Chapter 09 - Strategic Brand Management

Chapter 09
Strategic Brand Management

True / False Questions

1. (p. 300) Product life cycles are becoming longer for many products due to new technology
rapidly changing preferences of buyers and intense competition.
FALSE

Difficulty: Moderate

!. (p. 301) Preference mapping offers useful guidelines for strategic targeting and product
positioning. "his analysis can relate buyer preferences to different brands and indicate
possible brand repositioning options.
TRE

Difficulty: Moderate

#. (p. 302) "he brand as a person $brand personality% perspecti&e recogni'es that strong brands
may ha&e an identity beyond the product or the company which has positi&e impacts on the
customer relationship and perception of &alue. "he brand as a symbol underlines the role in
brand building of &isual imagery metaphors and brand heritage.
TRE

Difficulty: Moderate

(. (p. 303) )etailer mar*et sensing in positioning different types of pri&ate labels and opening up
new mar*ets underlines an important challenge to traditional brand owners.
TRE

Difficulty: Challenging

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Chapter 09 - Strategic Brand Management
+. (p. 304) ,etermination of the brand position is the core of the implementation strategy and
in&ol&es selecting the part of the core identity to be communicated to the target audiences
including points of le&erage and *ey benefits.
TRE

Difficulty: Challenging

-. (p. 305) Products are often impro&ed by changing their features .uality but changing styling
is too tri&ial to impro&e a product.
FALSE

Difficulty: Eay

/. (p. 30!) 0n&ironmental issues concerning product labeling pac*aging use and disposal do not
need to be considered because protection of the en&ironment is hopelessly enmeshed in a
comple1 set of trade-offs among social economic political and technology factors.
FALSE

Difficulty: Eay

2. (p. 30") Strategies for building and sustaining brand strength for the brand portfolio re.uire
attention to the implementation of brand identification in brand building strategies
re&itali'ing brands in the later stages of their life cycles and recogni'ing the strategic
&ulnerabilities of core brands since brands may be &ulnerable to competiti&e attac* or
changing mar*et conditions.
TRE

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
9. (p. 311) Co-branding consists of two well-*nown brands wor*ing together in promoting their
products. Co-branding occurs when brands from different organi'ations $or distinctly different
businesses within the same organi'ation% combine to create an offering in which brands from
each play a dri&er role.
TRE

Difficulty: Eay

10. (p. 311) 3icensing gains free publicity for the core brand name obtains additional re&enue at
no ris* to the firm who grants the license.
FALSE

Difficulty: Eay


Multiple Choice Questions

11. (p. 2#1) 4 55555 is intended to meet the needs of buyers in the product-mar*et. 6t may
consist of ob7ects ser&ices organi'ations places people and ideas.
A! Product
B. Brand
C. "rademar*
,. Product life cycle

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
1!. (p. 2#1) 4 55555 co&ers a wide range of situations including tangible goods and intangible
ser&ices including political candidates tra&el ser&ices medical ser&ices refrigerators and gas
turbines.
A! Product
B. Brand
C. "rademar*
,. 6dentity

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
1#. (p. 2#1) 4 55555 name term design symbol or any other feature that identifies one seller8s
good or ser&ice as distinct from those of other sellers.
4. Product
B! Brand
C. "rademar*
,. 6dentity

Difficulty: Eay

1(. (p. 2#1) "he legal term for brand is 55555.
4. Product
B. Brand
C! "rademar*
,. 6dentity

Difficulty: Eay

1+. (p. 2#1) 6f a brand used for the firm as a whole the preferred term is 55555.
4. Product
B. 6dentity
C. "rademar*
"! "rade name

Difficulty: Eay

1-. (p. 2#1) 55555 are to reduce customer search costs and percei&ed ris*s.
A! 9unctions of the brand for buyers
B. 9unctions of products
C. 9unctions of the brands for sellers
,. 9unctions of companies

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
1/. (p. 2#2) 4 55555 is to facilitate premium pricing by creating a basic le&el of differentiation
compared to competitors.
4. 9unction of the brand for buyers
B. 9unction of products
C! 9unction of the brands for sellers
,. 9unction of companies

Difficulty: Eay

12. (p. 2#2) 4 55555 is to facilitate mar*et segmentation by communicating a coherent message
to the target audience telling them for whom the brand is intended and for whom it is not
intended.
4. 9unction of the brand for buyers
B. 9unction of products
C! 9unction of the brands for sellers
,. 9unction of companies

Difficulty: Eay

19. (p. 2#2) 6nter brand calculates 55555 as the net present &alue of the earnings the brand is
e1pected to generate in the future.
A! Brand &alue
B. Brand strength
C. Brand earnings
,. Brand strength

