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MARKETING AND BRANDING

Question Bank

2 marks

1. Name any two methods of spa marketing.


Ans. Charitable events and shopping events
2. What are the two factors of spa marketing which help to attract the local consumers?
Ans. Club membership and Loyalty rewards.
3. Give any two examples of marketing methods to advertising campaign.
Ans. Flyers and posters
4. What are the 4 Ps of marketing mix?
Ans. Product, Price, Place, Promotion.
5. Name the identify target market which is to be decide with the help of age and gender.
Ans. Demographic market
6. Write the elements of Promotional mix.
Ans. Advertising, Sales promotion, Personal selling, Public relation, Publicity, Visual
Merchandising
7. What do you mean by Brand?
Ans. A name, term, sign, symbol or design used to identify the products of one firm and to
differentiate them from competitive offerings.
8. Name ant two criteria of choosing good brand element
Ans. Memorability and Transferability
9. What are the strategies to designing marketing programs to build brand equity?
Ans. Product strategy, Price strategy, Distribution/ Channel strategy
10. Define brand extension.
Ans. A common method of launching a new product by using an existing brand name on a new
product in a different category.
11. Name the new marketing method which is not consider under traditional marketing tool.

Ans. Guerilla Marketing

5 Marks
12. Define marketing concept.
Ans. The term market originates from the Latin word Marcatus which means a place where
business is conducted. A layman regards market as a place where buyers and sellers personally
interact and finalize deals.
American Marketing Association, 1948; Marketing was the performance of business activities
directed toward, and incident to the flow of goods and services from producer to consumer.
13. Write a short note in promotion.
Ans. Any form of communication a business or company uses to inform, persuade, or remind
people about products and to improve its image. It is how you let people know what youve got
for sale. The purpose of promotion is to get people to understand what your product is, what they
can use it for, and why they should want it.
There are different types of promotion:

Advertising
Sales promotion
Personal selling
Public relation/ publicity
Visual merchandising

14. What is identifying target market?


Ans. Effectively identifying your potential customer base helps to drive overall marketing and sales
strategies that you will include within other sections of your business plan.
Identifying market divided into qualitative and quantitative basis :

15.

Size
Demographic
Geographic
Psychographic
Consumer/ Behavioral Characteristics
What do mean by Brand Positioning?

Ans. Brand positioning sets the direction of marketing activities and programs what the brand

should and should not do with its marketing. Brand positioning involves establishing key brand

associations in the minds of customers and other important constituents to differentiate the brand
and establish (to the extent possible) competitive superiority. Besides the obvious issue of
selecting tangible product attribute levels (e.g., horsepower in a car), two particularly relevant
areas to positioning are the role of brand intangibles and the role of corporate images and
reputation.

16. What is personal selling? Explain the types of sales tasks.


Ans. Personal selling involves a two-way flow of communication between a buyer and seller,

often in a face-to-face encounter, designed to influence a persons or groups purchase decision.


Sales Tasks: Sales tasks vary significantly from one company or situation to another, but it

usually includes three basic tasks: order processing, creative selling, and missionary selling.

Order Processing. The task of order processing involves the receipt and handling of an
order. Needs are identified and pointed out to the customer, and the order is processed.
The handling of orders is especially important in satisfying customer needs.
Creative Selling. Sales representatives for most industrial goods and some consumer
goods are involved in creative selling, a persuasive type of promotional presentation.
Creative selling is used when the benefits of a good or service are not readily apparent
and its purchase is being based on a careful analysis of alternatives.
Missionary Selling. An indirect form of selling in which the representative markets the
goodwill of a company or provides technical or operational assistance to the customer is
called missionary selling. For example, many technically based organizations, such as
IBM and Xerox, provide systems specialists who consult with their customers.

17. Write a short note on guerrilla marketing. What is the difference between guerilla and
traditional marketing?
Ans. The guerrilla marketing concept, which was created by Levinson (1984), implies an

unconventional way of performing promotional activities on a very low budget.

Differences between traditional and Guerilla


Marketing

Traditional Marketing

Guerilla Marketing

Primary investment is money

Primary investment is time, effort and


creativity

Model for big business

Focus on small business

Success measured by sales

Success measured by profits

What can I take from the customer?

What can I give to the customer?

