MARKETING MANAGEMENT ASSIGNMENT 5

CREATING BRAND EQUITY

10/6/2013 IBA UNIVERSITY, KARACHI Raja Simab Khan/06652

Q1. The creation of significant brand equity involves reaching the top or pinnacle of the brand pyramid. What are the six components of the brand resonance pyramid? A1. The brand resonance period is a model used to measure the brand equity, it is a conceptual approach and its six main components are: Resonance Thinking Feeling Performance Imagery Salience

Q2. As a brand manager, you have recommended to your board of directors a corporate policy of umbrella branding. What are the advantages that your company might gain from this? A2. Before talking about the advantages of umbrella branding, we must know what it is. An umbrella brand (or family brand) is where a group of products possesses the same brand name. Different products having different images are put together under one major brand or parent brand and are marketed by the firm. Umbrella branding does not mean that the whole product portfolio of a firm will fall under one brand name as the company can go for different approaches of branding for different product lines.

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Some advantages that my corporation might gain from this methodology are: 1. Promotion is very cheap and easy for products falling under umbrella branding. This strategy is generally implemented by firms coming up with a new product. 2. For all the different products and services, advertising, promotion and Integrated Marketing Tools can be combined. 3. Also, launching of a new product under umbrella gains recognition easily as it is introduced in the market which has already accepted the brand image. However at the same time, there are some disadvantages to consider if my corporation is to follow this move: 1. If any one product under umbrella branding does not do well in the market then it can affect the overall brand. 2. Different brands in umbrella branding will have different qualities which will vary and thus it can be an obstacle for smooth functioning of brand as well as firm. 3. Also, if there is negative publicity for any product or even new product it can affect the other brands under umbrella branding.

Q3. There are a number of specific roles brands can play as part of a brand portfolio. List and briefly describe the four roles. Cite examples of each from the Pakistani market. A3. The roles that the brands play in the consumer market (while giving a benefit to the marketer) are: 1. NEW CUSTOMERS - Every product class has the potential to attract buyers who are unaware of the product or are resisting it because of price or lack of certain features. A company can search for new users among three groups: those who might use it but do not (market penetration strategy), those who have never used it (new-market segment strategy), or those who live elsewhere (geographical-expansion strategy). 2. MORE USAGE - Marketers can try to increase the amount, level, or frequency of consumption. They can sometimes boost the amount through packaging or product redesign. Larger package sizes increase the amount of product consumers use at one time. 3. PROTECTING MARKET SHARE - While trying to expand total market size, the dominant firm must actively defend its current business: Boeing against Airbus, Staples against Office Depot, and Google against Yahoo! and Microsoft. The most constructive response for the leader is continuous innovation. The front-runner should lead the industry in developing new products and customer services, distribution effectiveness, and cost cutting. Comprehensive solutions increase its competitive strength and value to customers. 4. INCREASING MARKET SHARE The way in much many companies try to innovate and improve existing products so as to increase their dominance in the market.

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