CH-4 CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

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4.1 CHAPTER 4: CHAPTER 4: CHOOSING BRAND ELEMENTS TO BUILD CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY BRAND EQUITY Kevin Lane Keller Kevin Lane Keller Tuck School of Business Tuck School of Business Dartmouth College Dartmouth College

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by:Kevin Lane KellerTuck School of BusinessDartmouth College

Transcript of CH-4 CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

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CHAPTER 4:CHAPTER 4: CHOOSING BRAND ELEMENTS TO CHOOSING BRAND ELEMENTS TO

BUILD BRAND EQUITYBUILD BRAND EQUITY

Kevin Lane KellerKevin Lane KellerTuck School of BusinessTuck School of Business

Dartmouth CollegeDartmouth College

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Building Building Customer-Based Brand EquityCustomer-Based Brand Equity

Brand knowledge structures depend on:Brand knowledge structures depend on:

The initial choices for the brand The initial choices for the brand elements elements

The supporting marketing program and The supporting marketing program and the manner by which the brand is the manner by which the brand is integrated into itintegrated into it

Other associations indirectly transferred Other associations indirectly transferred to the brand by linking it to some other to the brand by linking it to some other entitiesentities

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Criteria for Choosing Brand Criteria for Choosing Brand ElementsElements

Memorability Memorability Meaningfulness Meaningfulness Likability Likability Transferability Transferability Adaptability Adaptability Protectability Protectability

Marketer’s offensive strategy and build brand equity

Defensive role for leveraging and maintaining brand equity

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MemorabilityMemorability

Brand elements should inherently be Brand elements should inherently be memorable and attention-getting, memorable and attention-getting, and therefore facilitate and therefore facilitate recallrecall or or recognitionrecognition. .

For example, a brand of propane gas For example, a brand of propane gas cylinders named Blue Rhino featuring cylinders named Blue Rhino featuring a powder-blue animal mascot with a a powder-blue animal mascot with a distinctive yellow flame is likely to distinctive yellow flame is likely to stick in the minds of consumers.stick in the minds of consumers.

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MeaningfulnessMeaningfulness

Brand elements may take on all kinds of Brand elements may take on all kinds of meaning, with either meaning, with either descriptive descriptive or or persuasivepersuasive content. content.

Two particularly important criteria General information about the nature of the General information about the nature of the

product categoryproduct category Specific information about particular attributes Specific information about particular attributes

and benefits of the brand and benefits of the brand The first dimension is an important The first dimension is an important

determinant of brand awareness and salience; determinant of brand awareness and salience; the second, of brand image and positioning.the second, of brand image and positioning.

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LikabilityLikability

Do customers find the brand element Do customers find the brand element aesthetically appealingaesthetically appealing? ?

Descriptive and persuasive elements Descriptive and persuasive elements reduce the burden on marketing reduce the burden on marketing communications to build awareness. communications to build awareness.

Fun and interestingFun and interesting Rich visual and verbal imageryRich visual and verbal imagery

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TransferabilityTransferability

How useful is the brand element for How useful is the brand element for line or category extensionsline or category extensions? (within ? (within and across product category. Ex: and across product category. Ex: Amazon- Amazon- a massive south American rivera massive south American river))

To what extent does the brand To what extent does the brand element add to brand equity element add to brand equity across across geographic boundaries and market geographic boundaries and market segmentssegments? (Ex: Exxon-? (Ex: Exxon-Nonmeaningful names.)Nonmeaningful names.)

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AdaptabilityAdaptability

The more adaptable and The more adaptable and flexible flexible the the brand element, the easier it is to brand element, the easier it is to updateupdate it to changes in consumer it to changes in consumer values and opinions. values and opinions.

For example, logos and characters For example, logos and characters can be given a new look or a new can be given a new look or a new design to make them appear more design to make them appear more modern and relevant. modern and relevant.

