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    Part 4: Building Strong Brands

    Chapter 9: Creating Brand Equity

    GENERAL CONCEPT QUESTIONS

    u!tip!e Ch"i#e

    1. At the heart of a successful brand is ________, backed by creatively designed andexecuted arketing.a. !rice b. !rootionc. a great !roduct or serviced. a great slogane. a brand conce!t

    Ans"er: c Page: #$% &evel of difficulty: 'asy

    #. (he strategic branch anageent !rocess involves four ain ste!s. )hich of thefollo"ing "ould *+( be aong those ste!sa. -easuring consuer brand kno"ledge. b. dentifying and establishing brand !ositioning.c. Planning and i!leenting brand arketing.d. -easuring and inter!reting brand !erforance.e. /ro"ing and sustaining brand value.

    Ans"er: a Page: #$4 &evel of difficulty: 0ard

    %. (he Aerican -arketing Association defines a ________ as a nae, ter, sign,sybol, or design, or a cobination of the, intended to identify the goods or services of one seller or grou! of sellers and to differentiate the fro those of co!etitors.2a. holistic !roduct conce!t b. !roduct conce!tc. service conce!td. brande. brand iage

    Ans"er: d Page: #$4 &evel of difficulty: -ediu

    #%4

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    Part 4: Building Strong Brands

    4. (he earliest signs of branding in 'uro!e "ere edieval ________ re3uireent thatcrafts!eo!le !ut tradearks on their !roducts to !rotect theselves and consuersagainst inferior 3uality.a. kings b. churches

    c. consuersd. governentse. guilds

    Ans"er: e Page: #$4 &evel of difficulty: -ediu

    5. 6onsuers learn about brands through ________ and !roduct arketing !rogras.a. the ass edia b. !ast ex!eriences "ith the !roductc. the sales forced. sho!!ing botse. inde!endent inforation sources

    Ans"er: b Page: #$4 &evel of difficulty: -ediu

    7. (he "orlds strongest brands share coon attributes. )hich of the follo"ing "ould *+( be aong those coon attributesa. (he brand that s!ends the ost is the ost res!ected and valued. b. (he co!any onitors sources of brand e3uity.c. (he !ricing strategy is based on consuer !erce!tions of value.d. (he brand stays relevant.e. (he brand excels at delivering the benefits consuers truly desire.

    Ans"er: a Page: #$5 &evel of difficulty: 0ard

    $. ________ is endo"ing !roducts and services "ith the !o"er of a brand.a. Brand iage b. (he branding conce!tc. Brandingd. Brand !ositioninge. Brand !artitioning

    Ans"er: c Page: #$5 &evel of difficulty: 'asy

    8. Brand ________ is the added value endo"ed to !roducts and services.a. loyalty b. e3uityc. !referenced. satisfactione. benefits

    Ans"er: b Page: #$7 &evel of difficulty: -ediu

    #%5

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    6ha!ter 9: 6reating Brand '3uity

    9. (he !reise of ________ odels is that the !o"er of a brand lies in "hat custoershave seen, read, learned, thought, and felt about the brand over tie.a. !roductbased brand e3uity b. servicebased brand e3uityc. functionalbased brand e3uity

    d. issiondriven brand e3uitye. consuerbased brand e3uityAns"er: e Page: #$7 &evel of difficulty: 0ard

    1;. ________ can be defined as the differential effect that brand kno"ledge has onconsuer res!onse to the arketing of that brand.a. -issiondriven brand e3uity b. 6onsuerbased brand e3uityc. Productdriven brand e3uityd. Servicedriven brand e3uitye.

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    Part 4: Building Strong Brands

    14. )hen a arketer ex!resses his or her vision of "hat the brand ust be and do for consuers, they are ex!ressing "hat is called ________.a. a brand !roise b. a brand issionc. brand e3uity

    d. a brand !ositione. a brand conce!tAns"er: a Page: #$8 &evel of difficulty: 0ard

    15. (here are four key co!onents>or !illars>of brand e3uity. )hich of thoseco!onents or !illars easures the breadth of a brands a!!eala. ?ifferentiation b. @elevancec. 'steed. no"ledgee. alue

    Ans"er: b Page: #$8 &evel of difficulty: 0ard

    17. ("o !illars that !oint to the brands future value, rather than Cust reflecting its !ast,are differentiation and relevance. ?ifferentiation and relevance cobine to deterine"hat is called brand ________.a. !osition b. iagec. de!thd. kno"ledgee. strength

    Ans"er: e Page: #$9 &evel of difficulty: -ediu

    1$. ?avid Aaker vie"s brand e3uity as a set of five categories of brand assets andliabilities linked to a brand that add or subtract fro the value !rovided by a !roductor service to a fir andDor that firs custoers. All of the follo"ing "ould be aongAakers five categories '=6'P( ________.a. brand loyalty b. brand a"arenessc. !erceived 3ualityd. brand !ricee. brand associations

