THE NEW STRATEGIC BRAND MANAGEMENT

The managerial perspective on brand management focuses on how to best manage brands for profit. It emphasizes the importance of understanding brands as capital and exploiting them to create value for the business.

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

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

<p>Brands are intangible assets included in the balance sheet and they are conditional assets, meaning their value depends on their ability to produce benefits over time in conjunction with other tangible assets.</p> Signup and view all the answers

<p>Brands need to work in conjunction with other material assets, such as production facilities, to deliver their benefits and financial value.</p> Signup and view all the answers

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

<p>Strong brands have an intense emotional component connected to the mental associations they evoke. This emotional component is crucial for building lasting relationships with consumers and driving brand loyalty.</p> Signup and view all the answers

<p>The financial perspective highlights the fact that brands are intangible assets, eventually posted in the balance sheet, and they are conditional assets that require other tangible assets to generate value.</p> Signup and view all the answers

<p>A brand is a set of mental associations held by the consumer, which add to the perceived value of a product or service.</p> Signup and view all the answers

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

<p>The gain in perceived value brought by the brand.</p> Signup and view all the answers

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

<p>A product is essentially an embodiment of the brand, offering a tangible point of contact for consumers. It is through the product or service that the brand becomes real and its perceived value is established.</p> Signup and view all the answers

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

<p>Brands are intangible assets because they represent value based on perceptions and customer relationships rather than physical assets.</p> Signup and view all the answers

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

<p>The financial perspective considers brands as intangible assets, included in the balance sheet, and conditional assets, meaning their value is contingent on their ability to produce benefits over time in conjunction with tangible assets.</p> Signup and view all the answers

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

<p>Legally, a brand, or trademark, is defined as a sign or set of signs that certify the origin of a product or service and differentiate it from competitors.</p> Signup and view all the answers

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

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

<p>A brand becomes recognizable when its name influences buyers and becomes a purchase criterion.</p> Signup and view all the answers

<p>All of the above.</p> Signup and view all the answers

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

<p>Brands provide certainty and trust, reducing the risk for consumers by conveying clear benefits, ensuring quality, and offering a smoother purchase experience.</p> Signup and view all the answers

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

<p>Brand power is driven by representations and relationships. These include mental associations and the emotional connections that consumers develop with the brand, encompassing brand territory, perceived competence, quality levels, perceived exclusivity, and brand personality.</p> Signup and view all the answers

<p>The brand triangle helps to structure and analyze key elements of brand management by considering the brand concept, brand positioning, and brand embodiment in the context of products, services, places, distribution, and communication.</p> Signup and view all the answers

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

<p>Brands create value through a combination of product or service experience, a well-defined brand name and concept, and a strong communication strategy, ultimately influencing buyer behavior and shaping their preferences.</p> Signup and view all the answers

<p>A brand is a living system composed of three key poles: products or services, a name and concept.</p> Signup and view all the answers

<p>Having a strong brand concept, activating it through contact points, communicating effectively, and ensuring widespread distribution.</p> Signup and view all the answers

<p>The Mini is a well-known example of a successful brand that transcends functional value. While possessing the qualities of BMW, including reliability and performance, it also embodies a strong emotional appeal and nostalgic associations with the 'Swinging Sixties' era, adding a significant premium value to the product.</p> Signup and view all the answers

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

<p>The brand concept represents a concise and unique set of attributes that define the value proposition of a brand. It outlines the core elements of the brand's identity, positioning, and differentiation in the market.</p> Signup and view all the answers

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

<p>Increased awareness leads to increased brand power.</p> Signup and view all the answers

<p>Brand equity encompasses the set of associations and behaviors exhibited by consumers, channel members, and the parent corporation, which ultimately allow the brand to earn greater volume or profit than it could without the brand name.</p> Signup and view all the answers

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

<p>Brand strength refers to the brand's performance and influence at a specific point in time within a particular market and competitive environment. Brand equity encompasses all the brand assets, including its strength, as well as its potential to generate future profits.</p> Signup and view all the answers

<p>Brand value refers to the ability of a brand to generate profits, contributing to the overall financial value of the company.</p> Signup and view all the answers

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

<p>Brand assets are the intangible attributes and elements that build brand influence and reputation. Brand value represents the financial worth of these assets, reflecting the potential profit generated by the brand.</p> Signup and view all the answers

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

<p>EVA measures a brand's contribution to profit creation beyond the basic cost of capital investment. It assesses the value added by the brand, reflecting its impact on the company's profitability.</p> Signup and view all the answers

<p>Brand value can be negatively impacted if the costs associated with sustaining a brand's market share and price premium outweigh the profit generated by the brand.</p> Signup and view all the answers

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

<p>Important factors to consider when evaluating brand value include understanding the brand's current strength, its potential for future growth, the company's ability to adapt to market changes, and the risks associated with its financial performance and market position.</p> Signup and view all the answers

<p>Tracking brand equity is crucial for brand management purposes, allowing companies to regularly measure and monitor key indicators that reveal the source of brand power and its impact on market performance. This provides valuable insights for strategic decision-making and corrective measures.</p> Signup and view all the answers

<p>Brand equity tracking involves a systematic and continuous process of measuring key brand metrics, such as brand awareness, perception, consideration, and customer behavior. The data collected through tracking helps to assess the brand's performance against set objectives and identify areas requiring improvement.</p> Signup and view all the answers

<p>All of the above.</p> Signup and view all the answers

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

<p>To identify areas of brand strength and weakness, guiding strategic decision-making.</p> Signup and view all the answers

<p>The DDB survey reveals key characteristics of a strong company asset, highlighting the importance of brand awareness, distinct positioning, consumer recognition, and brand authority as essential elements for building a powerful and influential brand in the marketplace.</p> Signup and view all the answers

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

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

<p>Brand value encompasses a holistic perspective that goes beyond just financial measures, considering its impact on consumer behavior, brand reputation, and overall business performance. This broader understanding is crucial for making informed decisions to strategically manage the brand and leverage its full potential.</p> Signup and view all the answers

<p>Leuthesser's definition emphasizes the role of brand associations and consumer behavior in driving brand equity. It highlights the ability of a strong brand to generate greater sales volume or profit margins compared to a brand that lacks a strong name or identity.</p> Signup and view all the answers

<p>Channel members play a vital role in brand equity by directly influencing consumers' access and interaction with the brand. Their positive attitude, distribution strategy, and communication efforts contribute significantly to the brand's overall reach and market impact.</p> Signup and view all the answers

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

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

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

<p>Brand value is influenced by a complex interplay of factors, including brand assets (awareness, saliency, and image), brand strength (market share, leadership, and price premium), and the company's ability to effectively manage the brand, leverage its assets, and adapt to changing market conditions.</p> Signup and view all the answers

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

<p>Goodwill, in accounting and finance, represents the excess of the purchase price paid for a company over its book value. It primarily reflects the intangible value of the acquired company, particularly its brand equity and its established customer relationships.</p> Signup and view all the answers

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

<p>A brand's success boils down to its ability to create and establish a strong and lasting relationship with its consumers by fulfilling their needs, exceeding their expectations, and ultimately making a lasting positive impact on their lives.</p> Signup and view all the answers

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

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

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

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

<p>A brand's value extends beyond its potential for generating profits and encompasses a broader set of factors, including its ability to enhance customer loyalty, build brand reputation, attract new customers, and create a positive and lasting impact on consumers' lives.</p> Signup and view all the answers