Test 2 Flashcards
what are the advantages of promotion?
- Permit manufacturers to charge different prices to groups of consumers who vary in their price sensitivity
- Convey a sense of urgency to consumers
- Can build brand equity through actual product experience
- Encourage the trade to maintain full stocks and support the manufacturer’s merchandising efforts
what are the disadvantages of promotion?
- Decreased brand loyalty and increased brand switching
- Decreased quality perceptions and increased price sensitivity
- Inhibit the use of franchise
- Divert marketing funds sales promotion
- Increase the importance of price as a factor in consumer decisions
- May subsidize buyers who would have bought the brand anyway
what are brand amplifiers?
Efforts made to engage consumers and the public via word-of-mouth and public relations and publicity
how can marketing communications contribute to brand equity?
- Creating awareness of the brand
- Linking points-of-parity and points-of-difference associations to the brand in consumers’ memory
- Eliciting positive brand judgments or feelings
- Facilitating a stronger consumer-brand connection and brand resonance
For a person to be persuaded by any form of communication the following steps must occur:
- Exposure
- Attention
- Comprehension
- Yielding
- Intentions
- Behavior
From an advertising standpoint, the ideal ad campaign would ensure that:
- The right consumer is exposed to the right message at the right place and at the right time
- The creative strategy causes consumers to notice and attend to the ad (But does not distract from the intended message)
- The ad properly reflects the consumer’s level of understanding
● The ad correctly positions the brand in terms of desirable and deliverable POD and POP
● The ad motivates consumers to consider purchase
● The ad creates strong brand associations to all these stored communication effects
what is a simple test for marketing communication effectiveness?
ask questions regarding:
- brand knowledge
- mental map
- POP and POD
what are the Advantages of multiple communications?
- Optimal utilization of monetary and other resources
- Different communication options also may target different market segments
what is the criteria for IMC program?
- Coverage (proportion of audience reach and overlap)
- Contribution (creating desired response)
- Commonality (extend to which there’s common info)
- Complementarity (different associations)
- Conformability
- Cost (all options have to be weighted against cost)
what are the two keys steps of using IMC choice criteria?
- Evaluating communication options
- Establishing priorities and trade-offs
what is the promotional mix?
- advertising
- digital marketing
- direct marketing
- PR/publicity
- sales promotion
- personal selling
what are the effectiveness tests for each step in the persuasion process?
- Exposure: audience size
- Attention: audience recognition
- Comprehension: recall, checklists
- Yielding: brand attitudes, purchase intent
- Intentions: recall
- Behavior: inventory, point-of-purchase data
what are the Digital era trends with implications for branding and brand management?
● Changes in the consumer decision journey
● Sharp increase in buying via online retail channels
● Shift in advertising and promotion expenditures toward digital channels
● Rise of many-to-many communications
● Dramatic increase in consumer touchpoints
● Tremendous increase in data availability
● Use of digital personalization
● Loss of control over brand message and co-creation of brand meaning
● Role of user experiences
● Growth of brands as cultural symbols
what is the expanded consumer decision journey?
felt a need/want for it –> knows about it –> considers it –> learns about it –> likes it –> willing to pay –> chooses to try it –> consumes it –> satisfied with it–>
loyal buyer of it –> engaged with it –> active/advocate for it
what is marketing attribution/attribution modelling?
Practice of determining the role that any given channel plays in informing and influencing the customer journey (before buying)
what is digital personalization?
Targeting individual consumers with varying offers to try to ensure that they complete a purchase
what is dynamic pricing?
Same product can become available at different prices based on expressed customer interest
Brand meaning is primarily coproduced by three different forces:
- Firm-generated brand meaning
- Consumer-generated brand meaning
- Media and cultural influences
what are the levels of brand engagement?
general public –> recognizes brand –> social media subscriber –> prospect consumer –> customer –> loyal/returning customer –> brand evangelist
what encompasses paid marketing channels?
- search advertising
- display advertising
- social media advertising
- email marketing
- paid bloggers/influencers
- mobile in-app advertising
what encompasses owned marketing channels?
