Strategic brand management ch 12-15

Name 8 '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 Forgo the Chance to Develop a New Brand

What are the 5 benefits of 'Provide Feedback Benefits to the Parent Brand'?

- Clarify Brand Meaning - Enhance the Parent Brand Image - Bring New Customers into the Brand Franchise and Increase Market Coverage - Revitalize the Brand - Permit Subsequent Extensions

How to 'Evaluating Brand Extension Opportunities'? (5 factors)

- Define actual and desired consumer knowledge about the brand - Identify possible extension candidates - Evaluate the potential of the extension candidate (incl. Consumer Factors, Corporate & Competitive Factors and Category Factors) - Design marketing programs to launch extension (incl. Choosing Brand Elements, Designing Optimal Marketing Programs and Leveraging Secondary Brand Associations). - Evaluate extension success and effects on parent brand equity

What is 'Vertical Brand Extensions'?

- 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. Example: Holiday Inn.

What are the overall advantages of Brand Extensions?

- Facilitate New-Product Acceptance. - Provide Feedback Benefits to the Parent Brand.

What are the 8 benefits of '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

The two types of Brand Extensions?

- Line Extension: Adds a different variety, a different form or size, or a different application for the brand. - Category Extension: Marketers apply the parent brand to enter a different product category from the one it currently serves.

Name the 3 categories of how consumers evaluate brand extensions?

- Managerial assumptions - Brand extensions and brand equity - Vertical brand extensions

Describe: Sub-brand, Parent Brand and Family Brand?

- Sub-brand: New brand combined with an existing brand. - Parent brand: An existing brand that gives birth to a brand extension. - Family brand: Parent brand associated with multiple products through brand extensions.

Developing a Brand Architecture Strategy

1. Defining Brand Potential 2. Identifying Brand Extension Opportunities 3. Branding New Products and Services

_________________ is a means of graphically portraying a firm's branding strategy by displaying the number and nature of common and distinctive brand elements across the firm's products, revealing their explicit order.

Brand hierarchy

Some firms conduct "blind testing" research studies in which different consumers examine or use a product with or without brand identification. What type of brand measurement approach is this?

Brand-based comparative

By asking consumers to express preferences or choose among a number of carefully designed product profiles, researchers can determine the trade-offs consumers are making between various brand attributes, and thus the importance they are attaching to them. What type of survey-based multivariate measurement approach is this?

Cojoint analysis

How does Brand Extension create Equity? (3 factors)

Creation of a positive image is based on three factors: - Saliency of parent brand associations. - Favorability of any inferred associations. - Uniqueness of inferred associations in the extension category. The more dissimilar the extension product is to the parent brand, the more likely that points-of-parity will become a positioning priority, and the more important it is to make sure that category POPs are sufficiently well established.

What are some of the other was to segment consumer and create Specialized marketing and branding programs for?

Demografic segments = Age, sex, income etc. Cultural segments = Religion, livestyle, etc. Bonus = Younger generation may be more easily influenced by trends due to media exposure.

Contributing to parent brand equity. Name the 4 factors?

Effects of an extension on consumer brand knowledge will depend on four factors: - Compulsion of the evidence about the corresponding attributes or benefit association in the extension context. - Relevance of the extension evidence will affect parent brand evaluations only if consumers feel extension performance is indicative of the parent brand in some way. - Consistency of the extension evidence with the corresponding parent brand associations. - Ease of an association to change.

Some firms routinely survey customers to assess price sensitivity and find out how much of a discount they would require before switching to a competing brand. What type of brand measurement approach is this?

Marketing-based comparative

An existing brand that gives birth to a brand extension is called:

Parent brand

What is a regional market segment?

Regionalization = Focusing on a specific region and changing your brand to fit that region. A regionalization strategy can make a brand more relevant and appealing to an individual

Some companies analyze actual retail sales data to calculate a "revenue premium" as an estimate of brand equity, by calculating the difference in revenues between a brand and a generic label in the same category. What type of brand measurement approach is this?

Residual approach

By revisiting well-known past ad campaigns, such as the return of iconic Colonel Sanders for KFC, older brands can activate and strengthen brand associations that can be a source of brand equity. This is an example of:

Retro-branding

What are the downsides by segmenting consumer based on demographic or cultural differences?

