MAR 445 Brand Management Quiz #1

What are the three determinants of profit?

- expenditures - sales volume - margin

Explain "brand equity" "value equity" "relationship equity" and "customer equity." What is the meaning of each? How are they related? Which is the most important?

-brand equity: customers subjective assessment of a brand's offerings beyond the perceived value- can be positive or negative -value equity: quality, price and connivence of offering beyond perceived -relationship equity: consumers awareness of the brand and their attitude towards it -customer equity sum of lifetime values of all of the firms customers across all of their brands FOCUS ON CUSTOMER EQUITY OVER BRAND EQUITY

What are the 3 themes of this brand management course

1. The two pillars- being internally oriented (doing things right via operational efficiency) and externally oriented (doing the right thing via strategic effectiveness)

In the HBR article "Customer-Centered Brand Management", the authors suggest a list of guidelines for successful brand management (e.g., "Build brands around customer segments"). List them as many as you remember.

1. build brands around customer segments 2. measure brand equity for individuals and segments 3. make brands as narrow as possible!!! 4. brand extension based on customer needs (Ex: motorcycle company makes lawnmowers) 5. find best customer fit with brand portfolio 6. be willing to retire ineffective brands

list the most important characteristics of a sonite in order

1. price 2. processing power 3. display 4. design 5. battery 6. # of features

Suppose your firm currently markets two existing brands, MORE and MOTION, and the firm's R&D department has just completed a new product development under the project name, POMOM. Which of the following best describes the possible ways to utilize POMOM? 1. To launch a new brand, MOM, with the physical characteristics of POMOM. 2. To modify MORE to upgrade its physical characteristics with POMOM. 3. To launch a new brand, MOM, and modify MORE simultaneously, both based on the physical characteristics of POMOM. 4. All of the above.

3.

What is the difference between doing things right and doing the right thing

Apart of the two pillars theme doing things right: an internal oriented strategy involving cost reductions, product quality control, productivity and labor relations. It focuses on operational efficiency and bringing the product to the market for sale doing the right thing: an external oriented strategy involving competition, buyers, distribution channel and strategic alliance. Focused on strategic effectiveness and brings a marketing strategy to a product

what is the semantic scales

all about the physical attributes of the products and what customer segments prefer what (price, processing power and display are all the three most important)

What are the three most important factors in the marketing environment (commonly known as the three C's) that a brand manager must thoroughly analyze before making strategic decisions

as demonstrated by the third theme: it depends -company mission strategy (brand portfolio, strengths, weaknesses, performance) who are we and where are we going? -customer characteristics -competitive environment

What does it mean to "own the market"

be profitable and maintain sustainable relationships

if you wanted to find out the actual market share of your market amongst consumers what market research study would you buy

consumer panel (it is legit just market shares and industry volume)

if you wanted to find out the brand awareness, purchase intentions and shopping habits of customer what would you buy

consumer survey because it gives more of an in depth look into the consumers emotional spending habits

what is the competitive intelligence marketing research study

estimates of advertising and commercial team budgets spent by the 5 companies in the sonites during period 2

what does the market forecast yield

estimates of the market size in one period and in five periods one is in total market share and one is for consumer segments

What are the five consumer segments of the sonite market?

explorers shoppers professors high earners savers

At the beginning of the period, your brand management team decided that the production volume for a brand TEMP should be 100K units. However, at the end of the period, your firm's production report indicates that 115K units of TEMP were produced. Why is there a discrepancy?

extra were produced in case there was an extremely high demand, however at the end of the period the extra if not sold would result in a loss of money

What are the differences between "good marketing" "bad marketing" and "ugly marketing"

good marketing= owning the market bad marketing=selling to the market ugly marketing= buying market share

Why should a brand manager make her/his brand "as narrow as possible"?

identifying a niche and narrow target market and adapting your brand to best fit the exact preferences of that market

what study would you purchase when trying to compare yourself to your competitors

industry benchmarking

What are the three consumers segments of the vodite market?

innovators early adopters followers

what is the distribution panel market research study

provides continuous tracking of products to consumers based on information gathered at the retail POS- all about sales % of the CHANNELS (specialty stores, mass merchandisers and online stores)

unit margin formula

retail price- transfer cost

Between a low level of design (or display, connectivity, processing power, etc.) and a high level, which is better for consumers? Which is a better strategic choice for the brand?

said the lower the levels the cheaper the product. the brand should focus on what consumers are looking for in a product so that some levels should be high and some lower so that its affordable but caters to consumers needs

What is "the flaw of averages"? Why should brand managers try to avoid it?

saying that brands should not look at wide segments as a whole, instead they should narrowly focus on what is really important to their target demographic. You want a better product for a specific market- so if one brand has ok numbers across three segments but another brand has AMAZING numbers in one segment you are going to want to go with the amazing brand this is seen in the nike in the colin capernick example

Between the selection of a target market and designing an advertising message, which decision should be made first?

selecting a target market

what is the difference between transfer cost and base cost

transfer cost- price paid my marketing to production when they are shipped to distributors and sold to customers- incorporates all fixed costs and depreciation base cost- the cost at which each unit will be produced based on the initial production batch

What are the relationships between the sonite market and the vodite market? Are they substitutes, complements, or independents?

vodite products will serve a completely different need than that of the sonite market- they are independents as they do not complement or substitute each other at all which in turns makes the vodite market out to be very attractive