Branding and Marketing Principles

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Questions and Answers

What is one primary advantage for local brands over global brands?

  • Higher marketing budgets
  • Global operational support
  • Adaptation to unique local tastes or needs (correct)
  • Wider international recognition

Which factor influences a consumer's preference for global versus local brands?

  • Brand advertising frequency
  • Product availability
  • Social media usage
  • Desire to be different versus similar (correct)

What type of branding uses one brand name as a quality label for another brand name?

  • Ingredient branding
  • Co-branding
  • Endorsement branding (correct)
  • Dual branding

What is a prerequisite for ingredient branding?

<p>Consistently high quality (B)</p> Signup and view all the answers

Which strategy involves multiple brands cooperating in product development?

<p>Co-branding (D)</p> Signup and view all the answers

What is one of the benefits of dual branding strategies?

<p>Sharing communications costs (B)</p> Signup and view all the answers

What aspect does a company's strategy need to align with to effectively target their audience?

<p>Mindset of the target group (D)</p> Signup and view all the answers

What is ingredient branding primarily focused on?

<p>Basic ingredient brands (A)</p> Signup and view all the answers

What are the two main types of components that make up a brand?

<p>Brand name and brand mark (C)</p> Signup and view all the answers

Why is long-term investment in brand value often compromised?

<p>Due to the increasing focus on short-term profit goals (D)</p> Signup and view all the answers

How is brand equity defined?

<p>The perceived value of a brand based on consumer experience (B)</p> Signup and view all the answers

What is the role of marketing communications in brand management?

<p>To build and maintain brand value over time (C)</p> Signup and view all the answers

Which element cannot be verbalized and represents part of a brand's identity?

<p>Brand mark (C)</p> Signup and view all the answers

What is often overlooked in modern marketing strategies despite its importance?

<p>Investment in brand goodwill (C)</p> Signup and view all the answers

What describes a brand portfolio?

<p>A collection of brands owned by a single company (C)</p> Signup and view all the answers

What does a trademark indicate about a brand?

<p>The owner has exclusive rights to the brand (C)</p> Signup and view all the answers

What is one of the six strategic options that brands can choose?

<p>Invest in brand equity (A)</p> Signup and view all the answers

Which strategy is considered more effective than waiting and doing nothing?

<p>Investing in innovations and brand image (B)</p> Signup and view all the answers

What advantage does producing private labels provide to manufacturers?

<p>Strengthens ties with retailers (C)</p> Signup and view all the answers

Why might a company choose to produce private labels?

<p>Due to high private label market shares (A)</p> Signup and view all the answers

What is a primary characteristic of generic brands?

<p>Typically brandless and low-priced (D)</p> Signup and view all the answers

What typically allows for the introduction of generics in pharmaceuticals?

<p>The end of patent protection (A)</p> Signup and view all the answers

What is often seen as a detrimental effect of reducing price gaps and introducing value-anchors?

<p>Souring relationships with retailers (C)</p> Signup and view all the answers

Which of the following is a condition for successful brands?

<p>They are highly differentiated (C)</p> Signup and view all the answers

What is a benefit of strong brands for manufacturers?

<p>Increased power over retailers (C)</p> Signup and view all the answers

Which factor is crucial for getting a brand into the evoked set of consumers?

<p>High brand awareness (D)</p> Signup and view all the answers

How does brand awareness influence consumer buying behavior?

<p>It increases the probability of purchase. (B)</p> Signup and view all the answers

What advantage do well-known brands have in retail distribution?

<p>Easier access to distribution channels (B)</p> Signup and view all the answers

What outcome does high perceived quality of a brand lead to?

<p>Ability to charge a premium price (C)</p> Signup and view all the answers

How does brand imagery impact competitive positioning?

<p>It creates a defensive advantage. (B)</p> Signup and view all the answers

What role does good product performance play in branding?

<p>It contributes to favorable brand associations. (C)</p> Signup and view all the answers

What can a strong brand personality induce in consumers?

<p>An increase in purchase intent. (B)</p> Signup and view all the answers

What characterizes a brand community?

<p>It is defined by social relationships among users of a brand. (C)</p> Signup and view all the answers

How do brand communities influence customer loyalty?

<p>They help customers feel a sense of belonging. (D)</p> Signup and view all the answers

What is one psychological benefit a consumer might derive from strong branding?

<p>Status symbol association with certain brands. (D)</p> Signup and view all the answers

What advantage does branding provide to retailers?

<p>It improves the store's image and attractiveness. (A)</p> Signup and view all the answers

Which of the following is NOT a benefit of strong branding for consumers?

<p>Higher risk with purchase decisions. (A)</p> Signup and view all the answers

What is a potential outcome of managing brand communities effectively?

<p>Boost in brand loyalty and marketing efficiency. (A)</p> Signup and view all the answers

What type of events does Jeep organize to foster its brand community?

<p>Jeep Jamborees focusing on off-road driving. (C)</p> Signup and view all the answers

Which of the following best describes the relationship between branding and innovation potential?

<p>Branding enhances innovation potential, leading to more variety. (B)</p> Signup and view all the answers

What does 'commitment' in brand management primarily refer to?

