question

marketing or distribution channels

answer

sets of interdependent organizations involved in the process of making a product or service available for use or consumption

question

direct channels

answer

selling through personal contacts from the company to prospective customers by mail, phone, electronic means, in-person visits, etc.; preferable when product information needs are high; product customization is high; product quality assurance is important; purchase lot size is important; logistics are important

question

indirect channels

answer

selling through third-party intermediaries such as agents or wholesalers, distributors, brokers, retailers, and dealers; preferable when: a broad assortment is essential; availability is critical; after-sales service is important

question

branded house

answer

strongly normative structure to daughter brands; high degree of coherence, internal unity; dominance of corporate brands; corporate brand dominates; sub-brands unimportant

question

house of brands

answer

basket of different brands where decisions made downstream; high degree of freedom for each brand; dominance of product brands; mono-brands; no linking umbrella brand

question

brand heirarchy

answer

useful means of graphically portraying a firm's branding strategy by displaying the number and nature of common and distinctive brand elements across the firm's products, revealing the explicit ordering of brand elements

question

sub-brands

answer

modification of corporate brand by sub-brands

question

endorsed brands

answer

modification of corporate brand by sub-brands

question

product brands

answer

high degree of freedom, one branding level

question

umbrella brand

answer

between high degree of freedom and high degree of coherence, one branding level

question

masterbrand

answer

high degree of coherence, one branding level

question

maker's mark

answer

high degree of freedom, two branding levels

question

endorsing brand

answer

between high degree of freedom and high degree of coherence, two branding levels

question

source brand

answer

high degree of coherence, two branding levels

question

product-brand strategy

answer

involves assignment of particular name to one single product (line), thus each product receives its own brand name; each product has a precise, well-defined positioning; product can be an entire product category if it is so specific that there is no equivalent

question

the maker's mark strategy

answer

products are given a discrete corporate logo which is the "maker's seal"; company tries to authenticate the product and to guarantee its provenance; mostly used for distributors as recognition sign identifying the industrial group that made it

question

endorsing brand strategy

answer

company name is visible on each product and acts as base guarantor; brand endorsement can be indicated in a graphic manner by placing the emblem next to the brand name or by simply signing the endorser's name; gives substance to the company name while each product has a power of recall for the customer

question

umbrella brand strategy

answer

characterized by a single brand level, ie products are not given a daughter brand but the brand covers several product categories; every new product participates in goodwill of the umbrella which makes the introduction of new products quite easy

question

masterbrand strategy

answer

clear domination of the parent brand which provides not just a name, but a frame of reference behind which everything should align; offers economies of scale linked to the variety of products that the brand can cover while creating a brand identity

question

source brand strategy

answer

characterized by a double brand level (two-tier brand structure) where products all have their own brand name; parent brand is the driver of purchases whereas the sub-brands provide a two-tiered sense of difference and depth

question

advantages of the "branded house"

answer

brands can easily distribute new products if consistent with the brands' mission; cost of new launches is low; economies of scale linked to the variety of products that the brand can cover; new products participate in goodwill of family brands; exploitation opportunities of niche and submarkets; no long-lasting search for protectable brand names

question

disadvantages of the "branded house"

answer

clear profiling and positioning of product program is difficult; in case of failure of one product, badwill transfer effects on brand and other products may occur; brand identity and brand kernel may restrict innovation possibilities; risk of dilution or overexpansion, especially in case of not-philosophy adequate new products

question

advantages of "house of brands"

answer

clear profile and well-defined positioning of each product; allows concentration on particular segment of the market and on determined target group; avoidance of possibly badwill transfer effects and negative spillover on other products in case of failure; allows firms to take risk in new markets; more shelf space in stores which usually depends on the number of strong brands that a company has

question

disadvantages of the "house of brands"

answer

product has to bear total brand expenditures which involves considerable investments in advertising and promotions, etc.; retailers only stock new products whose future is uncertain when reassured by heavy listing fees; due to increasingly shorter product life cycles, risk of not reaching break-even point; increasing problems to find suitable and protectable brand names

question

brand-product matrix

answer

graphical representation of all brands and products sold by the firm; basic principle is to maximize market coverage and to minimize brand overlap so that brands aren't competing among themselves

question

market development

answer

a single brand is not able to develop a market in the long run on its own; additional brands are introduced to create a differentiated future demand

question

optimization of market coverage

answer

no single brand can cover a market in the long run; a brand's identity is not necessarily able to stand for different product categories

question

tactical flexibility

answer

enables a company to limit a competitor's field of extension

question

creation of barriers to entry

answer

strong entry barrier can be created by offering a complete range of products, leaving little to no niche for potential new entrants

question

protection of reference brand

answer

instead of endangering the main brand by, e.g. failed innovations, brand managers may choose a different brand name

question

serving different price segments

answer

in order to avoid having to lower the prices of leading products, brand managers may create new brands in different price segments

question

flankers

answer

certain brands act as protective flankers or fighter brands; fighter brand designed to combat and ideally eliminate, low-price competitors while protecting the flagship brand; ideally, fighter brand opens up new market; challenge is to design flankers in way that they do not take away market share from flagship product; at the same time cannot be designed cheaply and reflect poorly on other brands of portfolio

question

cash cows

answer

may be kept in portfolio despite shrinking sales because they maintain profitability with little marketing support; withdrawing them might not necessarily affect customers switching to another brand in portfolio; marketers can effectively milk by capitalizing on their backbone of loyal customers

question

low-end/high-end brands

answer

many introduce products that vary in price and quality to bring as many customer segments as possible in their brand franchise; low-priced products act as traffic builders and to trade them up to a higher priced brand later; role of high-priced brands is to add prestige & credibility to portfolio

