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MRKT 438 > Test 2 > Flashcards

Test 2 Flashcards

1
Q

what are the advantages of promotion?

A
  • 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
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2
Q

what are the disadvantages of promotion?

A
  • 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
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3
Q

what are brand amplifiers?

A

Efforts made to engage consumers and the public via word-of-mouth and public relations and publicity

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4
Q

how can marketing communications contribute to brand equity?

A
  • 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
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5
Q

For a person to be persuaded by any form of communication the following steps must occur:

A
  • Exposure
  • Attention
  • Comprehension
  • Yielding
  • Intentions
  • Behavior
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6
Q

From an advertising standpoint, the ideal ad campaign would ensure that:

A
  • 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
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7
Q

what is a simple test for marketing communication effectiveness?

A

ask questions regarding:
- brand knowledge
- mental map
- POP and POD

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8
Q

what are the Advantages of multiple communications?

A
  • Optimal utilization of monetary and other resources
  • Different communication options also may target different market segments
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9
Q

what is the criteria for IMC program?

A
  • 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)
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10
Q

what are the two keys steps of using IMC choice criteria?

A
  • Evaluating communication options
  • Establishing priorities and trade-offs
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11
Q

what is the promotional mix?

A
  • advertising
  • digital marketing
  • direct marketing
  • PR/publicity
  • sales promotion
  • personal selling
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12
Q

what are the effectiveness tests for each step in the persuasion process?

A
  • Exposure: audience size
  • Attention: audience recognition
  • Comprehension: recall, checklists
  • Yielding: brand attitudes, purchase intent
  • Intentions: recall
  • Behavior: inventory, point-of-purchase data
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13
Q

what are the Digital era trends with implications for branding and brand management?

A

● 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

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14
Q

what is the expanded consumer decision journey?

A

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

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15
Q

what is marketing attribution/attribution modelling?

A

Practice of determining the role that any given channel plays in informing and influencing the customer journey (before buying)

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16
Q

what is digital personalization?

A

Targeting individual consumers with varying offers to try to ensure that they complete a purchase

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17
Q

what is dynamic pricing?

A

Same product can become available at different prices based on expressed customer interest

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18
Q

Brand meaning is primarily coproduced by three different forces:

A
  • Firm-generated brand meaning
  • Consumer-generated brand meaning
  • Media and cultural influences
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19
Q

what are the levels of brand engagement?

A

general public –> recognizes brand –> social media subscriber –> prospect consumer –> customer –> loyal/returning customer –> brand evangelist

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20
Q

what encompasses paid marketing channels?

A
  • search advertising
  • display advertising
  • social media advertising
  • email marketing
  • paid bloggers/influencers
  • mobile in-app advertising
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21
Q

what encompasses owned marketing channels?

A
  • company web sites
  • company-owned social media
  • mobile apps
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22
Q

what encompasses earned marketing channels?

A
  • review websites
  • public relations
  • media coverage
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23
Q

what is content marketing?

A

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

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24
Q

what is above the line (ATL)?

A

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

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25
Q

what is below the line (BTL)?

A

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

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26
Q

what is through the line (TTL)?

A

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
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27
Q

what are secondary associations?

A
  • 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”
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28
Q

what are three important factors in predicting the extent of leverage from linking the brand to another entity?

A
  • Awareness and knowledge of the entity
  • Meaningfulness of the knowledge of the entity
  • Transferability of the knowledge of the entity
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29
Q

Leveraging secondary brand associations may allow marketers to:

A
  • Create or reinforce an important POD or
  • Create or reinforce a necessary or competitive POP versus competitors
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30
Q

what is a Commonality leveraging strategy?

A

Makes sense when consumers have associations to another entity that are congruent with the brand

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31
Q

what is a Complementarity branding strategy?

A

Makes sense when entities represent a departure for the brand because there are few if any common or similar associations

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32
Q

Consumers choose brands originating in different countries based on:

A
  • Their beliefs about the quality of certain types of products from certain countries
  • The image that these brands or products communicate
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33
Q

what is a litmus test?

A

if the label reads “made in x”, would you pay more for the product?

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34
Q

Celebrity endorsers – they need to be:

A
  • 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.”
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35
Q

what is co-branding?

A

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

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36
Q

Brand alliances, such as co-branding, require marketers to ask themselves questions such as:

A
  • What capabilities do we not have?
  • What resource constraints do we face (people, time, money)?
  • What growth goals or revenue needs do we have?
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37
Q

what is ingredient branding?

A
  • 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
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38
Q

what are problems associated with co-branding?

A

equity, dilution, loss of control

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39
Q

explain the difference in perspective between brand equity and brand value

A
  • Brand equity: more consumer-based perspective.
  • Brand value: more of a company-based perspective.
40
Q

what are brand-based comparative methods?

A
  • 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
41
Q

what are criticisms of brand-based comparative methods?

A
  • Learning is limited by the number of different applications examined
  • Data is rare
  • Might not be applicable to brand of interest
42
Q

what are Marketing-Based Comparative Approaches?

A
  • 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
43
Q

what are criticisms of Marketing-Based Comparative Approaches?

A
  • 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
44
Q

what is a conjoint analysis?

A

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

45
Q

what is part worth?

