Marketing Module: Building Brand Equity Through Advertising! Quiz

The correct answer is "Hire a designer." In the Good Grip's product development process, the first two activities were to identify a consumer need and learn about the market. Hiring a designer would come later in the process, after the initial research and understanding of the consumer needs and market trends have been established.

The key to a successful product design process is iterating or cycling from design improvement and improved prototype to customer testing and consultation. This means continuously refining and enhancing the design based on feedback and testing with customers. It allows for adjustments and improvements to be made based on real-world usage and customer preferences, ultimately leading to a more successful and effective product design.

A strong brand provides a foot in the door, meaning that it helps to create initial opportunities and gain access to potential customers or clients. However, it is important to note that having a strong brand alone is not enough to guarantee success or long-term relationships. It is just the first step in building trust and credibility with the target audience.

When a logo's reputation is earned over decades, it signifies that the logo has become well-established and recognizable among consumers. Changing the logo can potentially confuse or alienate customers who have grown accustomed to the original design. By keeping the logo the same for decades, the company can maintain consistency and build a strong brand identity. This consistency also helps in building trust and loyalty among customers who associate the logo with the company's reputation and values.

The greatest branding opportunities today are in developing economies. These economies are experiencing rapid growth and development, creating a demand for new products and services. Additionally, consumers in these economies are becoming more affluent and brand-conscious, presenting a valuable market for companies to establish their brand presence. By targeting developing economies, businesses can capitalize on the potential for high growth and establish themselves as trusted and preferred brands in these emerging markets.

The correct answer is "A lot weaker than." This means that the connection between a lot of advertising and brand equity is not as strong as the connection between sustained innovation excellence and brand equity. In other words, advertising may have some impact on brand equity, but sustained innovation excellence has a much stronger influence on brand equity.

The correct answer is the first option: Idea development, analysis and screening, concept development, prototype design, prototype manufacturing and testing. This answer follows the logical sequence of stages in the filter or stage-gate product development process. It starts with idea development, where potential ideas are generated. Then, analysis and screening are conducted to evaluate and filter these ideas. Next, concept development is carried out to further refine and develop the selected ideas. After that, prototype design takes place, where a physical or virtual representation of the product is created. Finally, prototype manufacturing and testing are done to assess the performance and feasibility of the product.

Identity loyalty refers to the kind of brand loyalty where consumers feel a strong connection and identification with a particular brand. In the case of Harley Davidson, it is a great example of identity loyalty because the brand has successfully created a strong sense of community and belonging among its customers. Harley Davidson owners often consider themselves part of a unique and exclusive group, which further strengthens their loyalty towards the brand. The brand's iconic image and values also contribute to this sense of identity, making it a prime example of identity loyalty.

The correct answer is 20%, 12%. According to Professor Cooper, in 1990, 20% of new product development projects were next generation, break-through products. By 2004, this percentage had decreased to 12%. This suggests that there was a decline in the number of innovative and ground-breaking products being developed over this time period.

The correct answer is GE will move its break-through product development efforts to India and China. This can be inferred from the statement that the Chief Executive of GE, Jeff Immelt thinks that North America has a great future in developing new products and his company will do more product development in Germany. Therefore, the logical conclusion is that GE will move its break-through product development efforts to India and China.

In the late 1800s, the great era of branding started. During this time, advancements in technology and transportation allowed companies to expand their reach and market their products on a larger scale. The rise of mass production and mass communication also played a significant role in the development of branding. Companies began to recognize the importance of creating a unique brand identity to differentiate themselves from competitors and attract consumers. This marked a significant shift in marketing strategies and laid the foundation for modern branding practices that continue to this day.

The research has shown that the design management skills listed in the section are both positively related to firm growth and profitability and moderate the effect of investment in design on performance.

Warranties are put in place to protect the seller and bolster the promise of customer satisfaction. By offering warranties, sellers can provide assurance to customers that they stand behind the quality and performance of their products. This helps to build trust and confidence in the brand and encourages customers to make purchases. Additionally, warranties also provide legal protection for sellers in case of any disputes or issues with the product. Therefore, the correct answer is both A and B.

The most likely explanation for the correct answer being "Your grandparents' generation" is that older individuals tend to have established preferences and habits, including brand loyalty. This generation grew up during a time when there were fewer options available in the market, and they may have developed strong attachments to certain brands that have been consistent and reliable over the years. Additionally, older individuals may be less inclined to experiment with new brands and are more likely to stick to what they know and trust.

An outstanding warranty has an impact on consumer perceptions of quality, particularly for a new brand. When a new brand offers an outstanding warranty, it helps to build trust and confidence in the brand's products or services. This is because consumers may be hesitant to try a new brand without any previous experience or reputation. However, a strong warranty can provide assurance that the brand stands behind its offerings and is willing to address any issues or concerns that may arise. This can positively influence consumer perceptions of the brand's quality and encourage them to give the new brand a chance.

