Levaraging Secondary Brand Knowledge to Build Brand Equity

8/2/2019 Levaraging Secondary Brand Knowledge to Build Brand Equity

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CHAPTER 7:CHAPTER 7:

KNOWLEDGE TO BUILD BRAND EQUITYKNOWLEDGE TO BUILD BRAND EQUITY

D S HwangD S Hwang

From Kevin Lane KellerFrom Kevin Lane Keller

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gure - u ng us omer- ase ran qu yBRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS

Choosing Brand Elements

Brand name Memorability

Logo Meaningfulness

Symbol Appeal

Character Transferability

Packaging Adaptability

Possible Outcomes

Greater loyalty

Less vulnerability to competitive

Brand Awareness

Depth RecallRecognition

Slogan Protectability

Developing Marketing Programs

marketing actions and crises

Larger margins

More elastic response to price

decreases

Breadth Purchase

Consumption

Product Tangible and intangible benefitsPrice Value perceptions

Distribution channels Integratepush and pull

Communications Mix and match options

More inelastic response to price

increases

Greater trade cooperation andBrand Associations

Leverage of Secondary Associations

Company

suppor

Increased marketing communication

efficiency and effectiveness

Possible licensing opportunities

Strong

Favorable

Relevance

Consistency

Desirable

Channel of distribution

Other brands

Endorsor

Event

Awareness

Meaningfulness

Transferability

More favorable brand extension

evaluationsUnique

Point-of-parity

Point-of-difference

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Creation of new brand associationsCreation of new brand associations

Awareness and knowledge of the entityAwareness and knowledge of the entity

ean ng u ness o t e now e ge o t e ent ty ean ng u ness o t e now e ge o t e ent ty Transferability of the knowledge of the entityTransferability of the knowledge of the entity

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Brand associations ma themselves be linked to otherBrand associations ma themselves be linked to other

entities, creating secondary associations:entities, creating secondary associations:

Country of origin (through identification of product origin)Country of origin (through identification of product origin)

Channels of distribution throu h channels strateChannels of distribution throu h channels strate

Other brands (through coOther brands (through co--branding)branding)

Special case of coSpecial case of co--branding isbranding is ingredient brandingingredient branding

Characters (through licensing)Characters (through licensing)

Celebrity spokesperson (through endorsement advertising)Celebrity spokesperson (through endorsement advertising) Events (through sponsorship)Events (through sponsorship)

Other thirdOther third--party sources (through awards and reviews)party sources (through awards and reviews)

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Levera in Secondar AssociationsLevera in Secondar Associations

These secondar associations ma lead to aThese secondar associations ma lead to a

transfer of:transfer of:

esponseesponse-- ype assoc a onsype assoc a ons

Judgments (especially credibility)Judgments (especially credibility)

ee ngsee ngs MeaningMeaning--type associationstype associations

Product or service performanceProduct or service performance

Product or service imageryProduct or service imagery

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-- Occurs when two or more existin brands areOccurs when two or more existin brands are

combined into a joint product or are marketedcombined into a joint product or are marketed

Examples:Examples:

Sony EricssonSony Ericsson

NestleNestles Cheerios Cookie Barss Cheerios Cookie Bars

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-- Borrow needed ex ertiseBorrow needed ex ertise

Leverage equity you donLeverage equity you don

t havet have

Reduce cost of product introductionReduce cost of product introduction

Broaden meaningBroaden meaning

Increase access po ntsIncrease access po nts

Source of additional revenueSource of additional revenue

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-- Loss of controlLoss of control

Risk of brand equity dilutionRisk of brand equity dilution

Negative feedback effectsNegative feedback effects

Organizational distractionsOrganizational distractions

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--

creating brand equity for materials, components,creating brand equity for materials, components,or parts t at are necessar y conta ne w t nor parts t at are necessar y conta ne w t n

other branded productsother branded products

Examples:Examples:

chocolate syrupchocolate syrup

n e ns en e ns e

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Involves contractual arran ements wherebInvolves contractual arran ements whereb

firms can use the names, logos, characters, andfirms can use the names, logos, characters, and

Examples:Examples:

Entertainment (Star Wars, Jurassic Park, etc.)Entertainment (Star Wars, Jurassic Park, etc.)

Designer apparel and accessories (Calvin Klein,Designer apparel and accessories (Calvin Klein,

, ., .

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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 visibilityCelebrity should have a high level of visibility

and a rich set of useful associations ud mentsand a rich set of useful associations ud ments

and feelingsand feelings

-- a ngs o eva ua e ce e esa ngs o eva ua e ce e es

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Celebrit endorsers can be overused b endorsinCelebrit endorsers can be overused b endorsinmany products that are too varied.many products that are too varied.

celebrity and the product.celebrity and the product.

e e r ty en orsers can get n trou e or osee e r ty en orsers can get n trou e or osepopularity.popularity.

Many consumers feel that celebrities are doing theMany consumers feel that celebrities are doing the

endorsement for money and do not necessarilyendorsement for money and do not necessarilybelieve in the endorsed brand.believe in the endorsed brand.

ele ritie ma i tract attenti n fr m the ranele ritie ma i tract attenti n fr m the ran

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, ,, ,

Sponsored events can contribute to brand equitySponsored events can contribute to brand equity

b becomin associated to the brand andb becomin associated to the brand andimproving brand awareness, adding newimproving brand awareness, adding new

, ,, ,

favorability, and uniqueness of existingfavorability, and uniqueness of existing

assoc a ons.assoc a ons.

The main means by which an event can transferThe main means by which an event can transferassociations is credibility.associations is credibility.

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-- Marketers can create secondary associations in aMarketers can create secondary associations in a

number of different ways by linking the brand tonumber of different ways by linking the brand tovarious thirdvarious third--party sources.party sources.

ThirdThird-- art sources can be es eciall credibleart sources can be es eciall credible

sources.sources.

campaigns and selling efforts .campaigns and selling efforts .

xa e:xa e: . . owe an ssoc a es we. . owe an ssoc a es we -- u c eu c eCustomer Satisfaction IndexCustomer Satisfaction Index

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Levaraging Secondary Brand Knowledge to Build Brand Equity

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