MAR 445 Quiz 1
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.
- Build brands around customer segments -Measure brand equity for individuals and segments - Make brands as narrow as possible (avoid the "flaw of averages") - Brands are only a means to an end, and the end is to own the market
What does it mean to "own the market"?
- Creating, communicating, delivering, and exchanging a profitable and sustainable long term relationship with customers - You want to own the market, not just sell the product
What are the three most important factors in the marketing environment, commonly known as the 3 C's, that a brand manager must thoroughly analyze before making any strategic decisions?
1. Company Mission 2. Customer Characteristics 3. Competitive environment
What are the five consumer segments of the sonite market?
1. Explorers 2. Professionals 3. Shoppers 4. High Earners 5. Savers
What are the three consumers segments of the vodite market?
1. Innovators 2. Early Adopters 3. Followers
What are the three determinants of profit?
1. Sales Volume 2. Margins 3. Expenditures
What are the 3 themes of this brand management course?
1. The Two Pillars - Internally & Externally Oriented 2. Own the market 3. It Depends
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?
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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?
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You'd like to monitor how much money is being spent on research and development by your competitors. Which market research study do you need to purchase to obtain such information?
???
Why should a brand manager make her/his brand "as narrow as possible"?
A brand manager should make their brand "as narrow as possible" because the better you know your customer segments, the easier it will be to offer them true value
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 = the value attached to the brand itself Value equity = the actual tangible benefits Relationship equity = company builds a high switching cost that fosters a relationship with customers *Customer equity = the total combined customer lifetime values of all of the company's customers Brand, value, and relationship equity are all tools to maximize customer equity which is the most important
If you want to know the actual market share of your sonite brand in each consumer segment in Markstrat, which market study do you need to purchase?
Consumer Panel
Your brand SOLID is targeting the High Earner segment but you do not know their shopping habits such as what distribution channel they prefer. What market research study do you need to order?
Consumer Survey
What's the difference between doing things right and doing the right thing?
Doing things right = operational efficiency Doing the right thing = strategic efficiency
What is "the flaw of averages"? Why should brand managers try to avoid it?
Flaw of averages = plans based on assumptions about average conditions, and not individual customer segments, usually go wrong - Brand managers should try to avoid it because it's not an accurate representation of how your brand could benefit different customer segments thus decreasing your brand equity in the end - It ignores the impact of the inevitable variations which ends up distorting the results
What are the main 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
What are the relationships between the sonite market and the vodite market? Are they substitutes, complements, or independents?
Independents
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?
It depends.
In Semantic Scale study, respondents are asked to rate the importance of each characteristic of Sonite product in their purchasing decision. Although consumer segments differ on the exact importance attributed to each characteristic, they tend to agree on the ranking of the scales, i.e. their "relative" importance. Out of 6 characteristics (i.e., Features, Design, Display Size, Battery Life, Processing Power, Price), what are the top 3 most important characteristics in order?
Price, Power, Display??
You want to know how High Earners' preference for Processing Power evolve in the next period. What study above do you need to order?
Semantic Scales???
Between the selection of a target market and designing an advertising message, which decision should be made first?
The selection of a target market should be decided first
What is the difference between transfer cost and base cost?
Transfer cost = the price paid by Marketing to Production for each unit sold of a given brand/product Base cost = the cost at which each unit will be produced determined by R&D (minimum $10)
In the above scenario (selling price = $400, unit transfer cost = $ 240), what should be the recommended retail price of SOLID in order to have $200 of unit margin for your firm?
Unit Margin = selling price - unit transfer cost $200 = ? - $240 $440
Suppose you are a brand manager of Firm S, which sells a sonite brand, SOLID, through specialty stores, which take 40% of distribution margin. Consumers pay a retail price of $400, and the unit transfer cost is $240. What is the unit margin of SOLID for Firm S? Show your calculation.
Unit Margin = selling price - unit transfer cost $400 - $240 = $160 $160.
