can identify in the brand audit or other means

Question 47

Brand equity management system

Answer 47

A set of organizational processes designed to im- prove the understanding and use of the brand equity concept within a firm. Three major steps help implement a brand equity management system: 1) creating brand equity charters 2) assembling brand equity reports 3) and defining brand equity responsibilities.

Question 48

brand portfolio

Answer 48

is the set of different brands that a particular firm offers for sale to buyers in a particular category

Question 49

brand hierarchy

Answer 49

- Brand hierarchy is essentially an organized structure that shows how a company’s brands are related to each other. - It analyzes what’s shared (like logos, names, design) and what’s unique among different brands within a company. - This helps in strategic brand management, so firms know how their different products or sub-brands are connected.