Module 2 Introduction Brands, the Foundation

Question 1

Brand

Answer 1

a feature (e.g., name, logo, symbol) that identifies the products of a company and creates an image in the consumer’s mind about the qualities and characteristics of the products

Question 2

Brand differentiation

Answer 2

marketing process that results in creating distinct brand images in the minds of consumers

Question 3

Brand identity

Answer 3

all means by which a company portrays the brand and communications with the consumer

Question 4

Brand image

Answer 4

characteristics and image created in the minds consumers about a particular brand

Question 5

Brand positioning

Answer 5

how the company positions its brand on key characteristics as compared to its competitors

Question 6

Brand strategy

Answer 6

planning document that outlines the company’s mission, target customer (audience for the brand), and competitors (to create brand distinction) to inform brand development

Question 7

Brand tier

Answer 7

strategy by which a manufacturer or retailer offers brands in two or more price zones, with each brand focusing on on a specific price zone

Question 8

Business goals

Answer 8

what the fashion brand company expects to accomplish in a particular time period

Question 9

Business objectives

Answer 9

how a fashion brand company plans to achieve goals that benefit the company, including measurable targets

Question 10

Corporate social responsibility

Answer 10

a philosophy whereby a company takes into consideration human rights, labor conditions, and environmental implications when making business decisions

Question 11

Cross merchandising

Answer 11

strategy by which fashion brand companies combine apparel and accessories in their product offerings and visual merchandising

Question 12

Designer brand

Answer 12

brand classification associated with name designers, high prices, high quality, and distinct prestige

Question 13

Diffusion brand

Answer 13

a designer’s less expensive line (e.g., Armani Collezioni)

Question 14

Diffusion line

Answer 14

see diffusion brand

Question 15

Fashion brand

Answer 15

brand associated with fashion merchandise

Question 16

Fast fashion brands

Answer 16

brands associated with fast fashion calendar and production (e.g., Zara, H&M, Mango)

Question 17

Heritage brand

Answer 17

fashion brand with a history and characterized by high quality and classic styling; although fashion-forward styles may also be offered

Question 18

Licensed brand

Answer 18

brand name resulting from a licensing agreement

Question 19

Lifestyle brand

Answer 19

a term used to describe brands that are associate with a particular target customer’s activities and way of life

Question 20

Luxury brand

Answer 20

brand classification associated with high prices, high quality, and distinct prestige

Question 21

Market share

Answer 21

percentage of total volume (dollar or unit) a particular company or brand captures

Question 22

Mission

Answer 22

functions of a fashion brand company in society including its products and services, target customers, and advantages over its competitors

Question 23

Mission statement

Answer 23

brief description of the company’s fundamental purpose for its customers and society

Question 24

Monopolistic competition

Answer 24

type of competition in business in which many companies compete in terms of product type, but the specific products of any one company are perceived as unique by consumers

Question 25

Monopoly

Answer 25

type of competition in business in which there is typically one company that dominates the market and can thus price its goods and/or services at whatever scale its management wishes

Question 26

Oligopoly

Answer 26

type of competition in business in which a few companies dominate and essentially have control of the market, making it difficult for other companies to enter

Question 27

Oligopsony

Answer 27

type of competition in business that involves a large number of sellers offering goods and services to a small number of buyers

Question 28

Perfect competition

Answer 28

type of competition in business in which there are many producers and consumers of similar products, so that price is determined by market demand

Question 29

Price point

Answer 29

a price range of merchandise: designer, bridge, better, moderate, or mass

Question 30

Price zone

Answer 30

see price point

Question 31

Private label brand

Answer 31

brand name that is owned and marketed by a specific retailer for use in its stores. Private label merchandise bears the retailer’s label; the retailer has partial or full control over manufacture of the product

Question 32

Pure competition

Answer 32

see perfect competition

Question 33

Social enterprise

Answer 33

businesses and organizations “that address a basic unmet need or solve a social problem through a market-drive approach”

Question 34

Social objectives

Answer 34

how a fashion brand company plans to achieve its goals that benefit its employees, customers, and/or society, including measurable targets

Question 35

Specialty store retailer of private label apparel (SPA)

Answer 35

specialty retailer that offers only private label merchandise (e.g., Zara, Banana Republic)

Question 36

Store brand

Answer 36

concept whereby the store offers only merchandise with the store name as its brand (e.g., Old Navy, Banana Republic, Ann Taylor)

Question 37

Sub-brand

Answer 37

brand that is owned and affiliated with the parent company but carries a different brand name than the parent company