chapter 2 textbook

Question 1

Three models of successful brand building :

Answer 1

Brand positioning model describes how to establish competitive advantages in the minds of customers in the marketplace
Brand resonance model describes how to take these competitive advantages and create intense, active, loyalty relationships with customers for brands
Brand value chain model describes how to trace the value creation process to better understand the financial impact of marketing expenditures and investments to create loyal customers and strong brands.

Question 2

Customer-Based Brand Equity

Answer 2

The CBBE concept approaches brand equity from the perspective of the consumer—whether the consumer is an individual or an organization, or an existing or prospective customer.
The basic premise of the CBBE concept is that the power of a brand lies in what customers have learned, felt, seen, and heard about the brand as a result of their experiences over time. In other words, the power of a brand lies in what resides in the minds and hearts of customers.
We formally define customer-based brand equity as the differential effect that brand knowledge has on customer response to the marketing of that brand.

Question 3

A brand has positive customer-based brand equity when c

Answer 3

when customers react more favorably to a product and the way it is marketed when the brand is identified than when it is not (say, when the product is attributed to a fictitious name or is unnamed). Thus, customers might be more accepting of a new brand extension for a brand with positive customer-based brand equity, less sensitive to price increases and withdrawal of advertising support, or more willing to seek the brand in a new distribution channel.

Question 4

On the other hand, a brand has negative customer-based brand equity if

Answer 4

customers react less favorably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product.

Question 5

brand equity arises from

Answer 5

differences in customer response. If no differences occur, then the brand-name product can essentially be classified as a commodity or a generic version of the product. Competition, most likely, would then just be based on price.

Question 6

brand equity is rooted in

Answer 6

rooted in customer knowledge. these differences in response are a result of customer knowledge about the brand, that is, what they have learned, felt, seen, and heard about the brand as a result of their experiences over time. Thus, although strongly influenced by the marketing activity of the firm, brand equity ultimately depends on what resides in the minds and hearts of existing and prospective customers

Question 7

brand equity is visible in consumer behaviour

Answer 7

customers’ differential responses, which make up brand equity, are reflected in perceptions, preferences, and behavior related to all aspects of brand marketing—for example, including choice of a brand, recall of copy points from an ad, response to a sales promotion, and evaluations of a proposed brand extension.

Question 8

brand equity acts like a bridge

Answer 8

brand equity acts like a bridge between what a company has done in the past and what it can achieve in the future.
Past → Customer Knowledge
Every ad, promotion, product experience, and interaction builds consumer knowledge (what people think and feel about the brand).
Over time, this creates brand equity — the value of having a strong, trusted, and recognizable brand.
Future → Strategic Advantage
This accumulated brand equity becomes a foundation for future success.
A strong brand makes it easier to:
Launch new products (brand extensions).
Charge premium prices.
Retain loyal customers.
Withstand competitive pressures.
Why it’s a bridge
The past marketing investments (ads, customer experiences, brand storytelling) don’t just disappear — they live on in people’s minds as brand equity.
That equity then shapes future consumer behavior, helping the brand stay relevant and competitive.

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Question 9

1. Brands as a Reflection of the Past

Answer 9

What matters most isn’t how much money a company spends on branding, but how wisely it invests.
Strong brands come from consistent, high-quality brand-building investments over time.
Example: Netflix
Netflix’s success didn’t come from blasting ads everywhere.
Instead, it invested in deep customer understanding (tracking what people watch, when, and how).
This insight allowed Netflix to produce original shows that matched customer preferences (e.g., House of Cards, Stranger Things).
That smart investment built a reputation for personalization and quality, strengthening its brand equity.

Question 10

Brands as a Direction for the Future

Answer 10

The brand knowledge built over time (what customers believe about the brand) shapes where the brand can credibly go in the future.
Customers decide whether a new product, service, or strategy feels “right” for the brand.
Example: Discovery Channel
Built equity on curiosity, science, and adventure.
When it strayed into crime dramas and car/biker reality shows, consumers felt it was off-brand, which hurt equity.
By returning to its core mission, Discovery regained trust and alignment with consumer expectations.

