brand management 26 sem 1 exam set

Why are brands important to consumers?

Reduce risk, Simplify decision making, Signal quality, Provide symbolic meaning, Enable self-expression. Example: Apple reduces perceived risk and signals innovation.

Why are brands important to organisations?

Create differentiation, Build loyalty, Support premium pricing, Improve marketing effectiveness, Create long-term competitive advantage. Example: Coca-Cola's brand allows premium pricing versus generic cola.

Why are brands important to shareholders?

Increase firm value, Generate future cash flows, Reduce business risk, Create intangible assets. Example: Apple's brand contributes significantly to market valuation.

What are the six building blocks of the CBBE Pyramid?

Salience, Performance, Imagery, Judgements, Feelings, Resonance.

What is Brand Salience?

Consumer awareness and ability to identify the brand in relevant purchase situations. Example: When consumers think "soft drink" and immediately think Coca-Cola.

Difference between Performance and Imagery?

Performance equals Functional attributes. Imagery equals Psychological and symbolic associations. Example: Nike Performance equals quality athletic shoes; Nike Imagery equals achievement, inspiration, athlete identity.

What are Brand Judgements?

Consumers' personal opinions about: Quality, Credibility, Consideration, Superiority.

What are Brand Feelings?

Emotional responses: Warmth, Fun, Excitement, Security, Social approval, Self-respect.

What is Brand Resonance?

Highest level of CBBE. Includes: Loyalty, Attachment, Community, Active engagement. Example: Harley-Davidson riders.

How do celebrity endorsements impact the CBBE Pyramid?

Salience: Gain attention. Meaning: Build imagery and personality. Response: Increase trust and likeability. Resonance: Strengthen emotional connection. Example: Michael Jordan and Nike.

What are the 3 Cs of Positioning?

Consumer (Relevant, Resonant, Realistic), Competitor (Distinctive, Defensible, Durable), Company (Feasible, Favourable, Faithful).

Structure of a Positioning Statement?

To [Target Market], [Brand] is the brand of [Frame of Reference] that [Point of Difference] because [Reason Why]. The brand character is [Personality].

What is a Point of Difference (POD)?

Unique association strongly held by consumers that competitors cannot claim. Example: Volvo equals safety.

What is a Point of Parity (POP)?

Associations necessary to be considered a legitimate competitor. Example: All airlines must provide safe transport.

Six criteria for effective brand elements?

Memorability, Meaningfulness, Likability, Transferability, Adaptability, Protectability.

What is Memorability?

Ease of recognition and recall. Example: McDonald's Golden Arches.

What is Meaningfulness?

Conveys product information or category benefits. Example: PayPal suggests easy payment.

What is Transferability?

Works across: Products, Countries, Cultures. Example: Apple brand used across multiple categories.

What is Adaptability?

Ability to evolve over time. Example: Google logo evolution.

Six IMC criteria?

Coverage, Contribution, Commonality, Complementarity, Conformability, Cost.

What is Coverage?

Extent communication reaches target market. Example: TikTok campaign reaching Gen Z.

Difference between Commonality and Complementarity?

Commonality: Consistent message. Complementarity: Channels work together. Example: TV ad + social media campaign.

What two factors determine Google's search rankings?

Relevance and Authority. This is one of the lecturer's explicit sample questions.

What increases relevance?

Keywords, Useful content, Search intent match.

What increases authority?

Backlinks, Website reputation, Trusted sources. Example: Wikipedia.

Four sources of secondary associations?

People, Places, Things, Other Brands.

Examples of People associations?

Employees, Celebrity endorsers. Example: Rihanna and Fenty Beauty.

Examples of Place associations?

Country of origin, Distribution channels. Example: Swiss watches.

Examples of Things associations?

Events, Causes, Certifications. Example: Olympic sponsorship.

Examples of Other Brand associations?

Alliances, Ingredients, Extensions. Example: Intel Inside.

Three benefits of celebrity endorsements?

Gain attention and awareness, Build strong imagery and personality, Create trust and emotional connection. Example: Taylor Swift multiplied by Diet Coke.

Five risks of celebrity endorsements?

Overuse, Mismatch, Scandal or trouble, Seen as money motivated, Distracts from brand.

Five best practices for Cause Marketing?

Choose cause that fits business, Be authentic, Measure effectiveness, Be transparent, Be consistent.

Why must cause fit the business?

Consumers perceive greater credibility and authenticity. Example: Cleaning brand supporting clean water initiatives.

Why should brands be transparent?

Consumers need clarity about: Donation amount, Outcomes, Impact.

What is a Brand Extension?

Using an existing brand name in a new product category. Example: Dove shampoo.

Advantages of Brand Extensions?

Reduce launch costs, Increase acceptance, Leverage existing equity, Improve retailer support.

What is perceived fit?

Similarity between parent brand and extension. Higher fit equals greater success. Example: Nike sportswear leads to Nike fitness equipment.

What happens when fit is low?