Mass media usage (direct mail, radio, television, newspapers)

Marketing weapons are numerous and


most are free

Advertising works

Types of non-traditional marketing


succeed

How much money do you have at the end?

How many relationships do you have


at the end?

18. What is brand and explain its types?


Ans. A name, term, symbol, or design used to identify the products of one firm and to differentiate them
from competitive offerings. It is something which is used to show customers that one product is different
than the products of another manufacturer.
There are different types of brand as discuss below:
a. Co-branding: Two companies join to create a new product carrying both their brands, for
example, Pizza hut and Pepsi
b. National brand: Product that carry the name of the manufacturers
c. Private brand: Products that carry the name of the seller, not the manufacturer, i.e Shopper Stop,
Westside
d. Generic brand: A brand name over which the original owner lost exclusive claim because all
offerings in the associated class of products have become generally known by the brand name
(usually that of the first or leaning brand in that product class.), i.e Velcro is the brand- hooked
fabric fastener is the generic name, Xerox is the company name Photocopy is the generic
name.

19. What do you mean by Brand equity and what happen if brands have high Equity.

Ans. Brand Equity- It is the premium which can command in the market. brand equity can be
defined as the differential effect that brand knowledge has on consumer response to the
marketing of that brand. There are three key ingredients to this definition: (1) differential
effect, (2) brand knowledge, and (3) consumer response to marketing
For ex. The additional money that consumers are willing to spend to buy Coca Cola rather than
the store brand of soda is an example of brand equity.
The effect of becoming high rate of brand equity:
The company can have more leverage with the trade
The company can charge a premium on their product
The company can have more brand extensions
The company can have some defense against price competition

10 Marks
20. Explain brand elements and its criteria in choosing brand elements.
Ans. A brand element is visual or verbal information that serves to identify and differentiate a

product. The most common brand elements are names, logos, symbols, characters, packaging and
slogans. Brand elements can be chosen to enhance brand awareness or facilitate the formation of
strong, favorable and unique brand associations.

Brand Name
A brand name is the basis upon which the brand equity is built. The name is a critical, core sign
of the brand, the basis for awareness and communications effort. Since the name can bring
inherent strength to a brand, brand names need to be actively managed in order to influence
external stakeholders.
Logos and Symbols
Visual brand elements often play a critical role in building equity, especially in terms of brand
awareness. Brands visual identity is essential to establishing and maintaining a presence in the
marketplace. A visual interpretation of the brand promise that it will be possible to develop
highly memorable, easily recognizable, and visual brand signals that trigger consumers to build
associations between the brand itself and its chosen position.
Packaging
Packaging is an important brand element, related to the function of designing and producing
container or wrappers for a product. This is the container for a product which encompasses the
physical appearance of the container including design, color, shape, labeling and materials used.
Slogans:
Slogans are short phrases that communicate descriptive or persuasive information about the
brand. A slogan can capture the essence of a brand and become an important part of the brand
equity. Slogans often appear in advertisement but play vital role on packaging and in different
marketing activities to work like shorthand means to build brand equity.
Jingle:
Jingles are musical messages written around the brand. These are composed by professional
songwriters with enough catchy hooks and choruses to turn them permanently registered in the
minds of listeners willingly or unwillingly. By employing scent, sound and material textures in
customer experiences, todays marketers are finding new ways to build stronger connections to
their customers and drive preference for their brands.
CRITERIA IN CHOOSING BRAND ELEMENTS
Brand that recognize and differentiate it can be called brand elements. There are six criteria in
choosing brand elements:

Memorability
Meaningfulness

Offensive nature

Likability
Transferability
Adaptability
Protect ability

Defensive nature

The explanation of the six criteria given below;