question

brand extension

answer

use of the current brand name in a completely different product

question

sub-brand

answer

new brand is combined with an existing brand

question

parent brand

answer

existing brand that gives birth to a brand extension

question

family brand

answer

if brand is already associated with multiple products through brand extensions

question

types of brand extension

answer

form of the product, distinctive taste, companion product, customer franchise, expertise, unique benefit, prestige

question

form of the product

answer

same product is produced in a different form

question

distinctive taste

answer

component of the current brand is used to make a new item

question

companion product

answer

products lend themselves to brand extensions when they are used with others

question

customer franchise

answer

different brands are developed to sell to loyal customers

question

expertise

answer

extension into areas where consumers believe the brand has special knowledge

question

unique benefit

answer

brand's specific attribute is extended into a related field

question

prestige

answer

introduction of products that capitalize on the distinctive image of the brand

question

advantages of brand extensions

answer

improvement of brand image, risk reduction, gaining distribution and trial, higher efficiency of promotional expenditures, marketing cost reduction, development cost avoidance, packaging and labeling efficiencies, variety-seeking, clarification of brand meaning, enhancement of parent brand image, increase in market coverage, brand revitalization, subsequent extensions

question

disadvantages of brand extensions

answer

confusion and frustration, retailer resistance, damage of parent brand image, cannibalization effect, dilution effect, opportunity costs

question

line extension

answer

parent brand is applied to a new product that targets a new market within a product category the parent brand currently serves; introduced to better adapt the offer to the needs of consumers; targets the same customer group like the original product; captures the short-term tendencies of the market; deepens the problem-solving ability more or less to the same customers, for the same need and consumption situation

question

line extension multiplications

answer

format and sizes, variety of tastes and flavors, type of ingredients, generic forms for medicine, physical forms, product add-ons corresponding to the same consumer need, versions having a specific application

question

growth through existing customers

answer

building volume per capita, building volume by addressing the barriers to consumption, growth through new uses and situations

question

growth through innovation

answer

creating desire in saturated markets, the virtuous cycle of innovation, the effect of innovation on sales

question

building volume per capita

answer

instead of acquiring new customers (an expensive task), persuade your existing customers to use more of your product or more frequently; propose new ways of using the product, propose new occasions to use the product, match prices of one's own product to other popular products

question

co-branding

answer

occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion; also called brand bundling or brand alliance; participating brands should be independent before, during and after offering; should be implemented on purpose and must be visible to potential buyers

question

vertical

answer

integration of products by producers of different value chain steps

question

horizontal

answer

joint product by producers at the same step in the value chain

question

product bundling

answer

combined offer of two or more goods in a package with one total price

question

advertising alliance

answer

simultaneous mention of different suppliers in one advertisement

question

joint sales promotion

answer

timely, limited appearance of two independent brands in promotional activities

question

dual branding

answer

common usage of a store location (shop in shop concept)

question

brand extension characteristics

answer

extension of a brand to a new product in a new product category

question

advantages of co-branding

answer

borrow needed expertise; leverage equity you don't have; reduce cost of product introduction; expand brand meaning into related categories: broaden meaning, increase access points; source of additional revenue

question

disadvantages of co-branding

answer

loss of control; risk of brand equity dilution; negative feedback effects; lack of brand focus and clarity; organizational distraction

question

ingredient branding

answer

special case of co-branding that creates brand equity for materials, components, or parts that are necessarily contained within other branded products; consumers must recognize ingredient is important for performance and success of end product and must be convinced that ingredient brand has substantial advantage over existing alternatives; branded ingredients are often a signal of quality; attempt to create enough awareness and preference for their product that consumers will not buy a host product that does not contain the ingredient; can become a category point of parity

question

opportunities of ingredient branding for manufacturer of end product

answer

positive image effects; differentiation; lower marketing costs; higher product quality; lower r&d cost

question

risks of ingredient branding for manufacturer of end product

answer

image risk; dilution of the host brand; dependence on supplier

question

opportunities of ingredient branding for supplier of ingredient

answer

increasing demand; higher price and volume premium; lower threat of substitution; creation of entry barriers; creation of brand equity

question

risks of ingredient branding for supplier of ingredient

answer

conflict potential with manufacturer; limited access to end consumers; accountability in case of product failures

question

symptoms of aging brands

answer

insufficient preparation for the future; insufficient dual management; insufficient capacity to capture growth pockets; insufficient meaningfulness; insufficient vitality at contact; insufficient self-stimulation; insufficient staffing

question

insufficient preparation for the future

answer

insufficient rate of new products; low rate of patent registration; insufficient investment in r&D and trend spotting; insufficient knowledge about new uses

question

insufficient dual management

answer

insufficient knowledge, about non-consumers, modern and tomorrow's consumers; more sales to a reduced number of consumers

question

insufficient capacity to capture growth pockets

answer

thinking the brand only through its historical product, without being ready to capture emerging trends

question

insufficient meaningfulness

answer

weakening of the present positioning and values; lowering rate of repeat purchase; decrease in spontaneous awareness

question

insufficient vitality at contact

answer

lack of regular updating of the quality of the logo; lack of regular facelifts for stores or for the packaging

question

insufficient self-stimulation

answer

lack of curiosity; lack of desire to surprise; lack of PR events

question

insufficient staffing

answer

lack of young managers

question

generalist brands

answer

open and adaptive; offers a broad range under its one name, aimed at covering the needs of all segments of its market sector; capitalizes on customers' durable values; promotes models with their own personality; needs a clear positioning, i.e., a clear personal brand imprint; all the products must be ruled by a common vision and conception, i.e. a leitmotif

