Marketing Chapter 11

Brand licensing

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

Product lines

Groups of associated items, such as items that consumers use together or think of as part of a group of similar products.

Brand dilution

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

What is the difference between product breadth versus depth?

Product line breadth is the number of product lines a firm offers and product depth is the number of categories within those product lines.

Product assortment

Product mix is the complete set of all products offered by a firm.

Brand repositioning or rebranding

Refers to 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.

Brand extention

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

Brand association

Reflects the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality.

Product mix (or product assortment)

The complete set of all products offered by a firm.

7. A ___________ is a group of associated items that consumers tend to use together or think of as a part of a group of similar products. a. product line b. product mix c. product mix breadth d. line extension e. brand extension

a. product line

6. The complete set of all products offered by a firm is called its: a. product line. b. product categories. c. product mix. d. product breadth. e. product line depth.

c. product mix

Why change product line breadth?

o Increase breadth expand into new markets o Decrease breadth get back to the roots of the company

Why change product line depth?

o Increase depth try to find the solution to every consumer need o Decrease depth week out your less profitable items and focus on your more profitable items

5. What are the components of brand equity?

Brand awareness, value, loyalty, associations, and personality.

Co-branding

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

Perceived value

The relationship between a product or service's benefits 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 the product or service.

4. How do brands create value for the customer and the firm?

They facilitate purchases by making a product easily recognized, they establish loyalty because consumers begin to trust certain brands, they protect the firm from competition, and reduce marketing costs.

Brand loyalty

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

8. One important purpose of a brand is to a. sell advertising space. b. minimize product line depth needed to be effective. c. increase consumer recognition and awareness of product offerings. d. protect product packaging. e. meet government regulations.

c. increase consumer recognition and awareness of product offerings.