The Role and Impact of Brands
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Questions and Answers

What is one of the roles of brands?

  • Decrease customer loyalty
  • Eliminate legal protection
  • Increase product complexity
  • Simplify product handling (correct)

    • A brand can offer legal protection through trademarks and copyrights.

    True

    What is the primary advantage of strong brand loyalty?

    Secures price premium

    Brands signify __________ and create barriers to entry.

    <p>quality</p> Signup and view all the answers

    Which company earns significant income from brand names?

    <p>HUL</p> Signup and view all the answers

    A brand image cannot be duplicated, providing a competitive advantage.

    <p>True</p> Signup and view all the answers

    How much is the annual sales of the brand Surf Excel?

    <p>3000 Cr.</p> Signup and view all the answers

    The proprietary design and packaging of a brand can be protected by __________.

    <p>copyrights</p> Signup and view all the answers

    Match the following brands with their respective sales figures:

    <p>Surf Excel = 3000 Cr. Horlicks = 5000 Cr. Amul = 27000 Cr. Maggi = 2500 Cr.</p> Signup and view all the answers

    What is a brand intended to do?

    <p>Identify goods or services and differentiate them from competitors</p> Signup and view all the answers

    Brand equity reflects only the physical aspects of a product.

    <p>False</p> Signup and view all the answers

    What does Customer-based Brand Equity (CBBE) represent?

    <p>The differential effect that brand knowledge has on consumer response to marketing.</p> Signup and view all the answers

    A brand's importance as a strategic asset increases during brand __________.

    <p>extensions</p> Signup and view all the answers

    Match the category of brands with their description:

    <p>Functional brands = Highlight efficiency of product features Image brands = Offer image value to the user Experience brands = Emphasise unique user experience</p> Signup and view all the answers

    Which of the following is an example of an experience brand?

    <p>Singapore Airlines</p> Signup and view all the answers

    Goodwill is defined as the physical assets of a company.

    <p>False</p> Signup and view all the answers

    What does the term 'brand power' refer to?

    <p>The ancillary value contributed by the brand to a product or service.</p> Signup and view all the answers

    The __________ of branding is the process of adding value to products and services.

    <p>essence</p> Signup and view all the answers

    Which company is noted as a functional brand?

    <p>Maruti</p> Signup and view all the answers

    Which approach estimates brand equity by measuring the difference in sales revenues between branded and unbranded offerings?

    <p>Market approach</p> Signup and view all the answers

    Negative CBBE indicates favorable consumer reaction to marketing activities for the brand.

    <p>False</p> Signup and view all the answers

    What is the purpose of a brand audit?

    <p>To assess the health of the brand and suggest improvements.</p> Signup and view all the answers

    A brand mantra is a three- to five-word articulation of the brand's ______.

    <p>heart and soul</p> Signup and view all the answers

    Match the following brand elements with their definitions:

    <p>Memorable = Easy to remember Meaningful = Conveys significance Likable = Appealing to consumers Adaptable = Flexible for various markets</p> Signup and view all the answers

    What describes brand characters?

    <p>Symbols with human traits</p> Signup and view all the answers

    Brand personality refers to the specific mix of human traits associated with a brand.

    <p>True</p> Signup and view all the answers

    Why is developing a meaningful brand hierarchy important?

    <p>It helps manage diverse brand portfolios effectively.</p> Signup and view all the answers

    Brand equity is evaluated as the net present value (NPV) of a brand's future ______.

    <p>earnings</p> Signup and view all the answers

    Which of the following is NOT a characteristic of choosing brand elements?

    <p>Essential</p> Signup and view all the answers

    What is an example of line extension?

    <p>Lifebuoy Gold</p> Signup and view all the answers

    Category extension involves extending a brand to products that belong to different categories.

    <p>False</p> Signup and view all the answers

    What is the purpose of brand rejuvenation?

    <p>To breathe new life into a brand showing signs of staleness or a dip in demand.</p> Signup and view all the answers

    HMT extended to ______ and watches, representing an unrelated category extension.

    <p>bulbs</p> Signup and view all the answers

    Match the following brands with their extensions:

    <p>Maggi = Soup, Ketchup, Sauce Nivea = Shampoos, After shave lotions Lifebuoy = Personal, Plus, Gold Dettol = Soap, Handwash, Plaster</p> Signup and view all the answers

    Which of the following is NOT a characteristic of luxury branding?

    <p>Affordable Pricing</p> Signup and view all the answers

    What is the term for the set of all brands and brand lines offered by a firm in a particular market segment?

