Presentation is loading. Please wait.

Presentation is loading. Please wait.

Tuck School of Business

Similar presentations


Presentation on theme: "Tuck School of Business"— Presentation transcript:

1 Tuck School of Business
CHAPTER 9: MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET Kevin Lane Keller Tuck School of Business Dartmouth College

2 Qualitative Research Techniques
Free association What do you like best about the brand? What are its positive aspects? What do you dislike? What are its disadvantages? What do you find unique about the brand? How is it different from other brands? In what ways is it the same?

3 Free Associations LEVI’S 501 ATTRIBUTES BENEFITS
User Imagery Usage Imagery Western, American, blue collar, hard-working, traditional, strong, rugged, and masculine Product-Related Appropriate for outdoor work and casual social situations Blue denim, shrink-to-fit cotton fabric, button-fly, two-horse patch, and small red pocket tag Brand Personality Honest, classic, Contemporary, approachable, independent, and universal LEVI’S 501 High quality, long lasting, and durable Feelings of self-confidence and self-assurance Comfortable fitting and relaxing to wear Functional Symbolic Experiential BENEFITS

4 Qualitative Research Techniques
Projective techniques Diagnostic tools to uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves on these matters

5 Projective Techniques
Consumers might feel that it would be socially unacceptable to express their true feelings Projective techniques are diagnostic tools to uncover the true opinions and feelings of consumers Examples: Completion and interpretation tasks Comparison tasks

6 Projective Techniques
Word association tests Sentence completion method Third-person technique Role playing T.A.T. Picture frustration version of T.A.T.

7 Expressive Techniques
In expressive techniques, respondents are presented with a verbal or visual situation and asked to relate the feelings and attitudes of other people to the situation. Role playing. Respondents are asked to play the role or assume the behavior of someone else. Third-person technique. The respondent is presented with a verbal or visual situation and the respondent is asked to relate the beliefs and attitudes of a third person rather than directly expressing personal beliefs and attitudes. This third person may be a friend, neighbor, colleague, or a “typical” person.

8 Word Association Subject is presented with a list of words
Asked to respond with first word that comes to mind

9 Word Association Examples
GREEN Money Lawn Eggs and Ham

10 Word Association Examples
CHEESE Kraft Cheddar Goat

11 Word Association EXAMPLE STIMULUS MRS. M MRS. C washday everyday ironing fresh and sweet clean pure air soiled scrub don't; husband does clean filth this neighborhood dirt bubbles bath soap and water family squabbles children towels dirty wash

12 Completion Techniques
In sentence completion, respondents are given incomplete sentences and asked to complete them. Generally, they are asked to use the first word or phrase that comes to mind. A person who shops at Sears is ______________________ A person who receives a gift certificate good for Sak's Fifth Avenue would be __________________________________ J. C. Penney is most liked by _________________________ When I think of shopping in a department store, I ________ A variation of sentence completion is paragraph completion, in which the respondent completes a paragraph beginning with the stimulus phrase.

13 Sentence Completion People who drink beer are ______________________
A man who drinks light beer is ___________________ Imported beer is most liked by ___________________ A woman will drink beer when____________________

14 Completion Techniques
In sentence completion, respondents are given incomplete sentences and asked to complete them. Generally, they are asked to use the first word or phrase that comes to mind. A person who shops at Sears is ______________________ A person who receives a gift certificate good for Sak's Fifth Avenue would be __________________________________ J. C. Penney is most liked by _________________________ When I think of shopping in a department store, I ________ A variation of sentence completion is paragraph completion, in which the respondent completes a paragraph beginning with the stimulus phrase.

15 Completion Techniques
In story completion, respondents are given part of a story – enough to direct attention to a particular topic but not to hint at the ending. They are required to give the conclusion in their own words.

16 Construction Techniques
With a picture response, the respondents are asked to describe a series of pictures of ordinary as well as unusual events. The respondent's interpretation of the pictures gives indications of that individual's personality. In cartoon tests, cartoon characters are shown in a specific situation related to the problem. The respondents are asked to indicate what one cartoon character might say in response to the comments of another character. Cartoon tests are simpler to administer and analyze than picture response techniques.

17 Let’s see if we can pick up some house wares at Sears.
A Cartoon Test Let’s see if we can pick up some house wares at Sears. Figure 5.4 Sears

18 Thematic Apperception Test
T.A.T.

19 Thematic Apperception Test (TAT)
Construct a story about what you see on the following picture Describe: - what led up to the scene - what is happening - what the characters in the story might think or feel - how the story will end

20 New approach: ZMET Zaltman Metaphor Elicitation Technique (ZMET)
ZMET is “a technique for eliciting interconnected constructs that influence thought and behavior.”

