Review questions

Associated services

(Also called augmented product) The nonphysical attributes of the product including product warranties, financing, product support, and product support, and after-sale service

Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G Select one: A. has greater control over its marketing strategy. B. can increase brand dilution. C. has greater opportunity to dictate retail pricing. D. can eliminate any local competition. E. can monopolize store brands.

A Brand ownership gives the owner greater control over its marketing strategy—the ability to position the brand and to establish the marketing mix.

Brand licensing

A contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee.

Family brand

A firms own corporate name used to brand its product line and products

Brand repostitioning

A strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences Also known as Re-branding

Product

Anything that is of value to a consumer and can be offered through a voluntary marketing exchange

Marketers with successful brands sometimes hesitate to expand their brands because Select one: A. the current economy can support only a limited number of product options. B. it is costly to maintain many product lines, and it might weaken the brand's meaning. C. Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name. D. it is often difficult to get additional marketing communications coverage for the brand. E. manufacturing divisions usually control brand expansion and are often in conflict with the marketing division.

B Each product line involves some additional cost, and if too many product lines are associated with the same brand it can weaken the brand's meaning and reputation.

Private-label brands

Brands developed and marketed by a retailer and available only from that retailer; also called store brands.

Manufacturer Brands (National brands)

Brands owned and managed by the manufacturer.

Which of the following scenarios is not a reason a firm would eliminate an item within a product line? Select one: A. The product undermined its own brand. B. The firm decided to refocus marketing efforts elsewhere. C. The firm has decided to capture new markets. D. The product being eliminated is unprofitable. E. The firm must respond to evolving markets.

C All of these are reasons why firms might decide to delete a product from a product line, except the desire to capture new markets.

The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created Select one: A. a brand extension. B. brand dilution. C. a brand association. D. brand ownership. E. brand loyalty.

C Brand associations reflect the mental and emotional links that consumers make between a brand and its key product attributes, such as a logo and its color, slogan, or famous personality.

Which of the following is not one of the four criteria used for determining how "good" a brand is, or how much equity it has? Select one: A. brand awareness B. perceived value C. brand conceptualization D. brand associations E. brand loyalty

C Brand awareness, brand loyalty, brand associations, and perceived value are the four primary criteria used to evaluate brand equity.

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct Select one: A. product mixes. B. brands. C. product lines. D. augmented services. E. brand associations.

C Graduate and undergraduate programs at most universities are distinct product lines, with each product line including multiple degrees.

Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer. Select one: A. price-sensitive B. brand-extension-oriented C. brand-loyal D. brand-persuasion-oriented E. brand-association-oriented

C Since Jenna does not consider other brands, she is brand loyal.

A product is __________ that can be offered through a voluntary marketing exchange. Select one: A. the combination of a firm's marketing mix B. a tangible item C. anything of value to consumers D. the category depth E. the brand associations

C This is the definition of a product. It does not have to be a tangible item; it can also be a service, or a combination of a good and associated services.

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl? Select one: A. because the Super Bowl is a significant opportunity to be associated with global marketing B. there is no good reason C. because Super Bowl ads generate brand loyalty D. because the Super Bowl offers an opportunity to create significant brand awareness E. because of the annual competition for the most creative Super Bowl ad

D Some firms might agree that it doesn't make sense to spend so much money on a Super Bowl ad; however, the Super Bowl offers a huge TV audience and, with it, a major opportunity to build brand awareness.

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool. Select one: A. PDQ B. IMF C. SKU D. GATT E. CRM

E Keeping track of customers' preference enhances the relationship and increases brand loyalty, all part of customer relationship management (CRM).

Product lines

Groups of associated items, such as those

Brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

Breadth

Number of product lines offered by a firm; also known as variety

Brand dilution

Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

Brand loyalty

Occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category.

Sustainable packaging

Product packaging that is ecologically responsible.

Consumer product

Products and services used by people for their personal use.

Retailer/store brands

Products developed by retailers. Also called private-label brands.

Unsought products/ services

Products or services consumers either do not normally think of buying or do not know about

Specialty products/services

Products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers.

Core customer value

The basic problem-solving benefits that consumers are seeking

Product mix

The complete set of all products offered by a firm.

Brand association

The mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality.

Depth

The number of categories within a product line.

Actual product

The physical attributes of a product including the brand name, features/design, quality level, and packaging.

Co-branding

The practice of marketing two or more brands together, on the same package or promotion

Perceived Value

The relationship between a product's or service's benefit and its cost.

Brand equity

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by product or service.

Individual Brands

The use of individual brand names for each of a firms products

Brand extension

The use of the same brand name for new products being introduced to the same or new markets.

Line extension

The use of the same brand name within the same product line and represents an increase in a product line's depth.

Secondary package

The wrapper or exterior carton that contains the primary package and provides the UPC label used b retail scanners; can contain additional product information that may not be available on the primary package.

Shopping products/ services

Those for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances

Convenience product/services

Those for which the consumer is not willing to spend any effort to evaluate prior to purchase