Presentation on theme: "CHAPTER 7: LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY"— Presentation transcript:
1 CHAPTER 7: LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY Kevin Lane KellerTuck School of BusinessDartmouth College
2 Figure 2-9 Building Customer-Based Brand Equity BRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITSChoosing Brand ElementsBrand name MemorabilityLogo MeaningfulnessSymbol AppealCharacter TransferabilityPackaging AdaptabilitySlogan ProtectabilityDeveloping Marketing ProgramsProduct Tangible and intangible benefitsPrice Value perceptionsDistribution channels Integrate”push” and “pull”Communications Mix and match optionsLeverage of Secondary AssociationsCompanyCountry of originChannel of distributionOther brandsEndorsorEventAwarenessMeaningfulnessTransferabilityPossible OutcomesGreater loyaltyLess vulnerability to competitive marketing actions and crisesLarger marginsMore elastic response to price decreasesMore inelastic response to price increasesGreater trade cooperation and supportIncreased marketing communication efficiency and effectivenessPossible licensing opportunitiesMore favorable brand extension evaluationsBrand AwarenessDepthBreadthRecallRecognitionPurchaseConsumptionBrand AssociationsStrongFavorableUniqueRelevanceConsistencyDesirableDeliverablePoint-of-parityPoint-of-difference1
3 Leveraging Secondary Associations Creation of new brand associationsEffects on existing brand knowledgeAwareness and knowledge of the entityMeaningfulness of the knowledge of the entityTransferability of the knowledge of the entity30
4 Leveraging Secondary Associations Brand associations may themselves be linked to other entities, creating secondary associations:Company (through branding strategies)Country of origin (through identification of product origin)Channels of distribution (through channels strategy)Other brands (through co-branding)Special case of co-branding is ingredient brandingCharacters (through licensing)Celebrity spokesperson (through endorsement advertising)Events (through sponsorship)Other third-party sources (through awards and reviews)30
6 Leveraging Secondary Associations These secondary associations may lead to a transfer of:Response-type associationsJudgments (especially credibility)FeelingsMeaning-type associationsProduct or service performanceProduct or service imagery31
7 Co-BrandingOccurs when two or more existing brands are combined into a joint product or are marketed together in some fashionExamples:Sony EricssonYoplait Trix YogurtNestle’s Cheerios Cookie Bars
8 Advantages of Co-Branding Borrow needed expertiseLeverage equity you don’t haveReduce cost of product introductionExpand brand meaning into related categoriesBroaden meaningIncrease access pointsSource of additional revenue
9 Disadvantages of Co-Branding Loss of controlRisk of brand equity dilutionNegative feedback effectsLack of brand focus and clarityOrganizational distractions
10 Ingredient BrandingA special case of co-branding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded productsExamples:Betty Crocker baking mixes with Hershey’s chocolate syrupIntel inside
11 LicensingInvolves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands for some fixed feeExamples:Entertainment (Star Wars, Jurassic Park, etc.)Television and cartoon characters (The Simpsons)Designer apparel and accessories (Calvin Klein, Pierre Cardin, etc.)
12 Celebrity Endorsement Draws attention to the brandShapes the perceptions of the brandCelebrity should have a high level of visibility and a rich set of useful associations, judgments, and feelingsQ-Ratings to evaluate celebrities
13 Celebrity Endorsement: Potential Problems Celebrity endorsers can be overused by endorsing many products that are too varied.There must be a reasonable match between the celebrity and the product.Celebrity endorsers can get in trouble or lose popularity.Many consumers feel that celebrities are doing the endorsement for money and do not necessarily believe in the endorsed brand.Celebrities may distract attention from the brand.
14 Sporting, Cultural, or Other Events Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of existing associations.The main means by which an event can transfer associations is credibility.
15 Third-Party SourcesMarketers can create secondary associations in a number of different ways by linking the brand to various third-party sources.Third-party sources can be especially credible sources.Marketers often feature them in advertising campaigns and selling efforts .Example: J.D. Power and Associates’ well-publicized Customer Satisfaction Index