HOMEWORK

C. Discuss these questions.

1. What are the advantages and disadvantages for companies of product
endorsements?
- Advantages:
+ Products endorsement will help the brand be able to stand out.
+ It also help to build brand equity.
+ It create higher retention rate for future customers.
+ It can help a comapany recover its image.
- Disadvantages:
+ Some celebrity personal scandals can affect the brand causing trust issues with
customers.
+The Celebrity May Overshadow the Product : the audience may get carried away
and forget the main thing, which is the product, and focus only on the celebrity.
2. How can companies create brand loyalty?
The companies can engage with the customers, connecting with them, understand
their needs will help companies to create belonging and community. Besides,
companies can use loyalty programs to get those customers out of a continuous
flash sale loop, attract them to your website and make sure your brand is
consistent.
3. Can you give any examples of successful or unsuccessful brand stretching?
 Successful brand streching: The first one comes to my mind is Kitkat which has
successfully introduced in Japan, all sort of sizes, flavours or services.
4. Think of a cheap or expensive idea for a product launch.
 Cheap ideas for a product launch:
+ Host a give away online
+ Create a Teaser Campaign on social media as Instagram, Facebook, etc because
they are free.
+ Focus more on people, not a product.
+ Influencer marketing.
+ Allowing customers to pre-order your product.
5. What other market segments can you identify (e.g. young singles)
Some market segments that I can identify: rich people, double income no kids
(young married with no children), professional, enthusiasts, luxury- seekers,
traditionalists, Male, Female, older living alone, Older married with children,
student, unemployment and etc.
6. What action can companies take if they start to lose market share?
 Cut prices, updating their product offer, embrace flexibility, market to smallers
group, engaging with customers with something special and promoting their brand.

VIDEO’S TERMS:
- Brand equity: is the level of sway a brand name has in the minds of consumers,
and the value of having a brand that is identifiable and well thought of
- Differentiation: is the way companies show that their brands or products are
different from those of their competitors.
- Brand management: is a function of marketing that uses techniques to increase
the perceived value of a product line or brand over time.
- Brand streching: is when a company uses one of its established brand names on
a new product or new product category.
- Brand loyalty: When customers consistently choose one brand over another,
they are showing brand loyalty.
- Brand strategy: is a long- term marketing plan for a brand. All members of an
organization are involved with implementing this strategy.
- Market segment: is a group of customers that tends to share values, needs, and
purchasing habits. Companies often direct their advertising toward particular
market segments.
- Rebranding: is the process of changing or upgrading the image of a company or
product. The aim is to make the new image more attractive to consumers.
- Co- branding: is a branding strategy that utilizes two or more company (brands)
to promote or produce one product.
- Niche marketing: is a segment of a larger market that can be defined by its own
unique needs, preferences, or identity that makes it different from the market at
large.
- Positioning: is the “place” a brand holds in the consumer’s view, in comparison
to other brands.