MKT Ch 8

national brand

it's named after or directly associated with the manufacturer. For example, Sony and Kellogg sell their output under their own brand names (Sony Bravia HDTV or Kellogg's Frosted Flakes). Bayer and CVS Aspirin both have the same dosage, directions and active ingredient.

new brand

name is needed or they want to enter a new product category for which none of its current brand names are appropriate. •For example, Toyota created the separate Scion brand, targeted toward millennial consumers.

B

Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on ________. A) product benefits B) product attributes C) beliefs and values D) market share E) brand loyalty

Product attributes

For example, P&G's Early Pampers marketing focused on attributes such as fluid absorption, fit, and disposability. •Problem: Competitors can easily copy attributes. Also, customers are not interested in attributes as such; they are interested in what the attributes will do for them.

C

Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware?A) brand extensions B) line extensions C) multibrands D) new brands E) co-brands

Desirable benefits

Some successful brands positioned on benefits are FedEx (guaranteed on-time delivery), Nike (performance), Lexus (quality), and Walmart (low prices).

B

Which of the following is an example of licensing?A) DMX, an electronics manufacturer, acquires Z-Elex, a start-up firm, and sells all Z-Elex's products under the DMX brand name. B) Berry, a fruit juice company, uses a well-known cartoon character to promote the company's line of children's products and pays the creator of the cartoon character a fee. C) XLC, a sporting goods firm, sponsors a number of top athletes in various sports and also hosts the XLC Sporting Achievement Awards. D) ZetaBike, a bicycle manufacturer, teams up with VitaWater, a sports drink producer, to introduce ZetaVita, an energy drink. E) Mason's, a retail chain, sells a number of different products from different manufacturers under the brand name Mason's.

D

2) Which of the following is a desirable quality for a brand name? A) The name should be unique and difficult to pronounce to ensure legal protection. B) The name should be a common word rather than a distinctive one. C) The name should not suggest anything about the product quality. D) The name should translate easily into foreign languages. E) The name should not be extendable.

Strong beliefs and values

Brands such as Godiva, Apple, Victoria's Secret, and Trader Joe's rely less on a product's tangible attributes and more on creating surprise, passion, and excitement surrounding a brand.

What is a brand?

Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."

A

________ occurs when a company uses its existing brand name for newforms, colors, sizes, ingredients, or flavors of an existing product category. A) Line extension B) Co-branding C) Private labeling D) Brand extension E) Clustered branding

B

________ occurs when two established brand names of different companies are used on the same product. A) Licensing B) Co-branding C) Private branding D) Franchising E) Brand positioning

private brand

aka store brand) by manufacturers or resellers (e.g. retailers or wholesalers). •For example, private-label apparel, such as Arizona Jean Company (JCPenney) and Xhilaration (Target) are store brands launched by those resellers.

Multibrands

exist when companies market many different brands in a given product category. •For example, P&G sells six brands of laundry detergent (Tide, Cheer, Gain, Era, Dreft, and Ivory) and four brands of dishwashing detergent (Dawn, Ivory, Joy, and Cascade). •Advantages: Multibranding offers a way to establish different features that appeal to different customer segments and capture a larger market share. •Disadvantages: each brand might obtain only a small market share, and none may be very profitable.

brand extension

extends a current brand name to new or modified products in a new category. •For example, Victorinox extended its Swiss Army brand from multitool knives to cutlery and ballpoint pens to watches, luggage, and apparel. •Advantages: instant recognition of brand name on new items. •Disadvantages: brand image can become confusing and lose its equity.

Line extensions

occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category. •Coca-Cola offers 20 different varieties of 'Cokes' such as Diet Coke, Black Cherry etc. •Advantages: low-cost and low-risk to company. •Disadvantages: overexposure of brand name. •A line extension works best when it takes sales away from competing brands, not when it "cannibalizes" the company's other items.

D

xenon, a leading consumer-electronics manufacturing company, markets its products under the company's ownbrand name. In this case, Xenon has sponsored its products by promoting them as ________ brands. A) licensed B) private C) store D) national E) distributor

E

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of co-branding by BerryBerry? A) The company introduces BerryBliss, a dried berry snack mix for kids. B) BerryBerry adds a new fruit juice flavor, TangyBerry. C) The company introduces a line of flavored milk and yogurt under a new brand name. D) The company creates a new brand, NatureFresh, for a lineof cosmetics based on fruit flavors and colors. E) BerryBerry teams up FX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

High brand equity provides a company with

Consumer brand awareness and loyalty •More leverage in bargaining with resellers •Some defense against fierce price competition •The basis for building strong and profitable customer relationships

Multibrands

Description: Different brands, same producer Advantages: Broader appeal Risks: May be weak

Line Extensions

Description: Extend a brand name to new forms Advantages: Low-cost, low risk, Risks: Over-exposure of brand name

brand extension

Description: Extend to new product categories Advantages: Instant recognition Risks: Confusing brand image

New Brands

Description: New brands, new products Advantages: Best for new/different products Risks: equire significant resources

B

Non-Dairy Delight, a manufacturer of soy milk, attracts new customers by adding cinnamon, pumpkin, and vanilla flavors to its traditional product. In this case, the company has developed its brand with ________. A) brand extensions B) line extensions C) multibranding D) new product lines E) co-branding

D

_______ involves using an existing brand name for a new product category. A) Line extension B) Co-branding C) New branding D) Brand extension E) Multibranding