Some consumers may not like being targeted just for the fact that they are different. Segmenting this way may reinforce their image as outsiders or a minority, and this might lead to the segment feeling alienated or distanced from the company and brand.

When a new brand is combined with an existing brand, the brand extension is called:

Sub-brand

What are the upside/downside to Regionalization?

Upside: • Marketing can have a stronger impact Downsides: • Marketing efficiency may suffer and costs may rise with regional marketing • Regional campaigns may force local producers to become more competitive

Interbrand's value assessment takes into consideration the financial performance of the branded product/service, the role of the brand in the purchase decision process, and the strength of the brand. What type of brand measurement approach is this?

Valuation approach

Definition of a Brand Extension?

When a firm uses an established brand name to introduce a new product.

As part of the brand revitalization strategies, marketers can identify additional or new and different brand usage opportunities, which will contribute to expand their __________________.

brand awareness

An example of ___________ occurred when Hershey's introduced strawberry syrup to the market and then Smucker's decided to extend its line by launching chocolate syrup.

brand counterextension

As part of the brand revitalization strategies, marketers can reposition the brand or change brand elements, which will contribute to improve their __________________.

brand image

BMW uses the 3-, 5-, and 7-series numbering system to denote increasingly higher levels of quality, helping consumers to understand how the various cars can satisfy their needs as these change over time. This is an example of __________________.

brand migration strategy

A _________________ includes all brands sold by a company in a product category.

brand portfolio

When assessing the fit of extensions, marketers measure ________________________ to understand how well a brand concept accommodates the extension product.

brand-concept consistency

An example of __________________ occurred when the introduction of Diet Coke reduced sales from regular Coke drinkers.

cannibalization

_____________ are once-popular brands with diminished equity that parent companies allow to decline by withdrawing market support.

orphan brands

According to the __________________ , the use of the "Mc" prefix in McDonald's products such as Chicken McNuggets, Egg McMuffin, and the McRib sandwich helps to strengthen the linkages between them.

principle of commonality

According to the __________________ , the secondary position of the corporate brand in "Courtyard by Marriott" is signaling to consumers that the individual brand is not as closely related to other Marriott products.

principle of prominence

According to the __________________ , a complex set of products -such as cars, computers, or other durable goods- requires more levels in the brand hierarchy

principle of simplicity

What is an orphan brand?

• A once popular brand with diminished equity that a parent company allows to decline by withdrawing marketing support. Too small customer base to warrant advertising and promotional expenditures.

What is a migration strategy?

• A way of adjusting the brand portfolio: Helps consumers understand how various brands in the portfolio can satisfy their needs as they change over time, or as the products and brands themselves change over time. E.g. BMW with their different numbered models, 1,2,5,7 etc.

Briefly explain what is means to revitalize a brand

• Breathe new life into the brand either by returning to its roots or by fundamentally changing the brand meaning

The dilemma of brand consistency?

• Critical to maintaining the strength and favorability of brand associations, but still the brand meaning and key elements must be preserved

What does brand depth and brand breadth mean?

• Depth: Recognition and recall • Breadth: Broad associations

Name the 2 strategic options in the model of customer-brand based equity

• Expand brand awareness: The depth and breadth of the brand • Improve brand image: Strength, favorability, and uniqueness of the brand associations

What is the difference between fortifying and leveraging brand equity?

• Fortify: Withhold the current brand equity • Leverage: Actively improve on brand equity, move forth/change direction

How would you improve brand image (strength, favorability and uniqueness)

• Identifying the target market • Reposition the brand (POP and POD) • Changing the brand elements

How would you improve brand breadth (broad associations)

• Look for new usage options: Communicate the advantages of using the brand more frequently in existing situations or in new situations

What 4 elements are key when doing brand reinforcement?

• Maintaining brand consistency • Protecting sources of brand equity • Fortifying vs. leveraging • Fine-tuning the supporting marketing program

What is brand reinforcement?

• Marketers reinforce brand equity by actions that consistently convey the meaning of the brand. Here, consistency in the nature and amount of marketing support is of great importance

What are the forces that encourage firms to market their brand internationally?

• Perception of slow growth and increased competition in domestic markets • Belief in enhanced overseas growth and profit opportunities • Desire to reduce costs from economies of scale • Need to diversify risk • Recognition of global mobility of customers

What does it mean to retire a brand?

• Some brands are not worth saving, as to why the company reduces number of product types to lower the cost of supporting the brand