Brands & Value creation TEAE15
What measures the depth of the product mix?
1) A product line is too short if the manager can increase long-term profits by adding items 2) A product line is too long if the manager can increase profits by dropping items
Which three factors determine the attractiveness of a product category?
1) Aggregate market factors: Characteristics, market size/growth, stage in product cycle, etc. 2) Category factors 3) Environmental factors: PESTEL
What is the benefits with corporate social media campaigns?
1) Building brand awareness 2) Improves brand image 3) Establish brand credibility 4) Evoke brand feelings 5) Create sense of community
What are the 4 levels of brand hierarchy?
1) Corporate: always present on the product/packaging (H&M Group, Apple) 2) Family: are applied through product categories (Philadelphia, iPhone, H&M) 3) Individual: restricted to mainly one product category (Philadelphia Cremoso, X, H&M Home) 4) Modifier: can signal requirements/differences in the brand related to quality/functions, etc (Garlic & Fine Herbs, Premium Quality)
What are the three steps in the process of building a brand?
1) Create a brand promise and a platform for the brand (the promise is not normally communicated directly to the costumer) 2) The plan to realize the promise, to transform the promise to reality. 3) Managing the brand: keep it alive and relevant for the target group.
What are the requirements of PoDs?
1) Desirability criteria 2) Deliverability criteria 3) Differentiation criteria. Compare with the 4C's (competitive, credible, clarity, consistent).
What choices do a firm have when introducing a product?
1) Develop a new brand 2) Apply one of its existing brands 3) A combination of a new brand with an existing one
What does brand revitalization mean?
1) Expanding awareness (breadth): additional or usage opportunities, new ways of using the product 2) Improving the image: repositioning, changing the brand elements 3) Entering new markets
What does corporate credibility depend on?
1) Expertise 2) Trustworthiness 3) Likeability
What purpose has a business model?
1) How the business goes about doing business and "earning its living" 2) Firmly related to the brand
What are the four stages of brand development?
1) Identity - Who are you? 2) Meaning - What are you? 3) Response - What about you? 4) Relationships - What about you and me? The stages are the fours levels of the CBBE-model & branding barometer.
What are the criteria for brand elements?
1) Memorable - can be inherently memorable, both in terms of brand recall & recognition 2) Meaningful - Can be inherently meaningful such that they convey information about the nature of the product category or particular attributes and benefits of a brand or both 3) Likeable - information conveyed doesn't have to relate to the product, may simply be inherently appealing 4) Transferable - can be transferable within and across geographic and cultural boundaries & market segments 5) Adaptable - can be adaptable and flexible over time 6) Protectable - must be chosen that are legally protectable and as such as possible competitively defensible
What are the 4 basic decisions when designing a brand strategy?
1) Number of levels of the branding hierarchy 2) Desired awareness and image at each hierarchy level 3) Combining brand elements from different levels 4) Linking brand elements with several products
What does brand awareness mean?
1) Related to the strength of the brand node or trace in memory, as reflected by costumer's ability to recall and/or recognize the brand under different conditions. 2) The extent and ease with which customers recall and recognize the brand and can identify the products and services with which it is associated. Characterized by depth and breadth.
What is the branding objectives with the four stages of the branding barometer?
1) Salience: deep, broad brand awareness 2) Performance & Imagery: points of parity and difference (PoPs & PoDs) 3) Judgement & Feelings: Positivt, accessible reactions 4) Resonance: Intense, active loyalty
What are the five steps to the ideal brand portfolio?
1) Understanding the portfolio - inventory of brands 2) Assessing brand contribution - analysis of the inventory 3) Assessing market position 4) Addressing problems and identifying opportunities 5) Developing a plan for the portfolio - when and where to invest + set deadlines for decisions
What is the difference between a business and a brand?
A business can exist without the brand, but a brand can never exist without a business. A personal brand can exist without a business but often the intent is to brand yourself to start a business.
What is a product line?
A group of products within a product-category that are closely related (function, same customer groups, marketing) May be composed of different brands or a single family brand or individual brand that has been extended
What is the brand-product matrix?
A useful tool to characterize the product and branding strategy of a firm. Often visualized through a graphical representation of all the brands and products sold has the brands of a firm as rows and the corresponding products as columns
What is the augmented product?
Add-ons to differentiate (brand, warranties, service)
What is the definition of a product?
Anything that can be offered to a market for attention acquisition, use or consumption that might satisfy a need or want.
What can be branded?
Anything: people, places, employers, goods and services, NEOs (non-profit organizations)
What does unique brand association mean?
Associations to the brand which is not shared with competing brands.
What is brand value to the customer?