Question 11

Brand Knowledge

Answer 11

From the perspective of the CBBE concept, brand knowledge is the key to creating brand equity, because it creates the differential effect that drives brand equity. What marketers need, then, is an insightful way to represent how brand knowledge exists in consumer memory.

Question 12

Brand knowledge has two components:

Answer 12

brand awareness and brand image.

Question 13

brand awareness

Answer 13

Brand awareness is related to the strength of the brand node or trace in memory, which we can measure as the consumer’s ability to identify the brand under different conditions. It is a necessary, but not always a sufficient, step in building brand equity. Other considerations, such as the image of the brand, often come into play.

Question 14

brand image

Answer 14

brand image is consumers’ perceptions about a brand, as reflected by the brand associations held in consumer memory. brand associations are the other informational nodes linked to the brand node in memory and contain the meaning of the brand for consumers. Associations come in all forms and may reflect characteristics of the product or aspects independent of the product.
Ex with apple: The associations that came to your mind make up your brand image for Apple like thinking its well designed, easy to use. Through breakthrough products and skillful marketing, Apple has been able to achieve a rich brand image made up of a host of brand associations

Question 15

Customer-based brand equity comes from

Answer 15

awareness but it isnt enough. the brand must also stand for something in people’s minds.
Three qualities matter:
Strong → easily recalled and connected to the brand (e.g., Volvo = safety).
Favorable → positive associations that make customers like the brand (e.g., Disney = magical family entertainment).
Unique → distinctive qualities that set the brand apart (e.g., Tesla = innovative electric cars, not just “cars”).
To create brand equity, marketers must convince consumers that their brand is meaningfully different.

Question 16

How Marketers Build brand equity

Answer 16

Create awareness → making sure people recognize and recall the brand.
Shape associations → building a positive brand image through strong, favorable, and unique qualities.

Question 17

Brand awareness consists of

Answer 17

brand recognition and brand recall performance:

Question 18

Brand recognition

Answer 18

is consumers’ ability to confirm prior exposure to the brand when given the brand as a cue. In other words, when they go to the store, will they be able to recognize the brand as one to which they have already been exposed?

Research reveals that many consumer decisions are made at the point of sale, where the brand name, logo, packaging, and so on, will be physically present and visible; hence, brand recognition is very important.

Question 19

brand recall

Answer 19

Brand recall is consumers’ ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue. In other words, consumers’ recall of Kellogg’s Corn Flakes will depend on their ability to retrieve the brand when they think of the cereal category or of what they should eat for breakfast or a snack, whether at the store when making a purchase or at home when deciding what to eat.

If consumer decisions are mostly made in settings away from the point of purchase, on the other hand, then brand recall will be more important. creating brand recall is critical for service and online brands:

Question 20

Advantages of Brand Awareness

Answer 20

learning advantages, consideration advantages, and choice advantages.’

Question 21

Learning advantages:

Answer 21

Brand awareness influences the formation and strength of the associations that make up the brand image. To create a brand image, marketers must first establish a brand node in memory, the nature of which affects how easily the consumer learns and stores additional brand associations. The first step in building brand equity is to register the brand in the minds of consumers. If the right brand elements are chosen, the task becomes easier.

The first step in brand equity is getting the brand into people’s minds (brand awareness). This creates a mental “brand node” that makes it easier for consumers to attach strong, positive, and unique associations. Choosing the right brand elements (like logo, name, or slogan) makes this process much easier.

