1) Distinguish between brand identity and brand image.

The customer-based brand equity (CBBE) model is a framework that emphasizes the importance of the
customer in building brand equity. The CBBE model is made up of two components: brand awareness and
brand image.
Brand Awareness
Brand awareness refers to the customer's ability to recall and recognize the brand under different
conditions. It consists of two parts:

 Depth of brand awareness: The likelihood that a brand element will come to mind.
 Breadth of brand awareness: The range of purchase and usage situations in which the brand
element comes to mind.
Brand Image
Brand image is the customer's perceptions about a brand, as reflected by the brand associations held in the
customer's memory. Brand associations are the informational nodes linked to the brand node in memory
and contain the meaning of the brand for consumers. Brand associations can be formed directly from the
customer's own experiences with the brand or indirectly through advertising or word of mouth.
2) Explain the concept of customer-based brand equity.

Customer-based brand equity (CBBE) is a concept that emphasizes the significance of the
customer's perception in building brand equity. It is defined as the differential effect that brand
knowledge has on consumer response to the marketing of that brand. In simpler terms, it means
that consumers react more favorably to a product and its marketing when the brand is recognized
than when it is not.

There are three key elements in this definition:

1. Differential effect: This means that brand equity arises from differences in consumer
response. If there are no differences, the product is essentially a commodity, and
competition would likely be based solely on price.
2. Brand knowledge: These differences in response are a result of what consumers have
learned, felt, seen, and heard about the brand over time. This knowledge is influenced by
marketing activities but ultimately resides in the minds and hearts of consumers.
3. Consumer response to marketing: This refers to how consumers' perceptions,
preferences, and behaviors related to all aspects of the brand's marketing are affected.
This could include their choice of the brand, their recall of advertising messages, their
response to sales promotions, and their evaluation of brand extensions.

The concept of CBBE is a strategic bridge for marketers, connecting past marketing investments
to future brand performance. It emphasizes that the power of a brand lies in what customers have
learned, felt, seen, and heard about the brand over time.
3) List and briefly characterize the six components of the brand resonance pyramid.

The brand resonance pyramid is a model that represents the steps involved in building a strong
brand. It consists of six components:

1. Brand Salience: This refers to the depth and breadth of brand awareness, or how easily
and often the brand is evoked under various situations or circumstances.
2. Brand Performance: This describes how well the product or service meets customers'
functional needs. It includes factors such as primary ingredients, supplementary features,
product reliability, durability, serviceability, service effectiveness, efficiency, empathy,
style, design, and price.
3. Brand Imagery: This refers to the intangible aspects of the brand, how people think
about a brand abstractly, rather than what they think the brand actually does. It includes
user profiles, purchase and usage situations, personality and values, history, heritage, and
experiences.
4. Brand Judgments: These are customers' personal opinions and evaluations of the brand,
which they form by putting together all the different performance and imagery
associations. Key types of brand judgments include quality, credibility, consideration,
and superiority.
5. Brand Feelings: These are customers' emotional responses and reactions to the brand.
Examples include warmth, fun, excitement, security, social approval, and self-respect.
6. Brand Resonance: This describes the nature of the relationship and the extent to which
customers feel they are "in sync" with the brand. It is characterized by intensity (the
depth of the psychological bond customers have with the brand) and activity (repeat
purchase rates and the extent to which customers seek out brand information, events, and
other loyal customers).

4) Distinguish between brand equity and brand valuation.

Brand Equity

Brand equity is a marketing term that describes the value and strength of a brand in the
marketplace. It is built over time through various marketing efforts and is reflected in the way
consumers think, feel, and act toward the brand. Brand equity is a multi-dimensional concept,
encompassing brand awareness, brand loyalty, perceived quality, brand associations, and other
proprietary brand assets. It is the added value a product accrues as a result of past investments in
the marketing of the brand.

Brand Valuation

Brand valuation is a financial concept that involves quantifying the monetary value of a brand. It
is the process of estimating the financial worth of a brand, considering factors like brand equity,
market share, profitability, and future growth potential. Brand valuation is often used in mergers
and acquisitions, brand licensing, fundraising, and brand portfolio decisions. It provides a
concrete financial figure that represents the brand's worth as an asset.
5) Explain the concept of brand knowledge.

Brand knowledge is a key concept in strategic brand management. It is defined as all the
thoughts, feelings, images, perceptions, beliefs, and attitudes that become linked to the brand in
the minds of consumers.

Brand knowledge has two components: brand awareness and brand image.

