kotler 2020, Chapter 9 - Branding Strategies and Success

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Questions and Answers

What does branding fundamentally represent in relation to consumers?

The relationships between consumers and products (correct)

The price of the product in the market

The physical appearance of a product

The competitive advantage of a company

What is one of the key outcomes of an effective branding strategy?

Higher product manufacturing costs

Reduction in marketing budgets

Improved consumer perceptions and feelings about a product (correct)

Operations management optimization

Which of the following best describes the role of brands in marketing?

Brands solely represent the price point of a product

Brands influence consumer loyalty and perception (correct)

Brands determine the manufacturing process

Brands are merely marketing tools for sales

In the context of building strong brands, what is emphasized as a key element?

Understanding consumer perceptions and feelings Signup and view all the answers

Which statement best captures the essence of what a brand represents?

A brand represents everything a product means to consumers Signup and view all the answers

What was a significant aspect of the Audi branding story mentioned?

Audi transitioned from weak to strong premium brand Signup and view all the answers

What common misconception about brands is clarified in the branding perspective?

Brands are primarily shaped by consumer perceptions and feelings Signup and view all the answers

Which characteristics are crucial for a successful branding strategy?

Understanding and managing consumer perceptions Signup and view all the answers

What is the primary factor that maintains a brand over mere advertising?

Brand experience through customer interactions Signup and view all the answers

Which of the following is NOT a choice a company has when developing its brands?

Revamping existing brands Signup and view all the answers

Why is brand auditing important for companies?

To identify the brand's strengths and weaknesses Signup and view all the answers

What can strong brands provide to companies that weak brands typically do not?

Greater freedom in strategic decisions Signup and view all the answers

Which brand development option involves collaborating with another company?

Co-branding Signup and view all the answers

What is a potential threat to the rights of a successful brand name?

The brand name becoming a generic term Signup and view all the answers

Which of the following is a strategy that marketers use to protect their brand names?

Using the word 'brand' and symbols like ® Signup and view all the answers

Which of the following is NOT a type of brand sponsorship option available to manufacturers?

Generic brand Signup and view all the answers

In recent years, what trend has been observed concerning store brands compared to national brands?

Store brands have captured a significant amount of supermarket sales Signup and view all the answers

What percentage share do private-label apparel brands reportedly capture in certain Swedish markets?

24-36% Signup and view all the answers

What naming strategy is contemporary marketing practice suggesting for new brands?

Choosing names that have real meaning Signup and view all the answers

What is one characteristic of manufacturers' brands?

They are sold under the brand name of the manufacturer Signup and view all the answers

Why might marketers have difficulty finding new brand names?

Trademark applications are skyrocketing Signup and view all the answers

What is the lowest level of brand positioning?

Positioning based on product attributes Signup and view all the answers

Which brand is known for its positioning on safety?

Volvo Signup and view all the answers

What characteristic do lovemark brands inspire in their customers?

Loyalty beyond reason Signup and view all the answers

What is a recommended strategy when establishing a brand?

To define a clear mission and vision Signup and view all the answers

How should a brand promise be characterized?

Clear, simple, and honest Signup and view all the answers

Which of the following brands is known for its emotional connection with customers?

Apple Signup and view all the answers

What issue arises from positioning a brand primarily on attributes?

Consumers tend to ignore attributes Signup and view all the answers

Which benefit did Pampers effectively communicate in its marketing?

Containment and skin health Signup and view all the answers

What is the primary reason sellers pay large royalties to use well-known fashion brands on their products?

To enhance product recognition and trust. Signup and view all the answers

What kind of products are typically associated with children's licensed character names?

Clothing, toys, and school supplies. Signup and view all the answers

Which company controls the Kodak brand name after Eastman Kodak discontinued its consumer products?

Various licensees. Signup and view all the answers

How much does brand licensing generate annually for Eastman Kodak?

$200 million. Signup and view all the answers

What is co-branding?

Combining individual brand names on a single product. Signup and view all the answers

What is one benefit for licensees when using the Kodak brand for their products?

Easier marketing due to brand familiarity. Signup and view all the answers

Why is there a resurgence in co-branding?

