Brand Management Final Exam

The gauges that measure brand equity

Brand-Based Comparative Approaches Marketing-Based Comparative Approaches Conjoint analysis

Blind Taste test is an example of

Brand-Based Comparative Measurement of brand equity

Branded house vs. House of brands

Branded house- Ex: GE, everything under GE has GE , Apple House of brands - proctor and gamble (P&G) has a whole bunch of subbrands under it that are relatively independent, Amazon

Benefits of Brand equity

Improved perceptions of product performance Greater customer loyalty Less vulnerability to competitive marketing actions Less vulnerability to marketing crises Higher margins More inelastic consumer response to price increases More elastic consumer response to price decreases Greater trade cooperation and support Increased marketing communication effectiveness Possible licensing opportunities Additional brand extension opportunities Improved attraction and retention of employees

Why do companies choose to have multiple brands in the same category?

Increase shelf presence and retailer dependence in the store Attract consumers seeking variety who may otherwise switch to another brand Increase internal competition within the firm Yield economies of scale in advertising, sales, merchandising, and physical distribution

T/F One of the challenges in developing a global ad campaign is the changing legal restrictions

True

T/F Products may be at different stages of their life cycle in different countries

True

T/F When marketing to regional subcultures and ethnic markets we may have to have a culture based focus.

True

T/F When repositioning a brand it is important to understand the level of brand equity you have, its associations and sources that it comes from so you can invest in areas that are driving the most valuable brand equity for the firm.

True

Free Associations

ask people what comes to mind when they think of a brand

Brand Equity Report

assembles the results of the tracking survey and other relevant performance measures for the brand into a brand equity report, updated monthly, quarterly or yearly Provides descriptive information as to what is happening with the brand as well as diagnostic information on why it is happening

Favorability

is it desirable to consumers

Brand Bible

it defines the firms view of branding or brand equity and explains why its important. It also describes the scope of brands in terms of associated products. Specifies the proper treatment of the brand in terms of trademark usage, line considerations, packaging, and communications.

Brands need constant can consistent nurturing to grow and weak brands often suffer from a __________ commitment and investment.

lack of discipline - making exceptions, not being strict about how the brand is being portrayed.

sometimes brand awareness is enough to drive a more favorable consumer response. This is usually for

low involvement purchases

Uniqueness

marketers need to associate unique, meaningful points-of-difference (PODs) to the brand that provide a competitive advantage and a reason why consumers should buy it

When you are designing a brand portfolio You want to __________ market coverage so that no potential customers are being ignored. Also, you want to ________ brand overlap.

maximize, minimize

Marketing-Based Comparative Approaches

measures consumer responses to changes in a marketing program.

How can you retire a fading brand?

reduce the number of its product types, sizes and variations and so on. reduces the cost of supporting the brand allows you to put your best foot forward to so you can more easily hit the profit targets.

Strength

does it recieve high quality processing in the mind, is it relevant and seem consistent

you ask a consumer to name a European sports car and they answer Porsche This is an example of?

Aided Recall

•GE Healthcare •Virgin Atlantic •Fedex Ground are examples of

Family brands

Ideal brand positioning aims to align the following

-What customers currently believe about the brand -What customers will value in the brand -What the firm is currently saying about the brand -Where the firm would like to take the brand

Three steps to developing a brand architecture strategy.

1. Define the brand potential in reference to the market 2. Select the product extensions to allow the brand to achieve the potential 3. How are we going to use the branding elements going forward.

What are the Core Elements of a Brand Architecture Strategy

1. Defining brand potential 2. Identifying brand extension opportunities 3. branding new products and service s

Seven 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

Brand Audit consists of two steps:

1.Brand inventory 2.Brand exploratory

A digital inventory of brand assets may provide useful insights such as:

1.Outdated brand accounts that have fallen into disuse 2.Overlapping brand assets which can be merged or deleted 3.Existing brand accounts with information that is either inaccurate or not up-to-date 4.Particular digital and social media channels where the brand does not have a presence

Sub-brand

: New brand combined with an existing brand

A brand architecture evaluates

A good architecture strategy will maximize the transfer of equity Do all the brand have a defined role Do brands collectively maximize coverage and minimize overlap Do the brand have extension potential is the brand overextended already what positive and negative brand equity will transfer to the main brand what feedback what profit streams will come with the different brand arrangements what cross-selling opportunities exist between brands.

Line extension

A new product takes on the parent's name and targets a new market segment within the product category that the parent brand already serves. Adds a different variety, a different form or size, or a different application for the brand

Brand mix

A set of all brand lines that the seller makes available to buyers

Many brands need to customize specific aspects of the marketing mix to better appeal to local market conditions. What can you do for a communication strategy?

Although brand positioning may be the same in different countries, creative strategies in advertising may have to differ to country to country. Entertainment and sports sponsorships can be an especially effective way to reach a younger audience and can executed sponsorship in a global basis.

Parent brand

An existing brand that gives birth to a brand extension

Why do brand extensions fail?

Because they are not creating enough relevance and differentiation in their new category. Today, the marketplace is increasingly competitive (and it's less forgiving to a poor extension?) Because a lack of understanding of the brand promise and how it should be translated and adapted to different products and markets.

