MKG 400 Final Exam

True or False? When done right, global branding can result in consistency in brand image.

True

Are the following statements True or False about brand extensions providing feedback benefits to the parent brand? Explain your answer to better understand whether the statement is true or false. A brand extension can clarify brand meaning.

True, extensions can clarify because meaning broadens

Some brand extensions can result in brand dilution.

True, inconsistent benefits from the brand can dilute the value

A brand extension can attract new customers to the brand.

True, more market coverage

A brand extension can cause the company to forgo the chance to develop a new brand.

True, new brands can tap into completely different markets and create their own associations

A brand extension can provide variety of product options for consumers.

True, prevents brand-switching

Disadvantages of Brand Extensions. Are the following statements True or False about disadvantages of brand extensions? Explain your answer to better understand whether the statement is true or false. Some brand extensions can confuse or frustrate consumers.

True, which version of the product is right for them?

How can global branding lower marketing costs?

Uniformity in packaging, advertising, and other marketing activities

In building brand equity, ______ marketing programs need to be created to satisfy different market segments.

different

Line Extension

existing brand, new product in existing product category (ex: vanilla coke)

Category Extension

existing brand, new product in new product category (ex: Bic lighters)

What is an upward vertical brand extension?

extending into premium segments

What is a downward vertical brand extension?

extending into value conscious segments

True or False? The marketer may move straight from product development to commercialization of a new product.

false

t True or False? Differences in consumer behavior can be ignored in global branding. Explain your answer.

false

Brand extensions require fit with the ______ brand.

parent

Evaluate extension success and effects on ______ brand equity.

parent

Brand judgments must be ______ in new markets.

positive

True or False? Brand personalities are universally accepted across all countries.

False

Do all countries have the same marketing infrastructure (e.g., distribution facilities)? If not, then should the marketer standardize or adapt to local conditions?

False, adapt to the local conditions

True or False? Branding in developed markets is the same as branding in developing markets. Explain your answer.

False, adapting to local tastes

A brand extension can do little to improve the overall brand image

False, brand extension can increase brand image because of associations already built with the brand

A brand extension will not convince retailers to distribute the new product.

False, brand reputation already exists

True or False? Take shortcuts in global branding. Explain your answer by referring to the Pepsi experience in Germany from your slides.

False, can ruin relationships with retailers

Brand extensions can success and can never result in cannibalization of sales of the parent brand.

False, customers can switch from their existing offering to the new product

A brand extension can do little to enhance the parent brand's image.

False, desirable outcomes can enhance image, clarify associations

The legal environment does not pose any challenges in global branding. Explain your answer.

False, different legal environments

Brand extensions always succeed and can never hurt the parent brand's image.

False, if it's unsuccessful, can hurt the brand value

Brand extensions always lead to strong identification with the original product category.

False, if the brand is identified with more than one product, it can dilute the original product's value (ex: Cadbury goes into instant potatoes)

A brand extension cannot revitalize the brand.

False, it can renew interest for the brand

Global branding is flawless since consumers respond the same way to branding elements and the marketing mix all over the world. Hint: Think about our class discussion on Big Bid's cousin, Abelardo.

False, language differences change meanings

It costs more (costs for promotions, introductory and follow-up marketing programs, development, packaging and labeling) to introduce a new product as a brand extension than it is to introduce a new product as a new brand name.

False, no need to create awareness of the brand

Brand extensions are always accepted by retailers.

False, retailers can run out of shelf space

True or False? A brand equity measurement system is not relevant to global branding. Explain your answer.

False, tracks progress

What is the difference between fortifying and leveraging brand equity?

Fortifying: reinforcing CBBE with marketing programs Leveraging: secondary brand associations

True or False? Despite differences in consumer behavior and marketing infrastructure, marketers should embrace IMC in global branding.

TRUE

It is important to create ______ (awareness) and craft a ______.

???

Which of the following types of products is more likely to be adapted to the local market?

