Part 4: Building Strong Brands

Chapter 9: Creating Brand Equity

GENERAL CONCEPT QUESTIONS
u!tip!e Ch"i#e
1. At the heart of a successful brand is ________, backed by creatively designed and
executed arketing.
a. !rice
b. !rootion
c. a great !roduct or service
d. a great slogan
e. a brand conce!t
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". #he strategic brand anageent !rocess involves four ain ste!s. $hich of the
follo%ing %ould &'# be aong those ste!s(
a. )easuring consuer brand kno%ledge
b. *dentifying and establishing brand !ositioning
c. Planning and i!leenting brand arketing
d. )easuring and inter!reting brand !erforance
e. +ro%ing and sustaining brand value
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,. #he Aerican )arketing Association defines a ________ as -a nae, ter, sign,
sybol, or design, or a cobination of the, intended to identify the goods or
services of one seller or grou! of sellers and to differentiate the fro those of
co!etitors..
a. holistic !roduct conce!t
b. !roduct conce!t
c. service conce!t
d. brand
e. brand iage
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4. /onsuers learn about brands through ________ and !roduct arketing !rogras.
a. the ass edia
b. !ast ex!eriences %ith the !roduct
c. the sales force
d. sho!!ing bots
e. inde!endent inforation sources
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Part 4: Building Strong Brands
5. ________ is endo%ing !roducts and services %ith the !o%er of a brand.
a. Brand iage
b. #he branding conce!t
c. Branding
d. Brand !ositioning
e. Brand !artitioning
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6. Brand ________ is the added value endo%ed to !roducts and services.
a. loyalty
b. e7uity
c. !reference
d. satisfaction
e. benefits
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8. #he !reise of ________ odels is that the !o%er of a brand lies in %hat custoers
have seen, read, learned, thought, and felt about the brand over tie.
a. !roduct9based brand e7uity
b. service9based brand e7uity
c. functional9based brand e7uity
d. ission9driven brand e7uity
e. custoer9based brand e7uity
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:. ________ can be defined as the differential effect that brand kno%ledge has on
consuer res!onse to the arketing of that brand.
a. )ission9driven brand e7uity
b. /ustoer9based brand e7uity
c. Product9driven brand e7uity
d. Service9driven brand e7uity
e. ;unction9based brand e7uity
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/ha!ter 2: /reating Brand 37uity
2. *f consuers do not deonstrate different res!onses to different brands %ithin a
!roduct category, then the !roducts are essentially coodities or generic versions
and co!etition %ill !robably be based on ________.
a. eotional attachent
b. brand a%areness
c. advertising ex!enditure
d. !rice
e. !restige
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11. $hen a consuer ex!resses thoughts, feelings, iages, ex!eriences, beliefs, and so
on that becoe associated %ith the brand, the consuer is ex!ressing brand
________.
a. kno%ledge
b. loyalty
c. behavior
d. !reference
e. e7uity
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11. #he challenge for arketers in building a strong brand is ________.
a. ensuring that custoers have the right ty!e of ex!eriences %ith !roducts and their
arketing !rogras to create the desired brand kno%ledge
b. !ricing the !roduct at a !oint that axii<es sales volues
c. inii<ing the nuber of !eo!le to %ho the !roduct is targeted in order to
!rovide consuers %ith a !ersonali<ed ex!erience
d. retain as any custoers as !ossible in order to inii<e the costs and !ressure
associated %ith continually generating ne% leads
e. axii<ing custoer value
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1". Strong brands !ossess all of the follo%ing arketing advantages 3=/3P# ________.
a. greater loyalty
b. larger argins
c. guaranteed !rofits
d. i!roved !erce!tions of !roduct !erforance
e. ore elastic consuer res!onse to !rice decreases
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1,. ________ is %hat drives the differences that anifest theselves in brand e7uity.
a. Brand iage
b. /onsuer incoe
c. /onsuer !urchasing !o%er
d. /onsuer kno%ledge
e. Brand !erce!tion
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Part 4: Building Strong Brands
14. $hen a arketer ex!resses his or her vision of %hat the brand ust be and do for
consuers, they are ex!ressing %hat is called ________.