question

specialist brands

answer

excluding; it sets itself a particular market segment, of which people either are or are not part; builds its range according to that single market; promotes itself; highly typified, identifiable and exclusive by nature

question

brand salience

answer

capacity of the brand to be evoked spontaneously in consumers' minds as soon as the need to buy the product type appears

question

factors of decline

answer

forgotten quality, non-significant differences, missing the trend, mono-product syndrome, unfulfilled expectations of a distribution channel, weak communication

question

strategies to counter decline phases

answer

identifying new or additional usage opportunities; identifying new and completely different ways to use the brand; changing brand elements; entering new markets; product facelift; brand name facelift; reinvention; old product relaunch; altering product communication

question

causes of brand erosion

answer

short-term sales orientation; inconsistency and discontinuity in brand management; lack of brand investment; lack of commitment of staff; outsourcing of key brand management tasks

question

causes of brand overlap

answer

overstretching the brand; portfolio expansion through mergers and acquisitions; lack of positioning of individual brands; increasing diversification

question

step one of strategic brand consolidation process

answer

develop the relevant brand set

question

step two of strategic brand consolidation process

answer

develop brand assessment criteria

question

step three of strategic brand consolidation process

answer

brand evaluation

question

step four of strategic brand consolidation process

answer

prioritize brands

question

step five of strategic brand consolidation process

answer

develop the revised brand portfolio strategy

question

step six of strategic brand consolidation process

answer

design and implement the migration strategy

question

global objectives

answer

brand contribution to business success

question

economic objectives

answer

brand value

question

behavioral objectives

answer

brand strength (e.g. brand awareness, brand image, brand trust, brand loyalty, etc.)

question

brand awareness pyramid of Aaker (bottom of pyramid to top)

answer

unaware of brand -> brand recognition -> brand recall -> top of mind -> dominant brand

question

dominant brand

answer

specific brand is the dominant brand of the respondent

question

top of mind

answer

specific brand is the first to be mentioned by the respondent (top of mind awareness)

question

brand recall

answer

the respondent mentions the brand without assistance (unaided brand awareness, active)

question

brand recognition

answer

respondent recognizes the brand from a given list of brands (aided brand awareness, passive)

question

unaware of brand

answer

respondent does not know the brand

question

types of brand knowledge (Keller's dimensions of brand knowledge)

answer

brand awareness and brand image

question

types of brand awareness (Keller's dimensions of brand knowledge)

answer

brand recall and brand recognition

question

types of brand image (Keller's dimensions of brand knowledge)

answer

types of brand association, favorability of brand associations, strength of brand associations, uniqueness of brand associations

question

types of brand associations (Keller's dimensions of brand knowledge)

answer

attributes, benefits, attitudes

question

types of attributes (Keller's dimensions of brand knowledge)

answer

non-product-related and product-related

question

types of benefits (Keller's dimensions of brand knowledge)

answer

functional, experiential, symbolic

question

types of non-product-related attributes (Keller's dimensions of brand knowledge)

answer

price, packaging, user imagery, usage imagery

question

brand value

answer

contribution to the success of existing businesses (price premium and volume premium) + contribution to the success of new businesses

question

latent brand value

answer

contribution to the success of new businesses (transfer potential: line extensions, brand extensions, co-branding, other countries, etc.)

question

types of brand evaluation providers

answer

IP lawyers, intangible asset valuation, economic valuation specialist, market research agencies, "branding" companies, intellectual capital consultancies, academics with or without proprietary methods, "Big 4" and auditing companies

question

brand evaluation approaches

answer

financial approaches, behavioral approaches, integrative approaches

question

types of financial approaches

answer

cost approach, market approach, income approach, integrative approaches (in combination with behavioral approaches)

question

types of behavioral approaches

answer

pure behavioral approaches, integrative approaches (in combination with financial approaches)

question

integrative approaches

answer

combination of behavioral and financial approaches

question

types of integrative approaches

answer

external perspective and internal perspective

question

cost approach

answer

brand is valued by considering the cost of developing it: historical cost of creation; replacement cost; reproduction/recreation/replication cost

question

income approach

answer

requires identification of future income, profits or cash flows attributable to the brand over its expected life, and discounting or capitalizing them to present value: price premium method, volume premium method, income split method, residual value method, incremental cash flow method, royalty relief method

question

market approach

answer

considers recent transactions that have involved similar brands, and for which data regarding the transaction price is available; market price valuation based on comparable brands

question

Young & Rubicam (Y&R) Brand Asset Valuator (BAV)

answer

marketing company focusing on advertising, sales promotion, communications and brand identity consulting; developed in 1993; signaling first signs of brand erosion; world's largest brand database; "measure the value of a brand where it is created: in people's hearts and minds"

question

four pillars of the Y&R BAV (top of pyramid to bottom)

answer

knowledge, esteem, relevance, differentiation

question

knowledge as a pillar of the Y&R BAV

answer

high quantities means consumers understand and have internalized what the brands stand for; result of all the marketing and communication efforts; how strong is the emotional bond with the brand?

question

esteem as a pillar of the Y&R BAV

answer

extent to which consumers like a brand and hold it in high regard; relates to how well a brand fulfill its stated consumer promise; how much of this does the brand enjoy?

question

relevance as a pillar of the Y&R BAV

answer

the second step in brand development; if a brand is not personally relevant for consumers, it is not going to attract and keep them; to what extent does the brand meet the consumer's needs?

question

differentiation as a pillar of the Y&R BAV

answer

basis for consumer choice and the first step to the other pillars; perceived distinctiveness of a brand; how strongly does the brand stand out from the competition?

