Session 16 - Product 3

Question 1

What is a brand?

Answer 1

A name, term, symbol or deisng or a combination that identifies the goods/services of one seller or a group of sellers to differentiate them form competitors. It can also be a promise that a firm makes to its customers

Question 2

What is a brand name vs brand mark vs trademark?

Answer 2

Brand name: Words or letters of the brand

brand mark: pictoral part of brand

Trademark: brand that has been given legally protected status exclusive to the owner (nike swoosh, mcdo’s golden arch)

Question 3

What roles do brand play?

Answer 3

Consumers: Identify product, assign responsibilities, reduce risks, pronmise, bond or pact with marker, symbolic device, sign of quality.

Manufacturers: Simplify handling and tracing, legally protect unique features, signal of quality level, competitve advantage, financial returns

Question 4

Why is brand important?

Answer 4

Because it allows you to differentiate your product in teh marketplace and get consumers to identify it as different, better and special.

Question 5

What is brand equity?

Answer 5

Added value that a given brand name gives a product beyond the functional benefit. It is a competitve advantage and makes customers willing to pay more.

Question 6

What is brand loyalty?

Answer 6

It occurs when a consumer buys the same brand’s rpoducts/services repeatedly over time, high brand equity allows marketers to drive buyers towards brand loyalty.

Question 7

How do you build brand loyalty (stages of brand loyalty)?

Answer 7

1. Brand Recognition: some knowledge of the brand, increase, advertising, promotion, etc.
2. Brand preference: stage where a consumer will prefer one brand over another but will not demand that brand every time. Increase by advertisement with celebrity, offer great benefits, enhance image of product, highly environmentally friendly brand image.
3. Brand insistence: stage will no alternatives will suffice. Few goods reach this stage. Emotional attachment, provide great benefits.

Question 8

What are brand Strategies?

Answer 8

Depends on product category/brand name

Existing category/existing name: line extension

New Category/existing naem: brand extension

Existing Category/New name: Multibrand

New category/new name: new brand

Question 9

What is product line extension?

Answer 9

When a firm has a successful product, it often offers product line extensions or new products that closely resemble the firm’s existing product (coke, diet coke, vanilla coke, etc)

Question 10

Why is line extension so popular?

Answer 10

Low cost/low risk way to address dfferent consumer segments

Greater marketing efficiency

Opportunity to offer broad range of prices

More variety, this more brand loyalty

expand company shelf space

Question 11

What are pitfalls of line extensions?

Answer 11

Confuses consumers

dilute brand name

address a real consumer need to generate enough additional sales to cover development

stagnant category demand: they dont eat more, drink more, wash hair more just because they have more products to choose from

Risk of cannibalization if not enough differentiation: Theft of sales frm existing product but the new product line. They dont wat to stokc products that steal sales from another while no increasing products

Question 12

What is brand extension?

Answer 12

new products in different product categories that carry the same brand name. Best when brand equity grows, as it allows the company to use their competitve advantage to enhance performance.

Question 13

Why extend a brand?

Answer 13

• Transferabiltiy of skills and assets
• Complimentarity of use
• Functional attributes
• Emotional attributes
• Same users

Question 14

What are advantages and risks of extending a brand?

Answer 14

Advantages: Enables a company to enter a new category at significantly lower cost and risk. Reinforce perceptions of the parent brand

Risks: Dilution of brand image. Backfire effect if extension fails.

Question 15

What are the guidelines for brand extension decision?

Answer 15

Only extend if there is a fit between core brand values and new product.

e.g.: Similar original category and extension category. Extent to which the brand and extension category share the same associations?

Question 16

What are multibrands?

Answer 16

When one company has multiple sub brands that it owns. E.g. P&G owns pantene, head and shoulders and herbal essences, all of which make shampoo.

Question 17

What are advantages/risks of multibrands?

Answer 17

Advantages: clear distinction between brand to better target and position porducts in multiple segments within same product category. Less cannibalization if positioned correctly

Risks: Higher promotion costs, lower awareness, more complex

Question 18

What are advantages/risks of new brand?

Answer 18

Advantages: best when product does not fit into any existing brand names

risks: Require significant resources to launch and maintain

E.g. Clorox launching burt’s bee lipsil or Glad garbage bags

Question 19

What is co-branding?

Answer 19

Practice of marketing two or more brands together on the same product.

FOr example, a credit card which has BMO, Mastercard and airmiles

Question 20

What are advantages and limitations of co-branding?

Answer 20

Advantages: broader consumer appeal, greater brand equity. Expand existing brand into new category

Limitations: complex legal contracts and licences. must carefully coordinate advertisments, promotion and other marketing efforts. Each partner must trust that the other will take good care of their brand

Question 21

When is repositioning needed?

Answer 21

When marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences

Question 22

What are some challenges of repostioning?

Answer 22

Firms often need to spend a lot of money ot make tangible changes to the product and packages, as well as intangible changes to the brand’s image through advertising.