Question 1

Thirty-six percent of sales at supermarkets in the United Kingdom carry the stores' own brand names.Eighteen percent of all supermarket sales in France and Germany carry the stores' own brand names; and in the US, 14 percent do.These stores are using a __________ strategy to sell consumer food.

Accepted Answer

The stores are using a private branding strategy, where they sell their own branded products instead of branded products from other manufacturers.

Question 2

Black & Decker uses a __________ strategy to reach the do-it-yourselfer market with the Black & Decker name and the construction professional market with the DeWalt name.

Accepted Answer

Black & Decker uses a multibranding strategy by marketing products under different brand names (Black & Decker for DIY consumers and DeWalt for professionals) to target different market segments.

Question 3

A company uses __________ when it manufactures products but sells them under the brand name of a wholesaler or retailer.

Accepted Answer

Private branding, also known as private label branding or store branding, is when a company manufactures products but sells them under the brand name of a wholesaler or retailer. This allows the retailer or wholesaler to offer exclusive products that cannot be found anywhere else and can also help them build customer loyalty.

Question 4

Seiko makes watches.It markets its higher quality watches under the Seiko or Lasalle name, and its lower-priced watches are sold under the Pulsar brand.Seiko uses a __________ strategy.

Accepted Answer

Seiko uses a multibranding strategy by marketing its watches under different brand names (Seiko, Lasalle, Pulsar) to target different market segments.

Question 5

A branding strategy where a firm markets some products under their own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market is referred to as

Accepted Answer

Mixed branding is a common strategy where a company sells the same product under its own brand name as well as under the reseller’s brand name. This strategy is adopted by firms when they want to target a different market segment or attract brand-loyal customers of a particular retailer. For instance, a clothing company may sell its products under its own brand name in its stores, but also offer the same products under a department store’s private label to attract price-sensitive customers.

Question 6

Private branding is also referred to as private labeling or _________.

Accepted Answer

The answer of Private branding is also referred to as...

Question 7

Compared with the multiproduct strategy, advertising and promotion costs tend to be higher with _________ because the company must generate awareness among consumers and retailers for each new brand name without the benefit of any previous impressions.

Accepted Answer

Multibranding involves introducing multiple brand names in the market, each with a different product. This strategy requires higher advertising and promotion costs, as each new brand name needs to be introduced to consumers and retailers without the benefit of previous brand impressions. In contrast, multiproduct branding involves marketing different products under the same brand name, allowing for greater brand recognition and lower advertising and promotion costs. Therefore, C is the correct choice.

Question 8

Mars, Inc.sells Snickers, Milky Way, Twix, Skittles, Dove, Starburst, M&Ms, and Three Musketeer candy.This variety of names is typical of a __________ strategy.

Accepted Answer

Multibranding strategy involves offering different brands in the same product category. Mars, Inc. sells multiple brands of candies, such as Snickers, Milky Way, Twix, Skittles, Dove, Starburst, M&Ms, and Three Musketeer.

Question 9

A risk with __________ is that too many uses for one brand name can dilute the meaning of a brand for consumers.

Accepted Answer

Brand extension involves using an established brand name for a new product or service category. While this can provide some benefits such as instant brand recognition and improved efficiency in marketing and advertising, it can also dilute the brand's meaning if it is used for too many unrelated products or services. This can confuse consumers and weaken the brand's associations and perceptions in their minds.

Question 10

Private branding refers to

Accepted Answer

Private branding, also known as private labeling or store branding, is a strategy where a company manufactures products but sells them under the brand name of a wholesaler or retailer. This allows the retailer to offer products that are exclusive to their store, while the manufacturer benefits from increased production and sales volume.

Question 11

Multibranding refers to

Accepted Answer

Multibranding involves giving each product a distinct name when each brand is intended for a different market segment. This strategy allows a company to target multiple segments with different brand names that appeal to each segment.

Question 12

A manufacturer can successfully use mixed branding because

Accepted Answer

Mixed branding is when a company markets one or more product lines under different brand names. This strategy is useful when the market segment attracted to the reseller product is different from its own market. For example, a manufacturer of high-quality leather handbags may use mixed branding by producing a separate line of handbags to be sold in discount stores. The discount store handbags may use a different brand name and have lower quality materials to appeal to a different market segment. This allows the manufacturer to maintain its high-end brand image while also reaching a new customer base through the use of mixed branding.

Question 13

A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment is referred to as __________.

Accepted Answer

Multibranding is a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment. This allows the company to target multiple market segments without diluting the brand equity of the parent brand.

Question 14

New product brands introduced as defensive moves to counteract competition are referred to as

Accepted Answer

Fighting brands are introduced by companies as a defensive strategy to counteract competition. These brands are often priced lower than the company's existing brands and serve as a way to retain market share by offering customers a cheaper alternative to the competition without devaluing the company's main brand.

Question 15

Despite the success of its Pentium chips, Intel faced a major threat from competitors like AMD's K6 chips that were cheaper and better placed to serve the emerging low-cost PC market.Intel wanted to protect the brand equity and price premium of its Pentium chips.But it also wanted to avoid AMD gaining a foothold into the lower end of the market.So it created Celeron as a cheaper less powerful version of its Pentium chips to serve this market.This is a notable example of

Accepted Answer

This is an example of fighting brands, as Intel created a new brand (Celeron) to directly compete with AMD and protect the brand equity of its premium Pentium line.

Question 16

Any container in which a product is offered for sale and on which label information is communicated is referred to as _________.

Accepted Answer

Packaging is defined as any container in which a product is offered for sale and on which label information is communicated. Choices A and B are related to the promotion and display of products, while choices D and E are related to storage, not necessarily for sale.

Question 17

A manufacturer's branding strategy in which a distinct name is given to each of its products is referred to as

Accepted Answer

Multibranding is a branding strategy in which a manufacturer gives a distinct name to each of its products. This is done to target different market segments or to create more variety for customers. Each product in the multibranding strategy has its own unique brand identity, advertising, and distribution channels.

Question 18

Packaging refers to

Accepted Answer

Packaging is the container in which a product is offered for sale and on which label information is communicated. While all the other options include containers or parts of products, only option B specifically mentions the labeling aspect of packaging, which is an important function of packaging.

Question 19

Mixed branding refers to a branding strategy

Accepted Answer

Mixed branding involves marketing products under different brand names because the segment attracted to the reseller is different from the firm's own market. This strategy is used when a company wants to target different segments with different brand names but also wants to benefit from the strength of its own brand. The aim is to get the best of both worlds.

Question 20

The chief purpose of __________ is to confront competitor brands.

Accepted Answer

Fighting brands are created specifically to confront competitor brands and steal market share. These brands typically have a lower price point and are marketed aggressively against the competition. The goal of a fighting brand is to win over customers who may be considering competitor options by offering a more attractive alternative. Co-brands and sub-brands are typically used to build on an existing brand's reputation and expand into new product categories, while private brands are owned and sold exclusively by a single retailer. Brand extensions involve launching a new product or service under an existing brand.

Quiz 11: Managing Successful Products, Services, and Brands