LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY
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Transcript of LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY
7.1
CHAPTER 7:CHAPTER 7: LEVERAGING SECONDARY BRAND LEVERAGING SECONDARY BRAND
KNOWLEDGE TO BUILD BRAND EQUITYKNOWLEDGE TO BUILD BRAND EQUITY
Kevin Lane KellerKevin Lane KellerTuck School of BusinessTuck School of Business
Dartmouth CollegeDartmouth College
7.2
Figure 2-9 Building Customer-Based Brand EquityBRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS
Choosing Brand Elements
Brand name MemorabilityLogo MeaningfulnessSymbol AppealCharacter TransferabilityPackaging AdaptabilitySlogan Protectability
Developing Marketing Programs
Product Tangible and intangible benefitsPrice Value perceptionsDistribution channels Integrate”push” and “pull”Communications Mix and match options
Leverage of Secondary Associations
CompanyCountry of originChannel of distributionOther brandsEndorsorEvent
AwarenessMeaningfulnessTransferability
Possible Outcomes
Greater loyalty
Less vulnerability to competitive marketing actions and crises
Larger margins
More elastic response to price decreases
More inelastic response to price increases
Greater trade cooperation and support
Increased marketing communication efficiency and effectiveness
Possible licensing opportunities
More favorable brand extension evaluations
Brand Awareness
Depth
Breadth
RecallRecognition
PurchaseConsumption
Brand Associations
Strong
Favorable
Unique
RelevanceConsistency
DesirableDeliverable
Point-of-parityPoint-of-difference
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Leveraging Secondary Leveraging Secondary AssociationsAssociations
Creation of new brand associationsCreation of new brand associations Effects on existing brand knowledgeEffects on existing brand knowledge
Awareness and knowledge of the entityAwareness and knowledge of the entity Meaningfulness of the knowledge of the Meaningfulness of the knowledge of the
entityentity Transferability of the knowledge of the Transferability of the knowledge of the
entityentity
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Leveraging Secondary Leveraging Secondary AssociationsAssociations
Brand associations may themselves be linked to Brand associations may themselves be linked to other entities, creating secondary associations:other entities, creating secondary associations: Company (through branding strategies)Company (through branding strategies) Country of origin (through identification of product Country of origin (through identification of product
origin)origin) Channels of distribution (through channels strategy)Channels of distribution (through channels strategy) Other brands (through co-branding)Other brands (through co-branding)
Special case of co-branding is Special case of co-branding is ingredient brandingingredient branding Characters (through licensing)Characters (through licensing) Celebrity spokesperson (through endorsement Celebrity spokesperson (through endorsement
advertising)advertising) Events (through sponsorship)Events (through sponsorship) Other third-party sources (through awards and Other third-party sources (through awards and
reviews)reviews)
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These secondary associations may These secondary associations may lead to a transfer of:lead to a transfer of: Response-type associationsResponse-type associations
Judgments (especially credibility)Judgments (especially credibility) FeelingsFeelings
Meaning-type associations Meaning-type associations Product or service performanceProduct or service performance Product or service imageryProduct or service imagery
Leveraging Secondary Leveraging Secondary AssociationsAssociations
7.6
Co-BrandingCo-Branding
Occurs when two or more existing Occurs when two or more existing brands are combined into a joint brands are combined into a joint product or are marketed together in product or are marketed together in some fashionsome fashion
Examples:Examples: Sony EricssonSony Ericsson Yoplait Trix YogurtYoplait Trix Yogurt NestleNestle’’s Cheerios Cookie Barss Cheerios Cookie Bars
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Advantages of Co-BrandingAdvantages of Co-Branding
Borrow needed expertiseBorrow needed expertise Leverage equity you donLeverage equity you don’’t havet have Reduce cost of product introductionReduce cost of product introduction Expand brand meaning into related Expand brand meaning into related
categoriescategories Broaden meaningBroaden meaning Increase access pointsIncrease access points
Source of additional revenue Source of additional revenue
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Disadvantages of Co-Disadvantages of Co-BrandingBranding
Loss of controlLoss of control Risk of brand equity dilutionRisk of brand equity dilution Negative feedback effectsNegative feedback effects Lack of brand focus and clarityLack of brand focus and clarity Organizational distractionsOrganizational distractions
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Ingredient BrandingIngredient Branding A special case of co-branding that A special case of co-branding that
involves creating brand equity for involves creating brand equity for materials, components, or parts materials, components, or parts that are necessarily contained that are necessarily contained within other branded productswithin other branded products
Examples:Examples: Betty Crocker baking mixes with Betty Crocker baking mixes with
HersheyHershey’’s chocolate syrup s chocolate syrup Intel insideIntel inside
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LicensingLicensing Involves contractual arrangements Involves contractual arrangements
whereby firms can use the names, whereby firms can use the names, logos, characters, and so forth of other logos, characters, and so forth of other brands for some fixed feebrands for some fixed fee
Examples:Examples: Entertainment (Star Wars, Jurassic Park, Entertainment (Star Wars, Jurassic Park,
etc.)etc.) Television and cartoon characters (The Television and cartoon characters (The
Simpsons)Simpsons) Designer apparel and accessories (Calvin Designer apparel and accessories (Calvin
Klein, Pierre Cardin, etc.)Klein, Pierre Cardin, etc.)
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Celebrity EndorsementCelebrity Endorsement
Draws attention to the brandDraws attention to the brand Shapes the perceptions of the brandShapes the perceptions of the brand Celebrity should have a high level of Celebrity should have a high level of
visibility and a rich set of useful visibility and a rich set of useful associations, judgments, and associations, judgments, and feelingsfeelings
Q-Ratings to evaluate celebritiesQ-Ratings to evaluate celebrities
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Celebrity Endorsement: Potential Celebrity Endorsement: Potential ProblemsProblems
Celebrity endorsers can be overused by Celebrity endorsers can be overused by endorsing many products that are too varied.endorsing many products that are too varied.
There must be a reasonable match between There must be a reasonable match between the celebrity and the product.the celebrity and the product.
Celebrity endorsers can get in trouble or lose Celebrity endorsers can get in trouble or lose popularity.popularity.
Many consumers feel that celebrities are Many consumers feel that celebrities are doing the endorsement for money and do not doing the endorsement for money and do not necessarily believe in the endorsed brand.necessarily believe in the endorsed brand.
Celebrities may distract attention from the Celebrities may distract attention from the brand.brand.
7.13
Sporting, Cultural, or Other Sporting, Cultural, or Other EventsEvents
Sponsored events can contribute to Sponsored events can contribute to brand equity by becoming associated brand equity by becoming associated to the brand and improving brand to the brand and improving brand awareness, adding new associations, awareness, adding new associations, or improving the strength, or improving the strength, favorability, and uniqueness of favorability, and uniqueness of existing associations. existing associations.
The main means by which an event The main means by which an event can transfer associations is credibility. can transfer associations is credibility.
7.14
Third-Party SourcesThird-Party Sources Marketers can create secondary Marketers can create secondary
associations in a number of different associations in a number of different ways by linking the brand to various ways by linking the brand to various third-party sources. third-party sources.
Third-party sources can be especially Third-party sources can be especially credible sources. credible sources.
Marketers often feature them in Marketers often feature them in advertising campaigns and selling efforts advertising campaigns and selling efforts .. Example: Example: J.D. Power and Associates’ well-J.D. Power and Associates’ well-
publicized Customer Satisfaction Index publicized Customer Satisfaction Index