a. a brand !roise
b. a brand ission
c. brand e7uity
d. a brand !osition
e. a brand conce!t
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15. #here are five key co!onents>or !illars>of brand e7uity. $hich of those
co!onents or !illars easures the breadth of a brand?s a!!eal(
a. @ifferentiation
b. Aelevance
c. 3stee
d. Bno%ledge
e. Calue
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16. #hree !illars that !oint to the brand?s future value, rather than Dust reflecting its !ast,
are differentiation, energy, and relevance. @ifferentiation, energy, and relevance
cobine to deterine %hat is called brand ________.
a. !osition
b. iage
c. de!th
d. kno%ledge
e. strength
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18. According to Eoung and Aubica?s brand asset valuator, a brand?s ________
easures ho% %ell the brand is regarded and res!ected.
a. differentiation
b. energy
c. relevance
d. estee
e. kno%ledge
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1:. @avid Aaker vie%s brand e7uity as a set of three categories of brand assets and
liabilities linked to a brand that add or subtract fro the value !rovided by a !roduct
or service. #hey include all of the follo%ing 3=/3P# ________.
a. brand loyalty
b. brand a%areness
c. brand associations
d. brand !rice
e. &one of the above is aong Aaker?s three categories.
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/ha!ter 2: /reating Brand 37uity
12. According to Aaker, a !articularly i!ortant conce!t for building brand e7uity is
________>the uni7ue set of brand associations that re!resent %hat the brand stands
for and !roises to consuers.
a. brand kno%ledge
b. brand !reference
c. brand identity
d. brand vision
e. brandable differences
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"1. According to the BAA&@F odel of brand strength, brand building involves a
se7uential series of ste!s. $hich of these ste!s %ould address or ans%er the 7uestion,
-@o * kno% about it(.(
a. relevance
b. !resence
c. !erforance
d. advantage
e. bonding
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"1. All of the follo%ing are considered to be aong the -six brand building blocks.
3=/3P# ________.
a. brand salience
b. brand !erforance
c. brand iagery
d. brand feelings
e. brand !ride
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"". $ith res!ect to the -six brand building blocks,. ________ focus on custoers? o%n
!ersonal o!inions and evaluations.
a. brand salience
b. brand !erforance
c. brand iagery
d. brand Dudgents
e. brand resonance
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",. $ith res!ect to the brand building !yraid, at %hich of the follo%ing -building block
levels. %ould %e ex!ect the consuer to develo! an intense, active loyalty(
a. salience
b. iagery
c. feelings
d. Dudgents
e. resonance
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Part 4: Building Strong Brands
"4. ;ro a arketing anageent !ers!ective, there are three ain sets of brand e7uity
drivers. $hich of these drivers %as ost a!!licable %hen )c@onald?s decided to use
the -golden arches. and Aonald )c@onald as sybols of their brand(
a. #he !roduct and all acco!anying arketing activities and su!!orting arketing
!rogras
b. #he service and all acco!anying arketing activities and !rogras
c. #he initial choices for the brand eleents or identities aking u! the brand
d. Associations indirectly transferred to the brand by linking it to soe other entity
e. #he !rofitability associated %ith brand develo!ent
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"5. ________ are those tradearkable devices that serve to identify and differentiate the
brand.
a. Brand eleents
b. Brand value
c. Brand !erce!tion
d. Brand iage
e. Brand tracks
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"6. Six brand eleents assist in brand building. $hich of the follo%ing %ould &'# be
aong those !referred brand eleents(
a. Ada!table
b. Protectible
c. )eorable
d. Gikable
e. Subliinal nature
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"8. *f a brand eleent can be used to introduce ne% !roducts in the sae or different
categories, the brand eleent is said to be ________.
a. eorable
b. eaningful
c. likeable
d. transferable
e. ada!table
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":. Brand naes are not the only i!ortant brand eleent. 'ften, ________, the ore
i!ortant it is that brand eleents ca!ture the brand?s intangible characteristics.
a. the less concrete brand benefits are
b. the ore concrete brand benefits are
c. the ore varied brand !erce!tions are
d. the less varied brand !erce!tions are
e. the ore so!histicated brand benefits are
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/ha!ter 2: /reating Brand 37uity
"2. $ith res!ect to !o%erful brand eleents, a ________ is an extreely efficient eans
to build brand e7uity. #he eleent can function as useful -hooks. or -handles. to
hel! consuers gras! %hat the brand is and %hat akes it s!ecial.
