unit 4 - chapter 2 Flashcards

Question

what is the difference between small-b brand and Brand?

Answer 1

Keller (2003) distinguishes between * a ‘small-b brand’, defined by the American Marketing Association as a: **name, term, sign, symbol, or design,** or a combination of them which is intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors. (American Marketing Association, 1960) * big-B Brand: amount of awareness, reputation, prominence, etc., that creates the brand

Answer 2

* - whether to brand their products at all; * whether to adopt a family (or umbrella) branding strategy; * whether to adopt a combination of the two; * and whether to adopt a local or global branding strategy.

Answer 3

* the decision not to brand will entail losing the benefits of branding. * building a brand is expensive and an organisation may prefer to supply unbranded products, allowing distributors to use their own brand names. * This benefits the original supplier through increased revenue and easy entry into new markets. * Additionally, this avoids any negative brand associations * . However, the supplier will be dependent on others for the continued success of the business. * This is the case for those manufacturers supplying retailers such as Marks and Spencer, Lidl and Wal-mart with goods that will carry the retailer’s brand.

Answer 4

A second decision is whether to use the same brand for all products and services offered – that is, a **family or umbrella branding strategy**. Often this will be the name and logo associated with the organisation. Microsoft typifies this approach. The benefits of a family brand include * lower cost – as the brand becomes recognisable to consumers so new products and services can be introduced under the brand name – * and less confusion for customers, as they can quickly identify with what the brand means. Alternatively, organisations such as Unilever and Intercontinental Hotels adopt a **multiple branding strategy.** Unilever * range of food, * home care and * personal care brands, including Dove and Lux soap. IH * including the Crowne Plaza and Holiday Inn brands, * while also offering specific sub-brands such as Holiday Inn Express * so as to cater separately to both the business and the leisure sectors at a range of prices and with a variety of services (e.g., aimed at families with children). Benefits of multiple branding include * the ability to target a range of markets that have differing needs * and, if problems arise that devalue the brand in the minds of customers, this will not be transferred across all the organisation’s activities. A third alternative is to combine the two and adopt a **family brand/logo together with individual brands for specific products.** * This approach is often adopted by technology manufacturers – for example, Sony typically adds a model to the family brand as in the case of Sony Bravia televisions.

Answer 5

Global brands have benefits similar to family brands in that there will be * economies of scale, for example, in promotion and packaging * ; less potential for customer confusion; * and a coherent brand identity. However, differences in language, perceptions and associations may suggest that brand names should be adapted for local markets. * For example, the Russian automobile marketed under the ‘Jiguly’ trademark was not a success in Western European and English-speaking countries because of the association with ‘gigolo’.

Answer 6

Product benefits * At the base level, we are interested in the product benefits or attributes. These are something we think about and that can be learned from advertising. two roles: * functional role – for example, convenience, quality and features. (can be compared in a relatively objective way between competing brands) * psycho-social role. For example, dressing in clothes bearing the brand names of Gucci and Armani may signal success and have an impact on other people’s perceptions of the wearer. Personality * At the second level, advertising can lead us to assign a personality to the brand. * McDonald’s is a good example since its overt and very successful campaign led many people, and particularly children, to assign the brand personality of the cheerful Ronald McDonald to the company and its products Emotions * Finally, the consumer develops emotional bonds with the product/brand. * Belch and Belch (2009) describe how McCann-Erikson (one of the world’s largest advertising agencies) has adopted this approach, believing that the creation of emotional bonds through advertising is essential to a positive psychological movement towards the product/brand and will reduce the potential for switching behaviour. * Such emotional bonding with McDonald’s could be achieved through the association with children’s parties and happy family gatherings in which McDonald’s staff and products play a part.

Answer 7

Association techniques – * These involve immediate responses to a stimulus, such as word association. * For example, ‘What is the first thing that comes into your mind when I say “Sony”?’ Completion techniques – * The respondent is presented with an incomplete sentence or story and asked to complete it in their own words. * For example, ‘People who buy Gucci handbags are …’ Construction techniques – * These include approaches such as picture response techniques and cartoon tests where the respondent expresses their view of what is happening in these by telling stories, completing voice bubbles, etc. Expressive techniques – * Respondents are asked to relate the feelings and attitudes of some other person to a situation, such as in role play or third-person techniques. potential negative factors to consider. - * It is easy for interviewers/analysts to ascribe meanings to the data that may not be correct – for example, the respondent may really be describing the behaviour of another person rather than their own - * They can be costly since there will be a relatively small number of respondents and the need for a trained interpreter. - * It may be considered unethical to try to elicit information in a way that is not transparent to the interviewee.