- company web sites
- company-owned social media
- mobile apps
what encompasses earned marketing channels?
- review websites
- public relations
- media coverage
what is content marketing?
a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience— and, ultimately, to drive profitable customer action
what is above the line (ATL)?
Pros:
* May be ideal for building brand awareness with a large group of people because your messaging is spread across several large platforms, creating repetition with your audience.
* May be impactful because it combines visual and audible elements to augment customers’ attention.
Cons:
* Hard to measure exact impact and ROI
* Cost
what is below the line (BTL)?
Pros:
* Aimed at those specifically identified (smaller, highly targeted)
* More focused than ATL on ROI, user conversions and quantifying success
* Highly trackable results
Cons:
* Risk
* No knowledge of how much traffic will be received until after the ad campaign has begun
* Need to consider costs and time involved when deciding whether to use paid traffic campaigns
what is through the line (TTL)?
key determinant: intent (which is direct response)
- Pro: attacking two fronts simultaneously improving general awareness and also aiming to increase traffic and sales
- Con: more expensive to use than either ATL or BTL alone. For this reason, it is normally used only by large, established companies
what are secondary associations?
- Those associations related to other nodes to which a brand is linked
- Secondary associations may lead the consumer to assume / infer beliefs they have for external sources also holds for the brand
- Most likely to affect evaluations of a new product
“the associations of the association”
what are three important factors in predicting the extent of leverage from linking the brand to another entity?
- Awareness and knowledge of the entity
- Meaningfulness of the knowledge of the entity
- Transferability of the knowledge of the entity
Leveraging secondary brand associations may allow marketers to:
- Create or reinforce an important POD or
- Create or reinforce a necessary or competitive POP versus competitors
what is a Commonality leveraging strategy?
Makes sense when consumers have associations to another entity that are congruent with the brand
what is a Complementarity branding strategy?
Makes sense when entities represent a departure for the brand because there are few if any common or similar associations
Consumers choose brands originating in different countries based on:
- Their beliefs about the quality of certain types of products from certain countries
- The image that these brands or products communicate
what is a litmus test?
if the label reads “made in x”, would you pay more for the product?
Celebrity endorsers – they need to be:
- Relevant to the target market.
- Relevant to the product.
- Credible in terms of expertise, trustworthiness, and/or likeability or attractiveness.
- Draws attention to a brand (but not overpowering).
- Shapes the perceptions of the brand by virtue of the inferences that consumers make based on the knowledge that they have about the famous person.
- Not linked to a number of other brands or overexposed.
- “Vetted.”
what is co-branding?
When two or more existing brands are combined into a joint product or are marketed together in some fashion
- Also called brand bundling or brand alliances
Brand alliances, such as co-branding, require marketers to ask themselves questions such as:
- What capabilities do we not have?
- What resource constraints do we face (people, time, money)?
- What growth goals or revenue needs do we have?
what is ingredient branding?
- special type of co-branding
- creates brand equity for components, materials, or parts of a larger branded product
- An established component of the business is marketed as a separate entity
- Have to have a distinctive symbol/logo that signifies that the host product contains the ingredient
what are problems associated with co-branding?
equity, dilution, loss of control
explain the difference in perspective between brand equity and brand value
- Brand equity: more consumer-based perspective.
- Brand value: more of a company-based perspective.
what are brand-based comparative methods?
- Competitive brands used as benchmarks by consumers (use of exemplars)
- Consumers examine or use a product with or without brand identification (ex: blind testing research), differences typically emerge
what are criticisms of brand-based comparative methods?
- Learning is limited by the number of different applications examined
- Data is rare
- Might not be applicable to brand of interest
what are Marketing-Based Comparative Approaches?
- Hold the brand fixed
- Examine consumer response based on changes in marketing program
- Levels of influence, marketing programs on overall brad performance
- Applications: explore price premiums, derive demand curves, price sensitivity, willingness-to-pay
what are criticisms of Marketing-Based Comparative Approaches?
- May be difficult to discern whether consumer responses to changes in marketing stimuli are being caused by brand knowledge or by more generic product knowledge
- Can’t determine customers’ preference
what is a conjoint analysis?