    Ans"er: d Page: #$9 &evel of difficulty: 0ard

    #%$

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    6ha!ter 9: 6reating Brand '3uity

    18. According to Aaker, a !articularly i!ortant conce!t for building brand e3uity is ________>the uni3ue set of brand associations that re!resent "hat the brand standsfor and !roises to consuers.a. brand kno"ledge b. brand !reference

    c. brand identityd. brand visione. brandable differences

    Ans"er: c Page: #$9 &evel of difficulty: -ediu

    19. /eneral -otors states that its ________ is a "orld class car "ith e!loyees "hotreat custoers "ith res!ect and as friends.2a. core identity b. !erceived identityc. extended identityd. defensible identity

    e. co!etitive identityAns"er: a Pages: #8; &evel of difficulty: -ediu

    #;. According to the B@A*?E odel of brand strength, brand building involves ase3uential series of ste!s. )hich of these ste!s "ould address or ans"er the 3uestion?o kno" about it2a. @elevance b. Presencec. Perforanced. Advantagee. Bonding

    Ans"er: b Page: #8; &evel of difficulty: -ediu

    #1. (he -aster6ard !riceless2 ad ca!aign is a good exa!le of brand duality. ("oadvantages of the brand are deonstrated in this ca!aign. )hat are thoseadvantagesa. Positive and negative advantages. b. &ocal and global advantages.c. @ational and eotional advantages.d. Segented and differentiated advantages.e. Price and !rootional advantages.

    Ans"er: c Page: #8; &evel of difficulty: 0ard

    #%8

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    Part 4: Building Strong Brands

    ##. All of the follo"ing are considered to be aong the six brand building blocks2'=6'P( ________.a. brand salience b. brand !erforancec. brand iagery

    d. brand feelingse. brand !rideAns"er: e Page: #8; &evel of difficulty: -ediu

    #%. )ith res!ect to the six brand building blocks,2 ________ focus on custoers o"n !ersonal o!inions and evaluations.a. brand salience b. brand !erforancec. brand iageryd. brand Cudgentse. brand resonance

    Ans"er: d Page: #8; &evel of difficulty: -ediu

    #4. )ith res!ect to the brand resonance !yraid, at "hich of the follo"ing building block levels2 "ould "e ex!ect the consuer to have develo!ed an intense, activeloyaltya. Salience b. ageryc.

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    6ha!ter 9: 6reating Brand '3uity

    #7. ________ are those tradearkable devices that serve to identify and differentiate the brand.a. Brand eleents b. Brand valuec. Brand !erce!tion

    d. Brand iagee. Brand tracksAns"er: a Page: #81 &evel of difficulty: -ediu

    #$. Six brand eleents assist in brand building. )hich of the follo"ing "ould *+( beaong those !referred brand eleentsa. Ada!table b. Protectablec. -eorabled. &ikeabilitye. Subliinal nature

    Ans"er: e Page: #8# &evel of difficulty: -ediu

    #8. f a brand eleent can be used to introduce ne" !roducts in the sae or differentcategories, the brand eleent is said to be ________.a. eorable b. eaningfulc. likeabled. transferablee. ada!table

    Ans"er: d Page: #8# &evel of difficulty: -ediu

    #9. Before selecting a brand nae, arketers ust be assured that the brand nae "ill be"ell received and understood by the consuers. n order to do this several tests ayneed to be !erfored. AGnH ________ asks such 3uestions as 0o" easily is the nae !ronounced2a. association test b. learning testc. eory testd. !reference teste. design test

    Ans"er: b Page: #8# &evel of difficulty: -ediu

    %;. Brand naes are not only i!ortant brand eleent. +ften, ________, the orei!ortant it is that brand eleents ca!ture the brands intangible characteristics.a. the less concrete brand benefits are b. the ore concrete brand benefits arec. the ore varied brand !erce!tions ared. the less varied brand !erce!tions aree. the ore so!histicated brand benefits are

    Ans"er: a Pages: #8#I#8% &evel of difficulty: 0ard

    #4;

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    Part 4: Building Strong Brands

    %1. )ith res!ect to !o"erful brand eleents, a ________ is an extreely efficient eansto build brand e3uity. (he eleent can function as useful hooks2 or handles2 tohel! consuers gras! "hat the brand is and "hat akes it s!ecial.a. s!okes!erson b. !roduct sha!e

    c. slogand. !atente. !rootional descri!tor 

    Ans"er: c Page: #8% &evel of difficulty: -ediu

    %#. Brand eleents and secondary associations can ake i!ortant contributions to building brand e3uityJ ho"ever, the !riary in!ut coes fro ________.a. the !roduct or service and su!!orting arketing activities b. arketing researchc. the consuerd. the distributors

    e. the organiKational ission stateentAns"er: a Page: #84 &evel of difficulty: -ediu