question

brand strength

answer

vital prerequisite for dynamic and successful brand building (leading indicator); composed of differentiation and relevance and its relationship, which depicts brand's growth potential; strength/vitality

question

brand stature

answer

captures a brand's familiarity and the extent to which a brand has been successful in building a base of knowledge along with respect; develop after differentiation and relevance and keep it even after they have started losing their brand strength (lagging indicator); composed of esteem and knowledge; emotional capital

question

power grid of the Y&R BAV

answer

plotting all four pillars, a brand's strengths and weaknesses can be mapped out; defines several archetypes of brand performance; based on its findings, can be predicted whether a brand is able to establish itself as a strong power brand or whether erosion is causing it to lose ground; brand stature on x-axis, brand strength on y-axis

question

eroding brands

answer

high brand stature, low brand strength

question

new/fading brands

answer

low brand stature, low brand strength

question

aspiring brands

answer

low brand stature, high brand strength

question

power brands

answer

high brand stature, high brand strength

question

Interbrand brand valuation

answer

global branding consultancy specializing in brand strategy, brand valuation, brand communication and digital brand management; represents a composite model, seeking to determine the brand value in both customer and financial terms; developed in 1988, revised in 1993 and 2011; "strong brands enhance business performance primarily through their influence on three key stakeholder groups: customers, employees, and investors"

question

five steps of Interbrand approach

answer

segmentation-> financial analysis OR demand analysis OR strength analysis -> NPV calculation

question

segmentation in Interbrand approach

answer

separate assessment of individual segments that present homogeneous group; segments typically defined by geography, business unit, product, service, or customer group; first step

question

financial analysis in Interbrand approach

answer

valuation begins with an assessment of the company's values and then determines value contributed by brand; analysis is based on five-year forecast of future revenues generated in brand segment being assessed; one of three options for second step

question

demand analysis in Interbrand approach

answer

examination of factors that influence demand and motivate customers to purchase; measures the portion of purchase decision that is attributable to the brand, relative to other factors (e.g. price, product features); one of three options for second step

question

strength analysis in Interbrand approach

answer

measures the ability of the brand to secure the delivery of expected future earnings based on 10 brand strength factors; proprietary formula is used to connect the Brand Strength Score to a brand-specific discount rate; one of three options for second step

question

NPV calculation in Interbrand approach

answer

brand-specific discount rate used to discount brand earnings back to a present value; third step

question

Brand Strength Factors

answer

clarity, commitment, protection, responsiveness, authenticity, relevance, differentiation, consistency, presence, understanding

question

internal brand strength factors

answer

clarity, commitment, protection, responsiveness

question

external brand strength factors

answer

authenticity, relevance, differentiation, consistency, presence, understanding

question

clarity as a brand strength factor

answer

clarity about a brand's values, positioning and proposition

question

commitment as a brand strength factor

answer

belief internally in the brand; extent to which the brand receives support by managers/employees

question

protection as a brand strength factor

answer

how secure the brand is across a number of dimensions; e.g. legal protection, proprietary ingredients or design

question

responsiveness as a brand strength factor

answer

ability to respond to market changes and challenges; the brand's desire and ability to constantly evolve and renew itself

question

authenticity as a brand strength factor

answer

brand's defined heritage and well-grounded value set; ability to deliver against consumers' (high) expectations

question

relevance as a brand strength factor

answer

fit with customer needs, desires and decision criteria

question

differentiation as a brand strength factor

answer

degree to which customers perceive the brand to have a differentiated positioning distinctive from the competition

question

consistency as a brand strength factor

answer

degree to which a brand is experienced without fail across all touchpoints or formats

question

presence as a brand strength factor

answer

degree to which a brand feels omnipresent and is talked about positively

question

understanding as a brand strength factor

answer

in-depth knowledge and understanding of a brand's distinctive qualities and characteristics

question

requirements of brand evaluation system

answer

connection between marketing and finance, comparability, practicability, traceability, acceptance among decision makers, comprehensibility, objectivity, transparency

question

brands and the own self

answer

consumers transfer attributes of the brand on the own self

question

brands and the social self

answer

consumers express social group membership and communicate via brand attributes to others

question

brand premium

answer

volume premium x price premium; "a strong brand (strong brand equity) is a name that influences buyers through the value it offers and is backed by a profitable business model"

question

role of brands for consumers

answer

identification of source of product; assignment of responsibility to product maker; risk reducer; search cost reducer; promise, bond or pact with maker of product; symbolic device; signal of quality

question

role of brands for firms

answer

means of identification to simplify handling or tracing; means of legally protecting unique features; signal of quality level to satisfied customers; means of endowing products with unique associations; source of competitive advantage; source of financial returns

question

risk perception of consumers

answer

functional risk, physical risk, financial risk, social risk, psychological risk, time risk

question

functional risk

answer

product does not perform up to expectations

question

physical risk

answer

product poses a threat to the physical well-being or health of the user or others

question

financial risk

answer

product is not worth the price paid

question

social risk

answer

product results in embarrassment from others

question

psychological risk

answer

product affects the mental well-being of the user

question

time risk

answer

failure of the product results in an opportunity cost of finding another satisfactory product

question

brand

answer

represents a living system, relating a concept with inherent value to products and services that are identified by a name and set of proprietary signs; to gain market share and leadership, must be: embodied in products, services and places; enacted by people at contact points; activated by behaviors; communicated; distributed; branded output + meaning

question

halo effect

answer

fact that knowing the name of the brand does influence consumers' perceptions of the product advantages beyond the visible and tangible cues had themselves indicated

question

expected level of brand

answer

design, features, packaging, price, efficacy, function; first ring from generic product of brand

question

augmented level of brand

answer

after sales service, delivery, availability, advice, finance, add-ons, warranties, guarantees, during sales service, before sales service; second ring from generic product of brand