Question 22

Consideration Advantages:

Answer 22

Consumers must consider the brand whenever they are making purchase decisions to fulfill or satisfy a need. Raising brand awareness increases the likelihood that the brand will be a member of the consideration set, the handful of brands that receive serious consideration for purchase. Much research has shown that consumers are rarely loyal to only one brand but instead have a set of brands they would consider buying and another—possibly smaller—set of brands they actually buy on a regular basis. Because consumers typically consider only a few brands for purchase, making sure that the brand is in the consideration set also makes other brands less likely to be considered or recalled

Question 23

Choice Advantages:

Answer 23

The third advantage of creating a high level of brand awareness is that it can affect choices among brands in the consideration set, even if there are essentially no other associations to those brand. Thus, in low-involvement decision settings, a minimum level of brand awareness may be sufficient for product choice, even in the absence of a well-formed attitude.

Question 24

Why we may rely on awareness -

Answer 24

Consumer Purchase Motivation
Consumer Purchase Ability
Consumer Purchase Opportunity

Question 25

Consumer purchase motivation:

Answer 25

Although products and brands may be critically important to marketers, choosing a brand in many categories is not a life-or-death decision for most consumers.

Question 26

Consumer purchase ability:

Answer 26

Consumers in some product categories just do not have the necessary knowledge or experience to judge product quality even if they so desired. The obvious examples are products with a high degree of technical sophistication, like telecommunications equipment with state-of-the-art features. However, consumers may be unable to judge quality even in low-tech categories. consumers will use whichever shortcut or heuristic they can come up with to make their decisions in the best manner possible. Sometimes, they simply choose the brand with which they are most familiar and aware.

Question 27

Consumer purchase opportunity:

Answer 27

Even if consumers want to make a good brand choice and know enough to be able to do so, they still may not be able to make a highly involved decision because they lack the time, energy, or some other factor necessary to do so. The marketplace itself may present certain barriers to prevent detailed decision-making. For whatever reason, if consumers do not have the opportunity to engage in deliberate, thoughtful evaluation of brand offerings, they may rely on heuristics such as brand awareness to arrive at a brand choice

Question 28

creating brand awareness

Answer 28

In the abstract, creating brand awareness means increasing the familiarity of the brand through repeated exposure, although this is generally more effective for brand recognition than for brand recall. That is, the more a consumer experiences the brand by seeing it, hearing it, or thinking about it, the more likely he or she is to strongly register the brand in memory. Thus, anything that causes consumers to experience one of a brand’s element—its name, symbol, logo, character, packaging, or slogan, including advertising and promotion, sponsorship and event marketing, publicity and public relations, and outdoor advertising—can increase familiarity and awareness of that brand element. And the more elements marketers can reinforce, usually the better. Repetition increases recognizability, but improving brand recall also requires linkages in memory to appropriate product categories or other purchase or consumption cues. A slogan or jingle creatively pairs the brand and the appropriate cues (and, ideally, the brand positioning as well, helping build a positive brand image). Other brand elements like logos, symbols, characters, and packaging can also aid recall The way marketers pair the brand and its product category, such as with an advertising slogan, helps to determine the strength of product category links In competitive markets or when the brand is new to the category, it is more important to emphasize category links in the marketing program. Strong links between the brand and the category or other relevant cues may become especially important over time if the product meaning of the brand changes through brand extensions, mergers, or acquisitions. Many marketers have attempted to create brand awareness through so-called shock advertising, using bizarre themes.

Question 29

brand image

Answer 29

After building awareness, marketers must craft a brand image by linking strong, favorable, and unique associations to the brand. These associations can come from many sources beyond advertising, including direct experience, social influence, and even assumptions about the brand. What matters most is that these associations set the brand apart, guiding its positioning in the marketplace and giving consumers a reason to choose it. Strong → firmly remembered. Favorable → positive in meaning. Unique → different from competitors. Brand equity doesn’t depend on where associations come from — only that they are strong, favorable, and unique. Consumers form associations through: Marketing (ads, packaging, promotions). Direct experience (using the product). Social media (what’s shared online). Third-party sources (reviews, reports, news). Word of mouth (friends, family, communities). Inferences from brand elements (name, logo, country of origin, celebrities, events). chat