21 ZMET The guided conversation consists of a series of steps that includes some or all of the following: Story telling Missed images Sorting task Construct elicitation The most representative picture Opposite images Sensory images Mental map Summary image Vignette

22 ZMET Step 1. Storytelling: Participants describe the content of each picture. Step 2. Missed Image: Participants describe the picture or pictures that he or she was unable to obtain and explain their relevance. Step 3. Sorting Task: Participants sort pictures into meaningful groups and provide a label or description for each group. Step 4. Construct elicitation: Participants sort pictures into meaningful groups and provide a label or description for each group. Step 5. The Most Representative Picture: Participants indicate which picture is most representative. Step 6. Opposite Images: Participants indicate picture that describe the opposite of the brand or the task that they were given. Step 7. Sensory Images: Participants indicate what does or does not describe the concept in terms of color, emotion, sound, smell, taste, and touch.

23 ZMET Step 8. Mental Map: After reviewing the entire construct discussed and asking Participants if the constructs are accurate representations of what was meant and if any important ideas are missing, Participants create a map or causal model connecting the constructs that have been elicited. Step 9. Summary Images: Participants create a summary image or montage using their own images (sometimes augmented by images from an images from an image bank) to express important issues. Digital Imaging techniques may be employed to facilitate the creation of the image. Step 10. Vignette: Participants put together vignette or short video to help communicate important issues.

24 Brand Personality and Values
Brand personality refers to the human characteristics or traits that can be attributed to a brand. The Big Five Sincerity (down-to-earth, wholesome, and cheerful) Excitement (daring, spirited, imaginative, and up-to-date) Competence (reliable, intelligent, and successful) Sophistication (upper class and charming) Ruggedness (outdoorsy and tough) Jennifer Aaker, 1997

25 Identifying Key Brand Personality Associations
BUSH KERRY Coffee Dunkin’ Donuts Starbucks Technology IBM Apple Auto Ford BMW Retail Kmart Target Fast Food McDonald’s Subway 2004 U.S. presidential election, random sample of undecided voters

26 Experiential Methods By tapping more directly into their actual home, work, or shopping behaviors, researchers might be able to elicit more meaningful responses from consumers. Advocates of the experiential approach have sent researchers to consumers’ homes in the morning to see how they approach their days, given business travelers Polaroid cameras and diaries to capture their feelings when in hotel rooms, and conducted “beeper studies” in which participants are instructed to write down what they’re doing when they are paged.

27 Quantitative Research Techniques
Awareness Image Brand responses Brand relationships

28 Awareness Recognition Recall
Ability of consumers to identify the brand (and its elements) under various circumstances Recall Ability of consumers to retrieve the actual brand elements from memory Unaided vs. aided recall

29 Awareness Corrections for guessing Strategic implications
Any research measure must consider the issue of consumers making up responses or guessing. Strategic implications The advantage of aided recall measures is that they yield insight into how brand knowledge is organized in memory and what kind of cues or reminders may be necessary for consumers to be able to retrieve the brand from memory. The important point to note is that the category structure that exists in consumers’ minds—as reflected by brand recall performance—can have profound implications for consumer choice and marketing strategy.

30 Image Ask open-ended questions to tap into the strength, favorability, and uniqueness of brand associations. These associations should be rated on scales for quantitative analysis.

31 Brand Responses Research in psychology suggests that purchase intentions are most likely to be predictive of actual purchase when there is correspondence between the two in the following categories: Purchase Intentions Action (buying for own use or to give as a gift) Target (specific type of product and brand) Context (in what type of store based on what prices and other conditions) Time (within a week, month, or year)

32 Brand Relationships Behavioral loyalty Brand substitutability
Other brand resonance dimensions For example, in terms of engagement, measures could explore word-of-mouth behavior, online behavior, and so forth in depth

33 Comprehensive Models of Customer-Based Brand Equity
Brand dynamics Equity engines Young & Rubicam’s Brand Asset Valuator (BAV)

34 Brand Dynamics The Brand Dynamics model adopts a hierarchical approach to determine the strength of relationship a consumer has with a brand. The five levels of the model are: Presence Relevance Performance Advantage Bonding

