Marketing Communications And Brand Equity

Question 1

What is schramms model of communication?

Answer 1

• Wilbur Schramm, 1954
• suggested that communication is a two way process where both the sender and receiver takes turns to send and receive a message (encoder and decoder)

Question 2

What is integrated marketing communications?

Answer 2

” the strategic, coordinated use of promotion to create one consistent message across multiple channels to ensure maximum persuasive impact on the firms current and potential customers”

• it is about establishing dialogue between company and customer
• salience within the category
• ” the ability to achieve the desired brand knowledge structures and elicit the differential response that makes up brand equity”

Question 3

What is the information processing model of communications?

Answer 3

1. Exposure: a person must see, hear (or smell, feel, taste) the communication
2. Attention: a person must notice the communication
3. Comprehension: a person must understand the message as intended
4. Yielding: a person must respond I’m the way intended to the message
5. Intention: a person must plan to act in the desired manner based on the communication
6. Behavior: a person must act in the desire manner based on the communication

Question 4

What is to be achieved with marketing communications effectiveness?

Answer 4

Make the consumers current brand knowledge with the use of communication be the desired brand knowledge.

Question 5

What are secondary brand associations?

Answer 5

It is the linkages that brands have through other entities for which consumers have existing knowledge structures.

Eg: companies, countries, channels of distribution, licensing, celebrity endorsement etc

Question 6

What are the three elements which predict the leverage that might result from linking the brand to another entity? (3 things)

Answer 6

1. Awareness and knowledge of entity: no knowledge means no transfer, positive, favorable and unique associations means positive transfer.
2. Relevance of the knowledge of the entity: the greater the relevance of these associations the greater the transfer
3. Transferability of the knowledge of the entity: extent to which associations will become strong, favorable and unique.

Question 7

How are secondary brand associations used?

Answer 7

• choices are based on awareness of the entity and how judgements and feelings will link to the brand
• it’s about creating a POD such as Madonna and h&m
• or reinforcing a POP , BMW and Louis Vuitton

Question 8

What are the three branding options for a new product of a company?

Answer 8

1. Create a new brand
2. Adopt or modify an existing brand
3. Combine an existing and a new brand

Question 9

How Can a company be a rich source of brand equity? (5 things)

Answer 9

May evoke associations with:

• common product attributes
• benefits or attitudes
• people and relationships
• activities and values
• corporate credibility
• however consider that it can also “pollute”: industry associations: trustworthy, social responsibility, philanthropic and profiteering

Question 10

How can country of origin and geographic areas generate secondary associations?

Answer 10

strengthen quality associations

• loccitane (French)
• morrisons 100% British meat
• country’s reputation holds important associations
• geographic indications: such as protected designation of origin, protected geographical indication

Question 11

How can channels of distribution indirectly affect brand equity?

Answer 11

• due to the own brand image that shops and channels of distributions have they might indirectly affect brands equity and associations
• factors might be: price perception, location, product assortment, service, communications)

Question 12

What are the advantages and disadvantages of co-branding? (5 and 5 things)

Answer 12

Has to be a fit between the two brands.

• can transfer brand equity
• reduces introduction costs
• broaden meaning
• increase access points
• useful in new product introductions

Disadvantages:

• loss of control
• dilution of brand equity
• negative feedback effects
• lack of focus and clarity
• organizational distraction

Question 13

What is licensing?

Answer 13

A contractual arrangement whereby firms can use the names, logos, characters of other brands to market their own brands for a fee.
- similar pros and cons to co-branding

Question 14

What is celebrity endorsement?

Answer 14

• using celebrities to promote products

- creates high visibility, useful associations, credibility, fit and product relevance

Question 15

What are some celebrity endorsement issues? (5 things)

Answer 15

• endorser involved in too many contracts= brand dilution
• scandals and crises
• needs to have a match , the match hypothesis
• distraction from the celebrity
• fit and relevance