a. s!okes!erson
b. !roduct sha!e
c. slogan
d. !atent
e. !rootional descri!tor
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,1. A ________ can be defined as any inforation9bearing ex!erience a custoer or
!ros!ect has %ith the brand, the !roduct category, or the arket that relates to the
arketer?s !roduct or service.
a. brand value
b. brand eleent
c. brand trait
d. brand character
e. brand contact
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,1. #he ra!id ex!ansion of ________ has created o!!ortunities to !ersonali<e arketing.
a. target arketing
b. globali<ation
c. the *nternet
d. standardi<ation
e. /@ technology
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,". ________ is about aking sure that the brand and its arketing are as relevant as
!ossible to as any custoers as !ossible.
a. Personali<ing arketing
b. Segenting arketing
c. Brand iagery
d. 3otionali<ing brands
e. Aationali<ing brands
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,,. #he traditional -arketing9ix. conce!t and the notion of the -four Ps. ay not
ade7uately describe odern arketing !rogras. ________ is about ixing and
atching arketing activities to axii<e their individual and collective effects.
a. Personali<ing arketing
b. *ndividuali<ing arketing
c. +lobali<ing arketing
d. *nstitutionali<ing arketing
e. *ntegration arketing
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Part 4: Building Strong Brands
,4. ;or a brand to succeed, arketers ust -%alk the %alk. and ensure that e!loyees
and arketing !artners do the sae. )arketers often ust use ________ to otivate
those grou!s to su!!ort the brand.
a. global branding
b. retro9branding
c. internal branding
d. external branding
e. dual branding
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,5. )ark #hoas has observed that Shell delivers on its !roises to su!!ly the best
gasoline !ossible to the driving !ublic. Shell !rootions, e!loyees, and distributors
send a coon and consistent essage about delivering on Shell !roises to )r.
#hoas. )r. #hoas is ost likely ex!eriencing ________.
a. brand iage
b. brand enhanceent
c. brand belief
d. brand attitude
e. brand bonding
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,6. Brand e7uity can be built by ________>linking the brand to other inforation in
eory that conveys eaning to custoers.
a. internal arketing
b. brand bonding
c. secondary associations
d. custoer alignent
e. brand auditing
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,8. $hich of the follo%ing is &'# a ain secondary source of brand kno%ledge(
a. 'ther brands
b. Peo!le
c. #hings
d. Gocal, state, and federal governents
e. Places
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,:. $hich of the follo%ing is one of the ain %ays to easure brand e7uity(
a. Statistical analysis of deogra!hics
b. Secondary evaluation of governental statistics
c. @irectly assessing the actual i!act of brand kno%ledge on consuer res!onse to
different as!ects of arketing
d. 3valuating !ublished statistics of co!etitors
e. 4iring inde!endent evaluators
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/ha!ter 2: /reating Brand 37uity
,2. A brand anager is concerned that his organi<ation?s brand iage and !hysical sales
are sli!!ing in the arket!lace. #he anager has decided to 7uery consuers about
the health of the brand and try to discover %ays to leverage the brand?s e7uity. $hich
of the follo%ing ters %ill ost likely !rovide the structure and !rocess for the
anager?s investigation(
a. A brand deogra!hic atrix analysis
b. A secondary search of good brand characteristics
c. A brand audit
d. An organi<ational audit
e. A brand9!ositioning study
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41. ________ are a eans of understanding %here, ho% uch, and in %hat %ays brand
value is being created, to facilitate day9to9day decision aking.
a. *nternal arketing ca!aigns
b. Brand !ortfolio audits
c. Brand value chains
d. Sales cycles
e. Brand9tracking studies
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41. A structured a!!roach to assessing the sources and outcoes of brand e7uity and the
anner in %hich arketing activities create brand value is called ________.
a. the brand value chain
b. the brand !ortfolio
c. the brand life cycle
d. brand !artitioning
e. brand !ositioning
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4". /o!etitive su!eriority and channel and other interediary su!!ort are factors that
influence the ________ of the brand value chain.
