CopelandR MKTG600 MidTerm Essay - 969 Words

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†¦show more content†¦Profits are strong, but the company has to be willing to diversify. Also during this stage is where competition decreases and usually only the strong survives. Take for example the number of phone carriers there were in the 90’s versus how many today. Decline Stage This stage might be the most unpopular with companies. Sales decline and companies usually don’t spend as much on marketing for products on the decline. Companies usually make decisions to halt production, cut marketing programs and reintroduce the products. Sometimes this works, for example, Lacoste which rebounded and reinvented itself and sometimes it doesn’t, as with Circuit City. Question 3: How are innovations in interactive television and online services expanding the strategies and tactics marketers employ today? People are connected more by social media and marketing executives have taken notice. The innovation in technology online and through television has increased. Today, people use the internet for shopping using various tools such as laptop and iPhones. We are in the new age of marketing where people are connected via social media and business is trended online. Thus, the innovation in interactive television and online services has expanded the strategies and tactics. This is so because more and more people are using internet for shopping, taking the purchase decisions via range of tools such as laptops, tablets, mobile phones, etc. Throughout