<p>The internal belief in the brand's importance and support for it (D)</p> Signup and view all the answers

How is 'responsiveness' defined in the context of brand management?

<p>Ability to evolve the brand in response to market challenges (A)</p> Signup and view all the answers

What does 'differentiation' mean for a brand?

<p>How much customers perceive the brand as unique (A)</p> Signup and view all the answers

Which statement best describes 'consistency' in brand experience?

<p>Similarities in brand messaging across different platforms (A)</p> Signup and view all the answers

Which of the following best represents 'presence' in branding?

<p>The degree of positive perception across various media (B)</p> Signup and view all the answers

What is meant by 'engagement' with a brand?

<p>Customer identification and active participation with the brand (D)</p> Signup and view all the answers

What is the implication of having deep brand awareness?

<p>The brand comes to mind easily for consumers (C)</p> Signup and view all the answers

Why is a well-known brand generally considered more valuable?

<p>Because consumers tend to have more faith in it (A)</p> Signup and view all the answers

Flashcards

What is a brand?

A unique name, symbol, or design that identifies a product or service from competitors, creating a distinct identity. It's a set of tangible cues like logo and packaging, and intangible cues like brand personality and customer experience.

What is a trademark?

The legal protection that grants exclusive rights to use a specific brand name, logo, or design.

What is a brand mark?

The unspoken part of a brand, typically a symbol, design, or specific packaging. It's what you see but can't say.

What is a brand name?

The spoken part of a brand, including letters, words, and numbers. It's what you say to identify a product.

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What is brand equity?

The value that a brand holds beyond its actual tangible assets. It includes customer loyalty, brand awareness, and perceived quality.

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What is a brand portfolio?

It involves the strategic management of a company’s different brands. This includes aligning brands with specific target audiences, understanding their individual roles, and ensuring they complement each other.

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What is the role of marketing communications in brand building?

Building brand awareness, creating positive associations, and fostering customer loyalty through various communication channels.

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What is a good brand?

A good brand provides value to customers, creates strong customer loyalty, and is profitable for the business. It consistently delivers on its promises and is perceived favourably by the market.

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Governance

The extent to which the organization has the skills and an operating model to effectively and efficiently deploy the brand.

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Differentiation

The degree to which customers perceive the brand to have a differentiated proposition and brand experience.

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Responsiveness

The ability to constantly evolve the brand and business in response to or anticipation of challenges and opportunities and market changes.

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Consistency

The degree to which a brand is experienced as consistent across all touchpoints and formats.

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Presence

The degree to which a brand feels omnipresent and is perceived positively by customers and opinion formers across media.

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Engagement

The extent to which customers show a deep understanding of, active participation in, and a strong sense of identification with the brand.

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Commitment

The extent to which a brand meets customer expectations regarding quality, value, reliability, and overall experience.

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Relevance

The degree to which a brand aligns with customer needs, desires, and decision-making criteria.

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Strategic Options for National Brands

Strategies for national brands to compete with private labels that involve differentiating their offerings, such as investing in innovation and brand image, or introducing value-added features; these strategies aim to create a competitive advantage and maintain customer loyalty.

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Increasing Distance Through Brand Equity

A strategic option for national brands to compete with private labels by focusing on increasing the perceived value of their products through brand image, packaging, or other features. This strategy aims to convince customers that the national brand offers more value for their money.

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Reducing the Price Gap

A strategic option for national brands to compete with private labels by reducing the price difference between their products and private label equivalents, aiming to attract price-sensitive customers. This strategy can be risky if it erodes profit margins.

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Introducing a Value-Anker

A strategy where national brands introduce a new product that closely imitates a successful private label product, aiming to capture market share by offering a similar product at a slightly higher price. This strategy can be risky if it compromises the brand's image.

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Wait & Do Nothing

A strategy for national brands to compete with private labels where they wait and observe market dynamics before making a response. This strategy can be effective if the brand is able to develop a strong innovation or capitalize on market shifts.

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Producing (Premium) Private Labels

A strategic option for national brands to compete with private labels by producing their own private label versions of their products, often for major retailers. This strategy can strengthen retailer relationships and potentially be profitable if the brand has excess capacity.

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Investing in Brand Image

A strategy for national brands to compete with private labels by focusing on building a strong brand image, reputation, and customer loyalty. This strategy relies on differentiating the brand through product quality, innovation, and customer service.

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Generic Brands

Products that lack a distinct brand name and are often sold at the lowest prices. They are typically generic versions of established products.

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Local-Minded Consumer

The tendency to favor products from one's own region or country over global brands. This mindset is often rooted in a desire for unique local experiences and a sense of cultural identity.

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Global-Minded Consumer

The inclination to prefer products from well-known global brands over local brands. This often reflects a desire for products that symbolize modernity, global trends, and a sense of belonging to a larger community.

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Co-Branding

A branding strategy where two or more brands partner to create a joint value proposition or product, often with the goal of leveraging each other's strengths and expanding reach.

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Ingredient Branding

A branding approach where a well-known brand of a key ingredient is prominently displayed alongside the brand of the final product, highlighting the quality and expertise of the ingredient.

