Management Notes

Reference Notes for Management

Building brand equity through leveraging secondary brand associations is an _________ approach.

Building brand equity through leveraging secondary brand associations is an _________ approach.

 Options:

A. Direct
B. Special
C. Procured
D. Indirect

The Correct Answer Is:

  • C. Procured

The correct answer is “C. Procured” when discussing the approach of building brand equity through leveraging secondary brand associations. The term “procured” in this context means actively seeking, managing, and creating associations with other brands or entities to enhance the perception and value of one’s own brand. Here’s why “procured” is the correct answer and why the other options are not applicable:

Why “Procured” is the Correct Answer:

1. Deliberate and Managed Associations:

When building brand equity through leveraging secondary brand associations, a company takes a deliberate and managed approach. It actively seeks and creates associations with other brands, organizations, celebrities, or entities that can positively impact its own brand. This approach involves strategic planning and execution to form partnerships, collaborations, and co-branding efforts.

2. Strategic Alliances:

Building brand equity through secondary brand associations often involves forming strategic alliances with other entities that share a complementary brand image, values, or target audience. These alliances are not spontaneous but are carefully chosen and established to enhance the perception and value of the brand.

3. Enhanced Image and Perceptions:

By procuring associations with other reputable or relevant brands, a company aims to enhance its own brand’s image and shape how consumers perceive it. This approach can result in positive transfer of attributes, such as trustworthiness, quality, or innovation, from the secondary brand to the primary brand.

4. Brand Extension and Co-Branding:

Procured brand associations can manifest through brand extensions or co-branding efforts. In brand extensions, a company leverages its brand equity to enter new product or service categories. Co-branding, on the other hand, involves collaborating with another brand to create a joint product or service, allowing both brands to benefit from each other’s equity.

Now, let’s explore why the other options are not correct:

A. Direct:

The term “direct” is not the most appropriate choice for describing the approach of building brand equity through secondary brand associations. While it’s true that companies are directly involved in managing these associations, “direct” does not capture the proactive and strategic nature of this process.

The term “direct” may imply immediacy or simplicity, which doesn’t fully encapsulate the strategic and deliberate nature of procuring brand associations.

B. Special:

The term “special” does not accurately convey the approach of leveraging secondary brand associations. “Special” typically conveys uniqueness or distinctiveness, which is not the core concept here.

While the approach is purposeful and distinct, it is better described as “procured” because it emphasizes the active and strategic nature of creating associations with other brands to enhance one’s own brand equity.

D. Indirect:

The term “indirect” is not the best fit for describing the approach of leveraging secondary brand associations either. “Indirect” implies that the approach is not straightforward or immediate.

However, in the context of building brand equity through secondary brand associations, the approach is indeed direct and deliberate. It involves a clear effort to form partnerships or associations with other brands or entities, making “procured” a more suitable term.

In conclusion, the correct term to describe the approach of building brand equity through leveraging secondary brand associations is “procured.” This term accurately represents the deliberate, managed, and strategic nature of the process, as companies actively seek and create associations with other brands or entities to enhance their own brand equity.

While other terms like “direct,” “special,” and “indirect” may partially describe certain aspects of the approach, they do not fully capture the essence of the deliberate and strategic nature of procuring brand associations.

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