Topic: Branding 115. (p. 211- 213) Believe it or not, Walmart's first designer label clothing brand was called George. Few Americans know the George brand but in Britain it is well regarded and sold in stand-alone George stores. What would be the benefits to Walmart if the George brand of clothing became recognized and desired in the United States? The benefits to Walmart would likely include: - Facilitating purchasing if consumers recognized and perceived it as a quality brand. - Increased consumer loyalty if consumers trust the brand. - Some protection from competition if consumers seek out the brand. - Reduced marketing costs if consumers become familiar with the brand. - Asset value and profit if George became a valued brand, creating the possibility of brand extension too. AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Identify the advantages that brands provide firms and consumers. Topic: Branding 116. (p. 213) How do marketers measure brand value? Brand value is calculated by assessing the earning potential of a brand over the next 12 months. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-05 Explain the various components of brand equity. Topic: Branding
117. (p. 213) Creating brand awareness is the first step in creating brand equity. Political candidates know name recognition is critical to success, but at the Congressional level over 90 percent of incumbents get re- elected. If you were marketing advisor to a challenger for the Congressional seat in your district, what would you recommend the candidate do to create brand/name awareness? Answers will vary but, as the text states, "Marketers create brand awareness through repeated exposures of the various brand elements in the firm's communications to consumers. Such communication media include advertising and promotions, personal selling, sponsorship and event marketing, publicity, and public relations." Students' responses should include some of these. AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-05 Explain the various components of brand equity. Topic: Branding 118. (p. 215) Almost every business wants brand loyal customers. Why? Brand loyalty provides a wealth of benefits to marketers including: reduced consumer sensitivity to price, lower marketing costs to reach loyal customers, a degree of insulation from the actions of competitors, and loyal customers are more profitable. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-05 Explain the various components of brand equity. Topic: Branding 119. (p. 215) Helena was surprised to learn that the car and home insurance agency she was just hired by does not have a CRM program. Why should the agency have a CRM program, and what CRM efforts should Helena recommend? CRM is customer relationship management. CRM can be used to reward loyal customers and maintain contact with current customers. For a car and home insurance company, reminder advertising like calendars, hats, or other specialty items could be appropriate. An Internet alert system to inform customers about changing insurance laws or a thank you system for customer referrals could all be part of a CRM program.
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- Spring '12