marketing 448 exam 2

advantages of global marketing programs

1. Economies of scale in production and distribution 2. Lower marketing costs 3. Power and credibility 4. Consistency in brand image 5. Ability to leverage good ideas quickly and efficiently 6. Uniformity of marketing practices

pros of vertical brand extensions

1. Extensions in either direction can offer consumers variety 2. An upward extension can improve brand image, because premium brand brings positive associations

3 steps to developing a brand architecture strategy

1. defining brand potential 2. identifying brand extension opportunities 3. branding new products and services

advantages of extensions

1. facilitate new-product acceptance 2. provide feedback benefits to the parent brand

brand equity measurement system

a set of research approaches designed to provide marketers with complete, up-to-date, and relevant information about brands

provide feedback benefits to the parent brand

a. Clarify brand meaning b. Enhance the parent brand image c. Revitalize the brand d. Bring new customers and increase market coverage

managerial assumptions in brand extensions

a. Consumers have some positive associations about parent brand in memory b. At least some of these positive associations will be transferred c. Negative associations are not transferred from parent brand d. Negative associations are not created from the brand extension

levels of brand hierarchy

a. Corporate or company brand - (General Motors) b. Family (umbrella) brand - Buick c. Individual brand - Regal d. Modifier - GS e. Product description - Midsize luxury sedan

steps in successfully introducing brand extensions

a. Define actual and desired consumer knowledge about the brand b. Identify possible extension candidates c. Evaluate the potential of the extension candidate d. Design marketing programs to launch extension e. Evaluate extension success and effects on parent brand

facilitate new-product acceptance

a. Improve brand awareness b. Improve brand image c. Reduce costs of introductory marketing programs d. Increase efficiency of promotional expenditures e. Reduce risk perceived by customers

core brand association

abstract associations that characterize the 5 to 10 most important aspects or dimensions of a brand

mental map

accurately portrays in detail all salient brand associations and responses for a particular target market

parent brand

an existing brand that gives birth to a brand extension

product strategy

an important role in creating, maintaining, and enhancing brand equity

holistic methods

attempts to come up with an overall estimate on the value of the brand

sub-brands

brand extension in which the new product carries both the parent brand name and the new name. new brand combined with existing brand ex: apple ipad, ford fiesta, ku business school

three important characteristics of defining brand potential

brand vision, brand positioning, brand boundaries

brand boundaries

identifying the products or services the brand should offer, and the need it should satisfy

conducting brand audits: marketing audit

independent examination of a company's marketing environment, objectives, strategies, and activities. internal focus

brand extension

is a new product introduced under and existing brand name

the brand vision

managements view of the brands long term potential

profiling for brand inventory consists of:

marketers to catalogue: 1. visual and written form for each product or service sold: portfolio 2. the inherent product attributes or characteristics of the brand: brand elements 3. pricing, communications, and distribution policies

basic principle of brand portfolio design

maximize market coverage and minimize brand overlap

comparative methods

means used to more directly assess consumer attitudes and behavior towards a brand

the brand positioning

puts some specificity into brand vision

future brand imperatives

-Fully and accurately factor the consumer into branding equation -Go beyond product performance and rational benefits -Make the whole of the marketing program greater than the sum of parts -Understand where you can take a brand and how -Do the "right thing" with brands -Take a big picture view of branding effects

global brand strategy

-Identify differences in consumer behavior and market structure -Adjust brand strategies -Brand positioning -Customer-based brand equity -Adjust brand marketing programs

rationale for going international

-Perception of slow growth and increased competition in domestic markets -Belief in enhanced growth and opportunity overseas -Desire to reduce costs from economies of scale -Need to diversify risk -Recognition of global mobility of customers

global marketing is most powerful when

-The image communicated can be identical across countries -The symbols used carry the same meaning across countries -The product features desired are the same -The usage conditions are similar across markets

future brand priorities

-The marketing environment will change more rapidly than ever -Consumers will increasingly be diverse, and empowered in future

identify differences in consumer behavior and market structure

-Understanding consumer behavior in local market -Involves conceptual skills and imaginative rethinking -Core benefit of a product can vary considerably across countries -Generic function of product depends more on local environment than on innate, individual preferences

step 2 of implementing brand equity measurement system: brand tracking studies

-collect info from consumers on a routine basis over time -usually through quantitative measures of brand performance on a number of key dimensions that marketers can identify in the brand audit or other means

neutral research methods

-neuromarketing -research indicates that consumers' buying decision is an unconscious habitual process

brand audit step 2: brand exploratory additional research activity

-often required to better understand how customers shop for and use different brands and what they think and feel about them -qualitative and quantitative

free associations

-powerful way to profile brand associations -consumers are asked to narrate: what comes to mind when they think about our brand or associated product category -help form rough mental map -indicate the relative strength, favorability, and uniqueness of brand

brand audit step 2: brand exploratory preliminary activities

-review prior research studies -interview internal personnel

disadvantages of qualitative research

-small sample size may not necessarily generalize to broader populations -due to qualitative nature, data is open to various interpretations

ideal brand positioning aims to achieve congruence between:

