Mktg3120 - Building And Managing Brands

Front 1

What are the advantages of having a high brand awareness?

Back 1

- Learning: brand awareness influences learning --> learning is the 1st step in BE

- Consideration: raising brand awareness increases the likelihood of being included in the consideration set

- Choice: higher level of brand awareness --> higher in priority in consideration set

Front 2

Describe the different types of learning. How are learning methods adapted depending on consumer involvement levels?

Back 2

● Conditioning: classical, operant
● Cognitive learning:iconic learning, vicarious learning/modelling, reasoning

● Involvement: level of involvement influences determinant of learning type used.:
- High involvement: operant, reasoning, some vicarious / modelling
- Low involvement: classical, iconic, some vicarious / modelling

Front 3

Highlight the importance of the response environment in advertising.

Back 3

● Response environment: strength oforiginal learning affects ability to retrieve relevant information later; similarityof original learning + type of learning is important

Front 4

What are some general learning characteristics?

Back 4

● Extinction: forgetting when reinforcement for learning is withdrawn

● Stimulus generalisation (rub-off effect): leveraging brand equity across product portfolio e.g. Milo malt is good so Milo cereal is good as well

Front 5

What is customer-based brand equity?

Back 5

Customer-based brand equity is the differential effect that brand knowledge has on consumer responses to the market of that brand, i.e. it describes how powerful a customer's attitude to a brand can be on its success.

Front 6

What is the brand resonance model?

Back 6

The brand resonance model describes developing positive CBBE brand building as a series of steps, each of which is contingent on achieving the objectives of the previous steps.

Identity: Who are you? - brand awareness (salience)
Meaning: What are you? - POP and POD
Response: What about you? - responding to consumer's attitudes about brand
Relationships: What about me and you? - brand loyalty (resonance)

Front 7

What is emotional branding?

Front 8

What are some arguments for emotional branding?

Back 8

Benefit-driven positioning is highly emulatable and thus it is difficult to gain a competitive advantage (esp. when talking about technological aspects)

Consumers rarely make purchase decisions on a rational basis, taking into account tangible benefits.

Emotional branding demonstrates a company's empathetic ability to understand consumer lifestyles, behaviours, traits, issues etc. and hence is more effective as it better connects with the consumer.

Formation of a non-rational preference is ideal as it tends to drive out further rational evaluations, as emotional responses outweigh objective evidence.

Front 9

Name three examples of brand elements.

Back 9

Brand logo/icon, brand slogans/mottos, brand names.

Front 10

How is symbolism related in consumption and brand marketing?

Back 10

Consumers shop for meaning. Brands are symbolic resources with which consumers construct and maintain their identities. Hence, brands deliver intangible benefits through providing personal meaning, a sense of identity, social status etc.

Front 11

What role do brands play in developing consumer identities?

Back 11

Consumers utilise brands in order to develop the self. The self is seen as a symbolic project, developed through consumption. As such, consumption can be used in terms of social categorization. As the narrative identity theory describes, consumers build self-identity through creating a sequence of 'narratives' throughout their lives in order to build a sense of unity and achievement within themselves. In this instance, consumers utilise brands to signify narratives in their lives that have contributed to the development of their identity.

Front 12

How do brands affect consumers in the social environment?

Back 12

The internal-external dialectic of information states that individuals require social validation from one another to build identity. Given this, consumers utilise brands in order to socially validate one another's social status and perceptions of self-identity. Hence, brands are utilised to boost social status or simply to categorise an individual socially.

Front 13

How can marketers use semiotics to build brand equity?

Back 13

Semiotics is the study of the meaning of signs. Semiotics are often produced as a result of surrounding culture, i.e. signs produce meaning based on society's interpretation of its symbols. Hence, from a thorough understanding of semiotics, marketers can use relevant cultural symbols in order to produce an image of cultural sensitivity and up-to-date-ness, and hence build brand equity.

Furthermore, marketers may conduct research on current semiotics in order to determine emerging market trends and capitalise on these trends.

Front 14

What is meant by the relational role of brands?

Back 14

The relational role of brands describes how brands connect to consumers and how these connections allow consumers to forge deep bonds with other consumers, hence serving as a relational partner that induces relationships.

Often firms observe small returns on investment in customer relationship management due to an economic approach to branding, viewing their customers as value-producing assets. The relational role of brands state that in order to develop brand equity, companies must first empathize with consumer lifestyles, traits, characteristics, in order to recognize that symbolic values of brands outweigh their utilitarian values.

Front 15

How do brands act as relational partners to consumers?

