Week 1 MKT Discussion

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Chapter 2 Brand Management CHAPTER OBJECTIVES Students should be able to answer the following questions: 2.1 How does a brand’s image affect consumers, other businesses, and the company

itself? 2.2 What are the different types of brands and brand names? 2.3 What are the characteristics of effective logos? 2.4 What elements are involved in identifying, creating, rejuvenating, or changing a

brand’s image? 2.5 How are brands developed, built, and sustained in order to build brand equity and

fend off perceptions of brand parity? 2.6 What current trends affect private brands? 2.7 How can packaging and labels support an IMC program—domestically and in

foreign settings? 2.8 How are brands managed in international markets?

OVERVIEW

One of the most critical ingredients in the successful development of an integrated marketing communications plan is effective management of an organization’s image. Domino’s Brand Image Overhaul

Domino’s marketing team identified a trend in which more customers were picking up pizzas rather than having them delivered. In response, some stores added big screen TVs, improved seating for those waiting to pick up orders, and established places where people could watch their pizza or carry-out items being put together. The approach somewhat resembles what occurs in Subway stores.

To accentuate these new methods of operation, the company’s name was also changed from Domino’s Pizza to simply Domino’s. The brand name change and product line alterations were orchestrated with the firm’s integrated marketing communications program, including advertising and social media. Questions for Students: 1. What do you think of when you hear “Domino’s”? 2. Compare your image of Domino’s to other pizza chains. 3. Do you believe the changes will make a difference? The first part of this chapter examines the activities involved in managing a corporation’s brand image, including its name and logo. The second part addresses ways to develop and promote the various forms of brand names. Brand equity and brand parity are described. Finally, packages and labels, which should be included in any marketing communications program, are assessed. Ethical and international considerations are noted. Objective 2.1: How does a brand’s image affect consumers, other businesses, and

the company itself? Corporate and Brand Image A brand is the word, term, or phrase featured as the name of a product, product line, or company. A corporation’s brand image reflects the feelings consumers and businesses have about the overall organization as well as its individual products or product lines. Consumer beliefs about a firm are more important than how company officials perceive the image. Components of Brand Image A corporate image contains invisible and intangible elements (see Figure 2.1). The components of a corporate image include the following:

• Products • Personnel

• Retail outlets • Servicing • Advertisements • Publicity • Interactions with employees

Negative publicity has the potential to stain or damage consumer perceptions of a corporation’s image. Question for Students: What organizations can you think of that experienced damage

to their images in the past five years? What caused the damage? (The BP oil spill is an example.)

The Role of Brand Image—Consumer Perspective From a consumer’s perspective, the corporate image serves several useful functions (see Figure 2.2). These include

• Assurance regarding purchase decisions of familiar products in unfamiliar settings

• Assurance concerning purchases where there is little previous experience • Reduction of search time in purchase decisions • Psychological reinforcement and social acceptance

The Role of Brand Image—Business-to-Business Perspective Corporate image is a crucial element of the business-to-business marketplace. Figure 2.3 identifies 10 top brands. Making purchases from a well-known company is in many ways the same process as consumer purchases, in terms of the advantages of a strong and positive image. Corporate image is especially important when expanding internationally. The Role of Brand Image—Company Perspective Figure 2.4 lists benefits of brands to individual companies. These include

• Extension of positive consumer feelings to new products • The ability to charge a higher price or fee • Consumer loyalty leading to more frequent purchases

• Positive word-of-mouth endorsements • The ability to attract quality employees • More favorable ratings by financial observers and analysts

Objective 2.2 What are the different types of brands and brand names?

Brand Names and Brand Types A corporate name is the overall banner under which all other operations occur. Figure 2.5 lists the categories of brand names.

