Chapter 8: Branding: Developing Strong Brands

Front 1

Why are so many managers obsessed with creating a premium brand?

Back 1

- Premium brands are more profitable and give more prestige to everybody involved, in any area of or related to the business.

Front 2

What is a brand?

Back 2

A brand represents everything that a product, service, organization, employer, region or person means to consumers. Companies must manager their brands carefully.
→ A brand is a key element in the company’s relationships with consumers.

Front 3

Why is brands important?

Back 3

With the enormous amount of information and opportunities that are available, modern citizens need effective tools to pick up the important and meaningful messages out of all the commercial noise – that is why attractive brands have become more important and there are no signs this will change in the future.

Front 4

What is employer branding?

Back 4

It is about building the appeal of an employer.
→ Successfully done, this will lead to employees with better skills, less absenteeism, greater staff satisfaction and engagement, and higher profitability.

Front 5

What is brand equity?

Back 5

Brand equity is the differential effect that knowing the brand name has on customer response to the product or its marketing. A brand can be measured through:
- Differentiation
- Knowledge
- Relevance
- Esteem

Front 6

What advantages does it give a company if it has high brand equity?

Back 6

High brand equity provides a company with many competitive advantages such as consumer brand awareness and loyalty, leverage in bargaining with resellers, easily launched line and brand extensions.

Front 7

Describe the four brand strategy decisions.

Back 7

Brand positioning:
- Attributes
- Benefits
- Beliefs and values
Brand name selection:
- Selection
- Protection
Brand sponsorship:
- Manufacturer’s brand
- Private brand
- Licensing
- Co-branding
Brand development:
- Line extensions
- Brand extensions
- Multi-brands
- New brands

Front 8

What is a store brand?

Back 8

Store brand (or private brand): a brand created and owned by a reseller of a product or service.

Front 9

Explain co-branding.

Back 9

Co-branding: the practice of using the established brand names of two different companies on the same product.

Front 10

What is line extension?

Back 10

Line extension: extending an existing brand name to new forms, colors, sizes, ingredients or flavors of an existing product category.

Front 11

What is brand extension?

Back 11

Brand extensions: extending an existing brand name to new product categories.