Topic 2: Customer Based Brand Equity and Brand Positioning

Question 1

Define Customer Based Brand Equity

Answer 1

CBBE is the differential effect that brand knowledge have on consumer response to the marketing of that brand

Positive: react favourably, Negative: react less favourably to marketing activity

Question 2

Marketing Advantages of Strong Brands

Answer 2

LLIG
Larger margins
Less vulnerability to marketing crises
Improve perceived product performance
Greater loyalty

Question 3

Brand Knowledge on Nodes and Links

Answer 3

Nodes- represent stored information

Links- represent the strength of association between the nodes

Question 4

Definition of brand awareness

Answer 4

Brand awareness consists of brand recognition and brand recall

Brand recognition- consumers ability to confirm prior exposure to brand when given brand as cue

Brand recall- consumers ability to retrieve the brand from memory when given product category

Anything that causes consumers to experience one of a brand element can increase familiarity and awareness of that brand element

Repetition increases recognisability

Question 5

Advantages of brand awareness

Answer 5

LCC

Learning advantages
Consideration advantages
Choice advantages

Question 6

Brand Image

Answer 6

Once a sufficient level of brand awareness is created, marketers can put more emphasis on crafting a brand image

SFU
Strength, Favourability, Uniqueness of Brand Associations

Question 7

Define brand positioning

Answer 7

Brand positioning is the act of designing a company’s offer and image so that it is placed in the mind of the consumers

Question 8

Market segmentation

Answer 8

Divides the market into distinct group of homogenous consumers and involves a criteria: SARI

Size, Accessibility, Responsiveness, Identifiability

Question 9

Nature of competition

Answer 9

When choosing a market, marketers must consider
INDIRECT COMPETITION (nikon camera vs iphone camera)
Multiple frames references

Question 10

Points of Parity and Points of Difference

Answer 10

POP: not necessarily unique to brand, but may be shared with other brand

POD: attributes or benefits that consumers associate unique to that particular brand