    %%. A ________ can be defined as any inforationbearing ex!erience a custoer or  !ros!ect has "ith the brand, the !roduct category, or the arket that relates to thearketers !roduct or service.a. brand value b. brand eleentc. brand traitd. brand character e. brand contact

    Ans"er: e Page: #84 &evel of difficulty: -ediu

    %4. 6hu!a 6hu!s has the distinction of being the "orlds largest aker of ________ andhas begun to diversify its brand beyond its original arket GchildrenH. (oday, 6hu!a6hu!s is targeting teens and youth through nonendorser endorsers2 such as FerrySeinfeld.a. veggie chi!s b. a!!le Cuicec. roller skatesd. lolli!o!se. granola

    Ans"er: d Page: #84 &evel of difficulty: 0ard

    #41

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    6ha!ter 9: 6reating Brand '3uity

    %5. 6onsidering holistic arketing activities, the ra!id ex!ansion of ________ hascreated o!!ortunities to !ersonaliKe arketing.a. target arketing b. globaliKationc. the nternet

    d. standardiKatione. 6? technologyAns"er: c Page: #84 &evel of difficulty: 0ard

    %7. ________ is about aking sure that the brand and its arketing are as relevant as !ossible to as any custoers as !ossible>a challenge, given that no t"o custoersare identical.a. PersonaliKing arketing b. Segenting arketingc. Brand iageryd. 'otionaliKing brands

    e. @ationaliKing brandsAns"er: a Page: #84 &evel of difficulty: -ediu

    %$. (he traditional arketingix2 conce!t and the notion of the 4 Ps2 ay notade3uately describe odern arketing !rogras. ________ is about ixing andatching arketing activities to axiiKe their individual and collective effects.a. PersonaliKing arketing b. ndividualiKing arketingc. /lobaliKing arketingd. nstitutionaliKing arketinge. ntegrating arketing

    Ans"er: e Page: #85 &evel of difficulty: -ediu

    %8. /odin identifies five s!ecific ste!s to enhance effective !erission arketing. )hichof the follo"ing "ould *+( be aong those ste!sa. +ffer the !ros!ect an incentive to volunteer. b. +ffer the interested !ros!ect a curriculu over tie that teaches the consuer 

    about the !roduct or service.c. @einforce the incentive to guarantee that the !ros!ect aintains the !erission.d. Al"ays offer a onetary incentive to deonstrate sincerity of the offer.e. +ver tie, leverage the !erission to change consuer behavior to"ard !rofits.

    Ans"er: d Page: #85 &evel of difficulty: 0ard

    #4#

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    Part 4: Building Strong Brands

    %9. ________ is the consuers ability to identify the brand under different conditions, asreflected by their brand recognition or recall !erforance.a. Brand a"areness b. Brand iagec. Brand alternation

    d. Brand !erce!tione. Brand reflectionAns"er: a Page: #87 &evel of difficulty: -ediu

    4;. A arketing anager has decided to study the !erce!tions and beliefs held byconsuers, as reflected in the associations held in consuer eory. )hich of thefollo"ing ters is ost closely associated "ith the arketing anagers obCective of studya. Brand a"areness b. Brand iagec. Brand eleent

    d. Brand conce!te. Brand traitAns"er: b Page: #87 &evel of difficulty: -ediu

    41.

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    6ha!ter 9: 6reating Brand '3uity

    4%. (he ain secondary sources of brand kno"ledge coe fro all of the follo"ing'=6'P( ________.a. other brands b. !eo!lec. things

    d. local, state, and federal governentse. !lacesAns"er: d Page: #8$ &evel of difficulty: 'asy

    44. Brand e3uity can be easured in t"o "ays. )hich of the follo"ing "ould be a goodre!resentation of one of those "aysa. Statistical analysis of deogra!hics. b. Secondary evaluation of governental statistics.c. ?irectly assessing the actual i!act of brand kno"ledge on consuer res!onse to

    different as!ects of arketing.d. 'valuating !ublished statistics of co!etitors.

    e. 0iring inde!endent evaluators.Ans"er: c Page: #88 &evel of difficulty: -ediu

    45. A structured a!!roach to assessing the sources and outcoes of brand e3uity and theanner in "hich arketing activities create brand value is called ________.a. the brand value chain b. the brand !ortfolioc. the brand life cycled. brand !artitioninge. brand !ositioning

    Ans"er: a Page: #88 &evel of difficulty: -ediu

    47. A brand anager is concerned that his organiKations brand iage and !hysical salesare sli!!ing in the arket!lace. (he anager has decided to 3uery consuers aboutthe health of the brand and try to discover "ays to leverage the brands e3uity. )hichof the follo"ing ters "ill ost likely !rovide the structure and !rocess for theanagers investigationa. A brand deogra!hic atrix analysis. b. A secondary search of good brand characteristics.c. A brand audit.d. An organiKational audit.e. A brand !ositioning study.

