Lecture 2: Brand Defined/Why Brands Matter

Question 1

product

Answer 1

anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy
a need or want

Question 2

brand (AMA def)

Answer 2

name, term, symbol, or design, or combination of
them intended to identify the goods and services of one seller
to differentiate them from those of the competition (AMA –> what we consider brand element)

Question 3

describe the comparison of brands vs. products

Answer 3

• A product is anything we can offer to a market for attention, acquisition, use, or consumption:
  *That might satisfy a need or want
  *Physical good like a cereal, tennis racquet, or car
• A brand is more than a product since it can have dimensions that differentiate it from other products

Question 4

what are the three main observations/insights about brands (kinds of appeal and where it resides)

Answer 4

1. Brands can have rational / tangible appeal.
2. Brands can have symbolic /emotional / intangible appeal.
3. The brand resides in the mind (and gut) of the consumer.

Question 5

what is a brand element

Answer 5

a name, logo, slogan,
symbol, packaging design, or other attribute that
identifies a product and distinguishes it from all
others

Question 6

what is the starting point to create a brand

Answer 6

choose / develop a brand element(s)

Question 7

T or F: ideas and people can be brands

Answer 7

True

Question 8

what are the 4 functions brands provide to consumers

Answer 8

• Identify the source or maker of the product
• Simplify product decisions
• Lower the search costs for products internally and
  externally
• Helps set reasonable expectations about what
  consumers may not know about the brand

Question 9

brand can signal product ______ and ______

Answer 9

characteristics and attributes

Question 10

what three categories can attributes classify products as:

Answer 10

• search goods
• experience goods
• credence goods

Question 11

brands can ____ risks in product decision (for consumers)

Answer 11

reduce

Question 12

what are the categories of risk

Answer 12

Functional, physical, financial, social psychological, and time

Question 13

what functions do brand provide to a firm (5)

Answer 13

• Simplify product handling and tracing
• Help organizing inventory and accounting records
• Offer the firm legal protection for unique features or aspects of the product
• Provide predictability and security of demand for the firm and creates barriers of entry for competitors
• Provide a powerful means to secure competitive advantage

Question 14

name some of the roles that brands play

Answer 14

Consumers
* 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

Manufacturers
* 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 15

To brand a product, it is necessary to teach consumers
____ the product is

Answer 15

“who”

Question 16

how can companies teach consumers “who” the product is through branding? (what must they do)

Answer 16

• Giving it a name and using other brand elements to help identify it
• What the product does and why consumers should care

–> marketings but give consumers a label for the product and provide meaning for the brand

Question 17

when can marketers benefit from branding?

Answer 17

whenever consumers are in a choice situation

Question 18

what can branding a service do?

Answer 18

can be an effective way to
signal to consumers that a firm has designed a particular service offering that is special and deserving of its name:
* American Express
* British Airways
* Ritz-Carlton
* Merrill Lynch
* Federal Express

Question 19

what are traditionally associated with brands?

Answer 19

physical goods

Question 20

what can brands do for retailers and other channel members

Answer 20

• Can generate consumer interest, patronage, and loyalty
• Create an image and establish positioning within an industry
• Yield higher price margins, increased sales volumes, and greater profits

Question 21

how can retailers intorduce their own brands

Answer 21

• Using their store name
• Creating new names
• Some combination of the two

Question 22

where have some of the strongest brands in recent years been born?

Answer 22

online

Question 23

where does a special case of marketing people and organizations exist?

Answer 23

• Sports marketing has become highly sophisticated
• Branding plays, for example, has become an especially valuable function in the arts
• Movies have become famous for their marketing and branding:
  *For years, some of the most valuable movie franchises have featured recurring characters and ongoing stories—a classic application of branding

Question 24

what has contributed to the rise in place marketing?

Answer 24

• Increased mobility of people
• Increased mobility of businesses
• Growth in tourism

Question 25

Brands that are the “strongest” are the brands that are:

Answer 25

• best known
• most highly regarded

Question 26

Maintaining _____ and _______ are important to the success of a brand
Winner

Answer 26

brand relevance and differentiation

Question 27

what are the four steps of strategic brand management process

Answer 27

• Identifying and Developing Brand Plans
• Designing and Implementing Brand Marketing Programs
• Measuring and Interpreting Brand Performance
• Growing and Sustaining Brand Equity

Question 28

describe designing and implementing brand marketing programs

Answer 28

• Choosing Brand Elements
• Integrating the Brand into Marketing Activities and the Supporting Marketing Program
• Leveraging Secondary Associations

Question 29

describe measuring and interpreting brand performance

Answer 29

To manage brands profitably, managers must implement a brand equity measurement system

Brand equity measurement system involves:
1. Brand audits
2. Brand tracking studies
3. Brand equity management system

Question 30

describe growing and sustaining brand equity

Answer 30

• Defining Brand Architecture
• Managing Brand Equity over Time
• Managing Brand Equity over Geographic Boundaries, Cultures, and Market Segments

Question 31

up ____% of company value can be attribute to the brand

Answer 31

50