question

potential level of brand

answer

other user recommendation, reputation, corporate image, brand name, organization, quality perception, value perception; third and outer ring from generic product of brand

question

company-oriented definition of a brand

answer

product-oriented visual differentiation; product-oriented, visual and perceptional differentiation; promise-based

question

customer-oriented definition of a brand

answer

effect-based; perception-based; value-based; promise-based

question

integrative definition of brand

answer

combination of customer-oriented and company-oriented definitions of a brand; a brand is a mechanism for achieving competitive advantage for firms through differentiation (purpose), attributes that differentiate a brand provide the customer with satisfaction and benefits for which they are willing to pay (mechanism)

question

product-oriented, visual differentiation, company-oriented definition of a brand

answer

name, term, sign, symbol, or design, or a combination of them, intended to identify goods or services of one seller or group of sellers and to differentiate them from those of competitors

question

product-oriented, visual and perceptional differentiation, company-oriented definition of a brand

answer

name, term, sign, symbol, or design, or any other feature that identifies one seller's good or service as distinct from those of other sellers

question

promise-based, company-oriented definition of a brand

answer

seller's promise to deliver a specific set of benefits and services consistently to the buyers

question

effect-based, customer-oriented definition of a brand

answer

a brand is a name that influences buyers

question

perception-based, customer-oriented definition of a brand

answer

nothing more or less than the sum of all the mental connections people have around it; a brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service

question

value-based, customer-oriented definition of a brand

answer

brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely

question

promise-based, customer-oriented definition of a brand

answer

recognizable and trustworthy badge of origin, and also as promise of performance; promise of the bundles of attributes that someone buys and provides satisfaction, attributes that make up a brand may be real or illusory, rational or emotional, tangible or invisible

question

challenges for brand managers

answer

savvy customers, brand proliferation, media fragmentation, increased competition, increased costs, greater accountability

question

savvy customers as challenge for brand managers

answer

better and more information about companies' marketing activities accessible

question

brand proliferation as challenge for brand managers

answer

more complex brand families and portfolios; difficult to differentiate brands and products

question

media fragmentation as challenge for brand managers

answer

fragmenting media coverage; eroding traditional media effectiveness; emerging new communication options; increasing promotional expenditures; decreasing advertising expenditures

question

increased competition as challenge for brand managers

answer

maturing markets; more sophisticated and increasing competition; growth of private labels; decreasing brand loyalty in many categories; increasing trade power

question

increased costs as challenge for brand managers

answer

increasing cost of product introduction and support

question

greater accountability as challenge for brand managers

answer

short-term performance orientation; increasing job turnover

question

brand management process

answer

concept and relevance of the brand -> brand strategy and positioning -> planning and implementing brand management programs -> brand development -> brand evaluation

question

identity

answer

means being your true self, driven by a personal goal that is both different from others and resistant to change

question

brand identity

answer

specifies the permanent facets of brands' uniqueness and value; on the sender's side and specifies brand's meaning and self-image

question

questions to define brand identity

answer

What is brand's particular vision What makes it different? What need is the brand fulfilling? What is its permanent crusade? What are its values? What is its field of competence? What are the signs which make the brand recognizable?

question

brand image

answer

how the brand is perceived by the consumer; on the receiver's side and refers to the way in which signals emanating from the brand's products and services are perceived; both the result and the interpretation of the brand's identity

question

image

answer

synthesis made by the public of all the various brand messages and extraneous factors; results from decoding messages, extracting meaning and interpreting signs

question

positioning

answer

battle for a place in the consumer's mind; emphasizing the distinctive characteristics that make it different from its competitors and appealing to the public; shows the aspired direction for managing the brand; main of brand management

question

brand position

answer

consumers' attitude towards products and brands can be multidimensional and differentiated; if these attitudes are limited to a maximum of 3 attributes, it is possible to arrange these brands within a three-dimensional "attribute space"; complex brands with many attributes can not be displayed spatial any more; attributes very important for brands, but don't necessarily result in the purchase (other factors like availability at POS, special offerings, etc. influence purchase decision also)

question

four perspectives of brand positioning

answer

A brand for what benefit? A brand for whom? The brand why? A brand against whom?

question

a brand for what benefit?

answer

brand promise and consumer benefit aspect

question

a brand for whom?

answer

target audience

question

the brand why?

answer

elements that support the claimed benefit

question

a brand against whom?

answer

definition of the main competitor

question

branding

answer

contains all activities to build a brand which are appropriate to distinguish one offer from the mass of similar offers, and which makes it possible to assign various offers clearly to specific brands two central objectives: identification and differentiation of the brand create image effects achieved through a positioning formula and constitutes a concept which starts with customers, by putting oneself in their place: For... (targeted consumers) Brand X is... (frame of reference) Which gives the most... (consumer benefit) Because of... (reason to believe)

question

targeted consumers

answer

nature and psychological profile of buyers or potential consumers

question

frame of reference

answer

subjective definition of the category which will specify the nature of competition

question

consumer benefit

answer

aspect of difference which creates the preference and the choice of a decisive competitive advantage

question

reason to believe

answer

reinforcement of the promise or consumer benefit

question

points-of-parity (POP)

answer

attributes that are not necessarily unique to the brand but may be shared with other brands; associations can refer to both positive and negative aspects; absence may be the reason to drop a brand; to achieve, consumers must feel that a brand does sufficiently well compared to its competitors

question

points-of-difference (POD)

answer

attributes that consumers associate with a brand that they could not find with a competitive brand; associations refer to functional, performance-related or abstract attributes; PODs may be the reason for choosing a brand over other options; to achieve a POD, a brand has to be superior to its competitors on a particular attribute