    Ans"er: c Page: #89 &evel of difficulty: -ediu

    #44

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    Part 4: Building Strong Brands

    4$. )ithin a brand audit, the ________ has as its !ur!ose to !rovide a current,co!rehensive !rofile of ho" all the !roducts and services sold by a co!any arearketed and branded.a. cost curve calculation b. !roduct balance sheet

    c. strategic !land. brand inventorye. !roduct assessent

    Ans"er: d Page: #89 &evel of difficulty: -ediu

    48. -any firs use ________ to su!!leent traditional focus grou!s. (hey studyconsuers in their everyday habitats at hoe, at "ork, at !lay, or sho!!ing.a. ethnogra!hy b. deogra!hyc. geodeogra!hyd. !sychogra!hics

    e. !roduct !rofilesAns"er: a Page: #9; &evel of difficulty: 0ard

    49. rene and ?ave )ashburn are !art of a longter ________. (he )ashburns su!!ly anational research fir "ith inforation about their brand habits, !references, dislikes,and beliefs on a onthly basis for a !eriod of t"o years.a. iage study b. deogra!hic studyc. !sychological !rofile studyd. !rootion anageent studye. tracking study

    Ans"er: e Page: #9; &evel of difficulty: -ediu

    5;. ________ has the Cob of estiating the total financial value of the brand.a. Brand tracking b. Brand auditingc. Brand e3uityd. Brand valuatione. Brand !artitioning

    Ans"er: d Page: #9; &evel of difficulty: -ediu

    51. According to #;;4 Brand alue estiates, ________ "as ranked nuberone in the"orld "ith a brand value of L7$.%9 billion.a. -icrosoft b. B-c. 6oca6olad. /'e. -c?onalds

    Ans"er: c Page: #91 &evel of difficulty: -ediu

    #45

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    6ha!ter 9: 6reating Brand '3uity

    5#. A co!anys aCor enduring asset is ________.a. its leadershi! b. its brandc. its cultured. its shareholders

    e. its "orkersAns"er: b Page: #91 &evel of difficulty: 'asy

    5%. According to nterbrands Brand Strength forula, the ost i!ortant factor in thee3uation is ________ "ith a #5 !ercent "eight.a. stability b. arketc. geogra!hic s!readd. trende. leadershi!

    Ans"er: e Page: #9# &evel of difficulty: 0ard

    54. According to Scott Bedburys book,  A New Brand World, all of the follo"ing areconsidered to be i!ortant !rinci!les for t"entyfirst century branding '=6'P( ________.a. consuers "ill tell you "hat your brand iage should be b. relying on brand a"areness has becoe arketing fools goldc. you have to kno" it before you can gro" itd. great brands establish enduring custoer relationshi!se. all brands need good !arents

    Ans"er: a Page: #94 &evel of difficulty: 0ard

    55. )hen a fir uses an established brand to introduce a ne" !roduct, it is called aGnH ________.a. subbrand b. brand valuec. brand extensiond. brand ixe. brand !osture

    Ans"er: c Page: #97 &evel of difficulty: -ediu

    57. All of the follo"ing "ould be exa!les of co!anies that use faily branding as oneof their branding strategies '=6'P( ________.a. 6a!bell Sou! b. Searsc. 0einKd. /eneral 'lectrice. 0unts

    Ans"er: b Page: #9$ &evel of difficulty: 0ard

    #47

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    Part 4: Building Strong Brands

    5$. According to @ies and (rout, 6adbury suffered fro the ________ "hen theco!any allo"ed its brand to becoe diluted by !utting their nae on such variantsas ashed !otatoes, !o"dered ilk, sou!s, beverages, as "ell as chocolates andcandies.a. greed is good2 tra!

     b. !yraid !rinci!le2c. branding fallout2 conce!td. iage syndroe2e. lineextension2 tra!

    Ans"er: e Page: #99 &evel of difficulty: 0ard

    58. A ________ is the set of all brands and brand lines a !articular fir offers for sale to buyers in a !articular category.a. brand !artition b. brand !ositionc. brand !ortfolio

    d. brand conce!te. brand iageAns"er: c Page: %;1 &evel of difficulty: -ediu

    59. ________ brands are !ositioned "ith res!ect to co!etitors brands so that orei!ortant Gand ore !rofitableH flagshi! brands can retain their desired !ositioning.a.