Memorability: A essential condition for building brand equity is succeeding a high level of
brand awareness. To that aim, brand elements can be choose that are inherently memorable and
hence facilitate remind or recognition in buy or consumption settings.
Meaningfulness: In addition to choosing brand elements to build awareness, brand elements can
also be choose whose inherent meaning enlarges the creation of brand associations. Brand
elements may take on all kinds of meaning, altering in descriptive, besides persuasive, content.
Likability: The associations recommended by a brand element may not always be concerned to
the product. So, brand elements can be chosen that are rich in visual and verbal imagery and
inherently fun and interesting.
Transferability: The forth general criterion interests the transferability of the brand element in
both a product category and geographic sense.
Adaptability: The fifth consideration interests the adaptability of the brand element over time.
Because of changes in consumer values and opinions, or simply because of a need to remain
contemporary, brand elements often must be updated in course of time.
Protectability: The sixth and final general consideration interests the dimension to which the
brand element is protectable both in a legal and competitive sense.
21. What do you mean by promotional mix? Explain the types of sales task.
Ans. The promotional mix is a term used to describe the set of tools that a business can use to
communicate effectively the benefits of its products or services to its customers.
An organizations combination of personal selling, advertising, publicity and public relations,
and sales promotion, its total promotional effort.
The promotional mix includes the following tools

advertising
public relations
sales promotion
direct marketing
personal selling

Advertising There are three main reasons for advertising


To provide your target audience with information (creating awareness)
To persuade them to buy from you (by promoting product and company benefits)
To reinforce your existence (by consistently repeating key messages)
Research shows that people need to see an advertisement at least seven times before it starts to
mean anything to them. So, to be effective, advertising needs to be conducted regularly in a
consistent and recognizable manner. It can therefore be quite costly.
Public relations Publicity is something that happens to a company and the result may be good
or bad. Public relations (or PR) involve a sustained attempt to develop your reputation as a
business by using the media to help create the image you desire. It is a way of keeping the
business in your customers eyes.
Personal Selling- Personal selling is define as the face-to-face process of a company
representative (or small group of representatives) and a customer identifying customer problems
and solving them through the purchase and application of the representatives products.
Sales Promotion- Sales promotion is a key ingredient in marketing campaigns. We define it as
follows: Sales promotion consists of a diverse collection of incentive tools, mostly short term,
designed to stimulate quicker or greater purchase of particular products or services by consumers
or the trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive to
buy.
Direct Marketing- Direct marketing in which advertising, telephone sales, or other
communications are used to elicit a direct response, such as an order by mail or phone, also
called direct-response retailing.
Types of sales task
Sales tasks vary significantly from one company or situation to another, but it usually includes
three basic tasks: order processing, creative selling, and missionary selling.
Order processing. The task of order processing involves the receipt and handling of an order.
Needs are identified and pointed out to the customer, and the order is processed. The handling of
orders is especially important in satisfying customer needs.
Creative selling . Sales representatives for most industrial goods and some consumer goods are
involved in creative selling, a persuasive type of promotional presentation. Creative selling is
used when the benefits of a good or service are not readily apparent and its purchase is being
based on a careful analysis of alternatives. In new-product selling, sales people need to be very
creative if initial orders are to be secured.

Missionary selling . An indirect form of selling in which the representative markets the goodwill
of a company or provides technical or operational assistance to the customer is called missionary
selling. For example, many technically based organizations, such as IBM and Xerox, provide
systems specialists who consult with their customers.
22. How can we leverage and measure brand equity?
Ans. There are three ways to leverage brand equity: firstly building it, secondly borrowing it, or
thirdly buying it. Increasingly, building brand equity is not easy given the proliferation of
brands and the intense competition that is prevalent in many industries.

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A. Building brand equity


Brand equity is built firstly, by creating positive brand evaluations with a quality product,
secondly, by fostering accessible brand attitudes to have the most impact on consumer purchase
behavior, and thirdly, by developing a consistent brand image to form a relationship with the
consumer.
The first element in building a strong brand is a positive brand evaluation. Quality is the
cornerstone of a strong brand. A firm must have a quality product that delivers superior
performance to the consumer in order to achieve a positive evaluation of the brand in the
consumers memory. Three types of evaluations can be stored in a consumers memory:
1) Affective responses
2) Cognitive evaluation