-what consumers currently believe about the brand -what consumers will value in the brand -what the firm is currently saying about the brand -where the firm would like to take the brand

brand architecture strategy helps marketers to determine:

-which products and services to introduce -which brand elements (brand names, logo, slogans ect) to apply to new and existing products

conducting quantitative research

1. Assess all potentially salient associations identified by the qualitative research phase according to their strength, favorability, and uniqueness 2. Examine both specific brand beliefs and overall attitudes and behaviors to reveal potential sources and outcomes of brand equity 3. Assess the depth and breadth of brand awareness by employing various cues 4. Conduct similar types of research for competitors to better understand their sources of brand equity and how they compare with the target brand

disadvantages of brand extensions

1. Can cannibalize sales of parent brand 2. Can succeed but hurt the image of the parent brand 3. Can cause the company to miss the chance to develop new brand 4. Can confuse or frustrate customers 5. Can encounter retailer resistance 6. Can fail and hurt brand image of parent brand

cons of vertical brand extensions

1. Can confuse consumers with price range 2. Can harm parent brand's image by introducing associations common to lower-priced goods

projective techniques

1. Consumers may be unwilling or unable to reveal their true feelings when marketers ask about their brands 2. Diagnostic tools to uncover the true opinions and feelings of consumers 3. These techniques might present consumers with ambiguous stimulus and ask them to make sense of it 4. The idea is that in the process consumers will reveal some of their true beliefs and feelings

When a firm introduces new products, the firm has 3 choices for branding it

1. Developing a new brand, individually chosen for the new product 2. Applying one of its existing brands (brand extension) 3. Using a combination of new brand and existing brand (sub-brand)

disadvantages of global marketing programs

1. Differences in consumers wants and needs 2. Differences in consumer response to branding elements 3. Differences in consumer responses to marketing mix elements 4. Differences in brand and product development and the competitive environment 5. Differences in the legal environment 6. Differences in marketing institutions 7. Resistance from local offices

acquiring new customers

1. Firms must proactively develop strategies to attract new customers, especially younger ones 2. Marketing challenge lies in making a brand seem relevant to vastly different generations and cohort groups or lifestyles

retiring brands

1. First step - reduce the number of its product types to reduce the cost of supporting the brand 2. orphan brand 3. When the brand is beyond repair, marketers have to take more drastic measures, such as consolidating it into a stronger brand 4. A permanent solution is to discontinue the product altogether

brand-product matrix

1. Graphical representation of all firm's products and services 2. The rows represent brand-product relationships and the firm's brand extension strategy 3. The columns represent product-brand relationships and the brand portfolio strategy

migration strategies

1. Helps consumers understand how various brands in the portfolio can satisfy their needs as they change over time 2. Or as products and brands themselves change over time

expanding brand awareness

1. Identifying additional or new usage opportunities 2. Identifying new and different ways to use the brand

improving brand image

1. Identifying the target market 2. Re-positioning the brand 3. Changing brand elements

brand portfolio

1. Includes all brands sold by a company in a product category 2. Judged by its ability to maximize brand equity: any one brand in portfolio should not harm another's equity 3. Ideally, each brand maximizes equity in combination with all other brands in portfolio

why might a firm have multiple brands in the same product category

1. Increase shelf presence and retailer dependence in store 2. Satisfy different wants and needs within the segment 3. Attract customers seeking variety who may otherwise switch to another brand 4. Increase internal competition within firm

protecting sources of brand equity

1. Little need to deviate form successful positioning 2. Key sources of brand equity are of enduring value

maintaining brand consistency

1. Market leaders and failures 2. Consistency and change

fine-tuning the supporting marketing program

1. Product-related performance associations a. Innovation critical to success 2. Non-product-related imagery associations a. Relevance in user imagery is critical to success

fortifying vs. leveraging

1. Tradeoffs between marketing activities that fortify brand equity and those that leverage it in pursuit of growth and financial gains

what makes a strong brand?

1. Understand brand meaning and market appropriate products and services in an appropriate manner 2. Properly position brand 3. Provide superior delivery of desired benefits 4. Employ a full range of complementary brand elements, supporting marketing activities, and secondary associations 5. Embrace integrated marketing communications and communicate with a consistent voice 6. Measure consumers perceptions of value and develop a pricing strategy accordingly 7. Establish credibility and appropriate brand personality and imagery 8. Maintain innovation and relevance 9. Strategically design and implement a brand architectural strategy 10. Implement a brand equity measurement system

