1. TOP 10 Learning Questions for Ch 9 – Creating Brand Equity Maureen Lee September 2011 Prepared for the V55 Marketing Management Class of Prof. Remigio Joseph De Ungria 1st Term SY 2011-12 http://maureentlee.blogspot.com/

2. 1. Which among the following statements is not true about brand loyalty? Provides predictability and security of demand. Creates barriers to entry making it difficult for other firms to enter the market. Translates into customer willingness to pay a standard price. Competitors cannot easily match lasting impressions. All statements are true. http://maureentlee.blogspot.com/ 2

3. http://maureentlee.blogspot.com/ Brand Loyalty Provides predictability and security of demand Creates barriers to entry making it difficult for other firms to enter the market. Translates into customer willingness to pay a higher price – often 20-25% more to competing brands. Competitors cannot easily match lasting impressions. 4

4. 1. Which among the following statements is not true about brand loyalty? Provides predictability and security of demand. Creates barriers to entry making it difficult for other firms to enter the market. Translates into customer willingness to pay a standard price. Competitors cannot easily match lasting impressions. All statements are true. http://maureentlee.blogspot.com/ 4

5. 2. The following statements are advantages of strong brands, except: Less vulnerability to competitive marketing actions More vulnerability to competitive marketing crises Elastic consumer response to price increases Possible licensing opportunities All statements are true. http://maureentlee.blogspot.com/ 5

6. http://maureentlee.blogspot.com/ Marketing Advantages of Strong Brands Improved perception of product performance Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to marketing crises Larger margins More inelastic consumer response to price increases More elastic consumer response to price decreases

7. http://maureentlee.blogspot.com/ Marketing Advantages of Strong Brands Greater trade cooperation and support Increased marketing communication effectiveness Possible licensing opportunities Additional brand extension opportunities

8. 2. The following statements are advantages of strong brands, except: Less vulnerability to competitive marketing actions More vulnerability to competitive marketing crises Elastic consumer response to price increases Possible licensing opportunities All statements are true. http://maureentlee.blogspot.com/ 8

9. 3. Which among the brand asset valuators would determine the “Energized Brand Strength”? Differentiation, Energy, Knowledge Energy, Relevance, Esteem Differentiation, Energy, Esteem Energy, Esteem, Knowledge Differentiation, Energy, Relevance http://maureentlee.blogspot.com/ 9

10. 5 Components of Brand Asset Valuators 10 Differentiation “Unique” Esteem “Respect” Energized Brand Strength Energy “Momentum” Knowledge “Familiarity” Brand Stature Report card on past performance Relevance “Appeal” http://maureentlee.blogspot.com/

11. 3. Which among the brand asset valuators would determine the “Energized Brand Strength”? Differentiation, Energy, Knowledge Energy, Relevance, Esteem Differentiation, Energy, Esteem Energy, Esteem, Knowledge Differentiation, Energy, Relevance http://maureentlee.blogspot.com/ 11

12. 4. Which among the following is the foundation or the bottom part of the Brand Resonance Pyramid? How well the product or services meets customer’s functional needs Focus on customers’ own personal opinions and evaluations Customers’ emotional responses and reactions with respect to the brand How often and easily customers think of the brand under various purchase or consumption situation The nature of the relationship the customers have with the brand and the extent to which they feel “in sync” with it. http://maureentlee.blogspot.com/ 12

13. Brand Resonance Model 13 Branding Objective Intense, active loyalty Positive, accessible reactions Points of parity & difference Deep, broad brand awareness Image taken from - http://www.value-chain.org/brand-equity-pyramid/ http://maureentlee.blogspot.com/

14. http://maureentlee.blogspot.com/ Brand Resonance Model Brand Salience – how often and how easily customers think of the brand under various purchase or consumption situation Brand Performance – how well the product or service meets customers’ functional needs Brand Imagery – describes the extrinsic properties of the product or service, including ways in which the brand attempts to meet customers’ psychological or social needs

15. http://maureentlee.blogspot.com/ Brand Resonance Model Brand Judgments – focus on customers’own personal opinions and evaluations Brand Feelings – customers’ own personal opinions and evaluations Brand Resonance – refers to the nature of the relationship customers have with the brand and the extent to which they feel they’re “in sync” with it.

16. 4. Which among the following is the foundation or the bottom part of the Brand Resonance Pyramid? How well the product or services meets customer’s functional needs Focus on customers’ own personal opinions and evaluations Customers’ emotional responses and reactions with respect to the brand How often and easily customers think of the brand under various purchase or consumption situation (Salience) The nature of the relationship the customers have with the brand and the extent to which they feel “in sync” with it. http://maureentlee.blogspot.com/ 16

17. 5. Which among the brand element choice criteria deal with how to leverage and preserve the equity in a brand element? Memorable, Transferable and Adaptable Transferable, Adaptable and Protectible Memorable, Meaningful and Likable Transferable, Protectible and Likable Memorable, Adaptable and Protectible http://maureentlee.blogspot.com/ 17

18. Brand Element Choice Criteria 18 memorable transferable meaningful adaptable protectible likable “Brand Building” “Defensive - Leverage” http://maureentlee.blogspot.com/

19. http://maureentlee.blogspot.com/ Brand Element Choice Criteria“Brand Building” Memorable – how easily is the brand element recalled and recognized Meaningful – credible and suggestive of the corresponding category Likable – aesthetically appealing and likable visually or verbally

