Brand Management - 1. The importance of brands

Which of the following best describes BRAND EQUITY?

• The cost of marketing a product

• The market share of a particular brand

• The value a brand adds to a product or service

• The legal protection afforded to a brand

What are the three key dimensions of brand value for consumers?

• Awareness, Loyalty, Quality

• Functional, Financial, Emotional

• Functional, Emotional, Self-Expression

• Price, Promotion, Place

In what way do digital platforms influence modern branding strategies?

• By limiting consumer interaction with brand

• By prioritizing product features over brand image

• By enabling direct consumer interaction

• By decreasing the importance of brand storytelling

A consumer is deciding between two similar products: one from a well-known brand and another from a lesser-known company. They feel a strong emotional connection to the well-known brand, believing it reflects their social status, and recall positive past experiences with it.

Which key advantage does the well-known brand have in this scenario?

• Lower production costs, leading to cheaper pricing

• Wider distribution channels for better access

• More innovative features compared to competitors

• Stronger customer loyalty and perceived quality

According to Aaker, what are the four key pillars of brand equity?

• Brand Awareness, Brand Loyalty, Perceived Quality, and Brand Associations

• Brand Recognition, Market Share, Customer Satisfaction, and Advertising Spend

• Product Innovation, Pricing Strategy, Customer Retention, and Social Responsibility

• Brand Positioning, Competitive Advantage, Financial Performance, and Customer Engagement

What does the term "Brand Graveyard" refer to?

• A collection of outdated logos and packaging designs from past brand iterations.

• A market segment where brands thrive temporarily but eventually fade due to changing consumer trends.

• Brands that have failed due to weak differentiation and relevance in their product category, even though they are recognized by most customers.

• A concept describing brands that deliberately discontinue products to create artificial scarcity and exclusivity.

According to Kapferer, how is a brand defined?

• A symbol or name that differentiates a company's products from competitors.

• A legally protected trademark that represents a company's offerings.

• A marketing tool used primarily to increase customer loyalty and sales.

• A brand is a name with the power to influence.

In the context of brand loyalty, what is a key advantage of focusing on customer retention over customer acquisition?

• Retained customers are less likely to expect discounts or promotions.

• Acquiring new customers is generally more cost-effective than retaining existing ones.

• Customer retention is more cost-effective than acquisition, and loyal customers are more likely to make repeat purchases and spend more over time.

• Retention strategies focus primarily on expanding product lines rather than maintaining relationships.

Why are brands important for companies?

• They allow companies to charge higher prices by creating perceived value.

• They primarily serve as a legal trademark to protect product names.

• They ensure that a company’s products are always superior to competitors.

• They eliminate the need for advertising and marketing efforts.

A marketing team is analyzing their brand's performance. They notice that while customers appreciate the product’s reliability, they seek a deeper emotional connection and self-expression through their purchases. Which strategy would best help the team enhance emotional value for their brand?

• Lowering prices to increase affordability and reach a wider audience.

• Increasing digital ad spend to maximize brand awareness.

• Expanding the product portfolio to appeal to more demographics.

• Leveraging compelling brand storytelling and authentic consumer connections.