The current emphasis in new product development in North America encourages managers to think inside the box. This means that they are encouraged to focus on existing resources, capabilities, and knowledge within the organization to come up with innovative ideas and solutions. Instead of seeking external partnerships or looking for ideas outside the organization, managers are encouraged to explore the untapped potential and possibilities within their own resources and expertise. This approach promotes efficiency, utilization of existing assets, and leveraging internal knowledge and experience for new product development.

Nescafe repositioned its brand by emphasizing that their instant coffee is not only great tasting but also frees up time to do more important chores. This suggests that Nescafe is targeting busy individuals who value both taste and convenience, and positioning their product as a time-saving solution for their customers.

Marketers spend a significant amount of money on packaging each year. Packaging plays a crucial role in attracting consumers, differentiating products from competitors, and conveying brand values. It is an essential element of product marketing and often requires substantial investment in design, materials, and production. Therefore, the correct answer is packaging.

The correct answer is "It has been proven that concurrent engineering is very effective." This statement suggests that there is evidence to support the effectiveness of concurrent engineering in product development.

P&G's recent success in product development can be attributed to the fact that it has set a goal of having 50 percent of its new products come from outside the company. This means that P&G is actively seeking innovative ideas and collaborations with external partners, which can bring fresh perspectives and expertise to their product development process. By embracing external sources for new product ideas, P&G can tap into a wider range of market insights and consumer preferences, leading to a higher likelihood of creating successful and competitive products.

A good product label will be easy to remove. This statement is not true because a good product label is designed to stay intact and provide important information about the product. If a label is easy to remove, it may not fulfill its purpose of providing necessary information or branding.

All products have an implied warranty means that regardless of whether or not a specific warranty is provided, there is an automatic guarantee that the product will function as intended. This is based on the principle that products should be of satisfactory quality and fit for their intended purpose. It ensures that consumers have some level of protection and recourse if a product does not meet their expectations or fails to perform as promised.

The typical performance metric for judging new product success is the percentage of sales coming from new products launched in the last 3-5 years. This metric measures the effectiveness of new product introductions in generating revenue and capturing market share. It takes into account the long-term impact of new products on the company's overall sales performance, indicating the success and sustainability of the company's innovation efforts. Return on investment and market share are also important metrics, but they do not specifically focus on the success of new product launches.

The correct answer is "All of the above". This means that all of the options listed - design creativity, leadership, focus, and simplicity - are important aspects of product development. Design creativity is necessary to come up with innovative and attractive product designs. Leadership is important to guide the development process and make effective decisions. Focus is essential to stay on track and prioritize tasks. Simplicity is crucial to ensure that the product is user-friendly and easy to understand.

The CEO of P&G discusses two consumer moments of truth, which are when the consumer confronts the product on the store shelf and when the consumer uses the product at home. However, talking to other consumers is not considered one of the consumer moments of truth according to the given information.

The correct answer is "All of the above". This means that all of the given options are correct explanations for the statement "A product's packaging". The packaging of a product can be considered as its dressing, as it is the outer appearance that represents the product. It is also often the most distinctive marketing effort, as it is what catches the attention of the consumers. Additionally, the packaging is a critical selling tool, as it can influence the purchasing decision of the customers. Furthermore, the packaging may have to be designed to fit unique display locations, such as shelves or stands in stores.

A glass bottle may enhance the quality image of the brand in beverages and foods industries because it is often associated with a premium and high-quality product. Glass is a transparent material that allows consumers to see the product inside, which can create a sense of trust and appeal. Glass bottles are also perceived as more eco-friendly and sustainable compared to plastic or cardboard packaging options. Additionally, glass is non-reactive, meaning it does not interact with the contents of the bottle, preserving the taste and quality of the product.

McLaren scenic tours of New Zealand would not have been a good brand extension because it does not align with McLaren's core expertise in designing race cars and winning championships. While McLaren has a strong reputation in the automotive industry, offering scenic tours does not leverage their expertise or brand image. The other options, such as after-market auto parts, driving courses, and a super sports car, are all more closely related to McLaren's core business and would be more suitable brand extensions.

A positive warranty or guarantee can raise quality expectations by assuring customers that the product or service will meet their standards. It can also raise employee efforts and morale as they strive to deliver on the promises made in the warranty or guarantee. Additionally, it can act as a quality control process by ensuring that the product or service meets certain standards before it is released to the market. Lastly, it can be a competitive differentiation feature as customers may choose a product or service with a positive warranty or guarantee over competitors who do not offer the same level of assurance.

The correct answer is "All of the above". This means that a major part of product development involves improving the process, getting rid of the "not invented here" business mentality, and changing the "corporate lawyers are king" business culture. In order to successfully develop and innovate products, it is important to continuously improve the process, be open to ideas and collaborations from external sources, and foster a culture that values creativity and risk-taking rather than being overly cautious and legalistic.

Having the company name as the brand name is likely to most increase shareholder value and obtain financing because it helps to establish brand recognition and brand equity. When the company name is the same as the brand name, it creates a strong association between the two, making it easier for customers to identify and trust the brand. This can lead to increased sales and market share, which ultimately increases shareholder value. Additionally, having a strong brand name can make it easier for the company to attract financing from investors and lenders who recognize the value of a well-established brand.