35 Equity Engines This model delineates three key dimensions of brand affinity—the emotional and intangible benefits of a brand—as follows: Authority: The reputation of a brand, whether as a long-standing leader or as a pioneer in innovation Identification: The closeness customers feel for a brand and how well they feel the brand matches their personal needs Approval: The way a brand fits into the wider social matrix and the intangible status it holds for experts and friends

36 Young & Rubicam’s Brand Asset Valuator (BAV)
There are five key components of brand health in BAV—the five pillars. Each pillar is derived from various measures that relate to different aspects of consumers’ brand perceptions and that together trace the progression of a brand’s development. Differentiation Energy Relevance Esteem Knowledge

37 BrandAsset® Valuator (BAV)
240,000+ consumers Up to 181 categories 137 studies 40 countries 8 years 56 different brand metrics Common methodology The largest worldwide brand study, enabling Y&R to speak to the issue on the agenda, Brands and Financial Performance, but also enabling me to speak about brands the way consumers do. It’s helpful to think about Brands as you think about Relationships-- how brands are built how they progress how they can go sour and how to re-build damaged ones I’m going to talk about the 2

38 How Brands Are Built Knowledge Esteem Relevance Differentiation
Four Primary Aspects Knowledge The culmination of brand building efforts; acquisition of consumer experience Esteem Consumer respect, regard, reputation; a fulfillment of perceived consumer promise Relevance Relates to usage and subsumes the five Ps of marketing; relates to sale Differentiation The basis for consumer choice; the essence of the brand, source of margin

39 Healthy Brands Have Greater Differentiation than Relevance
D > R 100 90 Examples: Harley Davidson Yahoo! AOL Williams-Sonoma Ikea Bloomberg Business News 80 70 60 50 40 30 20 So here’s the first check point. Is this a relationship with a future? If Differentiation, as we say, is greater than Relevance… (refer to the slide) If Relevance is greater than Differentiation... 10 Differentiation Relevance Room to grow... Brand has power to build relevance. 9

40 Brands with greater Relevance than Differentiation Are in Danger of Becoming Commodities
R > D 100 90 Examples: Exxon Mott’s McDonald’s Crest Minute Maid Fruit of the Loom Peter Pan (peanut butter) 80 70 60 50 40 30 20 So here’s the first check point. Is this a relationship with a future? If Differentiation, as we say, is greater than Relevance… (refer to the slide) If Relevance is greater than Differentiation... 10 Differentiation Relevance Uniqueness has faded; price becomes dominant reason to buy. 9

41 More Esteem than Knowledge Means, “I’d like to get to know you better”
E > K 100 90 Examples: Coach leatherwear Tag Heuer Calphalon Movado Blaupunkt Pella Windows Palm Pilot Technics 80 70 60 50 40 30 20 So here’s the first check point. Is this a relationship with a future? If Differentiation, as we say, is greater than Relevance… (refer to the slide) If Relevance is greater than Differentiation... 10 Esteem Knowledge Brand is better liked than known. 9

42 Too Much Knowledge Can Be Dangerous: “I know you and you’re nothing special”
K > E 10 20 30 40 50 60 70 80 90 100 Esteem Knowledge Examples: Plymouth TV Guide Spam Woolworths Chrysler Maxwell House National Enquirer Sanka So here’s the first check point. Is this a relationship with a future? If Differentiation, as we say, is greater than Relevance… (refer to the slide) If Relevance is greater than Differentiation... Brand is better known than liked. 9

43 A Two-Dimensional Framework for Diagnosing Brands: The Power Grid
BrandAsset® Valuator Leading Brand Strength Differentiation Relevance Lagging Brand Stature Esteem Knowledge OK, so here’s the cheat sheet. I’m Miss Lonelyhearts and I’m checking out what you’re telling me about the brands. I want to know about Brand Strength and Brand Stature and what they tell me about pursuing the relationship further. 11

44 Brand Health Is Captured on the PowerGrid
Power Leaders Niche/ Unrealized Potential Declining Leaders (Differentiation and Relevance) BRAND STRENGTH Eroded New Unfocused BRAND STATURE (Esteem and Knowledge) Base: USA Total Adults BAV 2000 12

45 Bloomberg Business News
USA 1999 PowerGrid Sample 100 Arizona Iced Tea Aeropostale Newman’s Own Sundance Channel DreamWorks Bloomberg Business News CDnow IKEA Coca-Cola Ocean Spray Nike Pepperidge Farm M&Ms Disney Jeopardy! Hallmark 80 60 BRAND STRENGTH San Pellegrino Sun Microsystems Wired Quest Telecomm Nokia iVillage.com NetGrocer Iridium Plymouth Bazooka Ivory Snow Pert Rolaids Keds Howard Johnson TWA Greyhound 40 20 20 40 60 80 100 BRAND STATURE Base: USA Total Adults BAV 1999