question

present position of brand

answer

current place of brand; characterized by brand features; present perception of the consumer

question

aspired or target position of brand

answer

positioning goal; where the brand should be located; place how the brand should be seen

question

Jennifer Aaker's components of brand personality

answer

sincerity, excitement, competence, sophistication, ruggedness

question

sincerity according to Jennifer Aaker's components of brand personality

answer

down to earth, honest, wholesome, cheerful

question

excitement according to Jennifer Aaker's components of brand personality

answer

daring, spirited, imaginative, up to date

question

competence according to Jennifer Aaker's components of brand personality

answer

reliable, intelligent, successful

question

sophistication according to Jennifer Aaker's components of brand personality

answer

upper class, charming

question

ruggedness according to Jennifer Aaker's components of brand personality

answer

outdoors, tough

question

Geuens/Weijters/de Wulf's dimensions of brand personality

answer

responsibility, activity, aggressiveness, simplicity, emotionality

question

responsibility according to Geuens/Weijters/de Wulf's dimensions of brand personality

answer

down to earth, stable, responsible

question

activity according to Geuens/Weijters/de Wulf's dimensions of brand personality

answer

active, dynamic, innovative

question

aggressiveness according to Geuens/Weijters/de Wulf's dimensions of brand personality

answer

aggressive, bold

question

simplicity according to Geuens/Weijters/de Wulf's dimensions of brand personality

answer

ordinary, simple

question

emotionality according to Geuens/Weijters/de Wulf's dimensions of brand personality

answer

romantic, sentimental

question

brand mantra

answer

short three-to-five phrase that captures the irrefutable essence or spirit of the brand positioning; used if brands span multiple product categories and have multiple distinct positionings; helps brand present a consistent image and what brand most fundamentally represents; captures usually the brand's PODs; consists of brand function, descriptive modifier, and emotional modifier

question

brand function

answer

describes the nature of the product

question

descriptive modifier

answer

clarifies its nature

question

emotional modifier

answer

describes how exactly the brand provides benefits

question

brand positioning approaches

answer

brand identity structure of Aaker, brand diamond of McKinsey, brand steering wheel of Icon, brand positioning pyramid

question

brand identity structure of Aaker

answer

consists of core identity & brand essence and extended identity

question

core identity of brand identity structure of Aaker

answer

represents timeless essence of brand; should include elements that make brand both unique and valuable; contains associations that are most likely to remain constant as the brand travels to new markets and products; should be more resistant to change than the elements of the extended identity

question

extended identity of brand identity structure of Aaker

answer

includes elements that provide texture and completeness; includes brand personality

question

brand diamond of McKinsey

answer

intangible at top, tangible at bottom, brand attributes on right side (who or what is the brand?), brand benefits on left side (what does the brand provide?)

question

rational benefits in brand diamond of McKinsey

answer

tangible and brand benefits (bottom-left corner); function/product, process, relationship

question

emotional benefits in brand diamond of McKinsey

answer

intangible and brand benefits (top-left corner); external benefits and internal emotions

question

intangible attributes in brand diamond of McKinsey

answer

intangible and brand attributes (top-right corner); heritage, origin, reputation, personality

question

tangible attributes in brand diamond of McKinsey

answer

tangible and brand attributes (bottom-right corner); properties, characteristics, appearance

question

brand steering wheel of Icon

answer

inner circle is competence outer ring, upper-left quadrant is benefits outer ring, upper-right quadrant is tonality outer ring, lower-right quadrant is picture outer ring, lower-left quadrant is attributes

question

competence in brand steering wheel of Icon

answer

Who am I? specific competence of the brand; history, tradition, origin

question

benefits in brand steering wheel of Icon

answer

What do I offer? rational benefits; emotional benefits

question

attributes in brand steering wheel of Icon

answer

What attributes do I own? attributes of the offers/products; attributes of the company

question

tonality in brand steering wheel of icon

answer

How am I? personal characteristics; relationship characteristics; adventures

question

picture in brand steering wheel of Icon

answer

How do I appear? corporate design characteristics; design; communication

question

brand positioning pyramid (bottom to top)

answer

bottom-up approach bottom: basic consumer insight 2nd level: benefits 3rd level: core brand values and personality 4th level: reason why/reason to believe 5th level: discriminator/USP 6th level: brand essence and core

question

basic consumer insight in brand positioning pyramid

answer

What are the needs of the consumer when deals with the category?

question

benefits in brand positioning pyramid

answer

Which rational and emotional benefit should the brand deliver?

question

core brand values and personality in brand positioning pyramid

answer

Which brand personality should the brand have and convey?

question

reason why/reason to believe in brand positioning pyramid

answer

How can the brand benefits and the brand personality be credibly communicated?

question

discriminator/USP in brand positioning pyramid

answer

How is the brand separated from its competitors?

question

brand essence and core in brand positioning pyramid

answer

What is the brand statement?