10 commandments of global marketing

1. Understand similarities and differences in global branding landscape 2. Don't take shortcuts in brand building 3. Establish marketing infrastructure 4. Embrace integrated marketing communications 5. Cultivate brand partnerships 6. Balance standardization and customization 7. Balance global and local control 8. Establish operable guidelines 9. Implement a global brand equity measurement system 10. Leverage brand elements

brand hierarchies

1. Useful means of graphically portraying a firm's branding strategy 2. Displays the number and nature of common and distinctive brand elements across the firm's products

zaltman metaphor elicitation technique (ZMET)

1. ZMET is based on belief that consumers often have subconscious motives for their purchasing 2. Uncovers hidden thoughts and feelings which can be expressed using metaphors

step 3: establishing brand equity management system involves the creation of:

1. brand equity charter 2. brand equity report 3. the development of senior management to oversee the implementation of these tools

brand audit steps

1. brand inventory 2. brand exploratory

2 main ways to measure the outcomes of brand equity

1. comparative methods 2. holistic methods -these can provide insights into the effectiveness of marketing actions

3 steps of implementing a brand equity measurement system

1. conducting brand audits 2. designing brand tracking studies, and 3. establishing a brand equity management system

main goal of measuring brand equity

1. constructing mental maps, leads to exact understand of what exists in customers minds 2. use these mental maps to develop POP's & POD's

7 deadly sins of brand management

1. failure to fully understand the meaning of the brand 2. failure to live up to the brand promise 3. failure to adequately support the brand 4. failure to be patient with the brand 5. failure to adequately control the brand 6. failure to properly balance consistency and change with the brand 7. failure to understand the complexity of brand equity measurement and management

rationale of branding inventory

1. helps understand consumers perceptions 2. provides analysis and useful insights into how brand equity may be better managed 3. reveals the extent of brand consistency and lack of perceived differences among different products sharing the brand name 4. helps uncover undesirable redundancy and overlap that could lead to consumer confusion or retailer resistance

reinforcing brands

1. maintaining brand consistency 2. protecting sources of brand equity 3. fortifying vs. leveraging 4. fine-tuning the supporting marketing program

adjustments to the brand portfolio

1. migration strategies 2. acquiring new customers 3. retiring brands

keystones to successful brand management

1. reinforcement of brand meaning 2. identification of new sources of equity/ revitalizing brands

qualitative research should:

1. vary in direction and depth as well as technique 2. provide accurate interpretation 3. ask specific questions, so as to narrow the range of info given by respondents 4. ask open ended questions for freer and less constrained responses

vertical brand extensions

Extend the brand across a range of price points -Extend the brand up into more premium market segments -Extend brand down into more value-conscious segments

adjust brand marketing programs

Key steps of global advertising 1. Market research 2. Identify goals 3. Message development 4. Select media 5. Define budget 6. Execute 7. Post campaign evaluation

standardization and customization

Most fundamental issue in developing a global marketing program is the extent to which the marketing program should be standardized across countries

brand-product relatoinships

characterize the breadth of brand architectural strategy(brand extension)

product-brand relationships

characterize the depth of the brand architectural strategy(brand portfolio)

conducting brand audits: brand audit

comprehensive examination of a brand to discover its source of brand equity. external focus.

brand audit step 1: brand inventory

comprehensive profile of how all the products and services of a company are marketed and branded

depth

deals with brand portfolio and set of all brands that a particular seller offers

breadth

describes product mix and which products the firm should sell

advantages of qualitative research

discover consumer perceptions that are difficult to uncover

revitalizing brands

expanding brand awareness, improving brand image

qualitative research techniques

free associations, projective techniques, zaltman metaphor elicitation technique, neutral research method, and focus group method

focus group

group of people are asked about their perceptions, opinions, feelings, & attitudes towards a brand, product, service, or advertisement

step 2: identifying brand extension opportunities

helps to identify new products to achieve that potential

examples of qualitative research

mental maps and core brand association

category extension

new product introduction outside existing categories. marketers apply the parent brand to enter a different product category from the one it currently serves

line extension

new product introductions within existing categories. adds variety, different form or size, or different application for the brand

orphan brand

once popular brand with diminished equity that a parent company allows to decline by withdrawing marketing support

family brand

parent brand associated with multiple products through brand extensions

step 1: defining brand potential

provides clear sense of direction for the brand.

neuromarketing

study of how brain responds to marketing stimuli, including brands

useful tools for formulating brand architecture strategy

the brand-product matrix, brand portfolio, brand hierarchy

house of brands strategy

the firm employs a collection of individual brands all with different names. ex: P&G, unilever

branded house strategy

the firm employs a family brand for all its products. ex: siemens, oracle, nike

step 3: branding new products and services

to decide on the specific brand elements to use for any particular new product or service associated with the brand

purpose of brand equity measurement system

to provide timely, accurate and actionable information that marketers can use in their tactical and strategic decision-making. can help in short run and long run

brand audit step 2: brand exploratory objective of it

to understand what consumers think and feel about a brand to identify source of brand equity

Return of marketing investment (ROMI)

virtually every marketing dollar spent today must be justified