Question 30

why unique association matter

Answer 30

5. Why Unique Associations Matter Unique associations differentiate the brand from competitors. They guide brand positioning → how marketers want consumers to see the brand compared to rivals. To decide which associations to emphasize, marketers study both the consumer (what matters to them) and the competition (where gaps or opportunities exist). chat

Question 31

types of brand associations

Answer 31

. Types of Brand Associations Attributes = descriptive features of a product/service. Example: A car’s fuel efficiency, size, or design. Benefits = the personal value or meaning attached to those attributes. Example: Fuel efficiency → saves money → gives peace of mind.'

Question 32

Strength of Brand Associations

Answer 32

The more deeply a person thinks about product information and relates it to existing brand knowledge, the stronger the resulting brand associations will be. The particular associations we recall and their salience will depend not only on the strength of association but also on the retrieval cues present and the context in which we consider the brand. In general, direct experiences create the strongest brand attribute and benefit associations and are particularly influential in consumers’ decisions when they accurately interpret them. Word-of-mouth is likely to be especially important for restaurants, entertainment, banking, and personal services. On the other hand, company-influenced sources of information, such as advertising, are often likely to create the weakest associations and, thus, may be the most easily changed. To overcome this hurdle, marketing communication programs use creative communications that cause consumers to elaborate on brand-related information and relate it appropriately to existing knowledge. They expose consumers to communications repeatedly over time and ensure that many retrieval cues are present as reminders

Question 33

Two factors that strengthen association to any piece of information

Answer 33

are its personal relevance and the consistency with which it is presented over time.

Question 34

Favorability of Brand Associations

Answer 34

Marketers create favorable brand associations by convincing consumers that the brand possesses relevant attributes and benefits that satisfy their needs and wants, such that they form positive overall brand judgments. Consumers will not hold all brand associations to be equally important, nor will they view them all favorably or value them all equally across different purchase or consumption situations. Brand associations may be situation- or context-dependent and vary according to what consumers want to achieve in that purchase or consumption decision

Question 35

Uniqueness of Brand Associations

Answer 35

The goal of positioning is to give the brand a unique selling proposition (USP) or compelling reason for consumers to choose it. This uniqueness can be communicated: Explicitly → directly comparing with competitors (e.g., “Our detergent removes stains better than Brand X”). Implicitly → highlighting differences without direct comparisons. Differences can be based on: Performance-related attributes/benefits (e.g., faster, stronger, longer-lasting). Nonperformance-related attributes/benefits (e.g., style, heritage, prestige).

Question 36

Shared Associations Are Important Too

Answer 36

Most brands share some associations with competitors — this is normal and often necessary. Shared associations: Establish category membership → tells consumers what kind of product it is. Define scope of competition → which other brands it competes with. Consumers may see some attributes as prototypical for the category and a particular brand as the exemplar. Example: Heinz ketchup might be seen as the “standard” red ketchup, representing the category.

Question 37

Category Associations and Brand Awareness

Answer 37

Brands inherit some associations from the category itself, such as typical performance attributes or descriptive traits (like color, shape, or style). These category-level associations can influence how people perceive the brand and how aware they are of it. Example: All smartphones share certain associations like having a touchscreen, camera, or internet access — but Apple differentiates itself with design, ecosystem, and status.

Question 38

positioning

Answer 38

Brand positioning is at the heart of marketing strategy. It is the “act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s mind.” As the name implies, positioning means finding the proper location in the minds of a group of consumers or market segment, so that they think about a product or service in the right or desired way to maximize potential benefit to the firm. Good brand positioning helps guide marketing strategy by clarifying what a brand is all about, how it is unique, and how it is similar to competitive brands, and why consumers should purchase and use it.

Question 39

target market

Answer 39

A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.

