Textbook 2

Question 1

what are the 3 main types of marketing communication options?

Answer 1

(1) advertising and promotion, (2) interactive marketing, and (3) events and experiences

Question 2

what are the 2 key implications from chapter 6?

Answer 2

• all possible communication options should be evaluated regarding their ability to affect brand equity
• the marketing communications program should be put together in a way such that the whole is greater than the sum of the parts

Question 3

what are the Keller Bs (8)?

Answer 3

• be ANALYTICAL: use frameworks of consumer behaviour and managerial decision making to develop well-reasoned communication programs
• be CURIOUS: better understand customers through research + always be thinking about how you can add value
• be SINGLE-MINDED: focus your message on well-defined target markets (less is more)
• be INTEGRATIVE: reinforce message across all communication communication options
• be CREATIVE: state message in a unique fashion (SURF)
• be OBSERVANT: keep track of competition, customer, employees, etc.
• be PATIENT: take a long-term view
• be REALISTIC: understand there are complexities

Question 4

how does digital personalization work?

Answer 4

retargeting consumers—that is, by targeting consumers with ads for products that they previously browsed but did not buy

Question 5

what are the three organizational prerequisites for digital personalization to be successful?

Answer 5

(1) Organizations must invest in a customer data warehouse that provides continuous monitoring and feedback

(2) Organizations must deploy cross-functional teams to understand the customer’s decision journey

(3) Organizations must employ an repetitive process of testing and learning

Question 6

what are the 8 different ways to leverage secondary associations to build brand equity?

Answer 6

(1) the company making the product
(2) the country or some other geographic location in which the product originates
(3) retailers or other channel members that sell the product
(4) other brands, including ingredient brands
(5) licensed characters
(6) famous spokespeople or endorsers
(7) events
(8) third-party sources

Question 7

what are four general guidelines for creating and measuring ROI from brand marketing activities?

Answer 7

(1) spend wisely - focus and be creative
(2) Look for benchmarks—examine competitive spending levels and historical company norms
(3) Be strategic—apply brand equity models
(4) Be observant—track both formally and informally

Question 8

the customer-based brand equity framework emphasizes:

Answer 8

employing a range of research measures and methods to fully capture the multiple potential sources and outcomes of brand equity

Question 9

what is the equalization price?

Answer 9

the price that equates the utility of a brand to the utilities that could be attributed to a brand in the category where no brand differentiation occurred

Question 10

difference between attribute-perception based component and nonattribute preference component of brand equity

Answer 10

• attribute-perception based: the difference between subjectively perceived attribute values and objectively measured attribute values
• nonattribute preference: difference between subjectively perceived attribute values and overall preference

Question 11

what are tangible and intangible assets?

Answer 11

• Tangible assets: property, plant, and equipment; current assets (inventories, marketable securities, and cash)
• Intangible: augment the earning power of a firm’s physical assets (patents, trademarks, and licensing agreements)

Question 12

what are the critiques of the residual approach?

Answer 12

• only appropriate for brands with a lot of product-related attribute associations
• static view of brand equity

Question 13

The ability to put a specific price tag on a brand’s value is useful for a number of reasons:

Answer 13

• mergers and acquisitions
• brand licensing
• fundraising
• brand portfolio decisions
• understanding ROI

Question 14

what is the function of a brand-product matrix?

Answer 14

• The rows represent brand–product relationships and capture the firm’s brand EXTENSION strategy
• The columns of the matrix represent product–brand relationships and capture the brand PORTFOLIO strategy in terms of the number and nature of brands to be marketed in each category

Question 15

how do we organize a brand architecture strategy in terms of its depth and breadth?

Answer 15

We characterize a brand architecture strategy according to its breadth in terms of brand–product relationships and brand extension strategy, and its depth in terms of product–brand relationships and the brand portfolio or mix

Question 16

what is a common strategy to brand a new product?

Answer 16

make a sub-brand

Question 17

brand visibility and prominence depend on:

Answer 17

factors such as the order, size, color, and other aspects of the brand’s physical appearance

Question 18

In terms of building brand equity, we should link associations at any one level based on principles of:

Answer 18

relevance and differentiation