Concurrent engineering refers to the practice of having multiple product development teams working simultaneously rather than one after the other. This approach allows for a more efficient and streamlined development process as teams can collaborate and address any potential issues or improvements in real-time. By working in parallel, teams can save time and resources, leading to faster product development and improved overall quality.

The correct answer is "The working model that the organization has figured out how to manufacture is called the prototype." This statement accurately defines a prototype as a working model that the organization has determined how to manufacture. Prototyping involves creating a physical or digital representation of a product or system to test and evaluate its design, functionality, and feasibility. It allows organizations to identify and address any issues or improvements before mass production or implementation.

The given answer is incorrect because it contradicts the principle of "Sense and Simplicity" which emphasizes simplifying products and designs. The correct approach is to make things as simple as possible, without compromising their functionality or usability.

A.G. Lafley, the P&G CEO, used simple slogans because he believed that simplification enables everybody to understand the goal and how to achieve it. By using simple slogans, Lafley ensured that the message was clear and easily comprehensible to all. Additionally, Lafley's plan was to focus on the billion-dollar brands, indicating that he wanted to prioritize the growth and success of these established brands rather than solely relying on selling more of a single brand like Tide. Therefore, the correct answer is "Both A and B" as Lafley used simple slogans and focused on billion-dollar brands.

When a customer complains, it will always lead to negative word-of-mouth. However, if a complaint is handled promptly and graciously, it can create a more loyal customer. Additionally, it is essential to process a warranty claim quickly and efficiently. Therefore, the correct answer is Both B and C, as both statements B and C emphasize the importance of addressing complaints and warranty claims effectively to maintain customer loyalty and satisfaction.

The reason for the change in brand loyalty between generations is reduced product improvement. This means that newer generations are experiencing less innovation and improvement in products compared to previous generations. As a result, they may be less loyal to specific brands and more open to trying new products or brands that offer better features or benefits.

The Good Grips case study highlighted best practice in understanding customer product use and benefits sought, design, funding the project, maximizing distribution reach, and minimizing opportunities for imitators. This means that the case study demonstrated excellence in all of these areas, showcasing effective strategies and approaches for each aspect of the business.

Concurrent engineering is a design approach that involves multiple teams working simultaneously on different aspects of a project. This study suggests that implementing concurrent engineering can significantly improve the overall quality of the product, with an increase of 200-600 percent. This could be due to the collaborative nature of concurrent engineering, which allows for early detection and resolution of design flaws, as well as better coordination between different teams. By addressing potential issues earlier in the design process, the final product is likely to have fewer defects and higher quality overall.

Innovative packages can add real convenience to product use. This statement suggests that packaging can be designed in a way that enhances the convenience of using the product. This could include features such as easy-to-open packaging or packaging that is specifically designed for a certain usage situation.

Recyclable packages will appeal to environmentally concerned market segments. This statement suggests that packaging that is recyclable will be attractive to consumers who are environmentally conscious. This is because recyclable packaging reduces waste and contributes to sustainable practices.

Therefore, both statements C and D are true and provide valid insights into the benefits and considerations of packaging.

Singer sewing machine wrecked its brand equity by ceasing to provide customer support and education, selling off all of its company owned stores, and stopping investing in developing and innovating high quality sewing machines. These actions would have negatively impacted the brand's reputation, customer satisfaction, and overall perception in the market, leading to a decline in brand equity.

All the given options are brands related to household products, except for Tide which is a brand of laundry detergent. Therefore, Tide is the odd brand out in this group.

The filtering, stage-gate approach in turbulent times is considered cumbersome and inappropriate by two leading marketing scholars. This suggests that the approach is not effective or suitable for managing product development projects in uncertain or rapidly changing environments. It implies that using this approach may lead to difficulties and inefficiencies in the product development process, potentially resulting in a lower success rate for projects.

The correct answer is B and C. A brand is a set of associations linked to a name and also a reputation. These associations can include the qualities, characteristics, and values that consumers associate with a particular brand. A brand's reputation is built over time through various factors such as product quality, customer service, and marketing efforts. Therefore, both the associations linked to a name and the reputation contribute to what a brand represents.

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The correct answer is "None of the above." This means that all of the options provided are actually outside sources of innovation ideas. New ideas from employees, copying innovations in foreign markets, new ideas from consumers, and existing specialized industrial products can all contribute to innovation. Therefore, none of the options listed are excluded as outside sources of innovation ideas.

Virgin has used all of the mentioned strategies to extend its brand name. The extension category is used in the same usage situation, as Virgin has expanded its brand into various industries such as airlines, music, telecommunications, and more. The extension category is also distributed through the same channels, as Virgin products and services are often sold through their own retail outlets or online platforms. Additionally, Virgin has successfully entered industries that were not dominated by existing, powerful brands, allowing them to establish themselves as a strong competitor. Therefore, the correct answer should be "All of these options."