MKG Exam 4
Which of the following brand architecture changes involves helping the consumer see the value of the brand over time?
Adopt a brand migration strategy
To position the global brand, first establish ______ and ______.
Brand awareness and POPs and PODs
How can global branding result in uniformity of marketing practices?
Can help marketers better coordinate global branding efforts
What is the difference between centralization and decentralization approaches in organizing global marketing efforts?
Centralization: (global headquarters) Decentralization: local offices
What types of consumer brand knowledge should marketers define in developing brand extensions? ? What type of map can the marketer use to define these types of consumer brand knowledge?
Define actual and desired consumer knowledge Mental map
List the effects in the four-factor model for evaluating brand extension feedback effects.
How compelling, relevant, consistent, and strong the extension evidence is
After product development in the new product development process, it is important to conduct ______ before commercializing the product.
Market testing
Can differences in consumer behavior affect global branding?
Needs, wants, and product usage differ
CBBE
brand awareness and brand image
To position the global brand, first establish ______ and then ______.
brand awareness, key POPs and PODs
In leveraging brand elements in global branding, do brand names always transfer well, or do some get lost in translation?
can get lost in translation
______ involve introducing new products in a NEW product category under an existing brand name. E.g., BIC used its same brand name when it extended its brand from pens to shavers.
category extensions
Whereas fortifying the brand involves ______ brand equity, leveraging the brand involves ______ brand equity.
reinforcing, borrowing
Marketers should balance ______ and ______ (adaptation) based on local market conditions.
standardization and customization
How can the marketer maintain brand consistency?
support the brand Research and development to build products for success Enhancement or revisit to marketing communications to clearly communicate brand meaning.
Upward vertical brand extensions
to premium market segments
Downward vertical brand extensions
to price-sensitive market segments
How can a downward brand extension harm the parent brand's image?
•Can confuse or frustrate customers •Downward extension can harm parent's brand image * •May destroy sales of parent company
How can an upward brand extension improve the parent brand's image?
•Offer variety of product options •Revitalize parent's brand •Allow for further vertical extensions
List the eight steps in the new product development process
1. idea generation 2. idea screening 3. concept development and testing 4. marketing strategy development 5. business analysis 6. product development 7. market testing 8. commercialization
Two main options for new product branding
1. new brand 2. brand extensions (less risky)
What type of meaning should the marketer build to communicate: (1) product-related attributes and benefits, and (2) non-product-related, symbolic and emotional benefits?
1. performance 2. imagery
List the factors in the three-factor model for evaluating the potential of a brand extension candidate.
1. salience of parent brand associations 2. favorability of inferred extension associations 3. uniqueness of inferred extension associations
Brand extension
Existing brand name for new product
Category extension
Existing brand, new product in new product category
Line extension
Existing brand, new product in same product category
Vertical brand extension
Extend the brand up into more premium market segments or down into more value-conscious segments, are a common means of attracting new groups of consumers.
A brand extension can clarify brand meaning.
False
A brand extension can do little to enhance the parent brand's image.
False
A brand extension can do little to improve the overall brand image.
False
A brand extension cannot revitalize the brand.
False
A brand extension will not convince retailers to distribute the new product.
False
It is more costly to introduce a new product as a brand extension than to introduce a new product using a new brand name.
False
True or False? A brand equity measurement system is not needed in global branding.
False
True or False? Branding in developed markets is the same as branding in developing markets.
False
True or False? Differences in consumer behavior can be ignored in global branding.
False
True or False? Global branding is flawless since consumers respond the same way to branding elements and the marketing mix worldwide.
False
True or False? Take shortcuts in global branding.
False
True or False? The legal environment does not pose any challenges in global branding.
False
o Brand extensions always lead to a strong identification with the original product category.
False
o Brand extensions can never hurt the parent brand's image.
False
o Brand extensions can succeed and can never result in the cannibalization of sales of the parent brand.
False
o Retailers are welcoming of all brand extensions.
False
What is the difference between fortifying and leveraging brand equity?
Fortifying: •(reinforce) * - Design marketing programs and tactics to maximize existing CBBE - How? Depends on nature of brand awareness and SFU brand associations Leveraging: borrow
o How can global branding result in economies of scale in production and distribution?
Since the brand is producing more it can benefit from manufacturing efficiencies and lower costs
A brand extension can open the door to future brand extensions.
True
A brand extension can provide a variety of product options for customers.
True
Brand extensions can reduce customers' perceived risk of trying a new product.
True
True or False? Care must be taken in global branding since the product may be in a different stage in its product life cycle in a different country.
True
True or False? Despite differences in consumer behavior and marketing infrastructure, marketers should embrace IMC in global branding.
True
True or False? When done right, global branding can result in consistency in brand image.
True
o A brand extension can cause the company to forgo the chance to develop a new brand.
True
o Some brand extensions can confuse or frustrate consumers.
True
o Some brand extensions can result in brand dilution.
True
§ A brand extension can attract new customers to the brand.
True
In protecting sources of brand equity, is it better to seek new sources of brand equity than keep successful positioning and sources of brand equity?
Unless things change, keep successful positioning Preserve and defend sources of brand equity
Should competitors be considered in developing brand extensions? Explain your answer.
Yes, you should consider the competitive advantages perceived by consumers and possible reactions initiated by competitors
The first guideline for extending the brand is: define ______ and ______ consumer knowledge about the brand.
actual, desired
Do marketing actions have long-term effects on brand equity?
consumer response to past marketing activity affects brand knowledge which affects response to current marketing activities which changes the brand knowledge which affects the response to the future marketing activities.
True or False? It is wise for the marketer to move straight from product development to the commercialization of a new product.
false
Why does Colgate-Palmolive use "bundle books" in global branding?
guidelines for every regional manager on how to market products *
Harley-Davidson reinforces its brand meaning based on ______ when it highlights the SYMBOLIC/EMOTIONAL BENEFITS of its motorcycles. E.g., with its positioning as "We fulfill dreams of personal freedom."
imagery
How can global branding lower marketing costs?
keeping marketing activities the same globally can lower costs
In global branding, it is sometimes important to cultivate brand partnerships with ______.
local partners (including distributor)
Global branding can create economies of scale in production and distribution through ______.
manufacturing efficiencies and lower costs from higher volumes of production
Design ______ to maximize the likelihood of success and potential positive feedback effects.
marketing campaigns
Do all countries have the same marketing infrastructure (e.g., distribution facilities)? If not, then should the marketer standardize or adapt to local conditions?
no, adapt to local conditions
An upward brand extension can improve brand image because a premium version of the brand ______. E.g., Citibank AAdvantage GOLD World Elite Mastercard --> Citibank AAdvantage EXECUTIVE World Elite Mastercard.
often brings positive associations with it
Brand extensions require fit with the ______ brand.
parent
Evaluate extension success and its effects on ______ brand equity.
parent
In repositioning the brand, the marketer may need to identify POPs, which are ______.
points-of-parity
Brand judgements must be ____ in new markets
positive