Survey-based multivariate technique that enables marketers to profile consumer decision process with respect to products and brands
- Allows study of different brands and different aspects of product or marketing program simultaneously
- part worth
what is part worth?
The value consumers attach to each attribute level, as statistically derived by the conjoint formula
what are criticisms of conjoint analysis?
- Marketing profiles may violate consumers’ expectations based on what they already know about brands
- Can’t increase customers’ expectations
what are holistic methods?
Brand preference rather than customer response
what is the residual approach?
Provide a financial approximation
- Examines the value of the brand by subtracting consumers’ preferences for the brand from their overall brand preferences
- Based on physical product attributes alone
- Scanner Panel – supermarket scanners
- Choice Experiments – used to define equalization price
- Multi-Attribute Attitude Models – divide brand into 3 components
what is a valuation approach?
- Places a financial value on brand equity
- Accounting purposes, mergers and acquisitions, or other such reasons
- Accounting Background (Brand acquisitions are reported)
- Historical Perspectives
- General Approaches
what are academic approaches?
Seminal academic research study proposed estimating a firm’s brand equity derived from financial market estimates of brand-related profits
what is interbrand?
- Leading brand valuation (consultancy) firm
- Three key components:
- Financial forecast
- Role of brand
- Strength analysis
- Conservative approach – only rewards intangibles after tangibles have earned
what are concerns with the interbrand system?
- does not consider the potential of the brand to support extensions into other product classes
- Brand support may be ineffective
- spending money on advertising does not necessarily indicate effective brand building
- Trademark protection, although necessary, does not of itself create brand value
what is BrandZ?
- Based on the Meaningfully Different Framework
- Suggests brands create value if they offer three key benefits:
- They are meaningful
- They are different
- They are salient
Key steps in the Brand Z valuation include:
- Calculating financial value
- Calculating brand contribution
- Calculating brand value
what is income-based brand valuation?
- Price Premium Method - calculated by first taking the price difference between the branded product and a generic product, and then multiplying the difference with the total branded sales volume
- Based on assumption that branded product creates an additional benefit to the consumer
- Based on the “relief from royalty” approach
what is the “relief from royalty” approach?
- Brand’s value is based on the royalties that a company would have paid for licensing that brand from a third party
- Assuming it was not the brand owner
what are comparative methods?
examine consumer attitude and behaviour towards a brand
- to more directly assess awareness and SURF associations
what do the 3 valuation approaches have in common?
- All are based on projections of income
- All three methods compute the present value of projected future earnings
- All three approaches use available financial and market data
what is brand archictecture?
Relationship between brands within an organization and how they interact with one another
what is the role of brand architecture?
clarify brand awareness and improve brand image
explain the Importance of developing a brand architecture study
- Helps marketers determine which products and services to introduce
- Which brand names, logos, symbols, etc. to apply to new and existing products
- Should help you reach target audience
the brand-product matrix helps businesses to:
- Evaluate and create structures in business’ portfolios
- Gain a clearer overview of their brands and future brand extension
- Assess the brand’s key features and differentiations with the competitors, and given room for improvement for further product development
- Prevent brand-clash, in which businesses are offering the similar features or PODs of a product or service of an already existing brand
what are the Steps in developing a brand architecture strategy?
Step 1: Defining brand potential
Step 2: Identifying brand extension opportunities
Step 3: Branding new products and services
what are 3 important characteristics of defining brand potential?
- Brand vision (management’s view of brand’s long-term potential)
- Brand boundaries - Broad brand
- Brand positioning
what are the key ingredients of brand positioning?
- Competitive frame of reference
- POD
- POP
- Brand mantra
what is a brand extension?
a new product introduced under an existing brand name
difference between line and category extension
- Line extension: New product introductions within existing categories
- Category extension: New product introductions outside existing categories
what are sub-brands?
Very popular form of brand extension in which new product carries both parent brand name and new name
what is house of brands?
Collection of individual brands all with different names
* Benefits
- Reach
- Safety net – brands can take more risks
- Shield
- Pitfalls
- Overwhelming
- Isolation
- Image – possibility for confusion
what is branded house?
