M497A Test A

Brand Feelings (emotional) - Kevin Roberts of Saatchi and Saatchi... - six important types of brand-building feelings (same as Sub-Dimensions)

customers' emotional responses and reactions to the brand - argues for the importance of love and respect ("trustmarks" and "lovemarks") - emotional connection to the brand is seen as critical - 1. Warmth 2. Fun 3. Excitement 4. Security 5. Social approval 6. Self‐respect

2 sources of brand equity

Brand Awareness and Brand Associations

Parts of a Brand Audit

Part 1: Brand Inventory Part 2: Brand Exploratory Part 2a: Qualitative Research Part 2b: Quantitative Research

Risks of Celebrity Endorsement

• Celebrities can get into public controversies • Damage to celebrity image transfers to brand • Celebrities can decline in appeal before end of endorsement contract • Celebrity overexposure harms brand • Celebrities choose to change their image • Celebrities intentionally damage the brand if dissatisfied • The celebrity benefits more than the brand

Brand Equity as a Bridge

• Consumer knowledge is at the heart of brand equity • Brand equity provides marketers with a strategic bridge from their past to the future • Brand equity is an investment in what the consumer thinks and feels about the brand • That consumer knowledge dictates future directions for the brand

1. Creating Brand Charters - what is it - what it defines

- (aka Brand Bible) provides relevant guidelines to mktg managers within the company as well as mktg partners outside the company (ad agency) - the firm's view of the brand; actual and desired equity at all levels of brand hierarchy (including POP, POD, and brand mantra); the BE Measurement system; strategic and tactical guidelines for managing the brand; proper treatment of the brand in terms of trademark usage, design, packaging, and communications (sometimes in a separate brand identity style manual)

Step 2: brand Equity Report - what it is/is for - goal - some firms are...

- (aka scorecard) should be developed to distribute to mgmt regularly using results of tracking surveys and other performance measures - to create a holistic understanding of brand equity, integrating various chunks of info - implementing marketing dashboards to provide comprehensive but actionable summaries of brand-related info

Quantitative Research 2. Brand Associations - how to measure - examples

- (first elicited qualitatively) can be assessed via ratings of their strength, favorability, and uniqueness - "on a scale of 1-7, how descriptive are these words of Lipton Iced Tea"; "how good or bad is it for iced tea to have these characteristics?";"how unique is Lipton iced tea in terms of the following characteristics?"

Brand Reinforcement: Maintaining Brand Consistency - consistency - retro-branding/advertising - heritage

- (in the nature and amount of mktg support) is needed to maintain the strength and favorability of brand associations - doesn't mean a brand can never change - many leading brands are remarkably consistent of over time, retaining key elements of the mktg program and preservation of the brand meaning - tactic that ties in with past advertising that was, and still could be, a source of BE - can be a powerful point-of-distance as long as it conveys longevity, experience, etc. and not just old age

1. Company - examples - BUT

- A corporate or family brand can be a source of much brand equity - associations to common product attributes, benefits, or attitudes, people and relationships; programs and values; corporate credibility - leveraging a corporate brand is not always useful

6. Celebrity Endorsement -- examples

- A famous person should be able to draw attention to a brand and shape perceptions of the brand via the inferences that consumers make based on their knowledge about the famous person - The celebrity should have high visibility and a rich set of potentially useful associations - Ideally s/he would be 'credible' (expert, trustworthy, likeable, attractive) and have specific unique associations that carry potential product relevance -- Alexa Chung and Superga; Tiger Woods and Nike

- Brand Product Matrix - rows - columns - brand portfolio

- A graphical representation of all the brands and products offered by a firm - Brand‐product relationships- capture the firm's brand extension strategy - Product‐brand relationships (columns of matrix) - capture the brand portfolio strategy in terms of the number and nature of brands to be marketed in each category - one column of the matrix- the set of all brands a firm offers in a specific category

4a. Ingredient Branding

- A special case of co‐branding, which creates brand equity for materials, components, or parts contained within other branded products • Ingredient brands attempts to create enough awareness and preference for their product that consumers will not buy a host product without it

Brand Architecture Strategies 2. "House of Brands" approach - advantages - disadvantages

- Any problems with one brand should not influence the other brands - Brand images do not need to be consistent which allows for targeting multiple segments - Requires more advertising expense

Steps in Defining Brand Architecture 3. Branding New Products

- Decide on the specific brand elements to use for a new product associated with the brand

Disadvantages of Global Marketing Programs (7)

- Differences in consumer needs, wants, and usage patterns for products - Differences in consumer response to branding elements - Differences in consumer response to marketing mix elements - Differences in brand and product development and the competitive environment - Differences in the legal environment - Differences in marketing institutions - Differences in administrative procedures

Advantages of Global Marketing Programs (6)

- Economies of scale in production and distribution - Lower mktg costs - Power and scope - Consistency in brand image - ability to leverage good ideas quickly and efficiently - Uniformity of mktg practices

Cash Cows example

- Gillette still sells older brands (Atra, Sensor and Mach3)- the brands are still profitable, and customers may not switch to a new Gillette brand such as Fusions

Brand Hierarchy

- Graphic representation of the firm's branding strategy, showing how its brands are explicitly ordered in relation to each other (looks like a tree)

Steps in Defining Brand Architecture 2. Identify Brand Extension Opportunities (2) - Brand Extensions

- Line Extensions: new products introduced within existing categories (Tide Total Care laundry detergent) - Category extensions: new products introduced outside existing categories (e.g., Tide Dry Cleaner outlets) - sometimes referred to as horiziontal (similar price point and quality level) or vertical (dissimilar price point and quality level)

8. Third-Party Sources -- examples

- Linking the brand to various third parties can also create secondary associations -- endorsements from the American Dental Association, the Good Housekeeping seal of approval, etc.

