Question 1

Licensing joins two or more well-known brands in a common product or takes two brands and markets them in partnership.

Accepted Answer

Companies can choose to extend their brand by licensing-offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales.

Question 2

The three customer brand roles are conveying information and educating and reassuring the customer during the purchase decision.

Accepted Answer

Whether the customer is a consumer or another business, brands have three primary roles. First, the brand conveys information about the product. Brands also educate the customer about the product. A third brand role is to help reassure the customer in the purchase decision.

Question 3

Brand loyalty develops when customers develop a number of emotional,psychological,and performance links with a brand.

Accepted Answer

Customers develop a number of emotional, psychological, and performance associations with a brand. In many cases, these associations become a primary purchase driver, particularly with brand-loyal users.

Question 4

To create a brand identity there must be real,identifiable,and meaningful differences among products.

Accepted Answer

There must be real, identifiable, and meaningful differences among products. If all products are perceived to be equal then it is more difficult to create a brand identity, which is a summary of unique qualities attributed to the brand.

Question 5

Loyal customers are great advocates for a brand; however,blogs and other online communities have yet to become useful tools for marketers to reinforce the brand's message because they have not figured out how to best use them.

Accepted Answer

Marketing managers know that loyal customers are great advocates for a brand. As a result, blogs and other online communities have become excellent tools for marketers to reinforce the brand's message.

Question 6

Georgio Armani sells clothes under the Armani Exchange brand,the Emporio Armani brand,and the Armani brand.This is an example of a family branding strategy.

Accepted Answer

Family branding does not separate the company from the brand.

Question 7

The two primary advantages of brand connections for customers are that they connect information with a brand they know rather than sort through information on unfamiliar brands,and strong brands generate a more positive attitude toward the product.

Accepted Answer

Two primary customer advantages result from brand associations. First, customers process, store, and retrieve product information by brand, which is a big advantage for strong brands. A second benefit is that strong brands generate a more positive attitude toward the product.

Question 8

The company brand roles are legal protection for the product and offer an effective and efficient methodology for distributing products.

Accepted Answer

Brands also perform important roles for the brand's sponsor (manufacturer, distributor, or retailer). They offer legal protection for the product through a trademark. By protecting the brand, the company is able to defend essential product elements such as its features, patentable ideas in manufacturing or product design, and packaging. A second critical role is that brands offer an effective and efficient methodology for categorizing products. Samsung has thousands of products across many product categories and branding helps keep track of those products.

Question 9

A good branding strategy can overcome a product that fails to deliver on the value proposition by infusing it with the brand image.

Accepted Answer

While branding can have a strong effect on the product experience, it is not all-powerful. A good branding strategy will not overcome a poorly designed product that fails to deliver on the value proposition.

Question 10

The perceived quality of a brand enables companies to extend the product range,can lead to a price premium opportunity,and is an excellent differentiator in the market.

Accepted Answer

The perceived quality of a brand provides three distinct benefits to the company. First, the perception of a brand's quality enables companies to extend the product range. Second, the perception of quality can lead to a price premium opportunity. Finally, the perception of quality is an excellent differentiator in the market.

Question 11

One big advantage unbranded products have over branded products is that customers will infer a level of quality from the unbranded and give the customer a reason to buy.

Accepted Answer

All things being equal (value proposition, product features) the branded product gives customers a reason to buy. This is a big advantage over unbranded products because customers will infer a level of quality from the branded product that facilitates their purchase decision.

Question 12

The strongest form of brand equity that reflects a commitment to repeat purchases is brand loyalty.

Accepted Answer

Brand loyalty is the strongest form of brand equity and reflects a commitment to repeat purchases. Loyal customers are reassured by the brand and are often ambassadors to new customers. Loyal customers enable a company to reduce marketing costs, leverage trade relationships, and speak to competitive threats with greater success.

Question 13

Brand-loyal customers are less forgiving of problems related to the brand,which hinders the company's ability to respond to a negative experience.

Accepted Answer

Brand-loyal customers are forgiving, which enables companies to respond to a negative experience.

Question 14

The SpongeBob SquarePants cartoon characters can be found on clothing items,snacks,and toys,yet the movie producer doesn't produce any of these items.This is an example of licensing the brand name to other types of product manufacturers.