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    6ha!ter 9: 6reating Brand '3uity

    True$%a!&e

    71. At the heart of a successful brand are the successful !eo!le that run the organiKation.Ans"er: the nuber re!resented by a 1 follo"ed by 1;; Keroes.

    Ans"er: (rue Page: #$% &evel of difficulty: -ediu

    7%. (he Aerican -arketing Association defines a brand  as a nae, ter, sign, sybol,or design, or a cobination of the, intended to identify the goods or services of oneseller or grou! of sellers and to differentiate the fro those of co!etitors.2

    Ans"er: (rue Page: #$4 &evel of difficulty: 'asy

    74. +ne of the attributes shared by the "orlds strongest brands is that the brand becoesinvulnerable to attack fro co!etitors due to the su!!ort of the arket!lace.

    Ans"er: or !illars>of brand e3uityJ one of theseco!onents is called kno"ledge.

    Ans"er: (rue Page: #$8 &evel of difficulty: -ediu

    $;. An illustration of the extended brand identity of /-s Saturn brand is a "orldclass

    car "ith e!loyees "ho treat custoers "ith res!ect and as friends.2Ans"er:

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    Part 4: Building Strong Brands

    $#. Brand resonance is associated "ith ho" a brand nae sounds "hen said bys!okes!ersons or consuers.

    Ans"er:

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    6ha!ter 9: 6reating Brand '3uity

    8%. Personalizing marketing  is based on the fact that all custoers are identical in several"ays.

    Ans"er:

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    Part 4: Building Strong Brands

    94. (racking studies collect inforation fro consuers on aroutine basis over tie.

    Ans"er: (rue Page: #9; &evel of difficulty: 'asy

    95. n essence, brand e3uity is basically the sae conce!t as brand valuation.

    Ans"er:

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    6ha!ter 9: 6reating Brand '3uity

    1;#. 'x!lain the conce!t of brand e3uity.

    Sugge&ted An&'er:  Brand e!ity is the added value endo"ed to !roducts andservices. (his value ay be reflected in ho" consuers think, feel, and act "ithres!ect to the brand, as "ell as the !rices, arket share, and !rofitability that the

     brand coands for the fir. Brand e3uity is an i!ortant intangible asset thathas !sychological and financial value to the fir.Page: #$7 &evel of difficulty: -ediu

    1;%. Advertising agency Noung and @ubica GNO@H develo!ed a odel of brande3uity called Brand Asset aluator GBAH. )hat is the intent of the BA odel&ist and briefly characteriKe the four key co!onents G!illarsH of brand e3uity.

    Sugge&ted An&'er: (he BA odel is based on research of alost #;;,;;;consuers in 4; countries. BA !rovides co!arative easures of the brande3uity of thousands of brands across hundreds of different categories. (here are

    four key co!onents>or !illars>of brand e3uity. (hese !illars are: G1Hdifferentiation>easures the degree to "hich a brand is seen as different froothersJ G#H relevance>easures the breadth of a brands a!!ealJ G%H estee> easures ho" "ell the brand is regarded and res!ectedJ and G4H kno"ledge> easures ho" failiar and intiate consuers are "ith the brand.

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    Part 4: Building Strong Brands

    eleent can be leveraged and !reserved in the face of different o!!ortunities andconstraints. &ist and briefly characteriKe the six criteria.

    Sugge&ted An&'er: (he six eleents are: G1H eorable, G#H eaningful, G%Hlikeability, G4H transferable, G5H ada!table, and G7H !rotectible.

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    6ha!ter 9: 6reating Brand '3uity

    1;9. (he decision as to ho" to brand ne" !roducts is es!ecially critical. )hen a firintroduces a ne" !roduct, it has three ain choices. )hat are those choices

    Sugge&ted An&'er: (he fir can: G1H develo! ne" brand eleents for the ne" !roduct, G#H a!!ly soe of its existing brand eleents, or G%H use a cobination of 

    ne" and existing brand eleents.Page: #97 &evel of difficulty: -ediu

    11;. (here are a nuber of s!ecific roles brands can !lay as !art of a brand !ortfolio.&ist and briefly describe the four roles described in the text.

    Sugge&ted An&'er: (he four roles are: G1H flankers>or fighting brands. (heseare !ositioned "ith res!ect to co!etitors brands so that ore i!ortant Gandore !rofitableH flagshi! brands can retain their desired !ositioningJ G#H cashco"s>soe brands ay be ke!t around des!ite d"indling sales because they stillanage to hold on to a sufficient nuber of custoers and aintain their 

     !rofitability "ith virtually no arketing su!!ort. (hese cash co"2 brands can beeffectively ilked2 by ca!italiKing on their reservoir of existing brand e3uityJ G%Hlo"end entrylevel>the role of the relatively lo"!riced in the brand !ortfoliooften ay be to attract custoers to the brand franchise. @etailers like to featurethese traffic builders2 because they are able to trade u!2 custoers to a higher !riced brandJ and, G4H highend !restige>the role of a high!riced brand in the brand faily often is to add !restige and credibility to the entire !ortfolio.