• Overt names reveal what the company does (American Airlines, BMW Motorcycles). • Implied names imply what the company is about (FedEx, IBM). • Conceptual names imply the essence of the brand (Google, Krispy Kreme). • Iconoclastic names do not reflect the company’s goods or services (Apple,

Monster.com). Question for Students: Can you provide additional examples of each of these types of names? Figure 2.6 provides backgrounds for some well-known company names. Brands develop histories. They have personalities. They include strengths, weaknesses, and flaws. Figure 2.7 identifies several types of brands. Family Brands A family brand means a company offers a series or group of products under one brand, such as Campbell’s. The advantage of a family brand is that consumers usually transfer the image associated with the brand name to any new products added to current lines. Brand Extensions Brand extension is the use of an established brand name on goods or services that are not related to the core brand.

Black & Decker has been successful in extending its brand name to new types of power tools. The company was not as successful in extending the line to small kitchen appliances. Flanker Brands A flanker brand is the development of a new brand by a company in a good or service category it currently has as a brand offering. Flanker brands can help a company offer a more complete line of products, creating barriers to entry for competing firms. Figure 2.8 lists select brands offered by Procter & Gamble. Co-Branding Co-branding, or alliance branding, can take three forms, as shown in Figure 2.9.

1. Ingredient branding—is the placement of one brand within another brand. 2. Cooperative branding—a joint venture of two or more brands into a new

product or service. 3. Complementary branding—is the marketing of two brands together to encourage

co-consumption or co-purchases. Co-branding succeeds when it builds the brand equity of both brands. Recently, Wholly Guacamole developed a brand alliance with Sonic. NutraSweet has co-branded with Diet Coke. There can be risks in co-branding. If the relationship fails to do well in the marketplace, both brands normally suffer. Objective 2.3: What are the characteristics of effective logos?

Brand Logos A brand logo is a symbol used to identify a company and its brands, helping to convey the corporate image. Quality logos and corporate names should pass four tests, as shown in Figure 2.10.

1. They should be easily recognizable. 2. They should be familiar. 3. They should elicit a consensual meaning among those in the firm’s target

market. 4. They should evoke positive feelings.

Figure 2.11 identifies some of the oldest logos. Logos are especially important for in-store shopping. To be advantageous, the logo should help with two things:

1. Consumers must remember seeing the logo in the past. 2. The logo must remind consumers of the brand or corporate name.

The notion that a logo can elicit a consensual meaning among customers is known as stimulus codability. A logo does not have to be complex and contain every element of the brand’s meaning. Simple logos can be effective, such as the Nike Swoosh. Changing logos does not always modify public opinion of a company. When completed properly, logo changes can trigger positive reactions and symbolize a positive change, such as when Pepsi developed a new logo. Tips for creating or changing logos are provided in Figure 2.12. Question for Students: Companies at times choose to modify the logo. Can you think of some examples? Objective 2.4: What elements are involved in identifying, creating, rejuvenating,

or changing a brand’s image? Identifying the Desired Brand Image To promote the desired image, the marketing team should evaluate the nature of the company’s current image. Then future communications can be tailored to promote the proper image. Company leaders first study the firm’s image and identify how it is connected to a company’s strengths and weaknesses. The marketing team should try to discover how those outside of a company view the brand. Once the team understands how the brand is viewed, decisions can be made regarding ways to correct any misperceptions or build on the image that customers currently hold.

Creating the Right Brand Image In each industry, the right image is one that reaches all target markets and conveys a clear message regarding the unique nature of the organization and its products. A strong image accurately portrays what the firm sells. In a business-to-business operation, creating the right image can be challenging. Rejuvenating a Brand’s Image Reinforcing or rejuvenating a current image that is consistent with the view of consumers is easier to accomplish than changing a well-established image. Figure 2.13 lists four keys to image rejuvenation. The key to successful image reengineering is to remain consistent with a previous image while at the same time building to incorporate new elements to expand the firm’s target audience. Rejuvenating an image helps a firm sell new products and can attract new customers. L’Eggs provides an example of an effective brand rejuvenation effort. Changing a Brand’s Image Completely changing the image people hold regarding a company or a brand may not be possible. Attempting to change an image becomes necessary when target markets have begun to shrink or disappear, or the brand’s image no longer matches industry trends and consumer expectations. At that point, company leaders must consider what they wish to change, why, and how they intend to accomplish it. Target sought to change its image to become accepted by readers of Vogue magazine.