 Brand awareness is the customer's ability to recall or recognize the brand under different
conditions. It consists of brand recognition (being able to identify the brand given the
brand as a cue) and brand recall (being able to retrieve the brand from memory when
given the product category or a need the product can fulfill as a cue).
 Brand image is the perceptions about a brand as reflected by the brand associations held
in consumer memory. Brand associations are the other informational nodes linked to the
brand node in memory and contain the meaning of the brand for consumers.

The customer-based brand equity (CBBE) concept emphasizes that the power of a brand lies in
what resides in the minds and hearts of customers. Brand knowledge is the key to creating brand
equity because it creates the differential effect that drives brand equity.

6) With respect to positioning, explain points-of-parity and points-of difference.

 Points-of-difference (PODs) are attributes or benefits that consumers strongly associate

with a brand, positively evaluate, and believe that they could not find to the same extent
with a competitive brand. PODs are the attributes or benefits that make your brand
unique and superior to competitors. They provide a reason for consumers to choose your
brand over others. PODs can be functional, performance-related, or abstract and imagery-
related.
 Points-of-parity (POPs) are associations that are not necessarily unique to the brand but
may in fact be shared with other brands. POPs are associations that consumers view as
essential to a legitimate and credible offering within a certain product or service category.
In other words, they are the features that your brand must have to be considered a viable
option in the category. There are three types of POPs: category, competitive, and
correlational.
o Category POPs are associations consumers view as essential to a legitimate and
credible offering within a certain product or service category.
o Competitive POPs are associations designed to negate competitors' points-of-
difference.
o Correlational POPs are potentially negative associations that arise from the
existence of other, more positive associations for the brand.

A good brand positioning requires a balance of PODs and POPs. PODs give consumers a reason
to choose the brand, while POPs make the brand a viable competitor in the category.
7) Identifies four key components of a brand positioning statement? Give an example?

The four key components of a brand positioning statement are:

1. Target Market: The specific group of consumers the brand aims to serve.
2. Nature of Competition: The main competitors in the market and how the brand is similar
to them (points-of-parity).
3. Points-of-Difference: The unique attributes or benefits that differentiate the brand from
its competitors.
4. Brand Mantra: A short, three- to five-word phrase that captures the essence or spirit of
the brand positioning.

Example:

Target Market: Health-conscious individuals seeking a convenient and nutritious meal option.

Nature of Competition: Fast-food restaurants offering burgers and fries. Similar to them in terms
of convenience and price.

Points-of-Difference: Offers a variety of fresh, healthy salads and sandwiches made with high-
quality ingredients.

Brand Mantra: Eat Fresh.

8) What is brand association? What is secondary brand association? Take an example of each one.

Brand Association

Brand association is the other informational nodes linked to the brand node in memory and
contain the meaning of the brand for consumers. Associations come in all forms and may reflect
characteristics of the product or aspects independent of the product.

For example, if someone asked you what came to mind when you thought of Apple computers,
you might reply with associations such as "well-designed," "easy to use," or "leading-edge
technology." The associations that came to your mind make up your brand image for Apple.

Secondary Brand Association

Secondary brand associations are the associations to other entities linked to the brand. For
example, the brand may be linked to the company that makes the product, the country or other
geographic region of origin, the channels of distribution, other brands (through co-branding),
characters (through licensing), spokespeople (through endorsements), sporting or cultural events
(through sponsorship), or some other third-party sources (through awards or reviews).

For example, if a consumer knows that a product is made in Italy, they may infer that the product
is stylish and high quality. This is because Italy has a strong reputation for fashion and design.
9) List and briefly describe the four roles described in the text.
The four roles that brands play are:

1. Brand as Product: This is the most basic level, where the brand is simply a name or logo
that identifies a product or service.
2. Brand as Organization: At this level, the brand represents the organization behind the
product or service. This includes the company's values, culture, and reputation.
3. Brand as Person: This is where the brand takes on human characteristics, such as
personality traits and values.
4. Brand as Symbol: At this level, the brand becomes a symbol of something larger than
itself, such as a lifestyle, a social movement, or a cultural phenomenon.

These four roles are not mutually exclusive, and a strong brand will often encompass all of them
to some degree.

10) Identify and define the two general categories into which brand extensions fall.

The two general categories of brand extensions are:

1. Line Extension: This is when a company introduces a new product within a product
category it already serves. The new product is often a variation of an existing product,
such as a new flavor, size, or form.
2. Category Extension: This is when a company introduces a new product in a different
product category from the one it currently serves.

11) When a firm introduces a new product, it has three main choices. What are those choices?

When a firm introduces a new product, it has three main choices for branding it:

1. It can develop a new brand, individually chosen for the new product.
2. It can apply one of its existing brands.
3. It can use a combination of a new brand and an existing brand.