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ProtectabilityProtectability

Marketers should:Marketers should:1.1. Choose brand elements that can be Choose brand elements that can be

legally protectedlegally protected internationally. internationally.

2.2. Formally Formally register register chosen brand elements chosen brand elements with the appropriate legal bodies.with the appropriate legal bodies.

3.3. Vigorously Vigorously defend trademarksdefend trademarks from from unauthorized competitive infringement.unauthorized competitive infringement.

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Tactics for Brand ElementsTactics for Brand Elements A variety of brand elements can be chosen that A variety of brand elements can be chosen that

inherently enhance brand awareness or facilitate the inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand formation of strong, favorable, and unique brand associations.associations. Brand namesBrand names URLsURLs Logos and symbolsLogos and symbols CharactersCharacters SlogansSlogans PackagingPackaging ( Apple was a simple but will-known word that was ( Apple was a simple but will-known word that was

distinctive in the product category which help to distinctive in the product category which help to develop brand awareness. The meaning of the develop brand awareness. The meaning of the name also gave the company a “friendly shine” and name also gave the company a “friendly shine” and “warm” brand personality. It could also be “warm” brand personality. It could also be reinforced visually with a logo that would transfer reinforced visually with a logo that would transfer easily across geographical and cultural easily across geographical and cultural boundaries.)boundaries.)

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1. Brand Names1. Brand Names Like any brand element, brand Like any brand element, brand

names must be chosen with the names must be chosen with the six general criteria of memorability, six general criteria of memorability, meaningfulness, likability, meaningfulness, likability, transferability, adaptability, and transferability, adaptability, and protectability in mind. protectability in mind.

““All the good ones are taken.”All the good ones are taken.”

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Brand Brand Naming GuidelinesNaming Guidelines Brand awarenessBrand awareness  

Simplicity and ease of pronunciation and Simplicity and ease of pronunciation and spelling (Cocacola_Coke, Aim_toothpaste)spelling (Cocacola_Coke, Aim_toothpaste)

Familiarity and meaningfulness (Neon) Familiarity and meaningfulness (Neon) Differentiated, distinctive, and uniqueness Differentiated, distinctive, and uniqueness

(Xrox, Exxon)(Xrox, Exxon) Brand associationsBrand associations

The explicit and implicit meanings The explicit and implicit meanings consumers extract from it are important. consumers extract from it are important. In particular, the brand name can reinforce In particular, the brand name can reinforce an important attribute or benefit an important attribute or benefit association that makes up its product association that makes up its product positioning. (Lexicaon- PowerBook, A small positioning. (Lexicaon- PowerBook, A small product that holds a lot of information. )product that holds a lot of information. )

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Brand Brand Naming Naming ProceduresProcedures

1.1. Define objectives Define objectives

2.2. Generate names Generate names

3.3. Screen initial candidates Screen initial candidates

4.4. Study candidate names Study candidate names

5.5. Research the final Research the final candidates candidates

6.6. Select the final name Select the final name

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2. URLs2. URLs

URLs (uniform resource locators)URLs (uniform resource locators) specify locations of pages on the webspecify locations of pages on the web and are also commonly referred to as and are also commonly referred to as domain names.domain names.

A company can either sue the current A company can either sue the current owner of the URL for copyright owner of the URL for copyright infringement, buy the name from the infringement, buy the name from the current owner, or register all current owner, or register all conceivable variations of its brand as conceivable variations of its brand as domain names ahead of time.domain names ahead of time.

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3. Logos and Symbols3. Logos and Symbols Play a critical role in building brand Play a critical role in building brand

equity and especially brand awareness equity and especially brand awareness LogosLogos range from corporate names or range from corporate names or

trademarks (word marks with text trademarks (word marks with text only) written in a distinctive form, to only) written in a distinctive form, to entirely abstract designs that may be entirely abstract designs that may be completely unrelated to the word completely unrelated to the word mark, corporate name, or corporate mark, corporate name, or corporate activities activities

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4. Characters4. Characters A special type of brand symbol—A special type of brand symbol—

one that takes on human or real-one that takes on human or real-life characteristics. life characteristics.