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
!0. (p. 2#2) "he 6nter brand model bases 55555 on forecasts of brand re&enues allowing for ris*
and the role of the brand in stimulating customer demand.
4. Brand &alue
B. Brand strength
C! Brand earnings
,. Brand strength

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
!1. (p. 2#2) "he 6nter brand measure of 55555 includes: leadership $ability to influence the
mar*et%; stability $sur&i&al ability based on customer loyalty%; mar*et $security from change
of technology and fashion%; geography $ability to cross geographic borders% support
$consistency and effecti&eness of brand support%; and protection $legal title%.
4. Brand &alue
B. Brand awareness
C. Brand earnings
"! Brand strength

Difficulty: Eay

!!. (p. 2#!) )esponsibilities for 55555 consist of planning managing and coordinating the
strategy for a specific product or brand. Management acti&ities include mar*et analysis
targeting positioning strategy performance analysis and strategy ad7ustment and
identification of new product needs.
A! Product<brand management
B. Product group<mar*eting management
C. Product portfolio
,. Mar*et dri&en management

Difficulty: Eay

!#. (p. 2#!) 4 business which has se&eral product categories and<or brands may assign
responsibility for coordinating the initiati&es of product or brand managers to a 55555.
4. Product<brand management
B! Product group<mar*eting management
C. Product portfolio
,. Mar*et dri&en management

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
!(. (p. 2#!) 55555 is normally assigned to the chief e1ecuti&e of the SB= the corporate le&el of
an organi'ation or a team of top e1ecuti&es. 6llustrati&e decisions include product
ac.uisitions research and de&elopment priorities new-product decisions product drop
decisions and resource allocation.
4. Product<brand management
B. Product group<mar*eting management
C! Product portfolio management
,. Mar*et dri&en management

Difficulty: Eay

!+. (p. 2#!) Changes are being made by companies to integrate sales mar*eting and other
business functions into cross-functional teams. Companies are restructuring their mar*eting
departments. "raditional product and brand-based organi'ations will increasingly e&ol&e into
55555 approaches to implement more effecti&ely the mandate for customer focus.
4. Product<brand management
B. Product group<mar*eting management
C! Product portfolio management
,. Mar*et dri&en management

Difficulty: Eay

!-. (p. 2#") 55555 pro&ides essential information for decision ma*ing for each of the brand
management acti&ities including mar*et<customer competitor and brand information.
A! Strategic brand analysis
B. Brand e.uity management
C. Brand identity strategy
,. Managing the brand o&er time

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
!/. (p. 2#$) Strategic brand management initiati&es ha&e a positi&e or negati&e impact on the
&alue of the brands in the portfolio 55555 recogni'es the importance of brand &alue and
identifies the *ey dimensions of e.uity.
4. Strategic brand analysis
B! Brand e.uity management
C. Brand identity strategy
,. Managing the brand o&er time

Difficulty: Eay

!2. (p. 2#$) "he intent of 55555 is to determine a uni.ue set of brand associations that the brand
strategist aspires to create or maintain. "his may be associated with the product the
organi'ation a person or a symbol. "he brand positioning statement describes the brand
information to be used to position the brand in the eyes and minds of targeted buyers.
4. Strategic brand analysis
B. Brand e.uity management
C! Brand identity
,. Managing the brand o&er time

Difficulty: Eay

!9. (p. 2#$) 555555 starts during the initial launch and continues throughout the brand8s life
cycle. >hile the brand strategy may be altered o&er time the intent is to pursue consistent
initiati&es build the strength of the brand and a&oid damaging the brand.
4. Strategic brand analysis
B. Brand e.uity management
C. Brand identity strategy
"! Managing the brand o&er time

Difficulty: Eay

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Chapter 09 - Strategic Brand Management
#0. (p. 2#$) 55555 consists of coordinating the organi'ation8s system of brands with the ob7ecti&e
of achie&ing optimal system performance.
4. Strategic brand analysis
B. Brand e.uity management
C. 3e&eraging the brand
"! Managing the brand portfolio

Difficulty: Eay


Essa# Questions

#1. (p. 2#1) 01plain the e&ol&ing thoughts describing the differences between goods and
ser&ices. ?ow does this relate to the &alue offering made to the buyers@
6n the past differences between goods and intangible ser&ices ha&e been emphasi'ed by
highlighting how ser&ices are different $e.g. intangible consumed when they are produced
and &ariable consistency%. ?owe&er a compelling logic has been proposed that the distinction
between goods and ser&ices should be replaced by a &iew that ser&ices are the dominant
perspecti&e in the !1
st
century consisting of both tangible and intangible components. "he
ser&ice-centered logic integrates goods with ser&ices and these offerings deli&er &alue to
customers. "he important issue is to understand the composition of the &alue offering being
made to buyers by a brand.