question

advantages of the brand positioning pyramid

answer

understandable, solid and focused; framework that can work in cross-functional teams in the organization based on solid market research; by completing, visual reflection of the brand is available for everyone in the organization; can act as guideline for the whole organization and for agencies who launch the brand program; included as key dimension in brand building; focus is on brand's loyal customers and therefore on the key target group of the brand

question

requirements of good positioning

answer

visionary goal; focused; distinctive, sustainable, superior and credible; based on relevant customer needs; underlines rational benefits; underlines emotional benefits; based on the USP of a brand; drives and guides strategic initiatives and programs; express the values and culture of organization

question

brand behavior

answer

refers to all forms of verbal and non-verbal behavior patterns of an employee that are in line with brand identity and which directly or indirectly contribute to the brand experience and thus helps to differentiate from competition and strengthening brand value and brand retention

question

roadmap to brand behavior

answer

analyze and define the brand identity -> analyze employee behavior -> fix the strategy -> choose and use instruments -> brand behavior

question

steps of the behavioral branding funnel

answer

knowledge, commitment, capabilities, behavior

question

knowledge in the behavioral branding funnel

answer

refers to the cognitive representation of the brand in the mind of the employees and shows the existing associations and cognitions toward a brand; employees need to know and understand what the brand represents and how he/she can strengthen the brand by his/her behavior

question

commitment in the behavioral branding funnel

answer

refers to a long-term bond of internal stakeholders to the company and the brand; manifests itself in the behavior of employees; employees have to be committed to represent and live the brand values

question

capabilities in the behavioral branding funnel

answer

refer to the competence and skills of an employee to transform the guidelines given by the brand identity into a specific, perceivable and consistent behavior; employees need to have capabilities in order to deliver the brand values in the interaction with customers

question

behavior in the behavioral branding funnel

answer

if employees fulfill the steps, an employee can behave congruently to the intended brand identity

question

knowledge

answer

consists of four phases where three gaps need to be closed Communication of brand positioning and values -> Gap 1: brand positioning and values are not perceived by employees -> Perception of the brand promise -> Gap 2: Discrepancy between intended and received message -> Understanding of the brand message -> Gap 3: relevance of their own behavior to the brand is not recognized -> Personal relevance of the brand message

question

employee buy-in

answer

measured by commitment on x-axis and understanding on y-axis

question

weak links in employee buy-in

answer

low commitment, low understanding; 39%; have switched off, have lack of understanding and commitment

question

bystanders in employee buy-in

answer

low commitment, high understanding; 10%; know what they need to do but lack commitment to organizational goals

question

champions in employee buy-in

answer

high commitment, high understanding; 37%; know what they need to do and are committed to delivering

question

loose cannons in employee buy-in

answer

high commitment, low understanding; 14%; are committed to goals but lack the understanding necessary to deliver

question

types of commitment

answer

rational commitment, normative commitment, affective commitment

question

source of rational commitment

answer

commitment of the employee because of rational cost/benefit considerations

question

source of normative commitment

answer

commitment of the employee because of perceived membership and/or due to social pressure

question

source of affective commitment

answer

commitment of the employee because of inner conviction and identification

question

consequence of rational commitment

answer

adaptation

question

consequence of normative commitment

answer

acceptance

question

consequence of affective commitment

answer

internalization

question

analysis of rational commitment

answer

analysis of cost/benefit ratios of staff and identification of relevant incentives

question

analysis of normative commitment

answer

analysis of the factors that promote a sense of belonging and a sense of us

question

analysis of affective commitment

answer

analysis of the factors that promote the identification

question

types of capabilities for on-brand behavior

answer

instrumental capability and socio-emotional capability

question

instrumental capability

answer

problem solving and cognitive related underlying of the brand promise; identification and delivering of instrumental capabilities

question

socio-emotional capability

answer

affective and relationship-supporting underlining of the brand promise; identification and delivering of socio-emotional capabilities

question

strategic decisions of behavioral branding

answer

brand content, target segment, ambassadors, intensity of change

question

brand content in strategic decisions of behavioral branding

answer

What do we want to communicate?

question

target segment in strategic decisions of behavioral branding

answer

Who do we want to target?

question

ambassadors in strategic decisions of behavioral branding

answer

Who should communicate?

question

intensity of change in strategic decisions of behavioral branding

answer

How much can be achieved within how much time? evolution vs. revolution

question

corporate architecture

answer

commitment instrument; can strengthen the brand impact to the employees, i.e. Longaberger employees are proud of their brand and their building

question

learning maps

answer

knowledge and commitment instrument; serve as internal information systems which can communicate complex structures to employees; corporate structures depicted graphically and pictures discussed and developed together with employees

question

storytelling

answer

knowledge and commitment instrument; tells stories in order to promote brand ideals

question

creation/creator stories

answer

stories about the founding of a company, founding fathers and mothers; statements on the direction, the values and beliefs of a company

question

classic brand stories

answer

use of brand stories in advertising; external communication of brand image

question

inspiring stories

answer

tell about successful behavior with happy ending (e.g. acquisition success), should inspire imitation

question

resurrection stories

answer

stories of overcome crisis, e.g. defense against hostile acquisition and avoidance of bankruptcy

question

motives in storytelling

answer

drive and determine the character; first step in storytelling

question

characters in storytelling

answer

goes through and exemplifies the story; accompanying first step in storytelling

question

conflict in storytelling

answer

does not allow realization of the motive; second step in storytelling

question

action in storytelling

answer

characters acts to solve the conflict; third step in storytelling

question

solution and reward in storytelling

answer

conflict is solved and character rewarded; fourth step in storytelling

question

morale in storytelling

answer

reveals meaning and illustrates relevance of the motive; fifth step in storytelling

question

identification and differentiation of the brand

answer

branding as formal design aspects to facilitate awareness and thus recognition and memorability of the brand

question

create image effects

answer

branding as a means to transfer positioning of the brand

question

criteria to build brand equity

answer

likable, meaningful, memorable

question

criteria to leverage and maintain brand equity

answer

protectable, adaptable, transferrable

question

brand name

answer

captures the central theme or key association of the product in a very compact and economical fashion

question

selective modification

answer

searching for adequate adjectives/nouns/verbs that embody the desired position statement; the term is translated into the brand name

question

transfer of characteristics

answer

searching for distinguishing attributes that are coherent with desired brand positioning