Benefits exceed sacrifices
What is brand knowledge?
Brand awareness & brand image.
What are the brand concepts?
Brand identity, Brand image, Brand position, Brand equity, Customer-based brand equity
What is brand value?
Branding is a relentless journey towards what the client want to be + Branding is expensive - worth the investment?
What does secondary brand knowledge mean?
By making a connection between a brand and another entity, consumers may form mental associations between the brand and the entities which links the costumer judgements and feelings of the brand to the other entity. Entity with associations of their own.
What two things defines brand strategies?
Clarify brand awareness: improve customer understanding Motivate brand image: maximize transfer of equity to/from the brand to products
What are strong brand properties?
Clear, Unique, Relevant, Credible, Alive. Known in the minds of the target group(s), made themselves known for something special relevant to the customers and have authority on their markets.
What are the 5C?
Client, Customers (target group), Competitors, Communication, Culture
What is a brand line?
Consists of all products sold under a particular brand (both original line and extensions) Would be one row of the brand-product matrix
Which are the five levels of a product?
Core product, Generic product, Expected product, Augmented product, Potential product
What does it mean to create a brand?
Create and develop relations. A brand is a promise about expectations.
What is CBBE?
Customer-based brand equity = the value of the brand to the costumer (resulting in brand loyalty if well managed). CBBE occurs when the consumer has a high level of awareness and familiarity with the brand and has strong, favourable & unique brand associations.
Give examples of brand elements.
Different components of a brand, such as logotype, symbol & packaging design, names, characters, slogan, jingles, website addresses. Can both enhance brand awareness and formatting good brand associations.
What is important to have in mind when choosing a brand name?
Easy to remember, spell and pronounce. When choosing a brand name, consider the possibilities: will the name work internationally?
What can successful branding lead to (customer perspective)?
Efficiency of information: know what you get. Reduction of risk: facilitate purchases. Image benefit creation: Emotional benefits.
What is the expected product?
Expectations from customer
What can brands appeal to?
Head (=tangible associations) or heart (intangible associations).
What can successful branding lead to (company perspective)?
Higher prices, easier to obtain distribution, high and stable sales & profit thanks to brand loyalty → Profitability
What is brand identity?
How the brand owner want the brand to be perceived through brand elements
What does brand imagery mean?
How the brand tries to meet psychological or social needs. Own experience and any type of information affect: The typical user, usage situations, personality, history, heritage and experiences.
What does brand strategy depth mean?
It is related to the number and nature of brands in a product class
What does brand strategy breadth mean?
It is related to the number and nature of products
What makes a brand strong?
Keeping a clear link between business model & communication. Maintaining good relations with costumers. Adjusting to a changing world. Establishing a high brand awareness with the target group. Takes time & resources.
What does salience mean?
Measures brand awareness (ability to recall & recognize brand). Brand recall closely linked to product category structure. Category identification. Needs satisfied.
What are the brand image characteristics (for building the brand)?
Memorable, Meaningful, Likeable
What is brand value to the client?
More sales + higher margin = higher profitability
Is brand image and brand imagery the same thing?
NO, communicated performance and imagery (from the company) hopefully creates a strong image.
What is a brand?
Name, term, symbol or design, or a combination of these elements, intended to identify the goods and services of one seller and to differentiate them from the competitors.
What's the point with a logotype?
Often easily remembered, but link to product often uncertain. Should not only recognize what brand it is, but also the products. If non-verbal: easy to update and transfer. Gradual changes required not to lose inherent advantages.
Why slogans?
People remember good ones. Market leaders use it to praise their own brands. It should indicate the category need and reinforce the brand name. Effective and short summary of brand, builds awareness, image & positioning.
What constitutes a focused business model?
People, knowledge and coherence.
What is PoD?
Points of Difference. 1) Associations unique to the brand that are also strongly held and favourably evaluated by consumers 2) Reminders (of what the brand core is) 3) Nostalgia (for old brands) → intergenerational brand preferences
What is PoP?
Points of Parity, associations that may be shared with other brands. (more contemporary since the present is outdated [new product, new packaging, market campaigns].
What does brand performance mean?
Product must at least fulfill a need: 1) Primary characteristics 2) Product reliability, durability & serviceability 3) Service effectiveness, efficiency & empathy 4) Style & design 5) Price Points of parity and difference.
What are the three most important factors when predicting leverage?
Q) Awareness and knowledge of the entity Y) Meaningfulness of the knowledge of the entity Z) Transferability of the knowledge of the entity
What does brand judgement mean?
Quality. Credibility. Consideration. Superiority.
What does brand management mean?
REVITALIZATION. The process after creating a brand promise and platform, maintaining the brand.