Consumers may reject extension. Example: Harley-Davidson perfume.

Five academic findings on brand extensions?

Strong parent brands extend more successfully, Perceived fit matters, Consumers transfer associations, Successful extensions improve parent brand, Failed extensions can damage parent brand.

Three approaches to managing brands over time?

Reinforce, Revitalise, Adjust portfolio.

How can brands be reinforced?

Maintain consistency, Protect sources of equity, Fortify brand, Leverage brand, Fine-tune marketing program.

Two ways to revitalise brands?

Expand awareness, Improve image.

How can awareness be expanded?

Increase quantity consumed, Increase frequency consumed. Examples: Alka-Seltzer, Kellogg's.

How can image be improved?

Return to heritage, Reinvention. Examples: Burberry (heritage), Old Spice (reinvention).

Difference between heritage and reinvention?

Heritage: Return to original strengths. Reinvention: Create new identity.

If asked for a recommendation in this exam, what structure should I use?

Identify problem -> Apply framework -> Recommend strategy -> Explain impact on CBBE -> Give example -> Conclude with expected equity outcome. This is essentially how every sample answer in the guide is marked

What is Cause-Related Marketing (CRM)?

A marketing strategy where a brand partners with a social cause or not-for-profit organisation to achieve both business objectives and social impact. e.g. Product Red × AIDS charities.

What is the difference between Cause Marketing and Corporate Philanthropy?

Cause Marketing: Marketing activity, Benefits brand and cause, Often linked to product sales eg TOMS one-for-one

Corporate Philanthropy: Pure donation, No direct marketing objective e.g. Company donating $1 million quietly

How does Cause Marketing build Brand Equity?

Salience: Generates awareness

Meaning: Creates positive associations

Response: Improves credibility and trust

Resonance: Strengthens emotional attachment

What are the 5 best-practice guidelines for Cause Marketing?

Fit between brand and cause, Authenticity, Transparency, Consistency, Measure effectiveness

Why is fit between brand and cause important?

Consumers are more likely to believe the partnership is genuine.

Example: Dove supporting self-esteem initiatives.

Poor fit: Fast food brand promoting healthy eating.

Why is authenticity important in Cause Marketing?

Consumers are increasingly sceptical of brands using causes purely for publicity. Authentic campaigns: Long-term commitment, Clear actions, Genuine values

Example: Patagonia environmental activism.Encourage trust and loyalty in consumers, leading to stronger brand connections and advocacy.

Why is transparency important?

Transparency allows consumers to see how their contributions impact the cause, fostering trust and accountability. It ensures that brands are honest about their initiatives and funding, which enhances credibility and consumer loyalty.

Why should brands measure effectiveness?

Measuring effectiveness helps brands evaluate the impact of their cause marketing efforts, understand consumer perceptions, and optimize strategies for future campaigns.

What risks are associated with Cause Marketing?

Cause-brand mismatch, Consumer scepticism, Greenwashing accusations, Short-term commitment, Reputational damage

How could Cause Marketing strengthen CBBE?

Salience: More visibility

Meaning: Positive values associations

Response: Higher trust and credibility

Resonance: Deeper emotional connection and community

What are the four pillars of the Brand Asset Valuator?

Differentiation, relevance, esteem, knowledge

What is the difference between Brand Strength and Brand Stature?

Brand strength = differentiation and relevance, future growth potential; brand stature = esteem and knowledge, current market position

how does BAV diagnose brands?

High Diff High Rel = Growth

High Esteem High Know = established

Low diff = commoditisation risk

low rel = declining

What is sponsorship?

A brand financially supports an event, organisation or activity in exchange for association benefits.

How can sponsorship build brand equity?

Salience: Increases awareness.

Meaning: Transfers event associations.

Response: Improves credibility.

Resonance: Creates community involvement.

Example: Rolex sponsoring Wimbledon.

Why is sponsorship fit important?

Consumers more easily transfer associations when there is congruence between sponsor and event.

Example: Red Bull + Extreme Sports = strong fit

Red Bull + Classical Opera = weak fit

What associations can brands borrow through sponsorship?

Prestige, Excellence, Innovation, Community, Performance, Sustainability

Example: Rolex × Wimbledon; prestige, heritage, excellence

What is a brand alliance?

Two or more brands collaborate and share brand equity.

Example:
Intel Inside.

Benefits of brand alliances?

Borrow credibility, Increase awareness, Access new customers, Enhance perceptions of quality

Example: GoPro × Red Bull.

What is ingredient branding?

One brand becomes a component within another brand.

Example: Intel Inside.

Consumers transfer Intel's quality reputation to the computer brand.

What makes a successful brand alliance?

1. Strong fit

2. Complementary strengths

3. Shared target market

4. Mutual benefit

5. Consistent positioning

What are the 5 feedback benefits of brand extensions to the parent brand?

1. Clarify brand meaning.

2. Enhance parent brand image.

3. Revitalise the parent brand.

4. Attract new customers.

5. Increase visibility and credibility.