Learning Objective 2-5: How are brands developed, built, and sustained in order to build brand equity and fend off perceptions of brand parity? Developing and Building Powerful Brands Developing a strong brand begins with discovering why consumers buy a brand and why they repurchase the brand. Questions to be asked include the following: • Where does your brand stand now?

• What are your objectives?

• What are you doing to build your brand and business?

• What are your brand’s strengths? Weaknesses?

• Which opportunities should be pursued first? Where are the pitfalls?i

The goal of branding is to set a product apart from its competitors. One primary feature that keeps a brand strong is that it contains something that is salient to customers. Figure 2.14 identifies the ingredients required to build powerful brands. Branding begins with awareness, which may be achieved by featuring the brand name prominently in repeated advertisements. Brands should be authentic or unique in some manner. Business and retail customers trust powerful brands. Trust represents the customer’s belief in the efficacy and reliability of the brand. Powerful brands go beyond delivering functional features. They focus on providing an experience that involves the opportunity to be to customized and personalized. Building powerful brands requires the effective use of social media and mobile advertising. The final ingredient of powerful brands results when the company acts responsibly. Brand Loyalty Brand loyalty means customers purchase only one brand. They consider no other brand, regardless of price differences.

The Brand Keys Customer Loyalty Engagement Index (CLEI) suggests that emotion and value are the core drivers of brand loyalty, rather than rational thought based on functional product attributes. Figure 2.16 identifies some of the top brands in select categories, in terms of engagement. Brand Equity Brand equity is the perception that a good or service with a given brand name is different and better. Brand equity allows the company the opportunity to charge a higher price and retain a market share that is greater than would otherwise be expected for an undifferentiated product. Brand parity is the perception that there are no tangible differences between competing brands. In business-to-business markets, brand equity often allows a company to charge a higher price. Brand equity is a strong weapon that might dissuade consumers from looking for a cheaper product or for special deals or incentives to purchase another brand. Brand name recognition and recall can be built through repetitious advertising. Measuring Brand Equity Marketers have developed four different methods to measure brand equity (see Figure 2.17). Brand equity based on financial value estimates the future cash flows of a brand based on its unique strength and characteristics, which will then be discounted to determine a net present value. The stock market approach means the financial value of the company is determined through stock valuation. Then an estimate of the portion of the value allocated to brand equity and not physical assets is made. The revenue premium compares a branded product to the same product without a brand name. The consumer value attempts to measure the value of a brand based on input from consumers. Typical measures include familiarity, quality, purchase considerations, customer satisfaction, and willingness to seek out the brand. Figure 2.18 identifies the top 10 most loved brands.

Objective 2-6: What current trends affect private brands?

Private Brands Private brands, private labels, and store brands are proprietary brands marketed by an organization and normally distributed exclusively within the organization’s outlets. Advantages to Retailers Several changes have occurred in the private brand arena, summarized in Figure 2.16:

• Quality levels of private label brands have improved. • Many brands are perceived as a value purchase. • Loyalty toward stores has been gaining although loyalty toward individual

brands has been declining, giving an advantage to private labels. • Private labels are used to differentiate retail outlets. • Many firms are now advertising company private brands. • There is increase in the quality of in-store displays for and packaging of private

labels. Responses from Manufacturers

Some manufacturers have begun to respond to the inroads made by private labels. Figure 2.20 lists some of the tactics used by manufacturers, including

• Focus on a few core brands • Advertise heavily • Expanding product offerings • Focus on in-store selling • Use alternative marketing methods

Objective 2-7: How can packaging and labels support an IMC program—

domestically and in foreign settings? Packaging A unique package and label can help sell a product, build brand recognition, and inspire repeat purchases. The primary purposes of packages are displayed in Figure 2.21. An example advantage created by packaging is the new form of refrigerator-friendly 12 packs, as created by Alcoa Rigid Packaging.

