CopelandR MKTG600 MidTerm
marketing midterm exam
marikian copeland
American Public University
March 28, 2015
MidTerm-Week 4
Question 1:
Define what is meant by "brand equity" and discuss what a company can do to maintain brand equity.
Brand equity is a business having the clout and power of its product(s) to leverage that equity or clout for its need to raise capital or increase customers. Developing brand equity is important because it allows companies to interact with their customers in order to induce loyalty which increases the growth of a company. Every company, established ones as well as start-ups have the ability to create brand equity. It is especially important for start-ups because in the first step of business, they would want to ensure that their brand is worthy of the competition it will encounter.
Inexperienced brands need support-as much as possible; therefore, the focus on maintain a customer base is very important. At the early stage of a business, it’s important to establish brand value and integrity and begin to cultivate the two. .
Question 2:
Discuss the Product Life Cycle Concept and include the relative amounts of sales and profit during each stage.
Products go through a cycle which phases goes from introduction to decline. This pattern is based on a lot of factors to include the current marketing situation which could greatly impact the product. The following stages are:
Introduction:
The introduction stage is the beginning of the cycle but the last stage of development of the product prior to its introductions. Typically, marketing costs are high and profits are lower due to the unfamiliarity of the product
Growth Stage: During the growth stage, sales increases; however, so does competition. For example, Pizza Hut saw Dominos pizza launch soon after. (Knopf 1989) Marketing costs also rises during this stage.
Maturity Stage The maturity stage, dubbed the longest stage, is characterized by increased profits and targeted marketing. During the
marikian copeland
American Public University
March 28, 2015
MidTerm-Week 4
Question 1:
Define what is meant by "brand equity" and discuss what a company can do to maintain brand equity.
Brand equity is a business having the clout and power of its product(s) to leverage that equity or clout for its need to raise capital or increase customers. Developing brand equity is important because it allows companies to interact with their customers in order to induce loyalty which increases the growth of a company. Every company, established ones as well as start-ups have the ability to create brand equity. It is especially important for start-ups because in the first step of business, they would want to ensure that their brand is worthy of the competition it will encounter.
Inexperienced brands need support-as much as possible; therefore, the focus on maintain a customer base is very important. At the early stage of a business, it’s important to establish brand value and integrity and begin to cultivate the two. .
Question 2:
Discuss the Product Life Cycle Concept and include the relative amounts of sales and profit during each stage.
Products go through a cycle which phases goes from introduction to decline. This pattern is based on a lot of factors to include the current marketing situation which could greatly impact the product. The following stages are:
Introduction:
The introduction stage is the beginning of the cycle but the last stage of development of the product prior to its introductions. Typically, marketing costs are high and profits are lower due to the unfamiliarity of the product
Growth Stage: During the growth stage, sales increases; however, so does competition. For example, Pizza Hut saw Dominos pizza launch soon after. (Knopf 1989) Marketing costs also rises during this stage.
Maturity Stage The maturity stage, dubbed the longest stage, is characterized by increased profits and targeted marketing. During the
References: Cooley, Thomas (2004). Advertising and Integrated Brand Promotion. Oxford Oxfordshire: Oxford University Press. Knopf, Alfred Orange Roofs, Golden Arches: The Architecture of American Chain Restaurants. 1989 Chicago, IL: Ellison Publishing “The Privacy Act of 1974". United States Department of Justice.