20. Transferable – brand element can be used to introduce new products in the same or different category Adaptable – adaptable and updatable Protectible – legally and competitively protectible http://maureentlee.blogspot.com/ Brand Element Choice Criteria“Defensive” - Leverage

21. 5. Which among the brand element choice criteria deal with how to leverage and preserve the equity in a brand element? Memorable, Transferable and Adaptable Transferable, Adaptable and Protectible Memorable, Meaningful and Likable Transferable, Protectible and Likable Memorable, Adaptable and Protectible http://maureentlee.blogspot.com/ 21

22. 6. On intellectual property rights, which of the following pair of words would not apply? Brand Names – Registered Trademarks Processes – Patents Packaging – Copyrights Packaging - Proprietary Designs None of the above, all are applicable to intellectual property rights http://maureentlee.blogspot.com/ 22

23. Brand name can be protected through registered trademarks Manufacturing processes can be protected through patents Packaging can be protected through copyrights and proprietary Designs http://maureentlee.blogspot.com/ Intellectual Property Rights

24. 6. On intellectual property rights, which of the following pair of words would not apply? Brand Names – Registered Trademarks Processes – Patents Packaging – Copyrights Packaging - Proprietary Designs None of the above, all are applicable to intellectual property rights http://maureentlee.blogspot.com/ 24

25. 7. Which among the following sequence would depict the BrandDynamics pyramid from bottom to top? Presence, Performance, Relevance, Advantage, Bonding Presence, Relevance, Advantage, Performance, Bonding Presence, Advantage, Relevance, Performance, Bonding Presence, Relevance, Performance, Advantage, Bonding Presence, Performance, Advantage, Relevance, Bonding http://maureentlee.blogspot.com/ 25

26. BrandDynamicsTMPyramid BONDING Nothing else beats it ADVANTAGE offers something better PERFORMANCE Can it deliver? RELEVANCE Offers something – need / want PRESENCE Do we know about it? http://maureentlee.blogspot.com/

27. 7. Which among the following sequence would depict the brand dynamics pyramid from bottom to top? Presence, Performance, Relevance, Advantage, Bonding Presence, Relevance, Advantage, Performance, Bonding Presence, Advantage, Relevance, Performance, Bonding Presence, Relevance, Performance, Advantage, Bonding Presence, Performance, Advantage, Relevance, Bonding http://maureentlee.blogspot.com/ 27

28. 8. Hershey Kisses chocolate, Adobe Acrobat software, Toyota Camry automobiles are called: Brand Mix Brand Variants Brand Dilution Brand Extension Brand Association http://maureentlee.blogspot.com/ 28

29. http://maureentlee.blogspot.com/ Definition Brand Mix – set of all brand lines that a particular seller makes available to the buyer Brand Variants – specific brand lines supplied to specific retailers or distribution channels Brand Dilution – consumers no longer associate brand with a specific product or highly similar products and start thinking less of the brand

30. http://maureentlee.blogspot.com/ Definition Brand Extension – when a firm uses an established brand to introduce new product Brand Association – secondary ideas linking the brand to sources like company itself, countries or other geographical regions, to channels of distribution, to other brands, characters, spokespeople, sporting or cultural events, or some third party sources.

31. 8. Hershey Kisses chocolate, Adobe Acrobat software, Toyota Camry automobiles are called: Brand Mix Brand Variants Brand Dilution Brand Extension Brand Association http://maureentlee.blogspot.com/ 31

32. 9. The common roles of brands as part of a portfolio includes the following, except: Flankers Cash Cows Low-end Entry Level Mid-class Standard High-end Prestige http://maureentlee.blogspot.com/ 32

33. http://maureentlee.blogspot.com/ Brand Portfolio Flankers – fighter brands positioned with respect to competitors’ brands so that more important flagship brands can retain their desired position Cash Cows – brands kept around despite dwindling sales because they still manage to hold on to enough customers and maintain their profitability with virtually no marketing support.

34. http://maureentlee.blogspot.com/ Brand Portfolio Low-end Entry Level – relatively low-priced brand in the portfolio to attract customers to the brand franchise. High-end Prestige – add prestige and credibility to the entire portfolio.

35. 9. The common roles of brands as part of a portfolio includes the following, except: Flankers Cash Cows Low-end Entry Level Mid-class Standard High-end Prestige http://maureentlee.blogspot.com/ 35

36. 10. Brand revitalization is necessary in the following situations, except: Changes in consumer tastes and preferences Emergence of new competitors or new technology New development in the marketing environment Negative brand associations linked to competitors Positive associations losing strength or uniqueness http://maureentlee.blogspot.com/ 36

37. http://maureentlee.blogspot.com/ Brand Revitalization Brand revitalization is necessary to keep up with the following market situations: Changes in consumer tastes and preferences Emergence of new competitors or new technology New development in the marketing environment Negative associations linked to brand Positive associations losing strength or uniqueness

38. 10. Brand revitalization is necessary in the following situations, except: Changes in consumer tastes and preferences Emergence of new competitors or new technology New development in the marketing environment Negative brand associations linked to competitors Positive associations losing strength or uniqueness http://maureentlee.blogspot.com/ 38

39. TOP 10 Learning Questions for Ch 9 – Creating Brand Equity Maureen Lee September 2011 Prepared for the V55 Marketing Management Class of Prof. Remigio Joseph De Ungria 1st Term SY 2011-12 http://maureentlee.blogspot.com/