A

The value consumers attach to each attribute level, as statistically derived by the conjoint formula

46
Q

what are criticisms of conjoint analysis?

A
  • Marketing profiles may violate consumers’ expectations based on what they already know about brands
  • Can’t increase customers’ expectations
47
Q

what are holistic methods?

A

Brand preference rather than customer response

48
Q

what is the residual approach?

A

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

49
Q

what is a valuation approach?

A
  • 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
50
Q

what are academic approaches?

A

Seminal academic research study proposed estimating a firm’s brand equity derived from financial market estimates of brand-related profits

51
Q

what is interbrand?

A
  • Leading brand valuation (consultancy) firm
  • Three key components:
  • Financial forecast
  • Role of brand
  • Strength analysis
  • Conservative approach – only rewards intangibles after tangibles have earned
52
Q

what are concerns with the interbrand system?

A
  • 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
53
Q

what is BrandZ?

A
  • 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
54
Q

Key steps in the Brand Z valuation include:

A
  • Calculating financial value
  • Calculating brand contribution
  • Calculating brand value
55
Q

what is income-based brand valuation?

A
  • 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
56
Q

what is the “relief from royalty” approach?

A
  • 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
57
Q

what are comparative methods?

A

examine consumer attitude and behaviour towards a brand
- to more directly assess awareness and SURF associations

58
Q

what do the 3 valuation approaches have in common?

A
  • 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
59
Q

what is brand archictecture?

A

Relationship between brands within an organization and how they interact with one another

60
Q

what is the role of brand architecture?

A

clarify brand awareness and improve brand image

61
Q

explain the Importance of developing a brand architecture study

A
  • 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
62
Q

the brand-product matrix helps businesses to:

A
  • 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
63
Q

what are the Steps in developing a brand architecture strategy?

A

Step 1: Defining brand potential
Step 2: Identifying brand extension opportunities
Step 3: Branding new products and services

64
Q

what are 3 important characteristics of defining brand potential?

A
  • Brand vision (management’s view of brand’s long-term potential)
  • Brand boundaries - Broad brand
  • Brand positioning
65
Q

what are the key ingredients of brand positioning?

A
  • Competitive frame of reference
  • POD
  • POP
  • Brand mantra
66
Q

what is a brand extension?

A

a new product introduced under an existing brand name

67
Q

difference between line and category extension

A
  • Line extension: New product introductions within existing categories
  • Category extension: New product introductions outside existing categories
68
Q

what are sub-brands?

A

Very popular form of brand extension in which new product carries both parent brand name and new name

69
Q

what is house of brands?

A

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
70
Q

what is branded house?

A
  • 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
71
Q

what is a hybrid?

A
  • Part of a parent company, but still distinct brands on their own
    ex: coca-cola
72
Q

what are brand portfolios?

A
  • Includes all brands sold by a company in a product category
  • Brand portfolio judged by its ability to maximize brand equity
73
Q

Reasons for introducing multiple brands in a category:

A
  • 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
74
Q

what are the Possible special roles of brands in the brand portfolio?

A
  • 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
75
Q

what are flankers?

A

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

76
Q

what are cash cows?

A

Milked by capitalizing on their reservoir of existing brand equity
- Due to their sustainability with virtually no marketing support

77
Q

what are the levels of brand hierarchy?

A
  • corporate or company brand level
  • family brand level
  • individual brand level
  • modifier level
  • product descriptor
78
Q

what is corporate image?

A

Consumer associations to the company or corporation making the product or providing the service (ex: Clorox owning Burt’s Bees)

79
Q

what is the role of a low-end, entry-level product?

A

to attract customers to the brand franchise

80
Q

what is the role of a high-end, prestige brand?

A

To add prestige and credibility to the entire portfolio

81
Q

what is the family brand level?

A

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

82
Q

what is the individual brand level?

A
  • 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
83
Q

what is the modifier brand level?

A
  • 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
84
Q

function of modifiers is to:

A

show how one brand variation relates to others in the same brand family
- Help make products more understandable and relevant to consumers

85
Q

what is the product descriptor brand level?

A

Helps consumers understand what the product is and does
- Helps define relevant competition in consumers’ minds

86
Q

The challenge in setting up a brand hierarchy is to decide:

A
  • 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
87
Q

what are the guidelines for defining a brand hierarchy?

A
  • 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
88
Q

what is the principle of growth?

A

Invest in market penetration or expansion versus
product development according to R O I opportunities

89
Q

what is the principal of survival?

A

Brand extensions must achieve brand equity in their categories

90
Q

what is the principle of synergy?

A

Brand extensions should enhance the equity of the parent brand

91
Q

principle of simplicity

A

Employ as few levels as possible

92
Q

principle of clarity

A

Logic and relationship of all brand elements employed must be obvious and transparent

93
Q

principle of relevance

A

Create abstract associations that are relevant across as many individual items as possible

94
Q

principle of differentiation

A

Differentiate individual items and brands

95
Q

principle of prominence

A

The relative prominence of brand elements affects perceptions of product distance and the type of image created for new products

96
Q

principle of commonality

A

The more common elements products share, the stronger the linkages

97
Q

Equity implications of each extension needs to be understood in terms of:

A

POP and POD

MRKT 438 (4 decks)

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