Back 15

1. Brands serve as relational partners through providing symbolic and personal meaning to consumers. Concepts such as anthropomorphism, the attribution of human traits to inanimate objects, the 'brand-as-a-person' where brands are conceived as having a personality, and the 'brand-as-a-friend' all exhibit the notion that brands provide a basis for consumers upon which they can live their lives. Often, consumers use brands to strengthen weak areas within themselves as well as enhance stronger parts of their lives.

2. Social glue: brands may act as social glue through ideologies such as brand communities and brand tribes. A brand community is a community of consumers bonded by shared preferences in brand consumption. Brand communities may assist in socially integrating consumers by providing a means through which consumers can share common tastes and hence bond. In the case of brand tribes, certain brands may elicit social gatherings and brand rituals.

3. Social differentiation: brands may also serve to differentiate consumers from one another. This may be achieved through gender-based social differentiation in which brands are used to exhibit masculinity or femininity. This is also demonstrated through displaying social status. This is evident in luxury brands, which create value for consumers through the scarcity effect i.e. the perceived increase in value due to rarity.

Front 16

What is the role of a brand manager?

Back 16

The role of the brand manager is to manage how consumers see their brand vs. competitive alternatives. It is in their interest that the target audience immediately understands that advertising messages are targeted towards them.

Front 17

What are the five steps in developing a brand?

Back 17

1. Identify the target audience

2. Understand how consumers in the target audience make decisions
3. Establish the brand positioning
4. Set the communication objectives (% of brand awareness, % of brand attitude)
5. Set the media strategy

Front 18

Contrast between a centrally-positioned brand and a differentially-positioned brand. What is the significance?

Back 18

Centrally-positioned brands focus on the product category benefit and explains how the brand can provide these benefits. Central positioning is effective when entering a new product category.

Differential-positioned brands focus on how the brand is different to competitors. These brands utilise points of parity and points of difference to establish why their brands are superior.

Front 19

What is the benefit of a strongly-positioned brand?

Back 19

Strong positioning involves ensuring an optimum product benefit aligns with the benefit focus, i.e. that the product suitably fills a need state exhibited by the target audience.

Front 20

Explain the role and difference between points of parity (POP) and points of difference (POD).

Back 20

The role of the POP is to communicate to the consumer that the product delivers, at least, the features and benefits of the product category. It is used as a frame of reference to establish which products the new brand is competing with.

The role of the POD is to communicate to the consumer the benefits of this particular brand over competitors.

Front 21

What is the structure of a positioning statement?

Back 21

is the brand for that satisfies by offering .

Front 22

What are some brand communication strategies?

Back 22

Recognition brand awareness: describes when a brand is recognised at the point of purchase, stimulated by seeing/hearing the brand. Built through: repeated exposure or visual iconic learning.

Recall brand awareness: when the brand name is recalled once the need for the product occurs.

Front 23

What are two things you must consider when developing a brand attitude strategy? Describe them.

Back 23

Involvement: the level of involvement that the consumer exerts in the purchasing decision affects the brand attitude strategy. If involvement is low, marketers need only to evoke a sense of curious disbelief, enough for consumers to 'might as well try'. Once this is performed, brand awareness is boosted. If high involvement, consumers must be fully convinced about the brand message.

Motivation: understanding positive/negative motivations for purchasing decisions is crucial as it affects how the brand should be marketed.
If negative: brand should focus on how it removes a bad state.
If positive: brand should be focussed on positive elements.

Front 24

Define brand equity. What are some benefits associated with a strong brand equity?

Back 24

The difference between the value of a product with and without a brand name attached to it.

Benefits of strong brand equity:
Improved perceptions of product performance
Increased brand loyalty
Larger profit margins
More solid income stream
Less risk
Shelf space
More effective distribution

Front 25

[MUST REVISE] What is financial-based brand equity?

Back 25

Financial-based brand equity views brand equity as an economic asset that generates value for the company. It perceives differences in the value of a brand as the differences in incremental cash flows that arise from a branded product vs an unbranded product.

Front 26

[MUST REVISE]How do you measure financial-based brand equity?

Back 26

Interbrand, the most popular brand valuation method, values brands as the present value of its future expected earnings and cash flow.

Brand valuation is dependent on 3 key points:
1. Future brand performance: the raw financial return to investors
2. The role of the brand: the degree to which the brand has an influence on consumer purchasing decisions (vs unbranded product)

3. Brand security: the ability of the brand to deliver on future expectations

Front 27

[MUST REVISE] What is brand architecture?

Back 27

Brand architecture is the optimizing of brand hierarchy, linkages, and roles of brands within a product portfolio in the interest of improving business performance and in accordance with business strategy.

Front 28

[MUST REVISE] Describe the role of brand architecture. What are its benefits?

Back 28

The role of brand architecture is to provide direction for marketers as to which brand growth strategy to adopt (line extension, category extension etc.), as well as which brand elements to apply to new and existing products.