3) Behavioral intentions
Affective responses involve emotions or feelings toward the brand (e.g., the brand makes me feel
good about myself, the brand is a familiar friend or the brand symbolizes status, affiliation or
uniqueness).
Cognitive evaluations are inferences made from beliefs about the brand (e.g., the brand lowers
the risk of something bad).
Behavioral intentions are developed from habits or heuristic interest toward the brand (e.g., the
brand is the only one my family uses or the brand is on sale this week).
B. Borrowing brand equity
Many firms borrow on the brand equity in their brand names by extending existing brand names
to other products. Two types of extensions can be distinguished: a line and a category extension.
The latter is frequently also called brand extension. A line extension is when a current brand
name is used to enter new market segment in the existing product class. A category extension is
when the current brand name is used to enter a different product class.
A line extension occurs when a company introduces additional items in the same product
category under the same brand name. A line extension often involves a different size, colour,
flavor or ingredient, a different form or a different application for the brand. The company may
want to match a competitors successful line extension. Many companies introduce line
extensions primarily to command more shelf space from resellers. Line extensions involve risks.
There is a chance that the brand name will lose its specific meaning. This is called the lineextension trap.
A category extension occurs when a company decides to use an existing brand name to launch a
product in a new product category. Category extensions capitalize on the brand image of the core
product or service to efficiently inform consumers and retailers about a new product or service.
The potential benefits of category extensions include immediate name recognition and the
transference of benefits associated with a familiar brand. A well-regarded brand name gives the
new product instant recognition and earlier acceptance. It enables the company to enter into newproduct categories more easily. Moreover, category extensions eliminate the high costs of
establishing a new brand and often reduce the costs of gaining distribution. Category extensions
also involve risks. The new product might disappoint buyers and damage their respect for the
companys other products.
C. Buying brand equity
A final method to enhance brand equity is to buy it through acquisition or licensing. Given the
potential difficulties associated with building brand equity, there is a trend toward acquiring
well-established brands. Acquisition of a firm, its brands and products is obviously one way of

leveraging brand equity. A more common approach is licensing brands. However, licensing
brands can be counter-productive, if the extended products have little or no association with the
original product category. The same requirements of perceptual fit, competitive leverage and the
benefit transfer apply to all category extensions, whether licensed or not.
23. What are the brand strategies? Explain how an organization can strategically manage
brand.
Ans. Brand strategies aim to make the brand take a specific place in the mind of the consumer.
There are five basic points for brand strategies:
a. It is a process which makes marketing functions easy.
b. Both macro and micro level marketing can be applied
c. The perceived position for a particular product by consumer can be based on the products real
and physical character, or on image created by the company having no physical presence.
d. Positioning should be oriented to the consumer.
e. Positioning will be successful only if it is based on good research.
Strategies to manage brand equity
To managing the brand, several general strategic issues arise: the optimal design of brand architecture; the
effects of co-branding and brand alliances; and cross-cultural and global branding strategies.

Brand Architecture
Brand architecture has been studied in the context of line extensions, vertical extensions, multiple brand
extensions, sub-brands, and brand portfolios. Several researchers have examined characteristics of
successful line extensions. In the context, of fast moving packaged goods, developed a decision support
system to evaluate the financial prospects of potential new line extensions. Although many strategic
recommendations have been offered concerning vertical extensions extensions into lower or higher
price points relatively little academic research has been conducted to provide support for them.

Co-Branding and Brand Alliances


Brand alliances where two brands are combined in some way as part of a product or some other
aspect of the marketing program come in all forms and have become increasingly prevalent.
compared co-brands to the notion of "conceptual combinations" in psychology and showed how
carefully selected brands could be combined to overcome potential problems of negatively
correlated attributes (e.g., rich taste and low calories). Consumers attitudes toward a brand
alliance could influence subsequent impressions of each partners brands (i.e., spillover effects
existed), but these effects also depended on other factors such as product fit or compatibility
and brand fit or image congruity. Although a co-branded ingredient facilitated initial expansion

acceptance, a self-branded ingredient could lead to more favorable long-run extension