- Strong master brand – others operate under one umbrella (firm is the brand)
- Benefits
- Efficiency
- Ease
- Evolution
- Pitfalls
- Reputation – all or nothing approach
- Limitations
- Ambiguity – confusion over what exactly your brand does
what is a hybrid?
- Part of a parent company, but still distinct brands on their own
ex: coca-cola
what are brand portfolios?
- Includes all brands sold by a company in a product category
- Brand portfolio judged by its ability to maximize brand equity
Reasons for introducing multiple brands in a category:
- Increase shelf presence and retailer dependence in the store
- Attract consumers seeking variety who may otherwise switch to another brand
- Increase internal competition within the firm
- Yield economies of scale in advertising, sales, merchandising, and physical distribution
- Minimize brand overlap
what are the Possible special roles of brands in the brand portfolio?
- To attract a particular market segment not currently being covered by other brands of the firm
- To serve as a flanker
- To serve as a cash cow
- To serve as a low-end entry-level product
- To serve as a high-end prestige product
- To increase shelf presence and retailer dependence
- To attract consumers seeking variety
- To increase internal competition within the firm
- To yield economies of scale in advertising, sales, merchandising, and physical distribution
what are flankers?
Protective or fighter brands
- To create stronger POP with competitors
- Fighter brands must not be so attractive that they take sales away from higher-priced comparison brands
- If connected to other brands in the portfolio, must not be designed so cheaply that they reflect poorly on other brands
what are cash cows?
Milked by capitalizing on their reservoir of existing brand equity
- Due to their sustainability with virtually no marketing support
what are the levels of brand hierarchy?
- corporate or company brand level
- family brand level
- individual brand level
- modifier level
- product descriptor
what is corporate image?
Consumer associations to the company or corporation making the product or providing the service (ex: Clorox owning Burt’s Bees)
what is the role of a low-end, entry-level product?
to attract customers to the brand franchise
what is the role of a high-end, prestige brand?
To add prestige and credibility to the entire portfolio
what is the family brand level?
may have a range of products under it, but it is not the corporate brand
- AKA range brand or umbrella brand
- If the corporate brand is applied to a range of products, then it functions as a family brand too
what is the individual brand level?
- Restricted to essentially one product category
- Although multiple product types may differ
- If a brand runs into difficulty or fails, risk to other brands and the company is minimal
- Disadvantages of difficulty, complexity, and expense of developing separate marketing programs
what is the modifier brand level?
- Must further distinguish brands according to different types of items or models
- Designate a specific item or model type or a particular version or configuration of the product
function of modifiers is to:
show how one brand variation relates to others in the same brand family
- Help make products more understandable and relevant to consumers
what is the product descriptor brand level?
Helps consumers understand what the product is and does
- Helps define relevant competition in consumers’ minds
The challenge in setting up a brand hierarchy is to decide:
- Specific products to be introduced for any one brand
- Number of levels of the hierarchy to use
- Desired brand awareness and image at each level
- Combinations of brand elements from different levels of the hierarchy
- Best way to link any one brand element to multiple products
what are the guidelines for defining a brand hierarchy?
- decide on which products are to be introduced
- decide on number of levels
- decide on the levels of awareness and types of associations to be created at each level
- decide on how to link brands from different levels for a product
- decide on how to link a brand across products
what is the principle of growth?
Invest in market penetration or expansion versus
product development according to R O I opportunities
what is the principal of survival?
Brand extensions must achieve brand equity in their categories
what is the principle of synergy?
Brand extensions should enhance the equity of the parent brand
principle of simplicity
Employ as few levels as possible
principle of clarity
Logic and relationship of all brand elements employed must be obvious and transparent
principle of relevance
Create abstract associations that are relevant across as many individual items as possible
principle of differentiation
Differentiate individual items and brands
principle of prominence
The relative prominence of brand elements affects perceptions of product distance and the type of image created for new products
principle of commonality
The more common elements products share, the stronger the linkages
Equity implications of each extension needs to be understood in terms of:
POP and POD
