Mktg3120 - Building And Managing Brands

Front 1

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

Back 1

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 2

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

Back 2

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 3

[MUST REVISE] What is brand architecture?

Back 3

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 4

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

Back 4

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 5

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

Back 5

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 6

[MUST REVISE] Define 'corporate brand'.

Back 6

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 7

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

Front 8

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

Back 8

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 9

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

Back 9

- 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 10

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

Back 10

1. To become relevant in people's lives

2. To make profit

Front 11

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

Back 11

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 12

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

Back 12

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 13

[MUST REVISE] How would you rejuvenate a brand?

Back 13

1. Innovation

2. Repositioning

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

Front 14

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

Back 14

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 15

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

Back 15

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 16

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

Back 16

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 17

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

Back 17

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 18

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

Back 18

Technology/cultural changes.

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

Front 19

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

Back 19

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

Front 20

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

Back 20

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