Study Guide for MKG 400: Brand Management Exam 4

Components of CBBE

Includes brand awareness and brand image.

New Product Development Process

idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, market testing, and commercialization.

New Product Branding

Two main options for new product branding are new brand (e.g., Lexus) or brand extensions (e.g., Toyota Corolla, Toyota Corolla Hybrid, Toyota Corolla Hatchback).

Category Extension vs. Line Extension

Line extension is a new product in the same category, while a category extension is a new product in a new product category. Example: BIC.

Upward Vertical Brand Extension

Uses premium market segments, such as going from a smart sports watch to an upscale classy smart watch.

Downward Vertical Brand Extension

Tailors to price-sensitive markets, such as luxury brands doing factory or outlet stores.

Vertical Brand Extensions Appropriateness

Vertical brand extensions are not appropriate for all customer bases as they can confuse and frustrate customers.

Advantages of Brand Extensions

Enhance brand image and bring in new markets to target, but can frustrate customers and cause brand dilution.

Disadvantages of Brand Extensions and Vertical Brand Extensions

Can confuse and frustrate customers, damage the look of the parent company, but can add variety to the products.

Marketing Actions Impact on Brand Equity

Marketing actions affect how customers react and influence their perceptions, which impacts future marketing efforts.

Brand Reinforcement Strategies

Marketers should build product-related attributes and benefits (Performance meaning) and non-product-related symbolic and emotional benefits (Imagery meaning route).

Maintaining Brand Consistency

Marketers can maintain brand consistency by supporting the brand through research and development, and marketing communications. Create continuity in brand meaning through repositioning and changing the marketing tactics.

CBBE

Customer-Based Brand Equity; consumer perceptions of brand.

Brand Revitalization

Strategies to renew interest in an existing brand.

Global Branding

Branding strategy applied consistently worldwide.

Brand Partnerships

Collaborations to understand local markets better.

Brand Image Components

Includes sensory, functional, and user perceptions.

In protecting sources of brand equity, is it better to seek new sources of brand equity than keep successful positioning and sources of brand equity

If it isn't broke don't fix it. Its better to keep the successful positioning if things are going well. Preserve and defend sources of brand equity

What is the difference between fortifying and leveraging brand equity?

Fortifying brand equity is reinforcing pre-existing equity. This is done by designing marketing programs that maximize CBBE. Leveraging brand equity is borrowing the equity from pre-existing brand associations.

What are the three ways marketers can expand brand awareness to revitalize an existing brand?

More frequent usage of the brand, reminders to use brand when needed, and come up with completely different ways to use the brand.
o What are the three ways marketers can improve the brand image to revitalize an existing brand? Identify target market, reposition brand, change brand elements.

True or False Global brand and operations guidelines are necessary only for brands that adapt their products to local markets.

False

4. Which of the following are brand extensions?
a. new brand
b. an existing brand
c. sub-brand
e. a and b
f. b and c

f. b and c

Brand Extension

Existing brand name for a new product.

Brand Equity

Value derived from brand's reputation and recognition.

Fortifying Brand Equity

Reinforcing existing brand equity through marketing.

Leveraging Brand Equity

Using existing brand associations to enhance value.

Brand Awareness Expansion

Increasing brand visibility through usage and reminders.

Brand Image Improvement

Enhancing perception through target market identification.

Brand Architecture Changes

Modifications to brand structure and product offerings.

Economies of Scale

Cost advantages from increased production volume.

Marketing Cost Reduction

Lower expenses through global marketing reach. Don't have to pay extra for brand awareness.

Uniform Marketing Practices

Consistent marketing strategies across global markets.

Consumer Behavior Differences

Variations in preferences across different cultures. Ex: McDonalds vs KFC in Trinidad and Tabego

Product Life Cycle Stages

Different countries might not want the product more developed

Global CBBE Building

Establishing brand awareness, then points of parity and POD's

IMC in Global Branding

Integrated Marketing Communications for consistent branding.

Cultural Understanding

Knowledge of local customs and preferences.

Brand Guidelines

Rules for maintaining brand identity globally. A brand still needs to follow these guidelines globally.

Brand Equity Measurement

System to assess brand performance and value.

Purpose of Branding

Identify and distinguish products from competitors.

List and describe three options for brand architecture changes.

Keep products and brands, introduce new products and brands
Retire brands

The reason for brand adjustments is because consumer behavior is different in other countries.

not all brand elements are universal globally (Sesame street)

True or False: Despite differences in consumer behavior and marketing infrastructure, marketers should embrace IMC in global branding .

True

what are the two components of CBBE

Brand awareness and Brand Image

Two component of brand awareness

recognition and recall

Components of Brand Image

Strong, Favorable, Unique

Purpose of a brand

Farmers branded livestock to identify and distinguish the owner's livestock from those of other owners.