What is brand breadth?
Relates to the variety of purchase and consumption situations in which the brand comes to mind.
What parts does the branding barometer include?
Salience, performance, imagery, judgement, feelings, resonance.
What is the core product?
Satisfies the need (status, benefits)
What are the five steps of the communication chain?
Sender - Encoded Message - Transmission (+ Noise) - Decoded Message - Receiver ( ← Feedback)
What is important to think about when managing a brand?
Stable core but the ability to change and renew. To create new associations: show up in unexpected places/situations. Has become more important to: have a genuine/true company history, participate in events and see the individual customer.
What are the 4 types of brands in the BCG-matrix?
Stars: high market growth, high market share (iPhone) Question marks: high market growth, low market share (Apple Watch) Cash cows: low market growth, high market share (iPad) Dogs: low market growth, low market share (Apple TV)
What is brand image?
Strong, favorable and unique associations created in the minds of its target customers (as a result of any communication).
What does brand equity mean?
The added value of the brand to the brand owner (often in monetary terms). Depends on three main factors: 1) Initial choices when making up the brand 2) The way the brand is integrated in the supporting market campaign 3) The associations indirectly transferred to the brand by linking the brand to some other entity
What is the generic product?
The basic product (no frills)
What is brand position?
The desired brand meaning or the image the band owner wants the brand to have.
Which factor is most important about a brand, the emotional or the rational?
The emotional (how the brand/the use of it is experiences) is just as important as the rational/fact-based factors. Example: BMW "Joy of Driving" is useless if the target group do not experience this. A brand that doesn't invoke feelings is a dead brand.
What is brand feelings?
The emotional reactions. Warmth. Fun. Excitement. Security. Social approval. Self-respect.
What is corporate credibility?
The extent to which consumers believe that a firm can design + deliver products that satisfy their needs/wants
What is brand depth?
The likelihood that the brand can be recognized and recalled.
What is line extension?
The parent brand is used for a product that targets a new market segment within a product category served by the parent
What is category extension?
The parent brand is used to enter a different product category from that served by the parent brand
What is the difference between a product and a brand?
The product satisfies a need, the brand differentiate the product from other products satisfying the same need.
What is resonance?
The relationship & identification with the brand. Loyalty. Attachment. Community. Engagement.
What is a brand portfolio?
The set of all brand and brand lines that a company sells in a particular category Would be one particular column of the brand-product matrix
What is the brand mix?
The set of all brand lines sold
What is the product mix?
The set of all product lines and items sold Product lines represent different sets of columns in the brand-product matrix that (in total) makes up the product mix
What are corporate image dimensions?
The types of associations that are likely to to be linked to a corporate brand and can potentially affect brand equity
What is the potential product?
The vision
How should companies manage their brands?
The whole company/organization must be part of the brand building, not just the marketing department. It also must have a close relation to the business strategy.
What is the point of brand strategies?
They identify which brand elements a company chooses to apply across the products it sells. Involves both brand boundaries and brand complexity
What is a mental map?
Tool that portrays in detail all salient brand associations and responses for a particular target market.
What is the branding barometer?
Tool/method used for illustrate the CBBE. Is most used when building a brand, but also to to improve or evolve. Is used by the company to get the highest possible customer satisfaction through the company's perception.
What are the brand image characteristics (for maintaining the brand)?
Transferable, Adaptable, Protectable
What are weak brand properties?
Unclear, Copies of Others, Uninteresting, Unreliable, Tired.
What does customer time-served mean?
Unless (a brand is) not easy obtainable, customers do not buy (by choice).
What constitutes a modern business model?
Visionary growth strategies, human resources and innovation.
What does brand association mean?
What consumers associates the brand with. For a successful brand it should be strength, favourability and uniqueness. Brand associations are sources of brand value, because they are means by which consumers feel brands satisfy their needs.
What does brand meaning mean?
What the brand is → which meaning and purpose the brand has
What does brand relationship mean?
What the customer associate the brand with and what connections they have to it.
What does brand responses mean?
What the customers see about the brand & how they feel and react to the brand.
What is a brand extension?
When a firm uses an established brand to introduce a new product
What is a sub-brand?
When a new brand is combined with an existing brand
What are the advantages with successful branding in a company's perspective?
When launching new products, strong brands usually achieve faster diffusion and has a larger market potential.
What is a family brand?
When the parent brand is already associated with several products through brand extension
Can a customer own a brand?
YES. The brand is owned by its customers in the sense that the customers and their behaviour set the guidelines for the marketers building the brand. Active customers shape the brand. If a brand is not easy obtainable, customers will not buy.
