CMA Brand Management & Positioning Flashcards

What is 'brand equity'?

Answer: The added value a brand name gives to a product beyond its functional benefits

Brand equity represents the premium value a brand adds to a product due to consumer perceptions, associations, and loyalty, above and beyond the product's functional value.

David Aaker's Brand Equity Model identifies which five components of brand equity?

Answer: Brand Loyalty, Brand Awareness, Perceived Quality, Brand Associations, Other Proprietary Assets

Aaker's model defines brand equity through brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary brand assets like patents and trademarks.

A 'brand extension' strategy involves:

Answer: Using an established brand name to launch a product in a new category

Brand extension leverages the equity of an established brand by applying it to a product in a new category, reducing launch risk by borrowing existing brand recognition.

What is a 'brand promise'?

Answer: The value and experience a brand commits to consistently deliver to its customers

A brand promise is the commitment a brand makes to its customers about what they can consistently expect from every interaction with the brand.

Which branding architecture strategy uses individual brand names for each product rather than a single corporate brand?

Answer: House of Brands

A House of Brands strategy (used by Procter & Gamble) maintains separate brand identities for each product, insulating the parent company from any single brand's failures.

Brand 'repositioning' is most commonly needed when:

Answer: Consumer perceptions have shifted, new competitors have emerged, or the brand is declining in relevance

Repositioning changes how a brand is perceived in consumers' minds, typically in response to market changes, competitive pressure, declining sales, or shifts in target audience.