Brand Management Exam

what is the purpose of brands?

to distinguish the goods of one producer from those of another

horizontal differentiation

differentiation driven by consumer preferences (ex. coke vs pepsi)

vertical differentiation

differentiation driven by quality of the good

(ex. budget vs expensive wine)

5 P’s

purpose, pride, partnership, personalization, protection

purpose- 5 P’s

customers feel the company shares and advances their values

Pride- 5 P’s

customers feel proud and inspired to use the company’s products and services 

Partnership- 5 P’s

customers feel like the company relates to and works well with them 

Protection- 5 P’s

customers feel secure when doing business with the company 

Personalization- 5 P’s

customers feel their experiences with the company are continuously tailored to their needs and priorities 

Brands and relevance

Consumers are buying bc of a brand’s relevance in the moment

Customer value hierarchy

A framework for thinking about the benefits a brand provides its consumers

Core benefits- Customer Value hierarchy

First level; the fundamental need that the product satisfies

Generic Product- Customer Value hierarchy

Second level; the most basic level of the product with no distinguishing features

Expected Product- Customer Value hierarchy

the reasonably expected characteristics of the product purchased

Augmented Product- Customer Value hierarchy

additional attributes, benefits, or related services that distinguish the product from competitors

Potential Product- Customer Value hierarchy

all the future changes that a product may have

Functional risk

product doesn’t perform up to expectations

Physical risk

product isn’t safe

financial risk

product isn’t worth the price

social risk

product results in embarrassment from others

psychological risk

product negatively affects the mental health of users

time risk

the product’s failure results in the opportunity cost of finding a working product

CBBE term

customer based brand equity

CBBE definition

the differential effect that brand knowledge has on the consumer to the brand’s marketing

brand awareness

the general term that defines how strongly the brand exists in our memory

two dimensions of brand awareness

brand recognition

brand recall

brand recognition definition

how easily you identify a brand when you see it

brand recall definition

how easily you identify a brand on your own

brand image definition

consumers’ perceptions about a brand

three dimensions of brand image

brand attributes

brand benefits

brand advantages

brand loyalty

POP term

points of parity

POP definition

points of similarity with other brands

POD term

points of difference

POD definition

attributes, advantages, benefits that consumers strongly associate with one brand that differentiates it from other brands

non-comparative positioning statement

(Brand) is the best (product category) for (target demo) because (POD)

Brand Resonance Pyramid

A model for thinking about the different levels of brand recognition

Brand Salience- Pyramid

-1st level of pyramid

-consumers can recognize a brand when it is presented to them

Brand Performance- Pyramid

- 2nd level of pyramid

-how well the product/service meets customers’ needs

-broken into product and service-focused dimensions

Product-focused dimensions of brand performance

reliability

durability

serviceability

style and design

primary and supplementary benefits

service-focused dimensions of brand performance

service effectiveness

service efficiency

service empathy

the one dimension of brand performance that is both product and service focused

price

brand imagery

-2nd level of pyramid

-the way that people think of the brand abstractly

important considerations of brand imagery

-user profiles

-purchase/usage situations

-personality and values

-history, heritage, experiences

product category structure

-how product categories are organized in memory

-product class, product category, product type, brand

brand judgements- pyramid

-3rd level of pyramid

-customers’ personal opinions and evaluations of the brand

brand feelings- pyramid

customers’ emotional responses and reactions to the brand

brand resonance

-4th and top level of pyramid

-the extent to which customers feel that they are in sync with the brand