Brand Identity and Pricing Strategies

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Questions and Answers

Which component of the identity prism represents how a brand is perceived by others?

Physique

Personality

Culture

Reflection (correct)

What does the 'Physique' aspect of the identity prism typically include?

The perceived personality traits of the brand

The tangible and visual elements of the brand (correct)

The brand's core values and beliefs

The emotional connection consumers feel

In the context of the identity prism, how does 'Internalisation' differ from 'Externalisation'?

Externalisation is about the company’s values while Internalisation is about customer perception.

Internalisation focuses on the brand's physical attributes.

Internalisation reflects consumer's inner feelings towards the brand. (correct)

Externalisation deals with inside branding practices only.

Which characteristic is most likely associated with the 'Personality' aspect of a brand in the identity prism?

The brand's unique identity traits Signup and view all the answers

How might 'Culture' influence a brand's identity in the identity prism?

It informs the brand's ethical and social standards. Signup and view all the answers

Which of the following best describes the 'Relationship' element in the identity prism?

The emotional connections that consumers establish with the brand. Signup and view all the answers

What does 'Self Image' represent within the identity prism framework?

The way customers perceive themselves through the brand Signup and view all the answers

What might a strong and distinguished 'Personality' of a brand suggest?

The brand is recognized as reputable and evokes pride. Signup and view all the answers

What is a key principle regarding luxury pricing?

Real prices are often hidden beneath supposed prices. Signup and view all the answers

How should luxury brands approach communication about prices?

Limit communication on prices for most products. Signup and view all the answers

According to the content, how should salespeople market luxury products?

Discuss the luxury experience associated with the product. Signup and view all the answers

What effect can fantasizing about a product's price have?

It enhances its desirability as a gift. Signup and view all the answers

What is the significance of granting price discounts in luxury marketing?

It rewards loyal customers and entices new ones. Signup and view all the answers

What does Charles Rolls imply about price and affordability?

If someone inquires about the price, they likely cannot afford it. Signup and view all the answers

What is a potential consequence of offering frequent discounts in luxury marketing?

Erosion of brand equity and perceived value. Signup and view all the answers

Which statement reflects the relationship between luxury and price effectively?

The notion of luxury is inherently tied to its pricing structure. Signup and view all the answers

What aspect of the brand helps maintain its youthful appeal while keeping a classic feel?

Adaptability in style Signup and view all the answers

What does the 'relationship' aspect of the identity prism refer to?

The interaction between the brand and its consumers Signup and view all the answers

Which component defines the firm’s personality according to the identity prism?

Values, history, and beliefs Signup and view all the answers

What can endanger a durable relationship between the brand and its consumers?

Inconsistencies and abrupt changes Signup and view all the answers

Which part of the identity prism reflects how the brand would be described if it were a person?

Personality Signup and view all the answers

What is the focus of the 'physique' dimension in the identity prism?

Visual and tangible aspects of the brand Signup and view all the answers

In the context of the identity prism, how can culture be defined?

Values and norms shaping the brand Signup and view all the answers

What does 'self-image' in the identity prism signify for consumers?

How consumers perceive the brand's image Signup and view all the answers

What is a key difference between the product characteristics of luxury and premium offers?

Luxury products consist of timeless creations. Signup and view all the answers

Which statement accurately reflects Kapferer's 8 commandments of luxury?

The firm should maintain control over the entire distribution. Signup and view all the answers

What pricing strategy is typically associated with luxury products?

High prices that matter less to the purchaser. Signup and view all the answers

What type of communication is typically involved in luxury promotions?

Institutional communication and PR. Signup and view all the answers

In terms of distribution, what distinguishes a luxury product from a premium product?

Luxury products are sold only in exclusive owned stores. Signup and view all the answers

Which commandment from Kapferer's list emphasizes direct relationships with clients?

Direct one-to-one relationships with clients should be developed. Signup and view all the answers

How does the production approach differ between premium and luxury products?

Luxury products emphasize local production. Signup and view all the answers

What characterizes the promotions of a premium product?