Brands grow through leveraging on initial success; brand architecture enables a clearer understanding of the direction the brand should go.

It involves:
1. To clarify brand awareness: to improve customer understanding as well as enable consumers to relate similarities/differences between products

2. To improve brand image: to maximise transfer of brand equity across brands

3. To improve efficiency: ensures brand leverage

4. Focus: provides a direction for where to focus innovation and marketing investments

Front 29

[MUST REVISE] Contrast between a branded house and a house of brands.

Back 29

A branded house is a master brand which exerts more power over its sub-brands, which must rigorously align their marketing communication strategies and brand attitude strategies with the master brand.
- a branded house targets a smaller market segment

- a branded house focuses on providing an image of a global organisation
- leverages many synergies

A house of brand describes a more flexible arrangement in which sub-brands are individualised but belong under one name.
- targets multiple segments
- addresses individual geographies
- fewer synergies to be leveraged

Front 30

[MUST REVISE] Define 'corporate brand'.

Back 30

Corporate branding is the process of creating and maintaining favourable brand images and reputation of the company as a whole by sending signals to all stakeholders through management of behaviour, communication and symbolism.

Front 31

[MUST REVISE] Contrast between product brands and corporate brands.

Front 32

[MUST REVISE] What is the process of launching a new brand?

Back 32

1. Develop the brand platform: What does this brand want to do? Who does it want to target? What are its visions, values etc.
2. Do your homework: Find all about the consumer
3. Build a prototype
4. Choose a name
5. Develop, refine, activate launch plan

Front 33

[MUST REVISE] How would you build the brand awareness of your brand?

Back 33

- Repeated exposure: increase familiarity
- Sponsorship: build a good image and positive brand influence
- Brand authorities: use good word from opinion leaders and influencers to build positive brand equity

Front 34

[MUST REVISE] What are the core objectives for your brand?

Back 34

1. To become relevant in people's lives

2. To make profit

Front 35

[MUST REVISE] What are the core brand growth strategies?

Back 35

1. Increase usage: boost current buyers to buy higher quantities more frequently

2. Increase penetration: attract new users by aligning need states with current produccts

3. Introduce new products into existing markets

4. Introduce new products into new markets

Front 36

[MUST REVISE] What are the key questions you should ask to determine when to revitalize the brand?

Back 36

1. What are the PODs?
2. What are the brand's assets?
3. What are the negatives?
4. What is the perceived value of the brand?
5. Is the perceived value active or dormant vs competitors?
6. How relevant is the brand?
7. What can the brand do to add value?
8. How much brand loyalty is there?

Front 37

[MUST REVISE] How would you rejuvenate a brand?

Back 37

1. Innovation

2. Repositioning

3. Change in marketing strategy (withdraw, enter new markets)

Front 38

[MUST REVISE] Contrast between line extensions and category extensions.

Back 38

Line extensions is when the parent brand is applied to introduce new products in the same category.

A product extension is when the parent brand is applied to introduce new products in new categories.

Front 39

[MUST REVISE] What are the advantages and disadvantages of brand extensions?

Back 39

Advantages: Same as the advantages in the product/brand/line extension brand architecture section.

Also: increases shelf space / market share
Gives notion of brand responsiveness

Disadvantages: may overextend leading to weak brand loyalty. non-controlled extensions can weaken brand essence.

Front 40

[MUST REVISE] Describe the factors upon which stretching or retrenching decisions depend on.

Back 40

1. Brand portfolio management:
CDI (Category Development Index) reflects the size of penetration into the product category

BDI reflects the penetrative ability of the brand in relation to other competitive brands

2. Closeness of strategic fit

3. Profitability

Front 41

[MUST REVISE] What is a category extension? Under which assumptions is it advisable to utilise this brand growth strategy?

Back 41

A category extension involves moving into new product categories and introducing new products.

A category extension is performed based on the assumption that:
1. Brand has strong brand equity.
2. Brand equities are highly transferable.
3. The benefits and values are relevant to the new company
4. The extension will deliver a real competitive advantage.

Front 42

[MUST REVISE] What are some reasons as to why retrenchment may be a good idea?

Back 42

Technology/cultural changes.

Master brands have evolved, which save money, mitigate the effects of retrenchment and facilitate the introduction of new products.

Front 43

[MUST REVISE] What are the symptoms that a brand is declining?

Back 43

1. Low economic profits
2. Marketing problems
3. Managerial problems

Front 44

[MUST REVISE] What are the elimination strategies? Describe them.

Back 44

1. Drop out immediately
2. Phase out immediately
3. Sell out
4. Drop and reintroduce as special
5. Consolidate