Sometimes packaging changes are necessitated by adverse market conditions. The popularity of Proctor & Gamble’s Tide Pods surged as soon as it hit the market because of ease of use; however, the company had to overcome the problem of children thinking the pods were candy, so the package was modified. Labels Labels must

• Meet legal requirements. • Point out distinguishing features of the product. • Help lead to the purchase.

The label represents another marketing opportunity. A company’s image, brand, logo, and theme should extend to the design of the package and label. The placement of QR codes for consumers to access with mobile devices represents a new trend in packaging and labeling. Ethical Issues in Brand Management Brand infringement occurs when a company creates a brand name that closely resembles a popular or successful brand (Korrs, Victor’s Secret). Domain squatting or cyber squatting means buying a domain name with the purpose of making a profit by reselling it to the firm. Objective 2-8: How are brands managed in international markets? International Implications Carefully consider standardization versus adaptation when developing global brands. Make sure packages and labels are legal and protect the product being shipped over long distances. Be aware of the complications that occur when trying to position products in global markets. The label must meet the legal requirements of the country in which the product is sold.

MyMarketingLab

Go to mymktlab.com to complete the problems marked with this icon .

Note to Professors: The MyLab feature at Pearson will grant you access to the Integrated Campaigns in Action within the Instructor’s Resource section. The authors’ blog for professors and students may be found at http://blogclowbaack.net/. Both methods contain actual print materials produced for the campaign. Broadcasts material such as video ads, TV ads, and radio ads are embedded using YouTube and Pearson servers. These features bring to life the exciting process of building integrated advertising and marketing campaigns. Most important, you will have access to insights and background information from the agencies and the companies involved in how the campaigns were created. IMPLICATIONS FOR BRAND MANAGERS AND PUBLICITY DEPARTMENTS (Note to professors— these materials are not in the text. They provide a method for you to summarize the chapter in a different way) Note the tricky relationship between a strong corporate image and bottom-line profits. In other words, be aware that it is difficult to use numbers to express the value of an effective image in an era where accountability is such a major concern. Recognize the value of the following items:

• An identifiable company logo • A brand name that generates both recall and a favorable impression • Quality family brands • Brand equity • Effective use of private labels

Study the company’s position and the position of each individual product. Use the attributes of price, competition, use, quality, users, product class, or cultural symbols to identify the position that the company and its products hold. Then, make decisions about the following issues:

• Is this position where we thought we were? • Is this the position we want? • If we intend to change our position, where do we aspire to be? • Which tactics will move the company and its products to the correct,

appropriate, or desired position?

REVIEW QUESTIONS 2-1. Describe the concept of brand image. What are the tangible aspects of a brand

image? What are the intangible aspects?

Corporate image is how consumers view a company, which has many intangible and tangible aspects. The tangible aspects include • Goods and services sold • Retail outlets where product is sold • Factories where product is produced • Advertising, promotions, and other forms of communications • Corporate name and logo • Employees

Intangible elements include the firm’s reputation for quality, standing behind products, and methods of dealing with customers. 2-2. How does brand image help customers? How does it help the specific

company? A corporation’s image can help customers by

• Providing assurance when they make purchase decisions of familiar products in unfamiliar settings

• Providing assurance for purchases when there is little previous experience • Reducing search time in purchase decisions • Providing psychological reinforcement and social acceptance of purchase

decisions A corporation’s image helps the company by

• Making brand extensions easier • Being able to charge a higher price • Creating higher customer loyalty • Leading to more frequent purchases

• Promoting positive word-of-mouth communications • Attracting quality employees • Causing the firm to be viewed more favorably by financial analysts

2-3. Describe the use of brand extension and flanker brand strategies.

Brand extensions appear when the company uses an established brand name on goods or services that are not related to the core brand. Flanker brand strategies are the development of a new brand by a company in a good or service category it currently has a brand offering for.

2-4. Identify and describe three types of co-brands or alliance branding. The three types of co-brands are

1. Ingredient branding, or placement of one brand within another brand 2. Cooperative branding, which is a joint venture of two or more brands into a new

product or service 3. Complementary branding, which is the marketing of two brands together to

encourage co-consumption or co-purchases 2-5. What is a brand logo? What are the characteristics of an effective corporate

logo?