a. !rogra ulti!lier
b. custoer ulti!lier
c. brand ulti!lier
d. !rofit ulti!lier
e. arket ulti!lier
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4,. ________ is the Dob of estiating the total financial value of the brand.
a. Brand tracking
b. Brand auditing
c. Brand e7uity
d. Brand valuation
e. Brand !artitioning
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Part 4: Building Strong Brands
44. A co!any?s aDor enduring asset is ________.
a. its leadershi!
b. its brand
c. its culture
d. its shareholders
e. its %orkers
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45. #he first ste! in the brand valuation !rocess is ________.
a. the brand strength assessent
b. 7uantification of the role of branding
c. calculation of the net !resent value of the earnings forecast
d. the division of arkets in %hich the brand is sold into utually exclusive
custoer segents
e. financial analysis of the co!any?s earnings before interest and taxes
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46. $hen a fir uses an established brand to introduce a ne% !roduct, it is called
a________.
a. subbrand
b. brand value
c. brand extension
d. brand ix
e. brand !osture
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48. A !arent brand that is associated %ith ulti!le !roducts through brand extensions can
also be called a ________.
a. category brand
b. subbrand
c. extension brand
d. faily brand
e. line brand
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4:. A ________ consists of all !roducts>original as %ell as line and category extensions
>sold under a !articular brand.
a. brand line
b. brand variant
c. brand ix
d. licensed !roduct
e. subbrand
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/ha!ter 2: /reating Brand 37uity
42. A aDor advantage of aHnI ________ strategy is that the co!any does not tie its
re!utation to the !roduct.
a. blanket faily nae
b. licensing
c. individual9naes
d. category extension
e. brand revitali<ation
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51. #%o advantages of ________ are that they can facilitate ne%9!roduct acce!tance and
!rovide !ositive feedback to the !arent brand and co!any.
a. !roduct licensing
b. brand extensions
c. individual9naes strategies
d. brand audits
e. brand dilutions
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51. According to Aies and #rout, /adbury suffered fro the ________ %hen the
co!any allo%ed its brand to becoe diluted by !utting their nae on such variants
as ashed !otatoes, !o%dered ilk, and sou!s, as %ell as chocolates and candies.
a. -greed is good. tra!
b. -!yraid !rinci!le.
c. -branding fallout. conce!t
d. -iage syndroe.
e. -line9extension. tra!
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5". 3ven if sales of a brand extension are high and eet targets, the revenue ay be
coing fro consuers s%itching to the extension fro existing !arent9brand
offerings>in effect ________ the !arent brand.
a. diluting
b. cannibali<ing
c. reinforcing
d. eroding
e. feeding back to
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5,. A ________ is the set of all brands and brand lines a !articular fir offers for sale to
buyers in a !articular category.
a. brand !artition
b. brand !osition
c. brand !ortfolio
d. brand conce!t
e. brand iage
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Part 4: Building Strong Brands
54. )arketers introduce ulti!le brands in a category for all of the follo%ing reasons
3=/3P# ________.
a. to increase shelf !resence and retailer de!endence in the store
b. to attract consuers seeking variety %ho ay other%ise have s%itched brands
c. to increase internal co!etition %ithin the fir
d. to yield econoies of scale in advertising, sales, and erchandising
e. to reduce anufacturing costs and co!lexity
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55. #he hallark of an o!tial brand !ortfolio is ________.
a. the ability of each brand to axii<e e7uity in cobination %ith all the other
brands in it
b. the ability of each brand to axii<e its individual e7uity in isolation
c. axial brand overla!
d. the eventual reduction of brand differentiation to create a unified brand
a!!earance
e. none of the above
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56. ________ brands are !ositioned %ith res!ect to co!etitors? brands so that ore
i!ortant Hand ore !rofitableI flagshi! brands can retain their desired !ositioning.
a. ;lanker
b. Attacker
c. @efender
d. Blit<krieg
e. *ndividual
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58. #he role of a ________ in the brand !ortfolio often ay be to attract custoers to the
brand franchise. #rading u! %ill often occur %ith this ty!e of brand.