    <p>Brand Portfolio</p> Signup and view all the answers

    The house-of-brands strategy involves using a single corporate brand name for all products.

    <p>False</p> Signup and view all the answers

    What is cobranding?

    <p>Cobranding is the marketing of two or more brands together.</p> Signup and view all the answers

    A strategy where several related products are marketed under one brand name is called a ________ brand name.

    <p>family</p> Signup and view all the answers

    Match the following branding strategies with their descriptions:

    <p>House-of-brands = Individual or separate family brand names Branded-house = Corporate umbrella brand name Sub-brand = Combines multiple brand names Umbrella brand = Different products under one brand name</p> Signup and view all the answers

    Which of the following is an example of brand extension?

    <p>Apple expanding from computers to MP3 players</p> Signup and view all the answers

    Brand dilution can be an advantage of brand extension.

    <p>False</p> Signup and view all the answers

    Name one advantage of brand extension.

    <p>Increased market presence or leveraging existing brand equity.</p> Signup and view all the answers

    A ________ brand strategy includes products that are entirely unrelated but marketed under a single brand name.

    <p>umbrella</p> Signup and view all the answers

    What type of branding strategy utilizes a corporate brand name to promote multiple products?

    <p>Umbrella brand</p> Signup and view all the answers

    Study Notes

    The Role of Brands

    • Brands help identify the maker of a product, simplifying handling and organizing accounting.
    • Legal protections for brands include trademarks for names, patents for manufacturing processes, and copyrights for packaging.
    • Brands signify quality and foster customer loyalty, contributing to predictable demand and barriers to entry in the market.
    • Brand loyalty can secure a price premium of 20%-25% over non-branded products, providing a competitive advantage.

    Financial Impact of Brands

    • Brands are significant assets for companies, contributing heavily to annual sales, e.g., Surf Excel generates ₹3000 Cr for HUL.
    • Market-leading brands include Horlicks (₹5000 Cr for GSK) and Amul (₹27000 Cr for GCMMF).
    • A brand is defined as a combination of elements that differentiate a seller's goods and services from competitors.

    Strategic Significance of Brands

    • Brands represent the value delivered to customers, enhancing loyalty and offering a strategic advantage through brand extensions.
    • Types of brands based on value they offer include:
      • Functional brands (e.g., Gillette, Maruti) emphasize product efficiency.
      • Image brands (e.g., Parker, Coca-Cola) provide lifestyle image value.
      • Experience brands (e.g., Singapore Airlines, Starbucks) focus on unique user experiences.

    Brand Equity and Power

    • Brand equity refers to the monetary value of a brand, incorporating goodwill and intangible assets.
    • Positive customer-based brand equity (CBBE) occurs when consumers react favorably to a branded product compared to an unbranded one.
    • Measurement methods for brand equity include cost, market, and financial approaches, assessing sales revenue and future earnings predictions.

    Brand Assessment Techniques

    • Brand audits evaluate brand health and sources of equity; brand tracking collects quantitative consumer data over time.

    Design Considerations in Branding

    • A brand mantra captures the essence of a brand in a few words, communicating uniqueness and inspiring stakeholders.
    • Choosing brand elements requires them to be memorable, meaningful, likable, transferable, adaptable, and protectable.
    • Brand characters enhance brand likability by incorporating human traits.

    Brand Hierarchy and Portfolio Management

    • Brand hierarchy organizes a company’s brands relative to its products and each other, crucial for managing diverse portfolios.
    • Managing brand portfolios may involve house-of-brands and branded-house strategies, ensuring targeted marketing for different segments.

    Cobranding Strategies

    • Cobranding involves marketing together two or more brands, which can occur through same-company or joint venture collaborations.

    Brand Dynamics and Extensions

    • Brand repositioning can employ strategies like back to basics or reinvention to refresh brand appeal.
    • Brand extensions can lead to dilution but provide opportunities for growth.
    • Types of brand extensions include line extensions (more products within the same line), category extensions (related products), and unrelated extensions (new categories).

    Brand Rejuvenation and Relaunch

    • Rejuvenation revitalizes brands showing staleness, maintaining their relevance.
    • Brands like Nokia may undergo relaunches with new marketing strategies to improve performance.

    Luxury Branding

    • Luxury brands possess characteristics of quality and uniqueness, requiring careful management to balance exclusivity with accessibility.

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    Description

    This quiz explores the significance of brands in business, focusing on their role in identifying products, ensuring legal protection, and fostering customer loyalty. Additionally, it delves into the financial impact brands have on companies' revenues and their strategic importance in competitive markets.

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