Podcast
Questions and Answers
What is the primary role of a strong brand for consumers?
What is the primary role of a strong brand for consumers?
- To limit consumer choice to a single brand.
- To confuse consumers with a wide variety of products.
- To increase the price of products and services.
- To set customer expectations for positive experiences and reduce search costs. (correct)
Which of the following is a benefit of a strong brand for a company?
Which of the following is a benefit of a strong brand for a company?
- Difficulty in entering foreign markets.
- Inability to hire talented employees.
- Decreased customer loyalty.
- Increased marketing communication effectiveness. (correct)
What does 'brand equity' primarily refer to?
What does 'brand equity' primarily refer to?
- The physical assets owned by the brand.
- The monetary value of a brand based on consumer perception and attitudes. (correct)
- The number of employees working for the brand.
- The historical background of the brand.
If a company uses an established brand to introduce a new product, which branding strategy is it employing?
If a company uses an established brand to introduce a new product, which branding strategy is it employing?
Which of the following best describes 'line extension'?
Which of the following best describes 'line extension'?
What potential risk is associated with brand dilution?
What potential risk is associated with brand dilution?
What is the definition of 'product cannibalization' in the context of branding?
What is the definition of 'product cannibalization' in the context of branding?
What is the main purpose of 'co-branding'?
What is the main purpose of 'co-branding'?
Why do some companies change their brand names when operating in different countries?
Why do some companies change their brand names when operating in different countries?
Which of the following scenarios exemplifies brand dilution?
Which of the following scenarios exemplifies brand dilution?
A company known for making high-end sports cars decides to launch a line of family sedans under the same brand name. Which potential issue should the company be MOST concerned about?
A company known for making high-end sports cars decides to launch a line of family sedans under the same brand name. Which potential issue should the company be MOST concerned about?
Which of the following is an example of successful co-branding?
Which of the following is an example of successful co-branding?
What is the PRIMARY benefit of understanding brand equity for a company?
What is the PRIMARY benefit of understanding brand equity for a company?
A popular athletic wear company collaborates with a high-end fashion designer to create a limited-edition line of clothing. What is the MOST likely reason for this co-branding strategy?
A popular athletic wear company collaborates with a high-end fashion designer to create a limited-edition line of clothing. What is the MOST likely reason for this co-branding strategy?
When a well-known technology company, traditionally focused on personal computers, starts producing smartphones under the same brand name, what type of branding strategy is being employed?
When a well-known technology company, traditionally focused on personal computers, starts producing smartphones under the same brand name, what type of branding strategy is being employed?
Which of the following scenarios is MOST likely to result in brand dilution?
Which of the following scenarios is MOST likely to result in brand dilution?
A company introduces a new product line that is priced lower and offers similar features to its existing product line. The MOST significant risk the company faces is:
A company introduces a new product line that is priced lower and offers similar features to its existing product line. The MOST significant risk the company faces is:
What is a critical factor to consider when evaluating the success of a co-branding strategy?
What is a critical factor to consider when evaluating the success of a co-branding strategy?
A U.S.-based fast-food chain decides to rebrand its name and logo in a foreign country to better appeal to local tastes and avoid negative connotations. What strategic consideration is MOST likely driving this decision?
A U.S.-based fast-food chain decides to rebrand its name and logo in a foreign country to better appeal to local tastes and avoid negative connotations. What strategic consideration is MOST likely driving this decision?
A high-end fashion brand known for exclusive designs launches a mass-market clothing line at significantly lower prices. Which of the following is the MOST likely negative consequence for the brand?
A high-end fashion brand known for exclusive designs launches a mass-market clothing line at significantly lower prices. Which of the following is the MOST likely negative consequence for the brand?
Flashcards
What is a brand?
What is a brand?
A name, term, design, symbol, or combination, intended to identify goods/services and differentiate from competitors.
Role of a strong brand for consumers?
Role of a strong brand for consumers?
Sets customer expectations, ensures positive experiences, and reduces search costs.
Role of a strong brand for a company?
Role of a strong brand for a company?
Greater loyalty and easy brand extensions
What is brand equity?
What is brand equity?
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What are brand extensions?
What are brand extensions?
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What is a line extension?
What is a line extension?
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What is a category extension?
What is a category extension?
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What is brand dilution?
What is brand dilution?
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What is product cannibalization?
What is product cannibalization?
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What is co-branding?
What is co-branding?
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Study Notes
Building Strong Brands
- Topics include the role of a strong brand; comparison of brand equity and branding; branding strategies (brand/line extensions, dilution, cannibalization, co-branding); reasons for brand name changes in different countries; and a recap of key points.
Role of a Strong Brand
- Helps consumers set expectations for positive experiences and desirable benefits.
- Reduces search costs, including time and effort associated with purchase decisions, offering assurance.
- Provides greater loyalty with sustained customer relationships/repeat purchases.
- Allows for higher prices and larger profit margins.
- Enhances marketing communications.
- Facilitates brand extensions due to consumer trust and familiarity.
- Simplifies entry into foreign markets.
- Aids in hiring talented employees.
How Does Branding Work?
- A brand can be a name, term, design, or symbol, or any combination of these, to distinguish goods/services from competitors.
- Branding endows products with brand power, highlighting differences between them.
- The process is about crafting a brand identity and expressing unique qualities and value, distinct from competitors.
Brand Equity
- This equates to the monetary value of a brand.
- It is the value of a brand based on consumer attitudes towards positive brand attributes and the results of its use.
- Top global brands have the highest brand equity.
- Rankings of these vary depending on the specific methodology used.
Devising Brand Strategy
- Brand extensions involve a firm using an existing brand to introduce a new product.
- Line extension involves covering a new product in an existing product category, like new flavors or sizes.
- Category extension involves leveraging the existing brand to enter a new product category.
Brand Strategy: Pros and Cons
- Pros: Increased marketing communication efficiency and improved odds of product success.
- Cons: Brand dilution may occur due to overuse, weakening brand association
- Brand dilution erodes consumer association with the brand.
- Product cannibalization involves the loss of sales from established products due to the introduction of new, similar products.
Branding Strategy
- Co-branding is a partnership where the success of one helps the other
- For example: GoPro and Red Bull benefited each other through partnership
- Companies change names when operating across the globe.
- Some names do not translate directly.
- Some names have negative meanings in other languages.
- For example, Burger King is called "Hungary Jack's" in Australia.
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