How do we judge a brand portfolio

Brand portfolio is judged by its ability to maximize brand equity

A standardized global marketing program may simplify coordination and provide greater control of communications in different countries why?

By keeping the core of the marketing program constant, marketers can pay greater attention to making refinements across markets and over time to improve its effectiveness

Disadvantages of Brand extensions

Can confuse or frustrate consumers Can encounter retailer resistance Can fail and hurt parent brand image Can succeed but cannibalize sales of parent brand Can succeed, but diminish identification with any one category Can succeed, but hurt the image of the parent brand Can dilute brand meaning Can cause the company to forego the chance to develop a new brand

What is the value of aided recall?

Can help you know where you brand is in people's minds, and leverage the strength to know where to position your next product.

Family branding strategy

Can provide the hierarchical structure that consumers need to facilitate a brand migration.

Brand extensions and their effect on the parent brand

Clarify Brand Meaning Enhance the Parent Brand Image Can fail and hurt parent brand image Bring New Customers into the Brand Franchise and Increase Market Coverage Revitalize the Brand Can succeed but cannibalize sales of parent brand Can succeed but hurt the image of the parent brand Permit Subsequent Extensions

Many brands need to customize specific aspects of the marketing mix to better appeal to local market conditions. What can you do for a distribution strategy?

Companies often differ in their approach to distribution. As in domestic markets, firms will often want to blend push and pull strategies internationally to build brand equity

Simultaneous study of combinations of brands product composition, price, distribution outlets, etc. These are advantages of

Conjoint Analysis

Unrealistic product profiles being measured create results of limited value. These are disadvantages of

Conjoint Analysis

Three Major Steps to building a Brand Equity Management System

Create a Brand Charter or Bible Assemble Brand Equity Reports Define Brand Equity Responsibilities

Brand Equity Management System (steps)

Define the brand hierarchy Create brand associations that flow down to as many brands as possible Introduce brand extensions that complement the product mix of the firm, leverage parent brand associations, and enhance parent brand equity. Establish the roles of brands in the brand portfolio Reinforce brand equity over time through marketing actions Enhance brand equity over time through innovation Identify differences in consumer behavior in various market segments

What are the different types of segmentation variables?

Demographic Cultural Generational Geographic Psychographic

What are some branding approaches for new products

Develop a new brand (Lexus) Apply one of its existing brands (Tide Pods) Use a combination of new and existing (Fairfield by Marriott)

Channels of distribution, retail practices, media availability, and media costs all may vary significantly country to country This is an example of

Differences in marketing institutions

What are the advantages of global marketing

Efficiency, consistency in brand image, the ability to leverage good ideas quickly and efficiently , lower marketing costs, can communicate credibility to consumers, uniformity of marketing practices

Advantages of Brand Extensions

Facilitate new-product acceptance Improve Brand Image Reduce Risk Perceived by Customers Increase the Probability of Gaining Distribution and Trial Increase Efficiency of Promotional Expenditures Reduce Costs of Introductory and Follow-Up Marketing Programs Avoid Cost of Developing a New Brand Allow for Packaging and Labeling Efficiencies Permit Consumer Variety-Seeking Provide feedback benefits to a parent brand, such as more presence since it makes it look more like more of a player.

The brand inventory does not provide useful information for interpreting follow-up research and supplies useful analysis and initial insights into how brand equity may be better managed

False The brand inventory provides useful information for interpreting follow-up research. It can also supply useful analysis and initial insights into how brand equity may be better managed.

What's the difference between findings and insights?

Findings- facts Insights- what the facts mean to the consumer and how it drives them.

Steps to Measuring Brand Equity

Formalize the Firm's view of brand equity in a report Conducting brand inventories Conduct consumer tracking study Assemble results Establish a person or department to own the brand and implement the charter.

you ask consumers what's the first thing that comes to their mind when they hear apple and they respond "quality service" This is an example of

Free Associations

Yeti has no discounts, but it sets up a perception that Yeti is premium. Yeti has pretty low price elasticity. When prices increase, people generally don't stop buying. However, when the price decreases there is high elasticity because it is rare for the brand to do that. This is an example of:

How can a pricing strategy change the consumer's image of a brand

Category extension

Marketers apply the parent brand to enter a different product category from the one it currently serves

Many brands need to customize specific aspects of the marketing mix to better appeal to local market conditions. What can you do for a pricing strategy?

Marketers need to understand what consumer perceptions of the value of the brand are in each country, their willingness to pay, and their elasticities with respect to price changes. Create an international price corridor that takes into account the differences and pressures to align. Introduce different brands in different countries. Develop a completely new product for a local market using indigenous materials to provide competitive offerings

price sensitivity and willingness to pay can be measured on a demand curve by doing

Marketing Based Comparative Measurement

Section 2 of the Brand Equity Report

More descriptive into the market level - Product shipments, channel distribution, retail trends, pricing discounts, scheduling, profit assessments, etc.

Family brand

Parent brand associated with multiple products through brand extensions.