Difficulty: Moderate

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Chapter 09 - Strategic Brand Management
#!. (p. 2#2) 01plain three internal and e1ternal forces that create hurdles for brand managers in
their efforts to build strong brands. >hat is one *ey to reducing these negati&e impacts on
brand-building strategies@
Se&eral internal and e1ternal forces create hurdles for brand managers in their efforts to build
strong brands. 6ntense Price and Ather Competiti&e Pressures. ,eciding how to respond to
these pressures shift managers8 attention away from brand management responsibilities.
9ragmentation of Mar*ets and Media. Many mar*ets ha&e become highly differentiated in
terms of customer needs. Similarly the media $ad&ertising and sales promotion% a&ailable to
access mar*et segments ha&e become &ery fragmented and speciali'ed. "he 6nternet has
compounded mar*et targeting and access comple1ity. Comple1 Brand Strategies and
)elationships. Multiple additions to core brands such as BM>8s initiati&es ha&e created
comple1 brand management situations. "hese comple1ities may encourage managers to alter
strategies rather than building the e1isting strategies. Bias 4gainst 6nno&ation. Brand
complacency may result in a failure to inno&ate. 6nno&ation may be a&oided to pre&ent
cannibalism of e1isting products. Pressure to 6n&est 0lsewhere. 4 strong brand may generate
complacency and cause management to shift resources to new initiati&es. Short-"erm
Pressures. Managers encounter many short-term pressures that shift their attention and
resources away from important brand-building programs. "op management8s need to achie&e
.uarterly financial targets is illustrati&e. "he *eys to reducing these negati&e impacts on
brand-building strategies is de&eloping brand strategy guidelines trac*ing initiati&es on a
regular basis and critically assessing potential challenges that shift management attention
away from core strategies.

Difficulty: Challenging

##. (p. 301) ,escribe three of the measures that 4a*er proposes to capture all rele&ant aspects of
brand e.uity
4a*er proposes fi&e measures to capture all rele&ant aspects of brand e.uity.
$1% loyalty $price premium satisfaction<loyalty%
$!% percei&ed .uality and leadership<popularity measures
$#% associations<differentiation $percei&ed &alue brand personality organi'ational
associations
$(% awareness $brand awareness%
$+% mar*et beha&ior $mar*et share price and distribution indices%.
"hese components pro&ide the basis for de&eloping operational measures of brand e.uity.

Difficulty: Challenging

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Chapter 09 - Strategic Brand Management
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Chapter 09 - Strategic Brand Management
#(. (p. 304) ,iscuss the useful insights about brand strategy management from obser&ing brands
that ha&e been successful o&er a long period of time.
Brands that ha&e been successful o&er a long time period offer useful insights about brand
strategy management. 0stablished brands li*e Budweiser ?ershey 6BM and 6ntel continue to
build strong mar*et positions. "he performance records of powerful brands are the result of:
$1% mar*eting s*ills $!% product .uality and $#% strong brand preference de&eloped through
years of successful ad&ertising.
!+
"he brand e.uity that has been built for a company8s brands
is a &aluable asset. 4 common characteristic of many enduring brands is that the targeting and
positioning strategy initially selected has generally been followed during the life of each
brand. Consistency in the mar*eting strategy o&er time is &ery important.
!-

Difficulty: Challenging

#+. (p. 313) ,iscuss state of counterfeit brands the ethical issues the in&ol&ement of law
enforcement and the role of the internet in counterfeiting.
Counterfeit brands represent a huge global business that negati&ely impacts authentic brands.
"he fa*es negati&ely impact brand e.uity and attract sales from the real brands. 4 wide range
of fa*e brands are sold including software apparel electronics watches and many other
products. Much of the counterfeit merchandise is produced in China although other 4sian
countries are also in&ol&ed in the &alue chain.
Counterfeiting is as profitable as selling drugs and much less li*ely to result in ma7or 7ail
terms if participants are arrested. 3aw enforcement officials are far more interested in drug
traffic*ing than fa*e goods. "he high margins and lower law enforcement concerns ha&e
attracted organi'ed crime to distribution of counterfeit brands.
Brand counterfeiting has been fueled by the ease with which counterfeit products can be sold
on the 6nternet B it is estimated that counterfeit trade on the 6nternet is worth C90 billion a
year.
Passing off counterfeits as genuine is easier on the 6nternet because customers cannot
physically inspect the goods and they are often sold under the image of the genuine product.
6nternet counterfeiters are hard to trace.

Difficulty: Challenging

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