a. cash co%
b. flanker brand
c. fighting brand
d. high9end !restige brand
e. lo%9end entry9level brand
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5:. *n its focus on botto9line financial value, the ________ a!!roach often overlooks
the -o!tion value. of brands and their !otential to affect future revenues and costs.
a. brand e7uity
b. brand value chain
c. custoer value
d. custoer e7uity
e. brand extension
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/ha!ter 2: /reating Brand 37uity
52. According to Scott Bedbury?s book, A New Brand World, all of the follo%ing are
considered to be i!ortant !rinci!les for "1st9century branding 3=/3P# ________.
a. consuers %ill tell you %hat your brand iage should be
b. relying on brand a%areness has becoe arketing fool?s gold
c. you have to kno% it before you can gro% it
d. great brands establish enduring custoer relationshi!s
e. all brands need good !arents
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11:. )arketers of successful "1st9century brands ust excel at ________>the design
and i!leentation of arketing activities and !rogras to build, easure, and
anage brands to axii<e their value.
a. !rootional !lanning
b. brand !ersonification
c. strategic brand anageent
d. brand a%areness
e. co!etitive differential advantage
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112. /oca9/ola, /alvin Blein, +ucci, #oy 4ilfiger, )arlboro, and others have
becoe leaders in their !roduct categories by understanding ________ and
desires and creating relevant and a!!ealing iages around their !roducts.
a. consuer !erce!tions
b. consuer otivations
c. consuer behaviors
d. consuer deogra!hics
e. consuer arket segents
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Part 4: Building Strong Brands
111. @uring the Pe!si /hallenge ca!aign, launched %hile /oke %as clearly the
arket leader by sales, consuers %ere given blind taste tests of Pe!si and /oke
and asked %hich flavor they !referred. A!!arently, !eo!le !referred the taste of
Pe!si in blind taste tests, but bought /oke %hen they visited the store. #his is an
exa!le of /oke?s ________.
a. custoer9based brand e7uity
b. ission9driven brand e7uity
c. functional9based brand e7uity
d. service9based brand e7uity
e. attribute9based brand e7uity
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111. A arketing anager stresses to a ne%ly hired brand anager the i!ortance of
having a strong brand. All of the follo%ing %ould be advantages that the
arketing anager ight stress to his subordinate 3=/3P# ________.
a. i!roved !erce!tions of !roduct !erforance
b. greater loyalty
c. less vulnerability to arketing crises
d. lo%er argins
e. !ossible licensing o!!ortunities
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11". A!!le /o!uter achieves incredible brand loyalty largely by delivering on its
________ to -create great things that change !eo!le?s lives. by cobining
su!erior design functionality and style in its !roducts.
a. brand !roise
b. brand dynaic
c. brand resonance
d. brand entity
e. ubrella branding
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11,. *f a anager is looking for a -re!ort card. on !ast !erforance of a brand, he or
she should turn to an exaination of the brand ________.
a. strength
b. co!atibility
c. stature
d. iage
e. doinance
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/ha!ter 2: /reating Brand 37uity
114. )att al%ays thinks of Carta batteries %hen he thinks of a de!endable car battery.
#his is an exa!le of brand ________.
a. salience
b. iagery
c. Dudgents
d. feelings
e. sco!e
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115. #he faous -Plo!, !lo!, fi<<, fi<<J 'h, %hat a relief it isJ. ca!aign is a good
exa!le of %hat is called a brand ________.
a. eleent
b. bond
c. visual
d. !ersonification
e. !erce!tion
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116. Although initially an online book seller, Aa<on.co chose not to call itself
-Books KA? Ls,. enabling it eventually to sell a %ide range of !roducts. #his
naing decision akes the brand eleent ore ________.
a. eorable
b. eaningful
c. likable
d. !rotectible
e. transferable
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118. #he face of Betty /rocker has been u!dated several ties in the !ast 85 years
%ithout losing any of its brand recognition. #his brand eleent is ________.
f. likeable
g. transferable
h. ada!table
i. !rotectible
D. eorable
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11:. )arketers of )ountain @e% created the ulticity @e% Action S!orts #our %here
athletes co!ete in skateboarding, )B=, and freestyle otocross events to
establish a eaningful ________ %ith its 1"M"49year9old target arket.
