Brand Management Exam Questions with Detailed Answers Latest Update (Graded A+)

Brand Management Exam Questions with Detailed Answers Latest Update (Graded A+) What are the four types of brands? - Answers -Know-how -Benefit -Personality -Values What is the legal perspective of a brand? - Answers a sign or set of signs certifying the origins of a product or service, differentiating it from the competition What is the legal term for a brand? - Answers A trademark In what way are brands mental associations? - Answers Consumers perceive different brands differently, this perception adds to "value" of the product or service. An example of this is when a group of consumers were asked to match brands to the type of people that would use them. The results showed definite dimensions between the brands and the type of people who use them. Illustrating that there is in fact a difference between brands. What does a brand name symbolise? - Answers a long term engagement , crusade or commitment to a unique set of values, embedded into products, services and behaviours, which make the organisation, person or product stand out. Explain how brands are living business assets. - Answers It is brought to life across all touchpoints, and helps the company create identification, diffentiation and value. The strength of your asset can determine your ranking on sites like interbrand which will in turn affect your share price. Strong Brands also benefit from Higher Brand Loyalty and Advocacy Behaviors. When brands are considered assets, the role of brand management radically changes, from tactical and reactive to strategic and visionary. A strategic brand vision linked to both the current and future business strategies and providing a guidepost for future offerings and marketing programs becomes imperative. Brand management also becomes broader, encompassing issues like strategic market insights, the stimulation of "big" innovations, growth strategies, brand portfolio strategies, and global brand strategies What are the different roles of brands? - Answers Brands are complex signs, symbols, legal entities, mental associations, business assets, and lasting commitments that are managed differently depending on the managers' concept of what a "brand" is. Why do consumers value brands? - Answers 1) Brands are still signs of product origin and thus facilitate choice (reduce economic and functional risk) 2)Brands are symbols for consumers to shape their own - and evaluate others' - status and character (reduce social & psychological risk) 3)Brands are anchors of useful associations (reduce experiential risk) Describe the enablement quality of brands - Answers -Solves customer problems -Conserves customer resources (i.e. mental, physical, & emotional energy, time, money) -Empowers consumers, in control, secure, confident, relieved What does enablement result in? - Answers Brand trust Describe the enticement quality of brands - Answers -Stimulates mind (cognitive) and senses (sensory) -Evokes warm feelings (e.g. gratitude, empathy, nostalgia) -Gratifies consumer, makes them feel more engaged, entertained, upbeat, warmhearted What does enticement result in? - Answers Brand love What behaviours can companies expect once their consumers experience brand love, brand respect and brand trust - Answers Loyalty: -Repeat purchase -Price inelasticity -Unwilling to substitute -Willing to forgive Advocacy: -(e)-WoM -Defending the brand -Showcasing the brand -Community involvement Company Value What is a brand community? - Answers A brand community is a structured set of social relations among admirers of a brand. It is characterised by Shared Consciousness, Rituals and Traditions and Sense of Moral Responsibility Does "loyalty" really reflect the strength of a brand? - Answers No. It reflects size: Consumers Are (On Average) More Loyal to Larger Brands Not Stronger Brands (double jeopardy law) What is the double jeopardy law? - Answers The sales of smaller brands are lower because they have fewer buyers who buy the brand slightly less often. Therefore, smaller brands lose more customers.Smaller brands loose relatively more customers than the market leader and must therefore acquire relatively more new customers to grow. If a big brand (800 customers) and a small brand (200 customers) retain their market share when 100 customers switch in a period, the big brand gains and loses 12.5% of customer base, while the small brand gains and loses 50%. Acquisition is not optional. If you sell only to the 45% of loyal customers, business will close soon (unless they buy more and more)... eg Aldi and their rise in the UK. Why do companies value brands? - Answers 1) Brands help Companies to Maintain Recognizability and Consistency Across All Touchpoints 2) Some Brands Can Charge Premium Prices 3) Brands help Companies to Innovate: E.g. invent "Functional Parquets" 4) Brands help Companies to Innovate: E.g. invent „Functional Parquets" 5) Brands help Companies to Better Understand What They Do: „We are employer marketers, not a job board" 6) The Best Brands Attract the Best Talents NB. Companies value brands as devices for earning more money, extending their offerings, benefiting from customer loyalty, attracting more talent, but also for maintaining focus, consistency, innovation, and purpose. Is branding good or evil? - Answers Both is true. Branding skills can be used to improve peoples' lives and conserve the planet, but it not always is. Overall, branding contributes to the decline of individuals, communities, and societies.Overall, branding contributes to uplifting the human race. Why do brands matter to society? - Answers -Brands Allow to Grow Markets (Employment, Wealth) Through Differentiation -Brands Are Now a Social Technology Available to Everybody -But brands also cause trouble. E.g. 5.8% of the US Population is Affected by Compulsive Buying Disorder. 80% thereof are Women. -Only 4% of women around the world consider themselves beautiful -Physical Overconsumption Contributes to Obesity and to Health Problems (cradle to cradle helps tackle overconsumtpion) -Americans (and probably many Westeners) Feel Dissatisfied With Their Lives as Consumers.(competitive acquistion) -Techno-Stress, Smartphone Addiction, Compulsive Texting is Beginning to Show Consequences Consumers Accumulate Significant Debt (not Only to Buy Homes) What are the two major problems with measuring brands and how do theories try to explain it? - Answers how should one measure the strength of a brand? What limited numbers of indicators should one use to evaluate what is commonly called brand equity? One is customer-based and focuses exclusively on the relationship customers have with the brand (from total indifference to attachment, loyalty, and willingness to buy and rebuy based on beliefs of superiority and evoked emotions). The other aims at producing measures in dollars, euros or yen. Both approaches have their own champions. What is the customer based definition of a brand? - Answers The financial approach measures brand value by isolating the net additional cashflows created by the brand. These additional cash flows are the result of customers' willingness to buy one brand more than its competitors', even when another brand is cheaper. Why are consumers willing to pay a premium price? - Answers Because of the beliefs and bonds that are created over time in their minds through the marketing of the brand. These associations should be unique (exclusivity), strong (saliency) and positive (desirable). Explain how brands are a conditional asset - Answers -First, brands are intangible assets, posted eventually in the balance sheet as one of several types of intangible asset (a category that also includes patents, databases and the like). -Second, brands are conditional assets. This is a key point so far overlooked. An asset is an element that is able to produce benefits over a long period of time. Why are brands conditional assets? Because in order to deliver their benefits, their financial value, they need to work in conjunction with other material assets such as production facilities. What is the attention economy? - Answers there is so much choice and opacity that consumers cannot spend their time comparing before they make a choice. How do brands help consumers in the attention economy? - Answers Brands must convey certitude, trust. They are a time and risk reducer. In fact where there is no risk there is no brand. The perceived risk could be economic (linked to price), functional (linked to performance), experiential, psychological (linked to our selfconcept), or social (linked to our social image). This is why it takes time to build the saliency that is part of brand awareness, and this trust (trusted beliefs about the brand's unique benefits). What is a brand image and how do companies develop this? - Answers A representation is a system of mental associations. We stress the word 'system', for these associations are interconnected. They are in a network, so that acting on one impacts some others. These associations (also called brand image. -What is the brand territory (perceived competence, typical products or services, specific know-how)? -What is its level of quality (low, middle, premium, luxury)? -What are its qualities? -What is its most discriminating quality or benefit (also called perceived positioning)? -What typical buyer does the brand evoke? What is the brand personality and brand imagery? Is a brand an immediate concept or one that is developed over time? - Answers a brand exists when it has acquired power to influence the market