ESSAY QUESTIONS

Essay Questions

Essay Questions

Brand Equity

Brand value is the value that you purchased a product throughout its life. It can be calculated by comparing the expected future revenue of the branded product with a similar income unbranded. This calculation is approximate at best. May include tangible attributes, functional (e.g.: double cleaning power or half the fat in the product) and intangible, emotional (e.g. 'the brand for people with style and good taste').

The positive value of a brand can be an effective barrier to entry to potential competitors. The bigger the brand value of a company, the more likely you are using a strategy of family brand more than a single brand strategy. This is because the family brand to leverage the assets accumulated by the brand throughout its life. This makes the new product launches in initiatives with less risk and lower cost (Keller, 1998).

Product Life Cycle

According to Lamb, Hair and McDaniel, the concept of product life cycle is very useful to encourage marketers to plan, to be able to take the initiative rather than reacting to past events.

In this regard, it should be noted that the product life cycle is especially useful as predictive or prognostic tool, since the products pass through distinct stages that calculate the location of a particular product in the life cycle by using data historical, such as profits, sales and number of competitors, as they tend to follow a predictable path over the life cycle. This calculation is necessary because competitive strategies and marketing environment to be ordinarily used depend on the particular stage of the product life cycle.

Therefore, it is vital that marketers know what the product life cycle, what are the steps that comprise it and what features distinguish each particular stage, in order to have the basics of using properly This valuable tool to predict or forecast, with which, you can get various elements that identify the opportunities and risks posed by the different stages that cross products since its introduction to its decline (Onkvisit, 1989).

Overall, the product life cycle is a management tool that allows marketing know and track the stage where there is a certain category or class of product, which is a prerequisite to properly secure the objectives marketing for "x" product, and also to plan strategies that will achieve those goals.

In short, the product life cycle is the set of stages (introduction, growth, maturity and decline) being experienced by a generic category of products, and whose concepts are used as a management tool of marketing to know and track the stage where there is a particular product, in order, to identify in advance the risks and opportunities posed by each stage to a particular brand.

At this point, it should be noted that the concept of Product Life Cycle (PLC) is a tool that applies to an individual mark, but a generic product category (cars, televisions, microprocessors, etc ...). Therefore, one of the crucial tasks that marketers have is to identify the stage that is going through the generic ...