a. brand eleent
b. brand contact
c. internal brand
d. brand salience
e. brand asset
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Part 4: Building Strong Brands
112. According to Seth +odin, arketers can no longer use ________. *nstead,
arketers should turn to !erission arketing as a %ay to ensure long9ter
custoer relationshi!s and loyalty.
a. task9oriented arketing
b. interru!tion arketing
c. hard core selling
d. advocacy arketing
e. one9to9one arketing
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1"1. *f the Singa!ore Airlines sends e!loyees to s!ecial classes to teach the the
value of the brand and ho% inflight service is uch ore than Dust flying fro
origin to destination, Singa!ore Airlines is using ________ to acco!lish this
task.
a. interru!tion arketing
b. loyalty arketing
c. cohort arketing
d. acrobranding
e. internal branding
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1"1. *B)?s e9business ca!aign not only hel!ed to change !ublic !erce!tions of the
co!any in the arket!lace, it also sent a signal to e!loyees that *B) %as
deterined to be a leader in the use of *nternet technology. #his is an exa!le of
________.
a. leveraging secondary associations
b. linking internal and external arketing
c. integration arketing
d. !erission arketing
e. brand tracking
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1"". *rene and @ave $ong are !art of a long9ter ________. #he $ong?s su!!ly a
national research fir %ith inforation about their brand habits, !references,
dislikes, and beliefs on a onthly basis for a !eriod of t%o years.
a. iage study
b. deogra!hic study
c. !sychological !rofile study
d. !rootion anageent study
e. brand9tracking study
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/ha!ter 2: /reating Brand 37uity
1",. )eiDi has introduced several ty!es of yogurt ________ through the years>&ata
de /oco, All #ro!ical ;ruit, and Berry Blends.
a. category extensions
b. line extensions
c. brand extensions
d. subbrands
e. faily brands
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1"4. /ustoers can no% buy )c/laren strollers and a!!arel, %hich are not
anufactured by )c/laren, but are instances %here )c/laren has received
!ayent fro the anufacturers of these !roducts to use )c/laren?s brand nae.
#hese ites are considered ________.
a. licensed !roducts
b. faily !roducts
c. line extensions
d. brand extensions
e. subbrands
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1"5. )any firs use ________ in order to take advantage of cor!orate9iage
associations such as innovativeness, ex!ertise, and trust%orthiness to directly
influence consuer evaluations.
a. se!arate faily naes for all !roducts
b. individual naes for each !roduct
c. blanket faily naes
d. brand revitali<ation
e. the brand discount rate
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1"6. ;our general strategies can be used in branding. $hich of the follo%ing strategies
is the one used by Bellogg?s %hen it follo%s a subbranding !olicy %ith Bellogg?s
Aice Bris!ies, Bellogg?s Aaisin Bran, and Bellogg?s /orn ;lakes(
a. *ndividual naes
b. Blanket faily naes
c. Se!arate faily naes for all !roducts
d. +lobal naes for all !roducts
e. /or!orate nae cobined %ith individual !roduct naes
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Part 4: Building Strong Brands
Sh"rt An$%er
1"8. Assue you are a arketing anager that %ishes !ursue a !rocess of strategic
brand anageent. Gist the four ain ste!s that you %ould ost likely go
through to acco!lish this task.
Sugge$ted An$%er: #he ste!s %ould be: H1I identifying and establishing brand
!ositioningN H"I !lanning and i!leenting brand arketingN H,I easuring and
inter!reting brand !erforanceN and, H4I gro%ing and sustaining brand value.
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1":. 4o% does the Aerican )arketing Association define the ter brand(
Sugge$ted An$%er: A brand, according to the A)A, is -a nae, ter, sign,
sybol, or design, or a cobination of the, intended to identify the goods or
services of one seller or grou! of sellers and to differentiate the fro those of
co!etitors..
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1"2. $hat valuable functions can brands !erfor for the fir(
Sugge$ted An$%er: Brands si!lify !roduct handling and tracing and hel! to
organi<e inventory and accounting records. #hey also offer the fir legal
!rotection for uni7ue features or as!ects of the !roduct. Brand loyalty !rovides
!redictability and security of deand for the fir, and it creates barriers to entry
that ake it difficult for other firs to enter the arket. Goyalty can also
translate into custoer %illingness to !ay higher !rices.
