Question

It's Friday night and a group of friends are sitting in a movie theater waiting for the movie to begin. The lights dim and the screen opens with a few branded advertisements. One in particular is familiar, Dolby Digital. Its logo and sound often plays before many movies begin. What is Dolby Digital doing with its branding strategy?

Answer 1

The correct answer is letter "C": following a component branding strategy.

Step-by-step explanation:

The Brand Strategy is a plan to give value to a company by associating its name to a particular feature of the product or service the institution provides. The plan includes four (4) components: brand positioning, brand name selection, brand sponsorship, and brand development.

Brand sponsorship is the stage in which the company is in the capability of licensing its name to other businesses to spread its scope. Co-branding also takes place in this stage through partnerships.

Therefore, Dolby Digital is using the sponsorship component of brand strategy to spread its name in the market every time its logo is displayed before a film starts in a movie theater.