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    Part 4: Building Strong Brands

    11#. -arketers of successful t"entyfirstcentury brands ust excel at ________>thedesign and i!leentation of arketing activities and !rogras to build,easure, and anage brands to axiiKe their value.a. !rootional !lanning b. brand !ersonification

    c. strategic brand anageentd. brand a"arenesse. co!etitive differential advantage

    Ans"er: c Page: #$4 &evel of difficulty: -ediu

    11%. All of the follo"ing are valuable functions !erfored by brands for firs'=6'P( ________.a. they si!lify !roduct handling or tracing b. hel!s to organiKe inventory and accounting recordsc. offers the fir legal !rotection through registered tradearksd. intellectual !ro!erty rights can be !rotected

    e. a branded !roduct is alost al"ays guaranteed to be !rofitableAns"er: e Page: #$4 &evel of difficulty: -ediu

    114. f a brand has the attributes of staying relevant, is !ro!erly !ositioned, isconsistent, and akes use of and continues a full re!ertoire of arketing activitiesto build e3uity, the brand is ost likely to be a ________.a. successful brand b. doestic brandc. regional brandd. global brande. service brand

    Ans"er: a Page: #$5 &evel of difficulty: 'asy

    115. 6oca6ola, 6alvin lein, /ucci, (oy 0ilfiger, -arlboro and others have becoe leaders in their !roduct categories by understanding ________ anddesires and creating relevant and a!!ealing iages around their !roducts.a. consuer !erce!tions b. consuer otivationsc. consuer behaviorsd. consuer deogra!hicse. consuer arket segents

    Ans"er: b Page: #$7 &evel of difficulty: 0ard

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    117. Brands ust create strong, favorable, and uni3ue brand associations "ithcustoers, as has been the case "ith olvo G sa"etyH, 0allark G ######## H, and0arley?avidson Gad$entreH.a. caring b. love

    c. ha!!inessd. givinge. huorous

    Ans"er: a Page: #$$ &evel of difficulty: -ediu

    11$. A!!le achieves incredible brand loyalty largely by delivering on its ission asdefined by 6'+ Steve Fobs. (hat ission is best described as: ________.a. (o doinate through technology2 b. (o create great things that change !eo!les lives2c. (o think fastJ introduce ne" !roducts faster2d. (o a!!eal to inde!endent thinkers2

    e. (o ake the -ac "orld a reality2Ans"er: b Page: #$$ &evel of difficulty: -ediu

    118. A arketing anager stresses to a ne"ly hired brand anager the i!ortance of having a strong brand. All of the follo"ing "ould be advantages that thearketing anager ight stress to his subordinate '=6'P( ________.a. i!roved !erce!tions of !roduct !erforance b. greater loyaltyc. less vulnerability to arketing crisesd. lo"er arginse. !ossible licensing o!!ortunities

    Ans"er: d Page: #$$ &evel of difficulty: -ediu

    119. irgin, the brainchild of 'nglands flaboyant @ichard Branson, vividlyillustrates the !o"er enCoyed and res!onsibility assued by a strong brand. )hichof the follo"ing ost accurately describes Bransons brand strategya. 6o!ete by offering severe discounts to eet co!etitors noral !ricing

    strategies. b. Mse the credibility of the brand to challenge the doinant !layers in a range of 

    industries "here the !erce!tion is that consuers are not getting value for oney.

    c. Mse !rootion to ins!ire brand loyalty and ass consu!tion.d. 6o!ete by using guerrillaarketing tactics.e. (o co!y, co!y, co!y "henever !ossible to save funds for !rootional "arfare.

    Ans"er: b Page: #$8 &evel of difficulty: 0ard

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    1#;. f a anager is looking for a re!ort card2 on !ast !erforance of a brand, he or she should turn to an exaination of the brand ________.a. strength b. co!atibilityc. stature

    d. iagee. doinanceAns"er: c Page: #$9 &evel of difficulty: -ediu

    1#1. According to Aaker, brand identity consists of t"elve diensions organiKedaround four !ers!ectives. )hich of the four !ers!ectives "ould a!!ly to thediensions of brand !ersonality and brandcustoer relationshi!sa. Brandas!roduct b. BrandasorganiKationc. Brandas!ersond. Brandassybol

    e. Brandasco!etitor Ans"er: c Page: #$9 &evel of difficulty: 0ard

    1##. Any tie a consuer thinks of a de!endable car battery that ight be needed inan eergency situation such as a sno" stor, the consuer thinks first of ?ie0ard batteries. (his "ould be an exa!le of "hat is called brand ________.a. salience b. iageryc. Cudgentsd. feelingse. sco!e