A corporate logo is something (usually a symbol) that is easily recognizable to consumers. The characteristics of a corporate logo are that it should be easily recognizable, familiar, elicit consensual meaning among those in the firm’s target market, and should evoke positive feelings.

2-6. What is meant by the term “stimulus codability?”

Stimulus codability means that a logo can elicit a consensual meaning among customers.

2-7. How will company leaders know that they have created the desired image for

their firm?

Student answers will vary based on their personal response. Refer to the MyLab for an opportunity to assign this question, and all starred MyLab questions, to a student discussion board. A firm will know the marketing team has created the right image for the firm when benefits appear, such as attracting more customers, favorable ratings by financial observers and analysts, and the company attracts quality employees.

2-8. What four areas require attention when seeking to rejuvenate a firm’s image?

First, former customers need to rediscover the brand. Second, older and newer consumers need to be connected to the brand through a timeless value it offers. Third the brand should be contemporized. Fourth, marketers can build a brand community through social media, mobile, and other interactive marketing techniques.

2-9. What are the characteristics of a strong and effective brand name?

The characteristics of a strong and effective brand name are that it is easily recognizable to consumers and that consumers have a positive reaction to the brand name.

2-10. Explain the role of trust in creating a strong brand. Trust represents the customer’s belief in the efficacy and reliability of the brand. It can be established over time through personal experiences. Trust results from a brand performing consistently and fulfilling its promise, its authenticity, and its uniqueness. 2-11. What is the difference between brand equity and brand parity?

Brand equity is the set of characteristics unique to a brand that provide value to the brand. In essence, the brand is different and better. Brand equity allows the company the opportunity to charge a higher price and retain a market share that is greater than would otherwise be expected for an undifferentiated product. Brand parity is the perception that there are no differences between major brands.

2-12. What methods can be used to measure brand equity?

Brand equity based on financial value estimates the future cash flows of a brand

based on its unique strength and characteristics, which will then be discounted to determine a net present value.

With the stock market approach, the financial value of the company is determined

through stock valuation. The revenue premium compares a branded product to the same product without a

brand name.

The consumer value method attempts to measure the value of a brand based on input from consumers. Typical measures include familiarity, quality, purchase considerations, customer satisfaction, and willingness to seek out the brand.

2-13. How has private branding, or private labeling, changed in the past decade?

Student answers will vary based on their personal response. Refer to the MyLab for an opportunity to assign this question, and all starred MyLab questions, to a student discussion board. Private branding, or private labeling, has changed in the past decade in the following ways: the quality levels of products have increased; the products are perceived as having high value; loyalty to stores has increased, allowing store managers to increase in-store or private lines; they can be used to differentiate retail outlets; private label companies have begun to advertise these differences; and store managers now devote more effort to creating quality in-store displays of and packages for private brands.

2-14. What role does a product’s package play in the marketing program?

The package is the last chance to make an impression on a customer. It should protect the contents, stand out, and tell the consumer what is inside.

2-15. How can a label support an IMC program or advertising campaign?

Labels must meet legal requirements and be distinguishable to consumers. Labels can refer to features of advertisements and other IMC efforts. They should match the theme of the IMC campaign.

2-16. What ethical issues are associated with brand management? There are concerns with brand infringement and with domain or cyber squatting. 2-17. How do the concepts of standardization and adaptation apply to branding

strategies? Marketing managers must choose the strategy that fits the company and its products. There has been some resistance to more global or standardized brand names.

CRITICAL THINKING EXERCISES 2-18 Ashley Drake just purchased a small clothing boutique two blocks from your

campus. The current name of the store is College Fashions. She feels she needs a new name that projects an image of offering trendy, hip fashions to your college’s students. What name would you suggest? Discuss your brand name in terms of which category it fits and the four tests of quality names. To succeed, Ashley knows she needs to retain the store’s current customers as well as gain new ones. Outline a plan to rejuvenate the company’s brand image using the keys to image rejuvenation identified in Figure 2.5.