46 Y&R Resonance Research
(10%) Community Engagement 15% Attachment (30%) Loyalty (60%) Usage Base: 2001 BAV Data

47 Y&R Resonance Research with BAV
100 Engaged Community Attached Engaged Loyal Differentiation Community Non-Loyals Brand Strength 50 Attached Loyal Users Non-Loyal Users 50 100 Brand Stature Base: BAV USA Adults 2001

48 Average U.S. Packaged Goods Brand
Proportion of Consumers Consumer Loyalty 7% Bonded 32% Advantage 35% Performance 43% Relevance 76% Presence 38% 19% 17% 13% 20%

49 Commonalty Between the Basic BAV Model and the CBBE Framework
BAV’s knowledge relates to CBBE’s brand awareness and familiarity. BAV’s esteem relates to CBBE’s favorability of brand associations. BAV’s relevance relates to CBBE’s strength of brand associations (as well as perhaps favorability). BAV’s energy relates to CBBE’s favorability of associations. BAV’s differentiation relates to CBBE’s uniqueness of brand associations.

50 Tuck School of Business
CHAPTER 10: MEASURING OUTCOMES OF BRAND EQUITY: CAPURING MARKET PERFORMANCE Kevin Lane Keller Tuck School of Business Dartmouth College

51 Measuring Brand Equity
Multi-dimensional concept Many different measures required The ultimate value of a brand depends on the underlying components of brand knowledge and sources of brand equity

52 Comparative Methods Brand-based comparative approaches
Marketing-based comparative approaches Conjoint analysis

53 Brand-Based Approaches
The marketing element under consideration is fixed. Consumer response is examined based on changes in brand identification. Application example: Blind testing Advantage: Isolates the value of the brand Disadvantage: The totality of what is learned depends on how many applications are examined.

54 Marketing-Based Approaches
The brand is held fixed and consumer response is examined based on changes in marketing programs. Applications: Explore price premiums’ effect on switching, consumer evaluations of marketing activities, brand extensions, etc. Advantage: Ease of implementation Disadvantage: Difficult to determine whether consumer responses are caused by brand knowledge or generic product knowledge

55 Conjoint Analysis A survey-based multivariate technique that enables marketers to profile the consumer decision process with respect to products and brands Helps researchers determine the trade-offs consumers make between brand attributes Applications: Assess advertising effectiveness and brand value; analyze brand/price trade-off Advantage: Allows for different brands or different aspects of the product to be analyzed simultaneously Disadvantage: May violate consumers’ expectations based on what they already know about brands

56 Example: Laptop Profiles
Brand Hard Drive RAM Screen Price A B Dell 320 GB 2 GB 15.4 in $1,200 9 6 Apple 4 GB 12 160 GB $900 5 11 12.1 in $1,500 4 3 1 10 8 7 2

57 Holistic Methods Attempt to place an overall value on the brand in either abstract utility terms or concrete financial terms Net out various considerations to determine the unique contribution of the brand Holistic methods: Residual approaches Valuation approaches

58 Residual Approaches Examine the value of the brand by subtracting consumers’ preferences based on physical product attributes alone from their overall brand preferences Advantage: Useful benchmark for interpreting brand equity, especially from a financially oriented perspective Disadvantage: Static view. Limited diagnostic value for strategic decision making

59 Valuation Approaches Attempt to place a financial value on brand equity for accounting purposes Useful in cases of mergers and acquisitions, brand licensing, fund raising, and brand management decisions Valuation approaches: Accounting background Historical perspectives General approaches Interbrand’s brand valuation methodology

60 Accounting Background
Intangible assets are typically lumped under the heading of goodwill and include things such as patents, trademarks, and licensing agreements, as well as “softer” considerations such as the skill of the management and customer relations. In an acquisition, the goodwill item often includes a premium paid to gain control, which, in certain instances, may even exceed the value of tangible and intangible assets.

61 Historical Perspectives
In Australia Rupert Murdoch’s News Corporation included a valuation of some of its magazines on its balance sheets in 1984. British firms used brand values primarily to boost their balance sheets. In the United States, generally accepted accounting principles mean that placing a brand on the balance sheet would require amortization of that asset for up to 40 years. Such a charge would severely hamper firm profitability; as a result, firms avoid such accounting maneuvers.

