Marketing Communications

REVIEW QUESTIONS 63

REVIEW QUESTIONS

1. What is a brand? What are the characteristics of a good brand? What types of brand can
   be distinguished?


2. What are the characteristics of successful brands?


3. What are the benefits and disadvantages of line and brand stretching versus multi-
   branding? What are the implications of the two types of strategy for marketing
   communications?


4. What is a brand portfolio and what different functions can the composing brands serve?


5. What is brand equity and what are its main components?


6. How can marketing communications influence brand equity?


7. What are the benefits of strong brands for the consumer and for the manufacturer?

combined eff ect of all these communications tools on Red Bull’s brand equity was higher than

any single communications tool could have generated. In current times, social media should

also not be forgotten. Involving customers and potential customers, providing them with both

interesting and fun information, and having them generate unexpected or cool experiences

are crucial to build a bond, make them revisit the web page and have them not only press the

‘I like’ button but talk about the brand to other people.

In the next chapter and the chapters on specifi c communications tools, these issues will be

explored in more depth.

Summary

A brand is a bundle of meanings; it adds either rational and tangible aspects or symbolic,

emotional and intangible dimensions to a product that diff erentiate it from competitive

products. Brand names should be memorable, meaningful, likeable, adaptable, transferable

and protectable. Th ere are diff erent categories of brands. To compete with manufacturer

brands, distributors introduce own-label brands and generic products. Successful brands have

a number of common characteristics. Th e products are original, of good quality and diff eren-

tiated from the competition, and the brand is supported by the management, employees and

characterised by additional service and integrated communications support in a long-term

perspective. Companies can choose diff erent strategies for their brands. Besides co-branding

with other brands, an extension or multi-brand strategy can be adopted. Also corporate

branding, i.e. using the same company name for all company products, is a possibility. Not

only does brand equity have to be built, but also it has to be sustained over time. In this

respect, the brand portfolio may have to be adapted once in a while. It is important that the

portfolio maximises market coverage, minimises brand overlap and is effi ciently composed.

To protect the main brand (bastion brand), fl anker, fi ghter and prestige brands may be useful.

Brand strength is measured on the basis of a number of factors, such as leadership, inter-

nationality and stability. Th e marketing value of a brand, or brand equity, is composed of fi ve

factors: brand awareness; product performance and perceived quality; imagery associations

and brand feelings; high brand loyalty; and other assets such as legal protection and a good

distribution network. Strong brands lead to a number of benefi ts for the company, the con-

sumer and the retailer. Brand equity is developed and supported by means of consistent,

long-term, integrated marketing communications. It is important to build deep and broad

awareness fi rst before creating a positive image.

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