The brand name is overt name. It passes the four tests.

1. It is recognizable. 2. It is familiar. 3. It should elicit a consensual meaning among those in the firm’s target market. 4. It can evoke positive feelings.

The new plan should create a new experience for buyers. It really cannot rely on past

relationships, because the company is new. It should be authentic.

Student answers will vary based on their personal response. Refer to the MyLab for an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

2-19 Henry and Becky Thompson are planning to open a new floral and gift shop in

Orlando, Florida. They want to project a trendy, upscale, and fashionable image. They are trying to decide on a name and logo. What should be the name of the company? What kind of logo should be developed?

Student answers will vary based on their personal response. Refer to the MyLab for an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

2-20. Brand image affects purchase decisions. Identify two brands you consider to

hold a positive image, and explain why. Identify two brands that you believe should either change or rejuvenate their brand images, and explain why. How can the change or rejuvenation be accomplished for each brand?

Student responses will vary by brands chosen. This should be a good question for in-class discussion. 2-21. Identify a brand that you have recently purchased that is not well- known, but you like. Using the concepts presented in the “Building Powerful

Brands” section of this chapter, discuss how the brand you identified can be built into a powerful brand. Be specific.

Student answers will vary. Student answers will vary based on their personal response. Refer to the MyLab for

an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

2-22. Identify five different brands for which you have a high level of brand loyalty. Describe your level of loyalty and discuss why you are loyal. Explain how brand equity impacts your loyalty for each brand. Student answers will depend on brands chosen. 2-23. Pick a private label that you have recently purchased. What is your evaluation of the private brand quality compared to national brands? The chapter discussed a number of changes in private label branding that has occurred (see Figure 2.19). Discuss each of these changes in relation to the private brand you picked. Student answers will depend on the brand chosen. Student answers will vary based on their personal response. Refer to the MyLab for

an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

2-24. Look through your cupboard and locate three packages that you believe are

effective. Describe why they are effective. Choose three labels that are effective at capturing attention. What are the attention-getting aspects of each label?

Student answers will depend on the packages they choose. INTEGRATED LEARNING EXERCISES 2-25. Websites constitute an essential element of a brand’s image. Access the websites

of the following brands to get a feel for the image each brand tries to project. Locate on YouTube an advertisement for each brand (supply the URL in your response). Is the image projected on the website consistent with the YouTube advertisement and the image portrayed in the other advertisements for the brand?

a. Sonic (www.sonicdrivein.com)

b. Skechers (www.skechers.com) c. Clinique (www.clinique.com) d. Maxwell House Coffee (www.maxwellhousecoffee.com)

Student opinions will vary. This can be a good in-class discussion question, especially if the sites can be posted for students to see.

2-26. A leading consulting firm that has been a leader in extending marketing

knowledge and in the area of brand development is the Boston Consulting Group. Other companies who have been actively involved in brand development are Lexicon Branding and Corporate Branding. Access each firm’s websites. Describe the services provided by each firm.

a. Boston Consulting Group (www.bcg.com) b. Lexicon Branding, Inc. (www.lexicon-branding.com) c. Tenet Partners (www.tenetpartners.com) d. Brand Keys (www.brandkeys.com)

BCG lists branding, consumers, corporate development, deconstruction, diversity,

e-commerce, energy, financial services, globalization, health care, industrial good, information technology, operations, organization, pricing, retail, strategy, technology & communications, and travel & tourism.

Lexicon lists technology, automotive, and “pharma.”

Tenet Partners offers research and analytics, brand strategy assistance, design assistance, and digital marketing activities. Brand Keys describes itself as, “The World Leader in Customer Loyalty and Engagement Metrics.”

2-27. Brand extension and flanker branding are common strategies for large

corporations. Access the following websites. Identify the various brand extension strategies and flanker brands used by each company.

a. Procter & Gamble (www.pg.com) b. VF Corporation (www.vfc.com) c. (www.generalmills.com)

P & G’s brands are noted in the chapter. In 2005, the company announced the acquisition of Gillette.