    Ans"er: a Page: #8; &evel of difficulty: -ediu

    1#%. (he faous Plo!, !lo!, fiKK, fiKK +h, "hat a relief it is2 ca!aign is a goodexa!le of "hat is called a brand ________.a. eleent b. taglinec. visuald. !ersonificatione. !erce!tion

    Ans"er: a Page: #81 &evel of difficulty: -ediu

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    6ha!ter 9: 6reating Brand '3uity

    1#4.  +ne of the advantages enCoyed by A!!le 6o!uters is ho" aestheticallya!!ealing its !roducts are !erceived to be. )hich of the follo"ing brand eleentchoice criteria atches to A!!les aesthetic a!!eala. eorable b. eaningful

    c. likeabilityd. !rotectiblee. ada!table

    Ans"er: c Page: #8# &evel of difficulty: -ediu

    1#5. (he idea for the faous Avis slogan )e (ry 0arder2 cae fro an unusualsource. )hich of the follo"ing "ould be ost closely associated "ith thatsourcea.

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    Part 4: Building Strong Brands

    1#8. f an organiKation has as one of its obCectives to collect inforation froconsuers on a routine basis over tie, the organiKation "ill ost likely use atechni3ue called ________ to acco!lish the desired obCective.a. tracking studies b. nonetricultidiensional scaling

    c. &ikert scalingd. brand visualiKatione. internal branding

    Ans"er: a Page: #9; &evel of difficulty: 'asy

    1#9. According to nterbrand, brand earnings are calculated by subtracting a nuber of ites fro brand sales. All of the follo"ing "ould be aong those ites'=6'P( ________.a. costs of brand sales b. arketing costsc. variable and fixed overheads

    d. all e!loyee costs and benefitse. reuneration of ca!ital chargeAns"er: d Page: #9# &evel of difficulty: -ediu

    1%;.

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    6ha!ter 9: 6reating Brand '3uity

    services of one seller or grou! of sellers and to differentiate the fro those of co!etitors.2Page: #$4 &evel of difficulty: 'asy

    1%%. Assue that you are arketing anager atte!ting to ex!lain the conce!t of 

     brand e3uity to a ne" e!loyee in your de!artent. )hat "ould be your ex!lanation

    Sugge&ted An&'er:  Brand e!ity is the added value endo"ed to !roducts andservices. (his value ay be reflected in ho" consuers think, feel, and act "ithres!ect to the brand, as "ell as the !rices, arket share, and !rofitability that the brand coands for the fir. Brand e3uity is an i!ortant intangible asset thathas !sychological and financial value to the fir.Page: #$7 &evel of difficulty: -ediu

    1%4. Nour co!any desires to have !ositive custoerbased brand e3uity. )hat has to

    occur for this to ha!!en

    Sugge&ted An&'er: A brand is said to have !ositive custoerbased brand e3uity"hen consuers react ore favorably to a !roduct and the "ay it is arketed"hen the brand is identified as co!ared to "hen it is not.Page: #$$ &evel of difficulty: 'asy

    1%5. olvo has a strong brand association "ith res!ect to brand kno"ledge "henconsuers !erceive it as a very safe care GsafetyH. 'x!lain the conce!t of brandkno"ledge.

    Sugge&ted An&'er:  Brand knowledge consists of all the thoughts, feelings,iages, ex!eriences, beliefs, and so on that becoe associated "ith the brand. n !articular, brands ust create strong, favorable, uni3ue brand associations "ithcustoers.Page: #$$ &evel of difficulty: -ediu

    1%7. As a arketing anager, you have ade a coitent to having a strong brand.&ist five advantages shared by other strong brands that you "ill ost likely haveto eulate to acco!lish this obCective.

    Sugge&ted An&'er: Strong brands have the follo"ing advantages: G1H i!roved !erce!tions of !roduct !erforanceJ G#H greater loyaltyJ G%H less vulnerability to

    co!etitive arketing actionsJ G4H less vulnerability to arketing crisesJ G5Hlarger arginsJ G7H ore inelastic consuer res!onse to !rice increasesJ GgH oreelastic consuer res!onse to !rice decreasesJ G$H greater trade coo!eration andsu!!ortJ G8H increased arketing counications effectivenessJ G9H !ossiblelicensing o!!ortunitiesJ and, G1;H additional brand extension o!!ortunities.Students are to !ick five of the above.Page: #$$ &evel of difficulty: 0ard

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    1%$. Brand e3uity has four co!onents>differentiation, relevance, estee, andkno"ledge. 0o" are these co!onents cobined to !roduce brand strength and brand stature

    Sugge&ted An&'er:  ?ifferentiation and relevance cobine to !roduce brand

    strength. 'stee and kno"ledge together create brand stature.Pages: #$8I#$9 &evel of difficulty: -ediu