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Endorsement Branding

A branding strategy where a company uses multiple brand names, with one serving as a recognizable quality label or endorsement for other products within the portfolio.

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Local Brand Advantages

The advantage that local brands often have due to their strong relationships with consumers in their region, understanding of local preferences, and efficient operations within the local market.

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Global Companies Acquiring Local Brands

The practice of companies incorporating local brands into their global portfolio, recognizing the value of local expertise, consumer loyalty, and market penetration.

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Targeting Consumer Mindset

The strategic positioning of products to resonate with the dominant mindset of the target audience, whether it's global or local, to ensure effective brand messaging and consumer engagement.

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Brand Community

A specialized community of people who share a strong connection to a particular brand, often formed through shared experiences, values, and interests.

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Brand Fests

Events or gatherings organized by brands to bring together their loyal customers, enhancing brand engagement and fostering community spirit.

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Brand Loyalty

A significant and enduring relationship between a customer and a brand, characterized by loyalty, advocacy, and a strong emotional connection.

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Brand Equity

The collective associations, perceptions, and beliefs associated with a brand, influencing consumer decisions and shaping brand value.

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Retailer Benefits of Branding

The positive impact of strong brands on a retailer's image and customer attraction, leading to increased sales and brand recognition.

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Reduced Perceived Risk in Purchasing

The ability of a brand to inspire trust and confidence in consumers, reducing their perceived risk when purchasing products or services.

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Psychological Reward of Branding

The positive psychological benefits consumers derive from associating with brands perceived as exclusive or prestigious.

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Branding and Innovation

The ability of strong brands to encourage innovation and create new product offerings, enhancing consumer choice and market diversity.

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What is Brand Awareness?

Knowing a brand exists and being able to recall its name or logo when relevant.

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What is Perceived Quality?

The belief that a brand offers superior quality, performance, or benefits compared to competitors.

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What is Customer Loyalty?

Customer loyalty is the degree to which a customer is committed to a brand and its products or services.

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What is Brand Power?

The ability of a brand to influence consumer choices and drive sales.

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How do brand equity components affect a brand's value?

Brand awareness, perceived quality, customer loyalty, and brand power all contribute to the brand's overall value.

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How does brand equity benefit consumers?

Strong brands provide trust and familiarity, making consumers more likely to choose them.

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How does brand equity benefit manufacturers?

Strong brands help reduce marketing costs, enhance distributor relationships, and facilitate sales.

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Study Notes

Brands

  • Brands have always been important in marketing, crucial for long-term success in a changing market.
  • Short-term profits are sometimes prioritized over long-term brand building.
  • Brands are valuable assets, also known as brand equity.
  • A brand is a name, term, sign, symbol, or design (or a combination of these) that identifies goods or services of one seller and differentiates them from competitors.
  • A brand name can be spoken (e.g., BMW) and a brand mark cannot (e.g., Mercedes logo).
  • A trademark is legal designation for exclusive use of a brand.
  • Brands can add value (rational/tangible or symbolic/emotional/intangible).
  • Brand associations include intrinsic (like performance, price) and extrinsic (like imagery, lifestyle).
  • Brands are used by consumers to express self-expression, develop relationships, and gain loyalty.
  • Brand names, logos, and other elements should be memorable, meaningful, likeable, adaptable, transferable, and protectable.
  • They should be easily said, spelled, and remembered.
  • Brands should be transferable across product categories and geographies, easily pronounced in different languages, and culturally neutral.
  • Three main brand categories are: manufacturer (by manufacturer), own-label (by retailer or wholesaler), and generic (product category).

Successful Brands

  • Successful brands are differentiated and perceived as having unique benefits.
  • They are positioned on quality and added value; their superior quality is a key differentiator.
  • Leading brands must constantly innovate to stay ahead of the competition.
  • Complete commitment from leadership and employees is crucial for maintaining a positive brand image.
  • Internal marketing (training and communication to staff) is essential.

Brand Strategies

  • Decisions must be made about whether to brand a product, as this is not necessary for all categories.
  • When a brand is chosen, various strategies can be implemented including: multi-branding, line extension, or global branding.

Brand Equity

  • Brand equity represents the overall value of a brand, both for the company and consumers.
  • Consumers develop values and relationships with brands.
  • It can be financial, or measure the marketing strength behind a product.
  • Various factors contribute to perceived value.
  • Consumer-focused brand equity is more important than financial brand equity, and is the marketing value created from a brand.

Brand Communications

  • Communications are essential, especially in the long term.
  • Consistent marketing messages are important.
  • Use of different channels (like TV and print) or communications tools is important.
  • Avoid harmful activities like frequent pricing promotions.

Brand Performance and Imagery

  • Alternating between performance and imagery communications helps create a richer brand network of associations.
  • Performance-related factors can include product attributes and capabilities.
  • Imagery-related factors can include brand personality and target user.
  • Deeper and broader awareness is crucial to building brand equity.

Brand Portfolio

  • A brand portfolio needs strategy to optimise market share with different products or brands.
  • Products and brands must be distinctive and not overlap too much to avoid confusing customers.

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