VF Corporation includes Wrangler, Lee, Vassarette, JanSport, and The North Face.

General Mills lists 14 brand categories and a wide variety of names.

2-28. Private labels provide a significant source of revenue for many retail stores

and manufacturers. The Private Label Manufacturers’ Association promotes manufacturers that produce private labels. Visit the organization’s website at www.plma.com. Access each item on the menu. Summarize the information provided for each item.

These will change as the site is updated. 2-29. Conduct an internet search for brand logos. Identify five logos that you think

are well designed. Screen-capture the logos and explain what you think makes each logo effective. Identify five logos that you think are poorly designed. Screen-caputrethem and explain why you think they are ineffective.

Answers will vary depending because websites tend to change on a regular basis. 2-30. Go to the authors’ website at clowbaack.net/video/ads.html. Watch a television

ad for each of the medical institutions: DuPage Medical Group, Terrebonne General Medical Center, and St. Francis Medical Center. For each of the TV ads, identify the primary message of the ad and the image conveyed by the TV ad. Be specific in describing each medical facility’s image. If you had to choose among the three for medical services, which would you choose? Why?

Student answers will depend on the advertisements they choose.

2-31. Go to the authors’ website at clowbaack.net/video/ ads.html. Watch a television ad for each of the financial banking institutions: JD Bank, Ouachita Independent Bank, Progressive Bank, and Centric Federal Credit Union. For each of the TV ads, identify the primary message of the ad and the image conveyed by the ad. Be specific in describing each financial institution’s image. If you had to choose among the four for banking services, which would you choose? Why?

Student answers will depend on the advertisements they choose.

BLOG EXERCISES Access the authors’ blog for this textbook at the URLs provided to complete these exercises. Answer the questions that are posed on the blog. 2-32. Kenmore, Craftsman, and Diehard: http://blogclowbaack.net/2014/05/07/private-

brands-sears-chapter-2/ 2-33. Target: http://blogclowbaack.net/2014/05/07/target-chapter-2/ 2-34. Branding: http://blogclowbaack.net/2014/05/07/branding-chapter-2/

These exercises provide you with an additional tool to engage your students. Student Project: Creative Corner The assignment is to develop a brand name, package, and label for a variety of products, including the following: a. A new brand of skis for recreational boating b. A new line of eyeglasses c. A new chocolate candy bar d. A new line of jeans e. A new energy drink f. A new perfume or cologne Individual student answers will vary widely. Cases Case 1 Product Names 2-35. What type of product name is VitaMints? MultiGummies? Do you think such names will succeed? Why or why not? The names are descriptive of contents. Student perceptions of their potential for success will vary. 2-36. Should the Centrum brand be emphasized in marketing VitaMints, or should the product name stand alone in the promotional program? Defend your answer. The Centrum brand is fairly strong and should probably be emphasized. 2-37. Do you think marketing messages for VitaMints and Centrum MultiGummies should focus on the products themselves or make comparisons with other vitamin products, such as One a Day? Both approaches have value. Student answers will vary. 2-38. Design an advertising campaign for VitaMints or Centrum MultiGummies that will follow the introductory launch stage. Identify the product features and brand characteristics that should be emphasized to create brand equity and customer loyalty over time.

Student campaigns will vary. Characteristics might include being “better” in some way, more fun, easier to chew, and so forth. Case 2 Brand Alliances and Brand Resurrections 2-39. Provide an analysis of the brand alliances mentioned in this story. What

factors shape your perceptions of the brands involved? Student answers will vary. Factors that shape perceptions include past experiences with the companies involved, both positive and negative. 2-40. In each of the brand alliances, which of the two co-brands do you believe is

the more powerful name? What causes you to hold that perception? This can be a discussion question. Ideas about the more powerful brand will be based on consumer preferences, in this case, the students involved. 2-41. Can you think of any potential disadvantages of brand alliances? Explain

your answer. Negative publicity toward one of the co-brands could hurt the other. 2-42. Do you recall the names Datsun, Dodge Dart, or Taurus? What perceptions

do you have of those brands? Ask your parents what they think of those brand names. Are their answers different from yours?

