EBK MARKETING
EBK MARKETING
10th Edition
ISBN: 9780135209783
Author: Stuart
Publisher: YUZU
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Chapter 9, Problem 5QA
Summary Introduction

To define: the concept of brand and the characteristics of a good brand name and the way firms provide legal protection for their brands.

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Brand: is defined as an identity in the form of mark, symbol, name, or logo given to a product produced by a company to distinguish that product with other products.

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Question 7 Your firm is considering the acquisition of a brand, and they have identified two prospects, Brand A' and 'Brand B'. Research has determined that the brands will yield future cash flows as stated in Table 2: laure: Future Cash Flow Projections Brand A -$170,000.00 Brand B -$125,000.00 $ 79,000.00 Year 0 1 $ 26,000.00 2 $ 45,000.00 $ 62,000.00 3 $ 79,000.00 $ 41,000.00 4 $ 81,000.00 $ 35,000.00 Figure 4: Net Present Value Formula Ct N NPV = (1+r) Where t=0 N- Total time over which the earnings is projected t-Time of the cash flow r-Discount rate Ct-Net cash flow at time t Further, whichever brand is selected for acquisition, your firm wants a 15% return. The management of the firm seems inclined to acquire Brand A because its revenue is steadily increasing while the opposite is true for Brand B. You are the Brand Manager for your firm and they have asked for your assessment. i. Do you agree or disagree with your management's inclination towards acquiring brand A? Support your…
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