Branding Flashcards

1
Q

What is a brand (AMA)?

A

A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate
them from those of competitors. - American Marketing Association.

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2
Q

What is a brand for consumers?

A

A brand is a set of mental associations held by the consumer, which add to the
perceived value of a product or service” (Keller, 1998)

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3
Q

How many types of brands are there?

A

3

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4
Q

What are the different types of brands?

A
  1. Attribute brand: Which conveys confidence in the product’s functional attributes [VOLVO]
  2. Aspirational brand: Which conveys image about type of people who buy the brand. Consumers seek status, recognition & esteem. Luxury markets. [ROLEX}
  3. Experience brand: Conveys an image of shared associations, emotions & personal values. Not based on a product or ‘look’. In B2C markets. [NIKE]
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5
Q

How are brands built?

A
  • Built around a functional product. However, this is insufficient to earn economic profit

Give a Distinctive Identity.
- A distinctive identity creates customer recognition, but alone is insufficient to create preference

Adding Value.

  • Gives consumer confidence that product has quality
  • Helps to create customer preference
  • This is based on customer perception
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6
Q

What are the benefits of brands?

A

Heightened brand awareness, image improvement, attachments, can be profitable

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7
Q

Through what means do brands create a preference with customers?

A

Brands have to differentiate and add value in the eyes of the consumer.

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8
Q

What is the Customer-Based Brand Equity Model?

A

Keller (1993).

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9
Q

Explain how a strong brand can have an impact of the level of cashflow.

A

Strong brands can enjoy a higher level of cash flow due to:
• Charger higher prices
• Higher volume growth [more purchases]
• Lower costs [economies of scale]

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10
Q

Explain how a strong brand can have an impact on the timing of cashflow.

A

Strong brands can enjoy a better timing of cash flow due to:
• Earlier payback for new products
• Faster customer response to marketing campaigns
• Better access to distribution channels [get product out quicker]

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11
Q

Explain how a strong brand can have an impact on the duration of cashflow.

A

Strong brands can enjoy a better/more steady duration of cashflow due to:
• Major role of brands is to extend returns into the future
• Longevity of many of the world’s top brands

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12
Q

Explain how a strong brand can have an impact on the future risk of cashflow.

A
  • Strong, durable brands support more stable cash flows
  • Reduces vulnerability to competitive attack
  • Loyal customer base reduces need for high-risk investments in winning new customers
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13
Q

What is brand architecture?

A

• Product brand.
The ability to put different products in different market segments individually through unique name & positioning (e.g. Nestle, Purina)
• Line brand
New products added easily. Complementary products easily added (e.g. Coca-Cola; diet, zero)
• Range brand
Broader array of products within same area of competence (e.g. Weight Watchers: food/drinks/scales/books)
• Source brand
Product name plus corporate or range name (e.g. Kellogg’s Cornflakes)
• Endorsing brand
Weaker association of product & corporate brand name (e.g. Nestle KitKat)
• Umbrella brand
Brand supports several products in different markets (e.g. Phillips)

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14
Q

What is a brand/line extension?

A

Using the same brand name to cover:
• New lines in the current product category = Line Extension
• New products in different categories = Brand Extension

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15
Q

What are the downsides to brands?

A
  • Vital to SHV
  • Require careful investment & management
  • Require continual investment & management
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16
Q

What do brands need to be in order to create a competitive advantage?

A
  • Unique (Distinctive/distinguishable)
  • Strong (consumers need to consider it as relevant to them)
  • Positive
17
Q

Give an example of an Attribute brand.

A

Volvo

18
Q

Give an example of an Aspirational brand.

A

Rolex | Aston Martin

19
Q

Give an example of an Experience brand.

A

Muscle Food | My Protein | Nike