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1,1. Eour co!any desires to have !ositive custoer9based brand e7uity. $hat has to
occur for this to ha!!en(
Sugge$ted An$%er: A brand is said to have !ositive custoer9based brand e7uity
%hen consuers react ore favorably to a !roduct and the %ay it is arketed
%hen the brand is identified as co!ared to %hen it is not.
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/ha!ter 2: /reating Brand 37uity
1,1. Colvo has a strong brand association %ith res!ect to brand kno%ledge %hen
consuers !erceive it as a very safe care HsafetyI. 3x!lain the conce!t of brand
kno%ledge.
Sugge$ted An$%er: Brand knowledge consists of all the thoughts, feelings,
iages, ex!eriences, beliefs, and so on that becoe associated %ith the brand. *n
!articular, brands ust create strong, favorable, uni7ue brand associations %ith
custoers.
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1,". Gist five advantages shared by other strong brands that you %ill ost likely need
to eulate to acco!lish this obDective.
Sugge$ted An$%er: Strong brands have the follo%ing advantages: H1I i!roved
!erce!tions of !roduct !erforanceN H"I greater loyaltyN H,I less vulnerability to
co!etitive arketing actionsN H4I less vulnerability to arketing crisesN H5I
larger arginsN H6I ore inelastic consuer res!onse to !rice increasesN H8I ore
elastic consuer res!onse to !rice decreasesN H:I greater trade coo!eration and
su!!ortN H2I increased arketing counications effectivenessN H11I !ossible
licensing o!!ortunitiesN and, H11I additional brand extension o!!ortunities.
Students are to !ick five advantages.
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1,,. 4o% does consuer kno%ledge !lay a role in the success of ne% !roducts
associated %ith existing brands(
Sugge$ted An$%er: Brand kno%ledge created by arketing investents dictates
a!!ro!riate future directions for the brand. /onsuers %ill decide, based on %hat
they think and feel about the brand, %here they believe the brand should go and
grant !erission to any arketing action or !rogra. )any ne% !roducts can
fail because consuers find the ina!!ro!riate extensions for the brand.
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1,4. Brand e7uity has five co!onents>differentiation, energy, relevance, estee,
and kno%ledge. 4o% are these co!onents cobined to !roduce brand strength
and brand stature(
Sugge$ted An$%er: @ifferentiation, energy, and relevance cobine to !roduce
brand strength. 3stee and kno%ledge together create brand stature.
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1,5. According to the BAA&@F odel of brand strength, brand building involves a
series of five se7uential ste!s. $hat are those five se7uential ste!s(
Sugge$ted An$%er: #he ste!s are in ascending order: H1I !resence, H"I relevance,
H,I !erforance, H4I advantage, and H5I bonding.
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/o!yright 0 "112 Pearson 3ducation, *nc. Publishing as Prentice 4all
Part 4: Building Strong Brands
1,6. As a brand anager you %ould like to have your brand Hbrand naeI to be
!rotectible. 3x!lain %hat you ean by -!rotectible. and give an illustration.
Sugge$ted An$%er: As a brand anager you %ould need to consider the
7uestions of -4o% legally !rotectible is the brand eleent(. -4o% co!etitively
!rotectible(. and -/an it be easily be co!ied(. *t is i!ortant that naes that
becoe synonyous %ith !roduct categories>such as Bleenex, Bitty Gitter, Oell9
', Scotch #a!e, =erox, and ;iberglass>retain their tradeark rights and not
becoe generic. Ans%ers on exa!les ay vary. #he above are a fe%
illustrations that deonstrate the !rotectible characteristic.
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1,8. $hat is !erission arketing and %hy does it %ork(
Sugge$ted An$%er: Perission arketing, the !ractice of arketing to
consuers only after gaining their ex!ress !erission, is based on the !reise
that arketers can no longer use -interru!tion arketing. via ass9edia
ca!aigns. *t is !ur!orted to %ork because it is -antici!ated, !ersonal, and
relevant..
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1,:. @istinguish bet%een brand identity and brand iage.