A pair of jeans Food yes A pair of running shoes Toothpaste a luxury handbag

To position the global brand, first establish ______ and ______.

Awareness and points-of-parity

Which of the three options for new product branding are less risky options in branding a new product?

Brand extension is less risky (don't have to start from scratch)

Brand Extensions: Disadvantages

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 forgo the chance to develop a new brand

How can a downward brand extension harm the parent brand's image?

Can harm the brand image because of inferior quality

How is a category extension different from a line extension? Give examples of both types of brand extensions.

Category extension and Line Extension

What is the difference between centralization and decentralization approaches in organizing global marketing efforts?

Centralization is global headquarters Decentralization is local offices

What types of marketing institutions may differ between countries?

Channels of distribution, retail practices, technology media availability, media costs

Which of the three options for new product branding are brand extensions?

Existing brand and sub-brand are brand extensions

What is a brand extension?

Existing brand name for a new product

Brand Extensions: Advantages

Facilitate New-product acceptance and provide feedback benefits to the parent brand

Why does Colgate-Palmolive use "bundle books" in global branding?

Guidelines for regional managers

List the effects in the four-factor model for evaluating brand extension feedback effects.

How compelling the extension evidence is How relevant the extension evidence is How consistent the extension evidence is How strong the extension evidence is

What are the three ways marketers can improve brand image to revitalize an existing brand?

ID target market Reposition brand Change brand elements

Use your slides/class notes to list the eight steps in the new product development process.

Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Market testing → essential, cannot be skipped, helps avoid product failure Commercialization (launching the product)

In global branding, it is sometimes important to cultivate brand partnerships with ______.

Local partners

How can global branding result in economies of scale in production and distribution?

Manufacturing efficiencies lower costs from higher volumes of production

Design ______ to maximize the likelihood of success and potential positive feedback effects.

Marketing programs

List and describe three options for marketers in making brand architecture changes.

Migration: see value of brand over time Acquire new customers Retire brands: reduce # of product types

List and describe three options for new product branding. Give examples of each of these options.

New brand (ex: Nissan creating Infiniti, NOT brand extension, P&G) Existing brand (brand extensions) Sub-brand = existing brand (parent brand) + new brand

How can an upward brand extension improve the parent brand's image?

Premium version of a brand usually brings positive associations

In protecting sources of brand equity, is it better to seek new sources of brand equity or keep successful positioning and sources of brand equity? Explain your answer.

Preserve and defend brand equity, guard resonance

Examine the following brand resonance pyramid. In fortifying brand equity, what type of meaning should the marketer build to communicate:

Product-related attributes/benefits

What are the three ways marketers can expand brand awareness to revitalize an existing brand?

Reminders to use brand when needed, completely different ways to use brand, refresh old sources of brand equity

What types of consumer brand knowledge should marketers define in developing brand extensions?

SFU associations, understanding the positioning of the brand, mental maps

List the factors in the three-factor model for evaluating the potential of a brand extension candidate.

Salience of the parent brand associations Favorability of inferred extension associations Uniqueness of inferred extension associations

Marketers should balance ______ and ______ (adaptation) based on local market conditions. Hint: Think about our class discussion on KFC vs. McDonald's in Trinidad & Tobago.

Standardization and customization

How can global branding result in uniformity of marketing practices?

Standardized global marketing program can simplify coordination and provide greater control of communications

How can the marketer maintain brand consistency? Hint: Think about the Harley-Davidson example from class.

Support the brand with IMC

A brand extension can open the door to future brand extensions.

True

Brand extensions can reduce customers' perceived risk of trying a new product

True

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. Explain your answer.

True

Do marketing actions have long-term effects on brand equity? Explain your answer.

Yes, consumer responds to past marketing activity

Can differences in consumer behavior (needs, wants, and usage patterns) affect global branding? Explain your answer.

Yes, cultural values, economic development, can lead customers to behave differently

Should competitors be considered in developing brand extensions? Explain your answer.

Yes. competitor reactions