question

relational link

answer

searching for facts that the brand wants to be linked with

question

redundant link

answer

searching for a direct product link

question

typology of brand names

answer

descriptive, suggestive, classical, arbitrary/evocative, fanciful/artificial, acronym, alliteration/rhymes, foreign words, founder's name, geographical names, personification, compounds

question

descriptive

answer

describes product benefit or function literally (Singapore Airlines, head&shoulders, TvToday)

question

suggestive

answer

suggestive of a benefit or function (Superstay Lipstick, Nutella, Google)

question

classical

answer

based on Latin, Greek, or Sanskrit (Lexus, Audi)

question

arbitrary/evocative

answer

real words with no obvious tie-in to company that evoke relevant vivid images (Amazon, Apple, Shell)

question

fanciful/artificial

answer

coined words with no obvious meaning (Exxon, Xerox)

question

acronym

answer

made up of initials (IBM, UPS, BMW)

question

alliteration/rhymes

answer

repetition of letters or rhymes (Reese's Pieces, Dunkin' Donuts)

question

foreign words

answer

adoption of words from another language without translation (Samsung, Volkswagen, Katjes)

question

founder's name

answer

using the name of the founder(s) or associated people (McDonald's, Rolls-Royce, Disney)

question

geographical names

answer

named for regions or landmarks (Cisco, Fuji Film)

question

personification

answer

symbols from myth or usage of brand characters (Nike, Hermes, Betty Crocker)

question

compounds

answer

combination of (often unexpected) words (Compaq, Pixar)

question

kill-criteria for brand names

answer

Names that are difficult to pronounce and write (Umckaloabo, Häagen Dazs) Names that might draw on negative associations (Ford Probe in Germany, probe means "test") Names that are already used or similar to already existing ones (limited differentiation and thus memorability, replaceability) (TvMovie, TvToday, TvSpielfilm, TvDirekt, etc.) Names that conflict with positioning Names that have obvious legal complications (private label of Jane & Mary's of Migros, relation to Ben & Jerry's)

question

brand logo/symbol

answer

visual element that indicates origin, ownership, and/or association

question

memory effect

answer

How much cognitive effort is needed to memorize logo?

question

access effect

answer

How strong is the support of the logo to access the associations linked to the brand?

question

differentiation of brand

answer

shape, color, other features

question

conciseness of brand

answer

simplicity, uniformity, contrast

question

information processing model

answer

six steps desirable outcomes include: right consumer exposed to right message at right time and place, creative strategy causes the person to notice the ad without distracting him from the central message; ad addresses consumers understanding of brand and product; delivery towards POD and POP; ad persuades customer to purchase; ad gives instant recall to customer at point of purchase step 1: exposure (seeing or hearing) step 2: attention (noticing) step 3: comprehension (understand the message) step 4: attitude (favorable response) step 5: intention (desire to act) step 6: behavior (actual action)

question

pre-purchase experience

answer

advertising, website, direct mail/samplings, deals/promotions

question

purchase experience

answer

sales force, product/service assortment, PoP displays, packaging

question

post-purchase experience

answer

loyalty programs, billing, customer service, product quality

question

brand communication

answer

means by which firms attempt to inform, persuade, and remind consumers- directly or indirectly- about the brands they sell; happens when consumer meets the brand; "voice of the brand" and biggest evidence of brand after product itself can contribute to brand equity by: creating awareness of brand, linking points-of-parity and points-of-difference associations to the brand in consumers' memory, eliciting positive brand judgments or feelings, facilitating a stronger consumer-brand connection and brand resonance

question

requirements for brand communication

answer

strengthen the brand identity, place the brand at the center, communicative distinctively and conspicuously, ensure originality, make communication memorable, ensure favorable experience with the brand, consider and integrate consumers in communication, use multipliers and opinion leaders as communicators

question

social media

answer

defined as "group of internet-based applications that build on ideological and technological foundations of Web 2.0 and that allow the creation and exchange of user-generated content"

question

nature of social media

answer

digital, pro-active, visible, real-time and memory, fast, ubiquitous, networks, interactivity, direct and easy access

question

implications of social media for brand

answer

better informed consumers; authenticity of brand its messages are rated faster, more direct, more context-sensitive and by broader audience; consumers become active partners; increasing influence of consumers on brand building; loss of power/control of brands; need for new competences within company

question

blueprint for building connected brands

answer

articulate-> connect-> engage-> influence-> integrate-> rejuvenate

question

articulate in blueprint for building connected brands

answer

define the brand's social identity so you can communicate in a unique, compelling, and authentic voice

question

connect in blueprint for building connected brands

answer

find your best and most likely customers and give them a reason to like or follow you in social channels

question

engage in blueprint for building connected brands

answer

interact with people by making brand communication and content more personally relevant and participative

question

influence in blueprint for building connected brands

answer

inspire and enable people to share stories and messages about your brand

question

integrate in blueprint for building connected brands

answer

build social into the brand and product experience to make it more cohesive and useful

question

rejuvenate in blueprint for building connected brands

answer

use insights from social channels to continuously monitor your brand's health and improve the brand experience

question

5 guiding principles for facebook brand pages

answer

build a strategy that is social by design-> create an authentic brand voice-> make it interactive-> nurture your relationships-> keep learning

question

opportunities of social media

answer

direct customer interaction; market research, customer insights; brand development, branding; reputation management; customer retention and acquisition; improvement of internal cooperation; knowledge and innovation management; optimization of customer service

question

risks of social media

answer

poor processing and integration of feedback; loss of control/power; negative branding effects; dysfunctional behavior of employees; intensification of negative information; internal conflicts

question

requirements of social media

answer

top management commitment; availability of resources; competences and knowledge; changing roles and job profiles; quality of internal communication and cooperation; social media guidelines; legal requirements

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