62 General Approaches In determining the value of a brand in an acquisition or merger, firms can choose from three main approaches: Cost approach: Brand equity is the amount of money that would be required to reproduce or replace the brand Market approach: The present value of the future economic benefits to be derived by the owner of the asset Income approach: The discounted future cash flow from the future earnings stream for the brand

63 Interbrand’s Brand Valuation
Assumes that brand value is the present worth of the benefits of future ownership Follows five valuation steps: Market segmentation Financial (role of branding) analysis Demand (brand strength) analysis Competitive benchmarking Brand value calculation Brand value calculation : Calculate the brand value as the net present value (NPV) of the forecast brand earnings, discounted by the brand discount rate 45

64 Interbrand’s Brand Valuation
1. Market segmentation. Brands influence customer choice, but the influence varies depending on the market in which the brand operates. The brand is valued in each segment and the sum of the segment valuations constitutes the total value of the brand. 2. Financial analysis. Identify and forecast revenues and earnings from intangibles generated by the brand for each of the distinct segments determined in Step 1. Intangible earnings are defined as brand revenue less operating costs, applicable taxes and a charge for the capital employed. The concept is similar to the notion of economic profit. 45

65 Interbrand’s Brand Valuation
3. Demand analysis. Assess the role that the brand plays in driving demand for products and services in the markets in which it operates, and determine what proportion of intangible earnings is attributable to the brand measured by an indicator referred to as the “role of branding index.” This is done by first identifying the various drivers of demand for the branded business, then determining the degree to which each driver is directly influenced by the brand. The role of branding index represents the percentage of intangible earnings that are generated by the brand. Brand earnings are calculated by multiplying the role of branding index by intangible earnings. 45

66 Interbrand’s Brand Valuation
4. Competitive benchmarking. Determine the competitive strengths and weaknesses of the brand to derive the specific brand discount rate that reflects the risk profile of its expected future earnings (this is measured by an indicator referred to as the “brand strength score”). This comprises extensive competitive benchmarking and a structured evaluation of the brand’s market, stability, leadership position, growth trend, support, geographic footprint and legal protectability. 5. Brand value calculation. Brand value is the net present value (NPV) of the forecast brand earnings, discounted by the brand discount rate. The NPV calculation comprises both the forecast period and the period beyond, reflecting the ability of brands to continue generating future earnings. 45

67 CHAPTER 11: DESIGNING AND IMPLEMENTING BRANDING STRATEGIES
Kevin Lane Keller Tuck School of Business Dartmouth College

68 Branding strategy Branding strategy is critical because it is the means by which the firm can help consumers understand its products and services and organize them in their minds. Two important strategic tools: The brand-product matrix and the brand hierarchy help to characterize and formulate branding strategies by defining various relationships among brands and products.

69 Branding Strategy or Brand Architecture
The branding strategy for a firm reflects the number and nature of common or distinctive brand elements applied to the different products sold by the firm. Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products

70 The role of Brand Architecture
Clarify: brand awareness Improve consumer understanding and communicate similarity and differences between individual products Motivate: brand image Maximize transfer of equity to/from the brand to individual products to improve trial and repeat purchase

71 Brand-Product Matrix Must define: 1 2 3 4 A B C Products Brands
Brand-Product relationships (rows) Line and category extensions Product-Brand relationships (columns) Brand portfolio 71

72 Important Definitions
Product line A group pf products within a product category that are closely related Product mix (product assortment) The set of all product lines and items that a particular seller makes available to buyers Brand mix (brand assortment) The set of all brand lines that a particular seller makes available to buyers 66

73 Breadth of a Branding Strategy
Breadth of product mix Aggregate market factors Category factors Environmental factors Depth of product mix Examining the percentage of sales and profits contributed by each item in the product line Deciding to increase the length of the product line by adding new variants or items typically expands market coverage and therefore market share but also increases costs 66

74 Depth of a Branding Strategy
The number and nature of different brands marketed in the product class sold by a firm Referred to as brand portfolio The reason is to pursue different market segments, different channels of distribution, or different geographic boundaries Maximize market coverage and minimize brand overlap 66

75 Ford Brand Portfolio 66

76 Designing a Brand Portfolio
Basic principles: Maximize market coverage so that no potential customers are being ignored Minimize brand overlap so that brands aren’t competing among themselves to gain the same customer’s approval