Answer 8

* Executive summary * Current marketing situation * Threats and opportunities analysis * Objectives and issues * Marketing strategy * Action programmes

Answer 9

Benefits may include: . * focuses attention on the setting and achievement of organisational objectives . * shared understanding of objectives and the means to achieve them provides direction and therefore motivation * . means of communication to internal and external stakeholders . * identifies potential opportunities . * provides a basis for task allocation . * provides a basis for effective resource allocation through a comparison of alternatives . * provides a basis for coordination and control . * a systematic approach provides a basis for learning for the future . * identifies information needs . * identifies other resource needs – financial, human. Problems may include: . * a planning approach can be inflexible and new opportunities can be missed . * inflexibility can potentially stifle creativity . * all models and frameworks have their problems and limitations, which should be recognised – for example, the limitations of product life cycle analysis were outlined in Section 2.1 . * may lead to a division between ‘planners’ and ‘implementers’ and potential for conflict between the two . can be very expensive.

Answer 10

* Marketing strategy, * business development and planning * Analysing customers and context * Managing customers: customer acquisition and retention * Marketing management/managing the marketing mix

Answer 11

* small business where the owner/manager and a few employees undertake all marketing activities. * Benefits from a marketing perspective often involve direct contact between senior management and customers and, potentially, flexibility in response to customer needs. * However, marketing skills may be lacking as well as the resources to employ specialists – for example, advertising or research agencies. * Many studies have highlighted lack of marketing skills and knowledge as the cause of small business failure.

Answer 12

* In Figure 2.8, experts are grouped into functional teams creating specialisation, expertise and functional career paths. * Other benefits include clear lines of communication and clarity with respect to responsibility, power and authority. * Problems may develop, however, between functions/ departments. * These could include poor communication; conflicting objectives; lack of coordination; and reinforcement of stereotypes. * Organisations such as Procter & Gamble and Gillette were among the first to develop professional marketing departments.

Answer 13

* Pioneered by General Motors and DuPont, the divisionalised structure, as shown in Figure 2.9, divides the business into autonomous regions or product businesses. * These may be profit or investment centres. * The structure focuses the attention of management below ‘top level’ on business performance and results, and allows for specialisation in products/regions and for local market interests to be accounted for. * A number of problems exist, however, including those involved in determining the degree of autonomy and nature of control between parent and subsidiary. * Duplication of business functions will increase costs, and potential synergies may be lost through poor coordination and communication. * Additionally, the problems of the functional structure may remain.

Answer 14

* A matrix organisation provides for the formalisation of management control between different brands, products or markets, while at the same time maintaining functional departments. * Authority is shared between the brand – or product – managers and heads of functional departments. * Advantages include a focus on a particular product rather than barriers between * The organisation – marketing strategy, planning and roles functions; improved coordination and communication; and increased flexibility. * The adoption of a brand management structure is credited with saving brands such as Procter & Gamble’s Camay. * However, this structure may be costly and problems may result if team members are responsible to more than one manager.

Answer 15

* Webster (1992) describes how the problems of traditional, bureaucratic hierarchical organisations, such as inflexibility and poor coordination, communication and control, are leading organisations to develop new structures and forms * . According to Webster, other driving forces include: * the need to focus on customer value and to ‘re-define’ what value means to customers; * the need to develop customer relationships (which he describes as the key organisational resource); * globalisation; and the increasing potential of information technology. * New organisational forms include strategic partnerships and networks. * Webster (1992, p. 8) defines networks as: * the complex, multifaceted organization structures that result from multiple strategic alliances, usually combined with other forms of organization including divisions, subsidiaries, and value-added resellers. * The organisation structure illustrated in Figure 2.11 is shown as a wheel. * The functional specialities, such as marketing, are at the hub of the wheel.

unit 4 - chapter 2 Flashcards

(39 cards)