MKt 465 ch 7 seh
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Transcript of MKt 465 ch 7 seh
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Chapter 7
Leveraging Secondary Brand Associations to Build Brand Equity
8 ways to Leverage Secondary Associations
Process of leveraging brand associations
Issues to consider developing secondary associations
CH Heads
Leveraging
Borrowing some brand knowledge and depending on the nature of associations or responses, some brand equity
Unlike brand elements and communication strategies, this is an indirect approach to build brand equity.
These secondary approaches are mostly important when the primary approaches are deficient in some ways + to reinforce the existing associations ( awareness, meaningfulness , transferability)
Secondary Associations:
Company (through corporate branding strategies)
Country of Origin (through identification of product origin)
Channels of Distribution (through channels strategy)
Other Brands (through co-branding)
A Special case of co-branding is ingredient branding
Characters (through licensing)
Celebrity Spokesperson (through endorsement advertising)
Events (through sponsorship)
Other Third-Party Sources (through awards and reviews)
There are three main branding options exist for a new product
Create a new brand
Adopt/Modify an existing brand
Combine existing and new brand
Family Brand evokes associations of common product attributes/ Value Propositions
However, some new brands helps to convey a smaller / niche image
1. Company
LVMH : Louis Vuitton Moet Hennessey
LV
Fendi
Marc Jacob
Givenchy
Kenzo
Pucci
Sephora
Charles and Keith
2. Country/Region of Origin
3. Channel of Distribution
4. Co-Branding: reduce the cost of product intron+ an important means to create distinctive product
Occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion
The Bronco II: Ford and Eddie Bauer
Advantages
Borrow needed expertise
Leverage equity you dont have
Reduce cost of product introduction
Expand brand meaning into related categories
Broaden meaning
Increase access points
Source of additional revenue
Disadvantages
Loss of control
Risk of brand equity dilution
Negative feedback effects
Lack of brand focus and clarity
Organizational distractions
Guidelines
All brands should have separate Brand Equity
Logical Fit : max the advantages for partners , values, capabilities , goals, etc
Profitable for all partners involved
Ingredient Branding: A special case of co-branding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products
Ingredient Branding:
Assurance of Quality
Reduce Risk
Might become industry standard
Helps to differentiate (mature brands)
Please read the guidelines: pg 275
5. Licensing
Involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands for some fixed fee
Renting another companys band equity
shortcut means to gain BE
Shahrukh Amin for SadaKalo
6. Celebrity Endorsement
Draws attention to the brand
Shapes the perceptions of the brand
Celebrity should have a high level of visibility and a rich set of useful associations, judgments, and feelings
The celebrity must be credible in terms of expertise, trustworthiness, likability, product relevance
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.
Guidelines:
Strategically evaluate, select and use celebrity spokesperson
Choose well-known and well defined celebrities whose associations are relevant to the brand and likely to be transferable
Logical fit between that person and the brand
That person better be not over exposed
Communication must highlight the association but his stardom
7. Sporting, Culture and 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 and Likability
8. Third Party Sources
Marketers 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 .
End Notes:
These secondary associations may lead to a transfer of:
Response-type Associations
Judgments (especially credibility)
Feelings
Meaning-type Associations
Performance
Imagery
These Associations must enhance Commonality and/or Complementary