week 2 - customer based brand equity + brand positioning

Question 1

what is a brand

Answer 1

a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”

Question 2

what is a brand element

Answer 2

can be based on people, places, things, and abstract images

Question 3

what is a product

Answer 3

A product is anything that is offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

By creating perceived differences among products through branding and by developing a loyal consumer franchise, marketers create value that can translate to financial profits for the firm.
Firms see branding as a powerful means to secure a competitive advantage.

Question 4

explain strategic brand management

Answer 4

Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.
Consumers often don’t buy products; they buy the images associated with products.

Question 5

what is brand equity

Answer 5

the differential effect that brand knowldeg has on a conumer response to the marketing of a brand

• the value of a brand from a consumer perspective - based on consumer attitudes

Question 6

why is CBBE important for marketers

Answer 6

The CBBE framework gives marketers the understanding of how consumers perceive a brand and interact with it.

Consumer knowledge gives marketers the ability to manage a brand to achieve a competitive advantage over rival brands

Question 7

advantages of strong CBBE

Answer 7

Improved perceptions related to product performance
Greater Loyalty
Larger profit margins
Greater cooperation from suppliers & marketing intermediaries
Increased IMC effectiveness
More licensing and brand extension opportunities
Less vulnerability to competitors’ marketing actions and marketing crises
Favourable consumer response to price changes

Question 8

what is consumer based brand equity

Answer 8

A brand is created in the minds and hearts of the consumers.
Customer-based brand equity (CBBE) says that the strength of a brand in what consumers have learned, felt, seen, and heard about the brand as a result of their experiences over time.
Strong BE is created through brand knowledge, which is from brand awareness and brand image

Question 9

define the differntial effect

Answer 9

The brand needs to be unique and different in the minds of the consumer. The starting point of establishing a strong brand equity is crafting a unique brand positioning.

Question 10

explain brand knowledge

Answer 10

this differential effect needs to be communicated to the consumers and that is how consumers will have a knowledge about your brand (this is when brand equity is created). This knowledge is created through the sources of brand equity.

Question 11

explain consumer response to marketing

Answer 11

signifies the outcomes of brand equity

Question 12

3 key ingredients to customer based brand equity

Answer 12

1. differential effect
2. brand knowledge
3. consumer response to marketing.

Question 13

sources of brand equity

Answer 13

brand trial, brand recognition, brand awareness, brand preference and brand loyalty

Question 14

CBBE occurs when consumers have

Answer 14

have a high level of awareness and familiarity with the brand
In low involvement decision situations (e.g., FMCG – fast moving consumer goods, brand awareness alone is sufficient)
hold strong, favourable, and unique brand associations in memory

Question 15

define brand recognition

Answer 15

Consumer ability to recognise a brand as to one they have been exposed before
point of purchase situations

Question 16

define brand recall

Answer 16

Consumer ability to retrieve the brand from memory when given a product category, needs fulfilled by the category , or a purchase or usage situation as a cue
What and how much is recalled?

Question 17

brand awarness benefits

Answer 17

learning:
The first step is to register the brand in consumers’ minds
Influences the formation and strength of brand associations
Choosing right brand elements makes learning easier

2. consideration:
   Higher brand awareness increases the likelihood that the brand will be a member of the consideration set (with only handful of brands)
   Customers are rarely loyal to one brand (in one product category)
3. choice:
   In many cases, consumers only buy well established and more familiar brands
   In low involvement situations, a minimum level of brand awareness may be sufficient for product choice

Question 18

what is brand positioning

Answer 18

Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds
Allows consumers to think about a product or service in the ‘right’ perspective

Question 19

The four components of positioning

Answer 19

Identify their target customers (frame of reference – target
market and competition)

Analyse the type of
competition they might face in the identified market base

Identify product features and associations that are similar to their competitors (point of parity)

Identify product features and associations that are different to their competitors (point of difference) – PoP and PoD  Brand Mantra

Question 20

define points of parity

Answer 20

Attributes shared with other brands, and not necessarily unique to the brand.

Question 21

3 types of points of parity associations are:

Answer 21

Category points of parity: necessary conditions for brand choice

Competitive points of parity: association designed to negate competitors’ points of difference

Correlational point of parity: potential negative associations that arise from the existence of other, more positive associations for the brand

Question 22

explain category points of parity

Answer 22

Category points- of-parity: These represent the necessary elements that a brand should possess for a consumer to consider it in a particular category

Category POPs may change over time because of technological advances, legalities and consumer trends

Question 23

explain competitive points of parity

Answer 23

Competitive points-of-parity: The next step is to add elements which would negate the competitors’ points of difference i.e., provide similar or better elements as compared to its competitor’ POD.

Question 24

explain correlational points of parity

Answer 24

Correlational points-of-parity: Potential negative associations that arise from the existence of other, more positive associations for the brand.
E.g., consumers might find it hard to believe a brand is “inexpensive” and at the same time “of the highest quality.”

Question 25

point of difference associations should be

Answer 25

Attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that these attributes or benefits are unique to the focal brand, or that these cannot be found to the same extent in a competitive brand.

Question 26

choosing points of difference (criteria)

Answer 26

Desirability criteria:
Considered from the customers’ point-of-view
Target customers must find POD personally relevant and important.

Deliverability criteria
Feasibility: ability of the firm to make product or service available to the target market
Communicability: effectiveness in convincing consumers of the firm’s ability to deliver to their promise

Differentiating criteria
Target customers must find the POD distinctive and superior.

Question 27

what is a brand mantra

Answer 27

Short, three-to five-word phrase that captures the essence or spirit of the brand positioning.
Helps the brand convey a consistent image – need to always reinforce and support the brand meaning
The core brand promise
Provides guidance about:
What products to introduce under the brand.
What ad campaigns to run.
Where and how the brand should be sold.

Question 28

a good brand mantra should include

Answer 28

Brand functions: Nature of the product or service or the type of experiences or benefits the brand provides
Descriptive modifier: Combined with brand functions, helps delineate the brand boundaries e.g., if it is not athletic then it is not in Nike’s core business
Emotional modifier: Determines how a brand provides benefits and in what ways.

Question 29

market segmentation can be undertaken by

Answer 29

behavioural
demographic
psychographic
geographic