Sales events and frequent discounts. Signup and view all the answers

What characterizes the marketing mix of a luxury offer?

Creates interactions for consumers Signup and view all the answers

Which statement best describes the difference in product offerings between the Isabel Bernard handbag and the Hermès Birkin bag?

The Isabel Bernard bag is mass-produced while the Birkin bag is customizable Signup and view all the answers

What aspect is NOT emphasized in luxury retail strategy?

Online price disclosure Signup and view all the answers

Which of the following describes an exclusive distribution strategy?

Limited to select high-end locations Signup and view all the answers

Which element is crucial in creating a luxury brand experience?

Sensory cues and aesthetics Signup and view all the answers

What are brand ambassadors primarily responsible for in luxury marketing?

Establishing one-to-one relationships Signup and view all the answers

What is a key advantage of online channels in luxury marketing?

Allow brands to reach new realms, such as the metaverse Signup and view all the answers

How does instantaneity benefit luxury brands in reaching clients?

It helps engage difficult-to-reach clients Signup and view all the answers

What is a disadvantage of using offline channels exclusively in luxury marketing?

Reduced marketing reach and exposure Signup and view all the answers

Which factor is essential for the architecture and design of luxury retail locations?

Creating an immersive customer experience Signup and view all the answers

Study Notes

Identity Prism

The Identity Prism is a model used to analyze brand identity.
It consists of six elements: Physique, Personality, Relationship, Culture, Reflection, and Self Image.
Physique is about tangible elements associated with the brand, such as logo, design, etc.
Personality refers to how the brand would be described if it were a person.
Relationship is the connection between the brand and its customers.
Culture encompasses the values, beliefs, and heritage that define the brand.
Reflection is how the brand is perceived by the outside world.
Self Image is how the brand sees itself.

Pricing

Price is a key aspect of luxury branding and should not be excessively communicated.
The price should be perceived as high, emphasizing the brand's exclusivity.
Sales and discounts should be rare and strategic, mainly for rewarding loyal customers or attracting new clientele.
Price should be justified by the value and exclusivity of the product.

Sales Channels

Luxury brands use a mixture of online and offline channels to reach their customers.
Offline channels include directly operated stores, shop-in-shop, third-party stores, and door-to-door.
Online channels provide information on price, offer instantaneity, and allow brands to reach new markets and customers.
Online channels should be part of a well-rounded phygital experience.

Retail

Luxury retail focuses on creating a unique and immersive experience for customers.
It involves elements like location, architecture and design, technology, sensory cues, and customized services.
The focus is on building a relationship with the customer and fostering brand loyalty.

Staff

Luxury brands employ staff trained to be brand ambassadors and experts in their field.
Staff should be focused on building one-on-one relationships with customers, providing personalized experiences.
Customer loyalty and satisfaction are vital for successful luxury brands.

Luxury Offers

Luxury offers go beyond standard products and focus on creating an experience for consumers.
They seek to associate the product's form with its functionality, create symbolic interactions between consumers and the brand, and build a sense of community.

Luxury Offer VS Premium Offer

Luxury and Premium offers differ in their marketing mix and approach.
Premium offers are often mass-produced, have longer product lines, and rely heavily on advertising and digital marketing.
Luxury offers are locally produced, focus on exclusivity and timelessness, and rely on personalized communication and a strong brand reputation.

Kapferer’s 8 Commandments of Luxury

Kapferer outlines eight key commandments for luxury brands:
No offshore production.
No advertisement to sell (emphasize brand image, not specific products).
Communicate to an audience beyond the core target to create exclusivity.
Maintain complete control over the value chain (production, distribution, etc.).
Manage all distribution channels.
Avoid granting licenses to maintain exclusivity.
Continuously increase average selling prices to reinforce luxury positioning.
Develop direct one-to-one relationships with clients for personalized experiences and brand loyalty.

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Description

Explore the intricacies of brand identity using the Identity Prism model. Understand the six key elements of brand identity and how pricing strategies affect luxury branding, exclusivity, and customer perception. This quiz delves into the balance between price and value to enhance brand loyalty.