Some are animated like Pillsbury’s Some are animated like Pillsbury’s Poppin’ Fresh Doughboy, Peter Pan Poppin’ Fresh Doughboy, Peter Pan peanut butter’s character, and peanut butter’s character, and numerous cereal characters such as numerous cereal characters such as Tony the Tiger, Cap’n Crunch, and Tony the Tiger, Cap’n Crunch, and Snap, Crackle & Pop. Snap, Crackle & Pop.

DisneyDisney

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5. Slogans5. Slogans Slogans are short phrases that Slogans are short phrases that

communicate descriptive or communicate descriptive or persuasive information about the persuasive information about the brand. brand.

Slogans are powerful branding Slogans are powerful branding devices because, like brand names, devices because, like brand names, they are an extremely efficient, they are an extremely efficient, shorthand means to build brand shorthand means to build brand equity equity

(Basundhara Group-(Basundhara Group-For the people, for the CountryFor the people, for the Country))

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Classic Slogans

““Melts in your mouth, not in your Melts in your mouth, not in your hands” (M&M’s)hands” (M&M’s)

““Sometimes you feel like a nut, Sometimes you feel like a nut, sometimes you don’t” (Almond sometimes you don’t” (Almond Joy/Mounds)Joy/Mounds)

““Where’s the beef?” (Wendy’s)Where’s the beef?” (Wendy’s) ““A mind is a terrible thing to waste” A mind is a terrible thing to waste”

(United Negro College Fund)(United Negro College Fund) ““Can you hear me now?” (Verizon) Can you hear me now?” (Verizon)

Source: Monty Phan, “Celebrating Their Sweet Success,” Newsday, 21 September 2004, A43.

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6. Jingles6. Jingles

Jingles are musical messages Jingles are musical messages written around the brand.written around the brand. Typically composed by professional Typically composed by professional songwriters, they often have enough songwriters, they often have enough catchy hooks and choruses to become catchy hooks and choruses to become almost permanently registered in the almost permanently registered in the minds of listeners—sometimes minds of listeners—sometimes whether they want them to or not! whether they want them to or not!

Jingles are perhaps most valuable in Jingles are perhaps most valuable in enhancing brand awareness. enhancing brand awareness.

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7. Packaging7. Packaging PackagingPackaging is the science, art, and technology is the science, art, and technology

of enclosing or protecting products for of enclosing or protecting products for distribution, storage, sale, and use.distribution, storage, sale, and use.

From the perspective of both the firm and From the perspective of both the firm and consumers, packaging must achieve a number consumers, packaging must achieve a number of objectives:of objectives:

1.1. Identify the brandIdentify the brand2.2. Convey descriptive and persuasive Convey descriptive and persuasive

informationinformation3.3. Facilitate product transportation and Facilitate product transportation and

protectionprotection4.4. Assist at-home storageAssist at-home storage5.5. Aid product consumptionAid product consumption

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Packaging Can Influence Packaging Can Influence TasteTaste

Our sense of taste and touch is very Our sense of taste and touch is very suggestible, and what we see on a suggestible, and what we see on a package can lead us to taste what package can lead us to taste what we think we are going to taste. we think we are going to taste.

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Packaging Can Influence Packaging Can Influence ValueValue

Long after we have bought a Long after we have bought a product, a package can still lead product, a package can still lead us to believe we bought it because us to believe we bought it because it was a good value. it was a good value.

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Packaging Can Influence Packaging Can Influence ConsumptionConsumption

Studies of 48 different types of foods Studies of 48 different types of foods and personal care products have and personal care products have shown that people pour and shown that people pour and consume between 18% and 32% consume between 18% and 32% more of a product as the size of the more of a product as the size of the container doubles. container doubles.