evaluations. In other words, borrowing equity from another brand does not necessarily build
equity for the parent brand.
Cross Cultural and Global Branding
Branding is increasingly being conducted on a global landscape. A number of issues emerge in
attempting to build a global brand. Levitt has argued that companies needed to learn to operate as
if the world were one large market ignoring superficial regional and national differences. Much
research, however, has concentrated on when marketers should standardize versus customize
their global marketing programs. Research has also examined cultural and linguistic aspects of
branding, e.g., showing how Chinese versus English brand names differs in terms of visual
versus verbal representations. From a brand building standpoint, show how perceived brand
globally creates brand value.
Branding and Social Welfare
Brands would exist even if no money were spent on advertising and promotion for products.
Customers would find some distinguishing characteristics (name, color, shape) to identify
products or services that had served them well and use them to simplify (make more efficient)
future choices. Moreover, as satisfiers, customers are slow to update performance improvements
(or decreases) in their current or other alternative choices. The result, at least in the short run, is
market inefficiency in the physical attribute product space. In essence, market inefficiency can be
seen as the same as brand equity, raising several interesting questions.
24. Explain personal selling and the process of sales process.
Ans. Personal selling is define as the face-to-face process of a company representative (or small
group of representatives) and a customer identifying customer problems and solving them
through the purchase and application of the representatives products.
With advances in telecommunications, however, personal selling takes place over the telephone,
through video teleconferencing and interactive computer links between buyers and sellers. This
implies that for long-term survival it is in the best interests of the salesperson and their company
to identify customer needs and aid customer decision-making by selecting from the product
range those products that best fit the customers requirements.

The Sales Process


The entire sales process was viewed as a situation in which the prospective customer was passive
and ready to buy if the appropriate information could be identified and presented by the
representative. Contemporary selling recognizes that the interaction between buyers and sellers
usually rules out canned presentations in all but the simplest of sales situations. Today's
professional sales personnel typically follow a sequential pattern, but the actual presentation

varies according to the circumstances. Seven steps can be identified in the sales process:
prospecting and qualifying, the approach, the presentation, the demonstration, handling
objections, the closing, and the follow-up.

Steps in the Sales Process


Step 1 Prospecting
Step 2 Approach
Step 3 Presentation
Step 4 Demonstration
Step 5 Handling Objections
Step 6 Closing
Step 7 Follow-up
Prospecting and Qualifying
In prospecting, salespeople identify potential customers. They may come from many sources,
such as previous customers, friends, business associates, neighbors, other sales personnel, and
other employees in the firm. A recent study indicated increased advertising in business
publications results in more prospects for salespeople promoting industrial goods and services. In
the qualifying process, potential customers are identified in terms of their financial ability and
authority to buy. Those who lack the necessary financial creative selling
The Approach
Salespeople should carefully prepare their approach to potential customers. All available
information about prospects should be collected and analyzed. Sales representatives should
remember that the initial impression they give prospects often affects the prospects' future
attitudes.
The Presentation.
The presentation is the stage at which the salesperson transmits the promotional message. The
usual method is to describe the good's or service's major features, highlight its advantages, and
cite examples of consumer satisfaction.
The Demonstration.
A demonstration allows the prospect to become involved in the presentation. Demonstrations
reinforce the message communicated to the prospective buyer. In promoting some goods and

services, the demonstration is a critical step in the sales process. Paper manufacturers, for
example, produce elaborate booklets that their salespeople use to demonstrate different types of
paper, paper finishes, and graphic techniques. The demonstration allows salespeople to show art
directors, designers, printers, and other potential customers what different paper specimens look
like when they are printed.
Handling Objections.
Many salespeople fear objections from the prospect because they view them as a rebuke.
Actually, such objections should be welcomed, because they allow additional points in support of
the sale and to answer questions the consumer has about the good or service to be presented by
the sales representative.
The Closing.
The closing is the critical point in sellingthe time at which the seller actually asks the prospect
to buy the product. The seller should watch for signals that the prospect is ready to buy. For
example, if a prospect starts discussing where the new equipment would fit in the plant system
they are inspecting, it should give the sales agent a signal to attempt to close the sale. Effective
closing techniques might be that the salesclerk can ask the prospect directly or propose
alternative purchases or the salesperson may do something that implies the sale has been
completed, such as walking toward a cash register. This forces the prospect to say no if they do
not want to complete the sale.
The Follow-Up.
After-sale activities are very important in determining whether a customer will buy again later.
After the prospect agrees to buy, the salesperson should complete the order processing quickly
and efficiently and reassure the customer about the purchase decision. Later, the salesperson
should check with the customer to determine whether the good or service is satisfactory. Many
firms employ telemarketers to conduct post-sale activities. Telemarketing is a personal selling
approach conducted entirely by telephone. Telemarketers employed by the Apple Bank for
Savings in New York make follow up calls to customers to measure their reaction to the bank's
services. Telemarketers also perform other functions in the sales process.
25. While designing the marketing programs of brand equity, income approach and customer
mindset play a significant role explain how?
Ans. Income approach
The third approach to determining the value of a brand argues that brand equity is the discounted
future cash flow from the future earnings stream for the brand. Three such income approaches
are:

1) Capitalizing royalty earnings from a brand name (when these can be defined);
2) Capitalizing the premium profits which are earned by a branded product (by comparing its
performance with that of an unbranded product);
3) Capitalizing the actual profitability of a brand after allowing for the costs of maintaining it and
the effects of taxation.
Inter brand methodology
Inter brand follows a methodology that is largely based on an income approach. According to
Inter brand, to capture the complex value creation of a brand, the following five valuation steps
brand should be performed :
1. Market Segmentation Split the consumer market for the brand into non-overlapping and
homogenous groups of consumers according to applicable criteria such as product or service,
distribution channels, consumption patterns, purchase sophistication, geography, existing and
new customers, etc. The brand is valued in each segment and the sum of the segment valuations
constitutes the total value of the brand.
2. Financial Analysis - Identify and forecast revenues and earnings from intangibles generated
by the brand for each of the distinct segments determined in step 1. Intangible Earnings are
defined as: Branded revenues less operating costs, applicable taxes and a charge for the capital
employed. The concept is similar to the notion of economic profit.
3. Demand Analysis - Assess the role that the brand plays in driving demand for products and
services in the markets in which it operates. The proportion of Intangible Earnings attributable to
the brand is measured by an indicator referred to as the Role of Branding Index by first
identifying the various drivers of demand for the branded business, then determining the degree
to which each driver is directly influenced by the brand. The Role of Branding represents the
percentage of Intangible Earnings that are generated by the brand. Brand Earnings are derived by
multiplying the Role of Branding by Intangible Earnings.
4. Competitive Benchmarking Determine the competitive strengths and weaknesses of the
brand. A specific Brand Discount Rate that reflects the risk profile of its expected future earnings
is derived via a Brand Strength Score. This measure comprises extensive competitive
benchmarking and a structured evaluation of the brands market, stability, leadership position,
growth trend, support, geographic footprint and legal protect ability.
5. Brand Value Calculation Calculate the Brand Value as the net present value (NPV) of the
forecast Brand Earnings, discounted by the Brand Discount Rate. The NPV calculation
comprises both the forecast period and the period beyond, reflecting the ability of brands to
continue generating future earnings.

Customer Mindset
The marketing activity associated with the program then impacts the customer mindset with
respect to the brand what they know, think, and feel about the brand. Essentially, the issue is, in
what ways have customers been changed as a result of the marketing program? How have those
changes manifested themselves in the customer mindset? The customer mindset includes
everything that exists in the minds of customers with respect to a brand thoughts, feelings,
experiences, images, perceptions, beliefs, attitudes, etc as outlined above in terms of sources of
brand equity. To capture differences in brand knowledge structures, a number of hierarchy of
effects models have been put forth by consumer researchers through the years (e.g., AIDA, for
Awareness-Interest-Desire-Action). Customer mindset or knowledge can be largely captured by
five dimensions that have emerged from prior research that form a hierarchy or chain, from
bottom to top as follows:
1) Brand awareness, i.e., the extent and ease to which customers recall and recognize the brand
and can identify the products and services with which it is associated.
2) Brand associations, i.e., the strength, favorability, and uniqueness of perceived attributes and
benefits for the brand, encompassing tangible and intangible product or service considerations.
3) Brand attitudes, i.e., overall evaluations of the brand in terms of its quality and the
satisfaction it generates.
4) Brand attachment, i.e., how loyal the customer feels toward the brand.
5) Brand activity, i.e., the extent to which customers purchase and use the brand, talk to others
about the brand, seek out brand information, promotions, and events, and so on. There is an
obvious hierarchy in the dimensions of value: Awareness supports associations, which drives
attitudes that lead to attachment and activity. Brand value is created at this stage when customers
have:
1) a high level of awareness;
2) Strong, favorable and unique brand associations;
3) Positive brand attitudes;
4) Intense brand attachment and loyalty; and
5) A high degree of brand activity.