77 Brand Roles in the Portfolio
Flankers: Flanker or "fighter" brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning. Cash cows: Some brands may be kept around despite dwindling sales because they still manage to hold on to a sufficient number of customers and maintain their profitability with virtually no marketing support. These "cash cow" brands can be effectively "milked" by capitalizing on their reservoir of existing brand equity. 66

78 Brand Roles in the Portfolio
Low-end entry-level: The role of a relatively low-priced brand in the brand portfolio often may be to attract customers. Retailers like to feature these "traffic builders" because they are able to "trade up" customers to a higher-priced brand. For example, BMW introduced certain models into its 3-series automobiles in part as a means of bringing new customers into the brand franchise with the hope of later "moving them up" to higher-priced models when they later decided to trade in their cars. High-end prestige brands 66

79 Brand Roles in the Portfolio
High-end prestige brands: The role of a relatively high-priced brand in the brand family often is to add prestige and credibility to the entire portfolio. For example, one analyst argued that the real value of its Corvette high performance sports car to Chevrolet was in "its ability to lure curious customers into showrooms and at the same time help improve the image of other Chevrolet cars. 66

80 Brand Hierarchy A means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements A useful means of graphically portraying a firm’s branding strategy 66

81 Brand Hierarchy Tree: Toyota
Corporation Toyota (SUV/vans) Toyota (Cars) Toyota Financial Services Toyota (Trucks) Lexus MR2 Spyder Corolla Camry Avalon Celica ECHO Matrix Prius Platinum Edition XL XLS CE S LE SE LE XLE SE SLE

82 Brand Hierarchy Levels
Corporate Brand (General Motors) Family Brand (Buick) Individual Brand (Park Avenue) Modifier: Item or Model (Ultra) 65

83 Corporate Brand Equity
Occurs when relevant constituents hold strong, favorable, and unique associations about the corporate brand in memory Encompasses a much wider range of associations than a product brand 66

84 Family Brands Brands applied across a range of product categories
An efficient means to link common associations to multiple but distinct products 66

85 Individual Brands Restricted to essentially one product category
There may be multiple product types offered on the basis of different models, package sizes, flavors, etc. 66

86 Modifiers Signals refinements or differences in the brand related to factors such as quality levels, attributes, functions, etc. Plays an important organizing role in communicating how different products within a category that share the same brand name are 66

87 Corporate Image Dimensions
Corporate product attributes, benefits or attitudes Quality Innovativeness People and relationships Customer orientation Values and programs Concern with the environment Social responsibility Corporate credibility Expertise Trustworthiness Likability 66

88 Brand Hierarchy Decisions
The number of levels of the hierarchy to use in general How brand elements from different levels of the hierarchy are combined, if at all, for any one particular product How any one brand element is linked, if at all, to multiple products Desired brand awareness and image at each level 66

89 Number of Hierarchy Levels
Principle of simplicity Employ as few levels as possible Principle of clarity Logic and relationship of all brand elements employed must be obvious and transparent

90 Levels of Awareness and Associations
Principle of relevance Create global associations that are relevant across as many individual items as possible Principle of differentiation Differentiate individual items and brands

91 Linking Brands at Different Levels
Principle of prominence The relative prominence of brand elements affects perceptions of product distance and the type of image created for new products

92 Linking Brands Across Products
Principle of commonality The more common elements shared by products, the stronger the linkages

93 Brand Architecture Guidelines
Adopt a strong customer focus Avoid over-branding Establish rules and conventions and be disciplined Create broad, robust brand platforms Selectively employ sub-brands as means of complementing and strengthening brands Selectively extend brands to establish new brand equity and enhance existing brand equity

94 Corporate Brand Campaign
Different objectives are possible: Build awareness of the company and the nature of its business Create favorable attitudes and perceptions of company credibility Link beliefs that can be leveraged by product-specific marketing Make a favorable impression on the financial community Motivate present employees and attract better recruits Influence public opinion on issues

95 Using Cause Marketing to Build Brand Equity
The process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives 66

96 Advantages of Cause Marketing
Building brand awareness Enhancing brand image Establishing brand credibility Evoking brand feelings Creating a sense of brand community Eliciting brand engagement 66

97 Green Marketing A special case of cause marketing that is particularly concerned with the environment Explosion of environmentally friendly products and marketing programs 66

98 Crisis Marketing Guidelines
The two keys to effectively managing a crisis are that the firm’s response should be swift and that it should be sincere.


Download ppt "Tuck School of Business"

Similar presentations


Ads by Google