Question 40

market segmentation

Answer 40

Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing programs and tactics. Market segmentation requires making trade-offs between costs and benefits. The more finely segmented the market, the more likely that the firm will be able to implement marketing programs that meet the needs of consumers in any one segment. That advantage, however, can be offset by the greater costs of reduced standardization Marketers often segment consumers by their behavior.

Question 41

A number of criteria have been offered to guide segmentation and target market decisions, such as the following:

Answer 41

Identifiability: Can we easily identify the segment? Size: Is there adequate sales potential in the segment? Accessibility: Are specialized distribution outlets and communication media available to reach the segment? Responsiveness: How favorably will the segment respond to a tailored marketing program?

Question 42

When a company chooses a target consumer segment, it automatically defines its competitive landscape, because:

Answer 42

Other firms may already target that segment. Consumers in that segment may already consider other brands. Competition isn’t just about the product itself — it can also include: Distribution channels (where the product is sold). Marketing resources and capabilities of competitors. Future intentions of other firms. Marketers analyze competitors to choose markets that can be profitably served.

Question 43

Hierarchical Organization of Products in Consumers’ Minds

Answer 43

Consumers mentally organize products in categories and subcategories. Example: Smartphones → premium vs. budget → Apple vs. Samsung vs. Xiaomi. This means marketers can define competition at different levels depending on which benefit or attribute is most relevant to consumers.

Question 44

Multiple Frames of Reference

Answer 44

A single brand may compete in more than one frame of reference. Example: A smartwatch competes as both a fashion accessory and a fitness device. Recognizing multiple frames helps marketers understand all the ways consumers might evaluate the brand.

Question 45

Points-of-difference (PODs)

Answer 45

are formally defined as attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Although different types of brand associations are possible, we can broadly classify candidates as either functional, performance-related considerations or as abstract, imagery-related considerations. PODs are usually consumer benefits, supported by proof points or Reasons to Believe (RTBs): Functional design → unique shaving technology → closer shave. Key ingredients → fluoride → cavity prevention. Endorsements → recommended by experts → superior performance. Deliverable PODs require credible proof that the brand can actually deliver the promised benefits

Question 46

what do PODS rely on

Answer 46

may rely on performance attributes (Tesla’s autopilot can change lanes without driver assistance) or performance benefits (Apple products have unique retina display that ensures picture clarity).

Question 47

Types of PODs:

Answer 47

Functional / Performance-related Unique features or benefits of the product. Example: Tesla’s autopilot (performance attribute). Apple’s retina display (performance benefit). Imagery / Abstract Brand image, status, or lifestyle associations. Example: Louis Vuitton → luxury and status. Combination of Performance + Imagery Example: Singapore Airlines → high-quality service + prestigious image (“A Great Way to Fly”).

Question 48

Points-of-parity associations (POPs),

Answer 48

Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may, in fact, be shared with other brands. There are three types: category, competitive, and correlational Category points-of-parity represent necessary—but not necessarily sufficient—conditions for brand choice. They exist minimally at the generic product level and are most likely at the expected product level.

Question 49

Competitive points-of-parity

Answer 49

are those associations designed to negate competitors’ points-of-difference. In other words, if a brand can break even in those areas where its competitors are trying to find an advantage and can achieve its own advantages in some other areas, the brand should be in a strong—and perhaps unbeatable—competitive position.

Question 50

Correlational points-of-parity

Answer 50

are those potentially negative associations that arise from the existence of other, more positive associations for the brand. One challenge for marketers is that many of the attributes or benefits that make up their POPs or PODs are inversely related. In other words, in the minds of consumers, if your brand is good at one thing, it can’t be seen as also good on something else.

Question 51

1. Why POPs Matter

Answer 51

Even if a brand has strong PODs (unique advantages), they don’t matter if the brand fails on basic category expectations. POPs prevent weaknesses from undermining a brand’s positioning. Consumers must believe the brand is “good enough” on essential attributes or benefits. Once POPs are met, consumers are free to evaluate the brand based on its unique strengths (PODs). POPs are generally easier to achieve than PODs.