Most students will not recall the names unless their parents owned one of the cars. 2-43. Describe what you believe are potential advantages and disadvantages of

brand resurrections. Potential advantages include being able to use nostalgia and recall to enhance the brand. Previous negative experiences could create a disadvantage, as could the belief that the brand is simply old or stale. MyMarketingLab Go to mymktlab.com for the answers to the following Assisted-graded writing questions:

2-44. Brand image affects purchase decisions. What brands do you consider to hold a positive image? Why? Which brands should attempt to change brand images? Why? Explain how to accomplish this task. Which brands do you believe need rejuvenation? How can it be accomplished for each brand?

2-45. Look up each of the following brands on the internet. Discuss the image conveyed by each brand’s website. What positioning strategy is used? Justify your selection. What changes or improvements could these brands make to their website to enhance its appeal? a. Canyon Beachwear (www.canyonbeachwear.com) b. Applebee’s (www.applebees.com)

Bonus Case

A HEALTHY IMAGE

Mary Wilson was both nervous and excited as she opened her first staff meeting in the

marketing department of St. Margaret’s General Hospital. Mary’s new role was director

of marketing and communications. Her primary task was to increase the visibility of St.

Margaret’s Hospital in order to raise the image of the institution in the eyes of the many

publics served. The long-term goal was to attract the best possible physicians while

increasing use of the hospital’s facilities and attracting more patients.

The world of health care changed dramatically in the past decade. Government

regulations and support, concerns about lawsuits, evolving and expensive technologies,

and changes in health insurance provisions affected hospitals of all sizes. In addition, St.

Margaret’s faces strong competition. The hospital’s primary location is in a major

metropolitan area in Minnesota. Two other large hospitals also offer comparable services

in the same city. Each seeks to sign physicians to exclusive contracts in which they will

only provide care with one organization.

The other significant challenge to St. Margaret’s is its proximity to the Mayo Clinic.

Clearly, Mayo holds the highest level of prestige in the state and even in the region. Most

physicians are inclined to think of Mayo first when making referrals for patients with

difficult medical problems. Mayo would be viewed by most publics as the “best” care

possible.

The key issues in the image of any health organization include developing trust and a

feeling of confidence in the quality of care that will be received. Beyond technological

advantages, other, more subtle elements of an image could have an influence. Mary noted

that the nurse plays a primary role in determining how patients view hospitals. An

uncaring and inattentive nurse is likely to drive away both the patient who encountered

the nurse and all of that patient’s family and friends. Negative word-of-mouth, Mary said,

must be held to an absolute minimum.

Mary believed St. Margaret’s needed to overcome two problems. First, the name

“Margaret” is not commonly used anymore. Some publics may view it as an “old-

fashioned” name. Second, there was nothing distinctive about the hospital’s image. The

overlap in services provided (heart care, cancer treatment) made it difficult to

differentiate St. Margaret’s from other providers.

If there was any advantage, Mary believed it was that St. Margaret’s was affiliated

with the Catholic Church. It was the only nonprofit hospital of the three major

competitors. This attracted both Catholic patients and some Catholic physicians. Also, the

hospital was able to utilize the services of a wide variety of volunteers.

As the marketing meeting opened, the agenda was to discuss all of the ways St.

Margaret’s could build its client base. The task would not be easy, but everyone in the

room believed the hospital offered high-quality services in a caring atmosphere.

A Healthy Image What are the image issues in this case? St. Margaret’s knows the hospital cannot be the “best.” The other problem is brand parity relative to the other hospitals in the city. What are the brand name issues? St. Margaret’s is viewed as an “old fashioned” name. What types of advertisements should Mary develop for St. Margaret’s Hospital? Ads that emphasize the organization’s advantages, including caring service, nonprofit status, and possibly the hospital’s Catholic heritage. What other types of activities could St. Margaret’s pursue to build a strong and positive corporate image? Health fairs and community service projects. Outreach programs for the homeless and those without health insurance.