Strategic Brand Management - Chapter 1 Flashcards
What is a brand? (‘b’, AMA def)
A brand is name, term, sign, symbol, or design, or a combination of them, intended to identify and differentiate a goods/services <- Brand elements
Brand versus Products?
Product is anything that is offered
What are the five levels of meaning for a product?
- The core benefit: fundamental need or want
- Generic product: basic, stripped-down version
- Expected product: set of attributes that buyers expect to have
- Augmented product: includes additional product attributes as differentiators
- Potential product: All augmentations and transformation that product might ultimately undergo in the future
What are the three types of goods?
- Search goods: grocery produce - evaluate product attributes
- Experience goods: automobile tires - cannot asses product attributes
- Credence goods: insurance - rarely learn product attributes
Why do brand matters?
- Customer identification
- Signaling product characteristics
- Reduce risk in product decision
- Identification and simplify product handling for firms
What are some risk in product decision?
- Functional risk: does not perform
- Physical risk: poses a threat to physical well being
- Financial risk: not worth the price paid
- Social risk: embarrassed by others
- Psychological risk: mental well being
- Time risk: needing to find replacement
How retailers and distributors use brands?
THey tend to have store brand or private label brands to increase customer loyalty and generate higher margin and profit
What are some challenges and opportunities that brand faces?
- Savvy customer - understand the ins and outs and the company as a whole
- Economic downturns
- Brand proliferation - brand name identified with a number of different products that looks similar
- Media transformation - the use of “modern” media and social media
- Increased competition - globalization, low-priced competition, brand extension, and deregulation
- Increased cost
- Greater accountability (meeting short-term profit metrics)
Good and bad of brand equity?
Good: elevated the importance of the brand in marketing strategy and provide focus
Bad: defined in a number of different ways for different purposes which can make it confusing
What is the strategic brand management process?
The design and implementation of marketing programs and activities to build, measure, and manage brand equity
What are the 4 steps to the strategic brand management process?
- Identify and develop plan
- Design and implement marketing
- Measure and interpret performance
- Grow and sustain brand equity
Three models to identify and develop brand plans?
- Brand positioning model - maximize competitive advantage
- Brand resonance model - create intense, activity loyalty relationship
- Brand value chain - trace the value creation process to assess the financial impact each make
Three factors to design and implement brand marketing?
- Initial choice of brand elements and how they are mixed and match
- Marketing activities and supporting marketing program
- Other association indirectly transferred to or leveraged by the brand
What is and how to measure and interpret brand performance?
Set of research procedures designed to provide timely, accurate, and actionable information for marketers to take the best tactical and strategic decision
1. Brand audits - examination of brand health, sources of equity, and how to improve
2. Brand tracking - collect info from customers on a routine basis over time
3. Brand equity management system - process to understand and use the brand equity concept internally
How to grow and sustain brand equity?
- Define brand architecture - brand portfolio (in a category) and brand hierarchy (across the firm)
2, Managing brand equity over time - Managing brand equity over geographic, cultures, and market segments
