Strategic Marketing Exam 1

Brand identity

How the brand wants to be perceived

Brand relevance

One brand is the only meaningful option in a consumer's consideration set

Brand storytelling

Offering more than the product by conveying purpose, meaning, and values

Brands are...

fundamentally perceptual constructs formed through neural processes

Which component of brand identity represents the "soul" or purpose of the brand?

Brand essence

Brand recognition differs from brand recall because...

requires a cue to identify the brand

Brand image consists of...

consumer-held associations

Positioning is primarily based on...

consumer perceptions of the competitiveness of a company/brand

Points of Parity (POP)

brand associations that are not necessarily unique to the brand; can even be shared with other brands

Points of Parity (POP) is best described as...

category-level expectations

Points of Difference (POD)

strong, favorable, and unique brand associations that can be based on any kind of attribute or benefit

Points of Difference (POD) must be...

strong, favorable, and unique

First step in the positioning process is...

choosing target segments

Branded House

a brand strategy where a company uses a single master brand of all its products/services; centralizes brand risk

House of Brands strategy

allows firms to target multiple segments independently

Flanker brand

protects the market share from competitors

Sonic branding

the strategic use of sound, music, and voice to build a unique/recognizable identity for a company

In the Brand Leadership Model, branding is primarily viewed as...

a firm asset emphasizing both strategy and identity

Brand equity (Keller's CBBE model) is defined as...

the differential effect of brand knowledge on consumer response to marketing

Line extension

product that extends an existing product line; expands product to different customer segments

Brand extension

the brand moves into an entirely new category

Brand duality

both the head (rational) and the heart (emotional)

Strategy in marketing

long term; focuses on "where and why"

Tactics in marketing

short-term; focuses on the "how"

How many points of difference (POD) should companies typically promote?

One to three, avoiding too many attributes

Market stretching

requires new brands rather than existing ones

Brand recall

the consumer's ability to retrieve the brand when given the product category as a cue

Existing customer

someone who already does business with an organization (retention strategies: rewards, loyalty programs)

New customer

someone who is doing business for the first time with an organization (acquisition strategies: discounts, free trials)

Internal customer

an employee of the organization

Functional behavior

taste, look, feel, the way it works

Habitual behavior

you or your family have always used a specific product or brand

Cost behavior

cheapest, modestly priced, or most expensive

Omnichannel

a customer-centric retail strategy that provides seamless shopping experience across all channels (basically online & offline interaction combo)

Customer Acquisition Cost (CAC)

How much does it cost to get to them? This is also subtracted from CLV when determining the customer’s net value

Customer Lifetime Value (CLV)

How much a customer is worth. Will always be greater than CAC. CAC is subtracted from this when determining a customers value.

Market segmentation

used to narrow or define a group of people

Personas

semi-fictional representation of an ideal customer based on market segmentation and other detailed insights

Marketing myopia

sustained growth depends on how broadly you define your business; how carefully you gauge your customers' needs

Reference marketing

distinguishes the part of the total market that offers the best advantages to the firm (tool to form/analyze a good mission statement)

Reference marketing steps

1. Who is satisfied? (B2B, B2C, B2G)

2. What is satisfied? (the solution)

3. How is it satisfied? (potential competitors)

How does Customer Acquisition Cost (CAC) relate to CLV?

It is deducted from CLV