    1%8. According to Aaker, a !articularly i!ortant conce!t for building brand e3uity is brand identity. Brand identity is organiKed around four !ers!ectives. )hat arethose !ers!ectives

    Sugge&ted An&'er: (he four !ers!ectives are: G1H brandas!roduct, G#H brandasorganiKation, G%H brandas!erson, and G4H brandassybol.Page: #$9 &evel of difficulty: 0ard

    1%9. According to the B@A*?E odel of brand strength, brand building involves aseries of five se3uential ste!s. )hat are those five se3uential ste!s

    Sugge&ted An&'er: (he ste!s are in ascending order: G1H !resence, G#H relevance,G%H !erforance, G4H advantage, and G5H bonding.Page: #8; &evel of difficulty: -ediu

     14;. -ost strong brands e!loy ulti!le brand eleents. *ike has three such

     !o"erful brand eleents. According to the text, "hat are those brand eleents

    Sugge&ted An&'er: *ikes brand eleents are: G1H the distinctive s"oosh2 logo,G#H the e!o"ering Fust ?o t2 slogan, and G%H the ythological *ike2 nae

     base on the "inged goddess of victory.

    Page: #81 &evel of difficulty: -ediu

    141. As a brand anager you "ould like to have your brand Gbrand naeH to be !rotectible. 'x!lain "hat you ean by !rotectible2 and give an illustration.

    Sugge&ted An&'er: As a brand anager you "ould have to consider the3uestions of 0o" legally !rotectible is the brand eleent2 0o" co!etitively !rotectible2 and 6an it be easily be co!ied2 t is i!ortant that naes that becoe synonyous "ith !roduct categories>such as leenex, itty &itter,

    Fell+, Scotch (a!e, =erox, and retain their tradeark rights and not becoe generic. Ans"ers on exa!les ay vary. (he above are a fe"illustrations that deonstrate the !rotectible characteristic.Page: #8# &evel of difficulty: -ediu

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    14#. Fones Soda is !resented in the text as an exa!le of a co!any that has succeededin !ersonaliKing their brand. ?iscuss ho" the co!any has acco!lished thisfeat.

    Sugge&ted An&'er: As indicated in the text, Peter van Stolk founded Fones Soda

    on the !reise that /en N consuers "ould be ore acce!ting of a ne" softdrink brand if they felt they discovered it theselves. Fones Soda initially "assold only in sho!s that sell surfboards, sno"boards, and skateboards. (he FonesSoda )eb site encourages fans to send in !ersonal !hotos for !ossible use onFones Soda labels. Although only aybe 4; or so are !icked annually fro thetens of thousands of entries, the a!!roach hel!s to create relevance and aneotional connection.Page: #85 &evel of difficulty: 0ard

    14%. Perission arketing is becoing increasingly !o!ular "ith arketers. Seth/odin, a !ioneer in the techni3ue, recoends five ste!s in becoing an

    effective !erission arketer. &ist /odins five ste!s.

    Sugge&ted An&'er: /odins five ste!s are: G1H offer the !ros!ect an incentive tovolunteer Ge.g., free sa!le, sales !rootion, or contestHJ G#H offer the interested !ros!ect a curriculu over tie that teaches the consuer about the !roduct or serviceJ G%H reinforce the incentive to guarantee that the !ros!ect aintains the !erissionJ G4H offer additional incentives to get ore !erission fro theconsuerJ and, G5H over tie, leverage the !erission to change consuer  behavior to"ard !rofits.Page: #85 &evel of difficulty: 0ard

    144. /iven that the !o"er of a brand resides in the inds of consuers and ho" itchanges their res!onse to arketing, there are t"o basic a!!roaches to easuring brand e3uity. Briefly, describe each of these a!!roaches.

    Sugge&ted An&'er: (he t"o a!!roaches are: G1H an indirect   a!!roach assesses !otential sources of brand e3uity by identifying and tracking consuer brandkno"ledge structuresJ and G#H a direct a!!roach assesses the actual i!act of  brand kno"ledge on consuer res!onse to different as!ects of the arketing.Page: #88 &evel of difficulty: 'asy

    145. f your arketing anager asked you to design and i!leent a brand valuechain, ex!lain "hat you have been asked to do.

    Sugge&ted An&'er: (he brand $ale chain is a structured a!!roach to assessingthe sources and outcoes of brand e3uity and the anner in "hich arketingactivities create brand value. (he odel assues that a nuber of linking factorsintervene bet"een the stages and deterine the extent to "hich value created at

    #7#

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    one stage transfers to the next stage.

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    6ha!ter 9: 6reating Brand '3uity

    need for nae2 research or heavy advertising ex!enditures to create brandnaerecognition.