•Rice Crispies (Kellogs) •Tide (P&G) •Special K •Kindle (Amazon) are examples of

Parent brands

Different brand tracking studies?

Product-Brand Tracking Corporate or family brand tracking Global Tracking

-Free Association questions -Projective Techniques -Zaltman Metaphor Elicitation Technique -Neural Research Methods -Brand Personality and Values questions -Ethnographic and Experiential Methods These are examples of

Qualitative Research Techniques

Qualitative research techniques

Qualitative research techniques can identify possible brand associations and sources of brand equity.

Brand Exploratory

Research helping you to understand how consumers think and feel about the brand and how they act toward it

Brand personality

Seeks to attribute human characteristics or traits to a brand

The Big Five Factors of Brand Personality

Sincerity Excitement Competence Sophistication Ruggedness

Why should a brand focus on Global Markets?

Slow growth and increased competition in domestic markets Overseas growth and profit opportunities Cost reduction from economies of scale Risk diversification Global mobility of customers

Neuromarketing

Study of how the brain responds to marketing stimuli, including brands

Marketing analytics systems are

Systems and processes within an organization to communicate important metrics and make them available throughout an organization (usually using ai and technology to track consumers)

When is a portfolio size too small

The portfolio is too small if profits can be increased by adding brands

When is a portfolio size is too big

The portfolio size is to big if profits can be increased by dropping brands

Why are Differences in cons behavior important when globally marketing?

They speak to creative styles across cultural boundaries, levels of literacy, flavor preferences.

Ten Commandments to Building Global Brand Equity

Understand the similarities and differences in the global branding space Don't take shortcuts in brand building Establish marketing infrastructure Embrace integrated marketing communications Cultivate brand partnerships Balance standardization and customization Balance global and local control Establish operable guidelines Implement a global brand equity measurement system Leverage brand elements

Why do we want to measure brand equity?

We want to invest in the things that are working and figure out why they are working so they can be replicated in the future.

Brand audit answers

Will tell you if your key brand associations are being perceived as points of difference or points of parity to position the brand

Brand tracking study

collect information 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.

Advantages of maintaining a consistent brand strategy

consistency of brand associations maintaining the strength and favorability of brand associations

What are the disadvantages of global marketing

differences in consumer response to brand elements and marketing mix elements like price, product features, etc., Differences in consumers needs, wants, usage patterns, differences in brand and product development and the competitive environment, and differences in the legal environment., differences in administrative procedures

Quantitative Research

employs various types of scale questions from which you can draw numerical representations and summaries (relatively large samples)

Flankers are

fighter brands to create stronger points of parity with competitor's brands.

Product line

group of products in a product category that are closely related, function in a similar manner, sold to the same customer groups,in the same price ranges and marketed through the same types of outlets.

Cause marketing can

help a brand and elicit strong brand engagement help build brand awareness, image and credibility can develop a sense of community

Conjoint Analysis

helps determine the trade-offs consumers make between various brand attributes, and the importance they attach to them.

Brand Architecture Strategy

helps marketers determine which products and services to introduce and which brand names and logos and symbols will apply. A good strategy will improve consumer understanding of the clarity and the role of the brand and will maximize the transfer of equity between the brand and its individual products and services.

Broad brand architecture strategy

one with more than a few brands and product relationships it takes into account future brand extension strategies

Brand Inventory

profile of how all the products and services sold by the company are marketed and branded

Deep brand architecture strategy

refers to the number of product relationships under each brand

What are some drawbacks to qualitative research techniques?

relatively small sample is subjective (interpretations may vary depending on the person)

Managing brand equity with consistency

requires you to sometimes make tactical changes or adjust them to stay on strategies as the market changes

Many brands need to customize specific aspects of the marketing mix to better appeal to local market conditions. What can you do for a product strategy?

selling both types of brands as part of the brand portfolio can be a solution (regular and the customized brand )

Product Mix

set of all product lines available to buyers

Factors that affect the power of a brand association.

strength, favorability, and uniqueness

•Apple iPhone •McDonalds Big Mac •Doubletree by Hilton •Uber Black are examples of

sub-brands

Section 1 of the Brand Equity Report

summarizes the consumer's perceptions of key attributes and benefits and behavior

Brand-Based Comparative Approaches

test how a consumers' knowledge of the brand affects their response to the product.

The role of brand architecture is

to clarify brand awareness To improve brand image

What is the goal of a brand equity measurement system?

to understand the sources and outcomes of brand equity and be able to relate the two as much as possible

Brand positioning research

wants to know what consumers find believable and credible about the brand, what they value in the brand, what the firm says about the brand, and sheds a light on where the firm wants to take on the brand.

Ethnographic Research

when a researcher embeds with the consumer in a natural setting such as a home or an office to observe their behavior.

Parent brand

•: An existing brand that gives birth to a brand extension.

In the brand exploratory process you will

•Study prior research •Interview internal personnel •Conduct additional research

Brand Image

•This measures brand association beliefs which are specific attributes and benefits linked to the brand and its competitors •These can be assessed on the basis of three dimensions: •Strength •Favorability •Uniqueness