Valerie Folkes, Ingrid Martin and Kamal Gupta, Valerie Folkes, Ingrid Martin and Kamal Gupta,

““When to Say When: Effects of Supply on Usage,”When to Say When: Effects of Supply on Usage,”

Journal of Consumer ResearchJournal of Consumer Research, 20 December 1993, 467-477., 20 December 1993, 467-477.

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Packaging Can Influence Packaging Can Influence How a Person Uses a How a Person Uses a

ProductProduct One strategy to increase use of mature One strategy to increase use of mature

products has been to encourage people products has been to encourage people to use the brand in new situations, like to use the brand in new situations, like soup for breakfastsoup for breakfast, or new uses, like , or new uses, like baking soda as a refrigerator baking soda as a refrigerator deodorizer. deodorizer.

An analysis of 26 products and 402 An analysis of 26 products and 402 consumers showed that consumers showed that twice as many twice as many people learned about the new use people learned about the new use from the package than from from the package than from television adstelevision ads. .

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Putting It All TogetherPutting It All Together

The entire set of brand elements The entire set of brand elements makes up the makes up the brand identity,brand identity, the the contribution of all brand elements to contribution of all brand elements to awareness and image. awareness and image.

The cohesiveness of the brand The cohesiveness of the brand identity depends on the extent to identity depends on the extent to which the brand elements are which the brand elements are consistent. consistent.

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CritiqueCritique of Brand Element of Brand Element OptionsOptions

CriteriaCriteria Brand ElementsBrand ElementsBrand Brand Names Names and and URLsURLs

Logos Logos and and symbolssymbols

CharactCharacters ers

Slogans Slogans and and JinglesJingles

PackagiPackaging ng

MemorabiliMemorability ty

Can be Can be chosen to chosen to enhance enhance brand recall brand recall and and recognitionrecognition

Generally Generally more useful more useful for brand for brand recognitionrecognition

Generally Generally more useful more useful for brand for brand recognitionrecognition

Can be chosen Can be chosen to enhance to enhance brand recall brand recall and and recognitionrecognition

Generally Generally more more useful for useful for brand brand recognitionrecognition

MeaningfulMeaningfulnessness

Can Can influence influence almost any almost any type of type of association, association, indirectlyindirectly

Can Can influence influence almost any almost any type of type of association, association, indirectlyindirectly

Generally Generally more useful more useful for non-for non-product product related related imagery and imagery and brand brand personalitypersonality

Can convey Can convey almost any almost any types of types of associations associations explicitlyexplicitly

Can Can convey convey almost any almost any types of types of associationassociations explicitlys explicitly

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CritiqueCritique of Brand Element of Brand Element OptionsOptions

CriteriCriteriaa

Brand ElementsBrand ElementsBrand Brand Names Names and URLsand URLs

Logos Logos and and symbolssymbols

CharactCharacters ers

Slogans Slogans and and JinglesJingles

PackaginPackaging g

Likability Likability Can evoke Can evoke much verbal much verbal imageryimagery

Can Can provoke provoke visual visual appealappeal

Can Can generate generate human human qualitiesqualities

Can evoke Can evoke much verbal much verbal imageryimagery

Can combine Can combine visual and visual and verbal appealverbal appeal

TransferabiTransferabilitylity

Can be Can be somewhat somewhat limitedlimited

ExcellentExcellent Can be Can be somewhat somewhat limitedlimited

Can be Can be somewhat somewhat limitedlimited

GoodGood

AdaptabilitAdaptability y

DifficultDifficult Can Can typically be typically be redesignredesign

Can Can sometimes sometimes be be redesigned redesigned

Can be Can be modified modified

Can Can sometimes sometimes be be redesigned redesigned

ProtectabilProtectabilityity

Generally Generally good but with good but with limitslimits

ExcellentExcellent ExcellentExcellent ExcellentExcellent Can be Can be closely closely copiedcopied