BUS502: Strategic Marketing

4a. Explain the role of brands in creating value for businesses and consumers

• How do brands create value?
• What is an example of how a brand creates value?
• What is the difference between value creation for the business and the consumer?

Brands create value for both the business and the consumer. When the marketing communication is appropriate, the brand will communicate trust and what the consumer can expect from the product or service. For example, a brand may help to simplify a consumer's choice. They may also remove barriers, make a consumer's life easier, or reduce fears and/or frustrations. All these examples may create value for the consumer.

A brand may create value for a business by being profitable, increasing their overall reputation, or increase the number of consumers who may purchase products from the brand. This is why it is important to understand and promote the brand in a way that not only promotes the brand, but demonstrates how important the product(s) may be to the consumer.

To review, see Brand.

4b. Define brand equity and the related Brand Asset Valuator and Aaker models

• What is brand equity?
• What are the Brand Asset Valuator and Aaker models?
• How can brand equity be improved?

According to the text, the value of a brand based on consumer awareness is brand equity. Successful brand equity leads to consumer loyalty. It is important to assess brand equity and a consumer's awareness of a brand.

The Aaker model states that the awareness of the brand, the loyalty of the consumer, and apparent quality are business assets that allow a company to increase their value.

The Brand Asset Valuator is one way to measure brand value and the brand's ability to make consumers happy and satisfied. When the brand uses appropriate marketing to promote products, the brand may create value and loyalty with consumers.

To review, see Brand Equity, Recognition, and Loyalty.

 

4c. Explain the concepts of brand equity, brand recognition, and brand loyalty

• What is brand recognition?
• How is brand loyalty related to marketing?
• How might brand equity be applied to brand recognition?

As stated in the last section, the value of a brand based on consumer awareness is brand equity. By building brand equity, the consumer may be more aware of the brand, and eventually, they may become loyal to the brand.

Brand recognition occurs when the consumer is aware of the brand or brand-related products. The consumer may be aware of other brands but should be able to distinctly recognize products that belong to the brand for brand recognition to occur.

Brand loyalty occurs when the consumer returns to buy products from the brand after the initial purchase. Businesses may create loyalty-based applications and rewards programs that allow consumers to return, and they are rewarded for their loyalty.

To review, see Brand Equity, Recognition, and Loyalty.

 

4d. Evaluate strategies to build a brand, including positioning and differentiation

• How do you build a brand?
• What is an example of brand positioning?
• From a marketing perspective, how can you differentiate a product?

Numerous marketing strategies can be used to build a brand, and these may include the voice and tone of the brand, core values, and a positioning statement. By building the brand, value is added for the business and the consumer.

Brand positioning may include how the brand is presented to the consumer, and this may allow the consumer to feel connected to the brand or its products. This process is a marketing strategy created to establish the brand's identity. Brand differentiation occurs when the brand is distinguished from other brands. This may occur through differences in brand qualities, features, or benefits.

By understanding the differences between building a brand, positioning, and differentiating the brand, marketing can be created that will better position the brand to be successful and build the brand's reputation.

To review, see Brand Management Strategies.

 

4e. Compare brand management strategies through the product life cycle of introduction, growth, maturity, and decline

• What is the product life cycle?
• From a marketing perspective, why are brand management strategies needed?
• What stages does the product life cycle include?

Brand management strategies assist marketing to improve brand recognition, increase sales, and meet organizational goals. It is important these strategies be implemented to build brand equity and consumer loyalty.

The product life cycle includes the following stages: product development, market introduction, growth, maturity, and decline. Each of these stages is part of the life cycle; the entire process includes the amount of time the product exists. It is important that marketing considers brand management strategies that will continue to build a product through the entire product life cycle. These strategies will continue and adjust as the product moves through each stage of the life cycle.

To review, see Brand Management Through the Product Life Cycle.

 

4f. Relate four strategies to managing the brand reputation, including through media platforms

• What is an example of a strategy to manage brand reputation?
• How can media platforms be used to build brand reputation?
• Why is it important to manage brand reputation?

In addition to building the brand, it is also important to manage the brand reputation. Brand reputation is the public perception of a brand, and it is important that all brands manage their reputation. This is key to building consumer loyalty and can be accomplished through several strategies. These include being open and honest with consumers, listening to consumer feedback, and acting on any consumer issues that may arise.

It is also important to engage with customers through media platforms and manage those social media pages. Engaging with customers might include answering questions, creating videos that demonstrate how to use or show features of a product, or running contests. Consumers love to engage with brands they are loyal to, and social media platforms are a great way to show interaction.

To review, see Brand Reputation.

 

Unit 4 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• Aaker model
• Brand Asset Valuator
• brand differentiation
• brand equity
• brand loyalty
• brand management strategies
• brand positioning
• brand recognition
• brand reputation
• build a brand
• creating value
• media platforms
• product life cycle