Question 52

two critical steps in creating an optimal brand positioning strategy.

Answer 52

defining and communicating the competitive frame of reference and (2) choosing and establishing points-of-parity and points-of-difference

Question 53

Defining and Communicating the competitive frame of reference

Answer 53

Consumers must understand what a product is (category membership) before evaluating why it is better or unique (POD). For new products, marketers should sequence messaging carefully: establish membership first, then differentiate. Established brands can focus more on PODs since membership is already known. Category membership = the product category or set of products with which a brand competes. This determines the competitive frame of reference for both POPs and PODs. Do not combine messages about category membership and PODs in the same advertisement.- Consumers may get confused; they first need to understand the product’s category before appreciating its uniqueness.

Question 54

Three main ways to convey a brand’s category membership:

Answer 54

Communicating category benefits exemplars Product Descriptor

Question 55

Communicating category benefits (conveying a brands catgerory membership)

Answer 55

Brands will convey to consumers that they will deliver on the fundamental reason for using a category by stating the benefits ex: industrial motors might claim to have power Performance and imagery associations can provide supporting evidence A cake mix might claim the benefit of great taste and might support this benefit claim by possessing high-quality ingredients (performance) or by showing users delighting in its consumption (imagery).

Question 56

Exemplers

Answer 56

well-known, noteworthy brands in a category can also be used ex: When Tommy Hilfiger was an unknown designer, advertising announced his membership as a great American designer by associating him with Geoffrey Beene, Stanley Blacker, who were recognized members of that category at that time

Question 57

Product Descriptor

Answer 57

The product descriptor that follows the brand name as a means of conveying category origin Ex: When Campbell’s launched its V8 Splash beverage line, it deliberately avoided including the word “carrot” in the brand name despite the fact that carrot was the main ingredient. The name was chosen to convey healthful benefits but to avoid the negative perception of carrots

Question 58

Three Key Considerations for Choosing a POD

Answer 58

Desirability (Consumer Perspective) The attribute or benefit must be highly important and valued by consumers. If consumers don’t care about it, it cannot influence brand choice. Example: Apple’s retina display → consumers value sharp, clear screens. Deliverability (Company Perspective) The company must have the capability and resources to actually deliver the attribute or benefit consistently. Example: Tesla can deliver autopilot functionality because of its technological capabilities. Differentiation (Competitive Perspective) The attribute or benefit must set the brand apart from competitors. It should be unique and distinctive in the market. Example: Louis Vuitton’s luxury status differentiates it from other fashion brands.

Question 59

Desirability Criteria

Answer 59

Deliverability of an attribute or benefit brand association depends on both a company’s actual ability to make the product or service (feasibility) and effectiveness in convincing consumers of its ability to do so (communicability) fesabilkty: the product and marketing must be designed in a way to support the desired asssoiaiton Simplest and most effective approach is to point out a unique attribute of the product as a proof point or reason to believe communicability : The key issue is consumers’ perceptions of the brand and the resulting brand associations Need verifiable evidence or proof pointsthat marketers communicate as support so consumers will believe in the brand and its desired associations

Question 60

Differntiation Criteria:

Answer 60

Consumers must find the POD distinctive and superior Difficult to find a long term bassi for differentiation in an established market, the basis for differentiation needs to be defensible and difficult to attack and the brand aossication needs to be reinforced and strengthened over time so that the positioning can effectively last for years Sustainability depends on internal commitment and use of resources as well as external market forces Ex: IBM began by targeting small and medium sized businesses particularly overseas with few competitors

Question 61

There are three approaches to address the problem of engatively correlated POPs and PODs:

Answer 61

1) Separate the attributes An expensive but sometimes effective approach is to launch two different marketing campaigns each devoted to a different brand attrivute/benefit The hope is that consumers will be less critical when judging the POP and POD benefits in isolation, because the negative correlation might be less apparent. The downside is that two strong campaigns have to be developed—not just one, also marketer must address the negative correlation head on 2) Leverage equity of another entity Brands can link themselves to any kind of entity that possesses the right kind of equity—a person, other brand, event, etc to establish an attribute or benefit as a POP or POD 3) Redefine the Relationship Convince consumers that the negative relationship between attributes and benefits is actually positive, marketers can do thus by providing consumers with a different perspective

Question 62

Updating Positioning over time

Answer 62

As a general rule, positioning should be fundamentally changed very infrequently, and only when circumstances significantly reduce the effectiveness of existing POPs and PODs Positioning, however, will evolve over time to better reflect market opportunities or challenges. ladderingL one common market opportunity that often arises is the need to deepen the meaning of the brand to permit further expansion Reacting: one common market challenge is how to respond to competitive actions that threaten an existing positioning

Question 63

Laddering

Answer 63

It may be necessary to deepen the meanings associated with the brand positioning, it is useful to explore underlying consumer motivagions in a product category to uncover the relevant associations Ex: BMW positioned the brand as being the only automobile to offer luxury and performance, BMW was able to simultaneously achieve (1) a point-of-difference on performance and a point-of-parity on luxury with respect to luxury cars and (2) a point-of-difference on luxury and a point-of-parity on performance with respect to performance cars attrubite--. functional benefit--> psychological

Question 64

From lowest to highest priority maslows hierarchy of needs:

Answer 64

1. Physiological needs (food, water, air, shelter, sex) 2. Safety and security needs (protection, order, stability) 3. Social needs (affection, friendship, belonging) 4. Ego needs (prestige, status, self-respect) 5. Self-actualization (self-fulfillment).

Question 65

When a competitor challenges an existing POD or attempts to overcome a POpthere are 3 main options

Answer 65

a) do nothing- if the competitive actions seem unlikely to recapture a POD or create a new one do nothing b)Go on the defensive- if the comp actions appear to have the potential to disrupt the market some, then go on defensive, can do this by adding reassurance in the product or advertising to strengthen POPs and PODs c) go on the offensive- if the competitive actions seem potentially quite damaging then it might be necessary to take a more aggressive stance and reposition the brand to address the threat, one approach may be to launcha product line extension or ad campaign

Question 66

Developing a Good Positioning

Answer 66

First, Good positioning needs to have elements of present and future aspirations Need to strike the ight balance between what the brand is and what it could be Second, good positioning is careful to identify all relevant POPs One good way to uncover key competitive points-of-parity is to role-play competitor’s positioning and infer their intended points-of-difference Third, a good positioning should reflect a consumer POV int erms of benefits that consumers derive from the brand, An effective POD should make clear why that it so desirable to consumers Also need to use both emotional and rational components for positioning

Question 67

Brand Mantras

Answer 67

Brand mantra: a short, three- to five word phrase that captures irrefutable essence or spirit of the brand position Its purpose is to ensure all employees and external marketing partners understand what the brand fundamentally represents to customers brand mantras create a mental filter to screen out brand-inappropriate marketing activities or actions of any type that may have a negative bearing on customers’ impressions of a brand Any time a consumer or customer encounters a brand—in any way, shape, or form—his or her knowledge about that brand may change and affect the equity of the brand Employees can influence brand perceptions Brand mantras must economically communicate what the brand is and what it is not they should clearly delineate what the brand is supposed to represent and therefore what it is not A brand mantra is short, memorable, and internally focused. It defines the brand’s essence, differentiates it from competitors, and guides marketing decisions. It captures PODs, while POPs are managed through other communications. Its emphasis may vary depending on whether the brand is growing into new categories or operating in a stable market

Question 68

Implementing a Brand Mantra

Answer 68

Brand mantras should be developed at the same time as the brand positioning Brand positioning is usually a result of an in depth examination of hte brand through some form of brand audit or other activities Part of this internal exercise is to determine the means by which each employee effects brand equity and how they can contribute in a positive way to brands future