Sugge$ted An$%er: *dentity is the %ay a co!any ais to identify or !osition
itself or its !roduct. *age is the %ay the !ublic actually !erceives the.
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1,2. *dentify the three i!ortant !rinci!les for internal branding !resented in the text.
Sugge$ted An$%er: #hree i!ortant !rinci!les for internal branding are: H1I
choose the right oentN H"I link internal and external arketingN and H,I bring
the brand alive for e!loyees.
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141. +iven that the !o%er of a brand resides in the inds of consuers and ho% it
changes their res!onse to arketing, there are t%o basic a!!roaches to easuring
brand e7uity. Briefly, describe each of these a!!roaches.
Sugge$ted An$%er: #he t%o a!!roaches are: H1I an indirect a!!roach assesses
!otential sources of brand e7uity by identifying and tracking consuer brand
kno%ledge structuresN and H"I a direct a!!roach assesses the actual i!act of
brand kno%ledge on consuer res!onse to different as!ects of the arketing.
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/ha!ter 2: /reating Brand 37uity
141. *f your arketing anager asked you to design and i!leent a brand value
chain, ex!lain %hat you have been asked to do.
Sugge$ted An$%er: #he brand value chain is a structured a!!roach to assessing
the sources and outcoes of brand e7uity and the anner in %hich arketing
activities create brand value. #he odel assues that a nuber of linking factors
intervene bet%een the stages and deterine the extent to %hich value created at
one stage transfers to the next stage. ;or additional insight and discussion, see
cha!ter section.
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14". @istinguish bet%een brand e7uity and brand valuation.
Sugge$ted An$%er: According to inforation !rovided in the text, brand equity
is the added value endo%ed to !roducts and services. Brand valuation is the Dob of
estiating the total financial value of the brand.
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14,. *dentify and define the t%o general categories into %hich brand extensions fall.
Sugge$ted An$%er: Brand extensions fall into t%o general categories: H1I line
extensions, %here the !arent covers a ne% !roduct %ithin a category it currently
servesN and H"I category extensions, %here the !arent brand is used to enter a
different !roduct category fro the one it currently serves.
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144. As a branding anager, you have recoended to your board of directors a
cor!orate !olicy of blanket faily branding. $rite a brief stateent outlining the
advantages of blanket faily branding.
Sugge$ted An$%er: #his !olicy is follo%ed by 4ein< and +eneral 3lectric. A
blanket faily nae has advantages. @evelo!ent cost is less because there is no
need for -nae. research or heavy advertising ex!enditures to create brand9nae
recognition. ;urtherore, sales of the ne% !roduct are likely to be strong if the
anufacturer?s nae is good. /a!bell?s introduces ne% sou!s under its brand
nae %ith extree si!licity and achieves instant recognition.
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Part 4: Building Strong Brands
145. #ide laundry detergent aintains the sae arket share it had 51 years ago
because of the sales contributions of its various line extensions. #ide could be
said to e!loy a !ree!tive cannibali<ation strategy in generating line
extensions. $hat does this ean(
Sugge$ted An$%er: *n !ree!tive cannibali<ation, consuers ight have
s%itched to a co!eting brand instead of the line extension if the extension hadn?t
been introduced. 3ven though #ide?s various line extensions ay cannibali<e
sales of its other !roducts, if the extensions had not been introduced, then
custoers %ould have defected to another brand offering the sae ty!e of
extension. *n this %ay, #ide has aintained its arket share through !ree!tive
cannibali<ation.
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146. Scott Bedbury, author of A New Brand World, cites eight !rinci!les on %hich
"1st9century branding should be built. Gist four of those !rinci!les.
Sugge$ted An$%er: Bedbury?s eight !rinci!les are: H1I relying on brand
a%areness has becoe arketing fool?s goldN H"I you have to kno% it before your
can gro% itN H,I al%ays reeber the S!andex rule of brand extensionN H4I great
brands establish enduring custoer relationshi!sN H5I everything attersN H6I all
brands need good !arentsN H8I big is no excuse for being badN and, H:I relevance,
si!licity, and huanity. Students ay choose fro any four of the eight. See
cha!ter section for additional discussion.
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