To leverage combined brand strengths. Signup and view all the answers

Which type of products is NOT mentioned as leveraging the Kodak brand?

Fashion apparel. Signup and view all the answers

What is a major drawback of multi-branding strategies?

Each brand may obtain only a small market share Signup and view all the answers

What action did Electrolux take to improve its brand portfolio?

Reduced the number of brands from 149 to about 30 Signup and view all the answers

Why might a company create a new brand name?

If the existing brand name is perceived to be losing power Signup and view all the answers

What is a potential consequence of offering too many new brands?

Spreading resources too thin Signup and view all the answers

Which strategy are large consumer product marketers pursuing in response to market conditions?

Mega-brand strategies focusing on stronger brands Signup and view all the answers

What primarily maintains a brand according to the content?

Personal experiences and touch points Signup and view all the answers

What is crucial for a brand's positioning to take hold fully?

Corporate lifestyle and branding consistency Signup and view all the answers

Which of the following is NOT mentioned as a touchpoint that affects brand experience?

Social media updates Signup and view all the answers

Study Notes

Chapter 9 - Branding: Developing Strong Brands

Mini Contents:
- Company case study: Audi's success story and best practice for employee social networks
- Branding strategy: Building strong brands and brand sponsorship examples (Nordea & Scandinavian Masters, Chiquita)
- Cornerstones of a strong brand
Chapter Preview:
- Branding is a major concept in marketing theory and practice
- Understanding the organization's brand is crucial for effective marketing mix decisions (product, pricing, marketing channels, marketing communications)
- Audi's transformation from a derivative brand to a premium brand is highlighted
Learning Objectives (Chapter Goals):
- Describe fundamental characteristics and situations where branding is critical
- Explain branding strategies and decision-making processes
- Detail the building blocks of successful branding
Branding Perspective:
- Brands encompass more than names and symbols; they represent consumer perceptions and feelings about a product
- Brand is a product's meaning in consumer's minds.
- Brands are a key element in company-consumer relations
Branded Society:
- Organizations of all types (multinationals, small businesses, NGOs) need to focus on branding in today's globalised and communicated world
- Information overload means brands need differentiation to stand out
- Customers need help sorting through all the options
- Branding is important for future success
Employer Branding:
- Employer branding is crucial for organizational success, it reflects employee attractiveness
- Skilled employees favor organizations with strong employer brands
- Positive employer branding correlates with lower absenteeism, higher employee retention, better staff satisfaction and increased profitability
- Increased importance placed on who you work for, over what you do
Branding Strategy: Building Strong Brands
- Brand Equity: Differential effect that knowing a brand name has on customer response (positive brand equity if consumer response favorable VS negative brand equity if response less favorable) to product or its marketing
- Brand Equity and Value: Brand equity measures a brand's ability to capture consumer preference and loyalty. Brand valuation is a process to estimate a brand's financial value.
- Brand Valuation: Estimating the overall worth of a brand.
Brand Development Strategies:
- Line Extensions: Using an existing brand name to create new flavors, colors, sizes, etc of existing products.
- Brand Extensions: Utilizing an existing brand name for new categories of products (e.g., Victorinox expanding from multi-tools to other products)
- Multibrands: Creating completely new brands within a product category (e.g., Procter & Gamble having several product categories under their name)
- New Brands: Creating entirely new brands for new product categories (e.g., Toyota's Lexus brand)
Brand Positioning:
- Positioning brands clearly in target customers' minds is essential
- Can focus on product attributes or more desirable benefits
- Company brand can be associated with desirable benefits, and better positioning correlates to positive brand perception in the consumer's mind.
Brand Name Selection:
- Important aspect for successful brands
- Key factors to consider: Product, target market, and marketing strategies
Brand Sponsorship: - Manufacturer's brand - Private brand (store brand) - Licensing - Co-branding - These are different avenues used to partner companies together for branding objectives
Conclusion:
- Effective branding strategies are crucial for businesses to thrive in a competitive market.

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Description

Explore the essential elements of branding through case studies such as Audi's transformation into a premium brand. This chapter covers fundamental characteristics of strong brands, branding strategies, and decision-making processes that are critical for effective marketing. Understanding these concepts is vital for any marketing professional looking to enhance their brand management skills.