Accepted Answer

Among the best followers of the license strategy are movies, which license their brand (the movie) to a wide range of companies (restaurants, toy manufacturers, and others). The Avengers broke box office records with $1.5 billion in global box office revenue opening week, but license agreements will keep making money for the franchise for years. Not only does Disney sell merchandise through the Marvel division, it has licensing agreements with Acura, Wyndham Hotels, and Hasbro, among many others.

Question 15

The major advantage of brand connections for the brand sponsor is that it is a barrier to entry for potential competitors,especially for smaller firms that lack brand recognition.

Accepted Answer

When customers identify with a brand and then transfer that loyalty to the product, it creates an additional barrier to entry for new brands, particularly for smaller firms that lack brand recognition.

Question 16

Successful marketing strategy builds quality into only the product in order to validate a price premium.

Accepted Answer

Successful marketing strategy builds quality into the entire customer experience-product, service, and any interaction with the company. As companies extend their product lines, they must ensure the customer's brand experience remains positive; put simply, get it right before you introduce new products and services.

Question 17

The advantages of family branding include that they are less expensive to create and that there is protection for the brand if one of its members has a problem.

Accepted Answer

The advantages of stand-along branding include insulating the company if there is a problem with the brand.

Question 18

A key advantage of a brand sponsor is that loyalty is transferred from the well-known sponsor brand to the less-known brand.

Accepted Answer

When customers identify with a brand and then transfer that loyalty to the product, it creates an additional barrier to entry for new brands, particularly for smaller firms that lack brand recognition.

Question 19

Brands such as Crest,Tide and Gillette,which are sold under the same name throughout the country,are known as store brands.

Accepted Answer

Large consumer products companies such as Procter & Gamble create national brands that are sold around the country under the same brand. Gillette Fusion, Crest toothpaste, and many others are national brands that can be found anywhere.

Question 20

Companies with a well-known brand and a loyal customer base spend less on advertising than companies with an unknown brand and low customer loyalty.This is an example of how brand loyalty can influence strategy.Since customers make brand connections,marketing managers generally want to extend the brand to new products,no matter how well they fit with the existing perception of the brand as long as the extension is into a profitable category.

Accepted Answer

A well-executed branding strategy helps reduce long-term marketing costs, giving the brand sponsor more flexibility in the marketing budgets.

Quiz 8: Build the Brand

Licensing joins two or more well-known brands in a common product or takes two brands and markets them in partnership.

The three customer brand roles are conveying information and educating and reassuring the customer during the purchase decision.

Brand loyalty develops when customers develop a number of emotional,psychological,and performance links with a brand.

To create a brand identity there must be real,identifiable,and meaningful differences among products.

Loyal customers are great advocates for a brand; however,blogs and other online communities have yet to become useful tools for marketers to reinforce the brand's message because they have not figured out how to best use them.

Georgio Armani sells clothes under the Armani Exchange brand,the Emporio Armani brand,and the Armani brand.This is an example of a family branding strategy.

The two primary advantages of brand connections for customers are that they connect information with a brand they know rather than sort through information on unfamiliar brands,and strong brands generate a more positive attitude toward the product.

The company brand roles are legal protection for the product and offer an effective and efficient methodology for distributing products.

A good branding strategy can overcome a product that fails to deliver on the value proposition by infusing it with the brand image.

The perceived quality of a brand enables companies to extend the product range,can lead to a price premium opportunity,and is an excellent differentiator in the market.

One big advantage unbranded products have over branded products is that customers will infer a level of quality from the unbranded and give the customer a reason to buy.

The strongest form of brand equity that reflects a commitment to repeat purchases is brand loyalty.

Brand-loyal customers are less forgiving of problems related to the brand,which hinders the company's ability to respond to a negative experience.

The SpongeBob SquarePants cartoon characters can be found on clothing items,snacks,and toys,yet the movie producer doesn't produce any of these items.This is an example of licensing the brand name to other types of product manufacturers.

The major advantage of brand connections for the brand sponsor is that it is a barrier to entry for potential competitors,especially for smaller firms that lack brand recognition.

Successful marketing strategy builds quality into only the product in order to validate a price premium.

The advantages of family branding include that they are less expensive to create and that there is protection for the brand if one of its members has a problem.

A key advantage of a brand sponsor is that loyalty is transferred from the well-known sponsor brand to the less-known brand.

Brands such as Crest,Tide and Gillette,which are sold under the same name throughout the country,are known as store brands.