Brand Extension "Fit" - brand extensions are... - bases of fit (4) - fit also determines

- More successful when the parent brand is seen as having favorable associations AND there is a perception of fit between parent brand and extension product • Product‐related attributes and benefits • Non‐product related (common usage situations, user types, etc.) • Technical or manufacturing commonalities (e.g., Honda lawnmowers) • Complementarity (e.g., Tostitos chips and salsa) - feedback: a failed extensions hurts the parent brand more when there is a strong fit

Flankers/Fighters example

- P&G repositioned Luvs (originally a premium brand) to serve as a price fighter against store brands and private labels and to protect its premium Pampers brand

3. Channels of Distribution -- small example -- big example

- Retailer stores have their own brand image, which can transfer over to the products it sells -- "It it's sold by Nordstrom, it must be good quality" - associations with channels of distributions can work for or against the brand -- Halston's deal to distribute a line through JCPenney did not do well, and he was dropped by high‐end fashion retailers who felt it damaged the brand's equity

Brand Architecture Strategies 1. "Branded House" approach - advantages - examples

- Subsequent product introductions are easier for the customer to understand and accept - higher awareness levels - Stronger financial outcomes - IBM, HP, Kellogg's

Global Brand Equity - brand resonance - marketers need to - marketers must then

- The same building blocks to brand resonance must be developed in every market in which the brand is sold - Identify differences in what consumers know and feel about brands and their brand behavior - Adjust the branding program through brand elements, marketing program and activities, and leveraging of secondary associations

Commonality Cont. (horizontal) - adv. - example - firms can...

- Using brand elements 'as is' or in part across products will enhance associations between products - HP capitalized on success of LaserJet printers with DeskJet, PaintJet, ThinkJet, and OfficeJet - 'dial up' or 'dial down' commonality to strengthen or weaken the links between brands (and in turn the transfer of associations)

Qualitative Research 3. ZMET - what is it - what do consumers asked to do

- Zaltman Metaphor Elicitation Technique; a technique to elicit hidden thoughts and feelings about a topic, which often can be expressed using metaphors - collect a set of images from their own sources (magazines, catalogs, photo albums) that represent their thoughts and feelings about the focal topics; they bring this material to an interval where the images are explored with the researcher in structured ways to assembled a consensus map

What is a brand audit?

- a comprehensive examination of a brand to discover its sources of brand equity - a consumer-focused exercise to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity

Brand Revitalization Strategy 2. Improve Brand Image - what to do - what is crucial - often best to - re-positioning may require... - brand elements... - example

- a new marketing program may be needed to support the existing or re-positioned brand image - identifying the target market: Retain vulnerable customers; Recapture lost customers; Identify neglected segments; Attract new customers - stop erosion before acquiring new customers - some combination of new products, new advertising and promotion, and new packaging - may also need to be changed to convey and signal new meaning - KFC and new Colonel Sanders logo

Step 3: Brand Equity Responsibilities - the firm should establish... - a natural place... - gatekeeper - some firms have moved beyond... - some firms are also...

- a position responsibly for overseeing implementation of the brand charter and brand equity reports to ensure maximization of L-T BE - is in a corporate mktg group with a senior mgmt reporting relationship - can be used to guard even strong brands against letting BE slide - brand mgmt to category mgmt (P&G offers retailers advice about how to best stock their shelves) - consolidating their mktg partnerships to improve brand equity (Colgate-Palmoive works largely with Young & Rubicam)

Brand Equity Management System - three major steps

- a set of organizational processes designed to improve understanding and use of brand equity within a firm - because brand and marketing managers come and go, a system is needed to ensure L-T brand mgmt 1. Creating Brand Charters 2. Assembling Brand Equity Reports 3. Defining Brand Equity Responsibilities

Part 2a: Qualitative Research - a wide variety of techniques (list some) A. Mental Map -- how it's useful B. Brand Concept Map

- adjective ratings/checklists, free association, story telling, role playing, day/behavior reconstruction, consumer-product interaction, video observation A. a graphic that accurately portrays in detail all salient brand associations and responses for a particular target market -- to identify core brand associations B. a related methodology that elicits brand association networks from individual consumers and aggregates them into a consensus map -- it shoes how brand associations are linked to each other and to the brand as well as the strength of the brand

Brand Portfolio - what is is - goal

- all brands sold by a company in a product category - judged by its ability to maximize brand equity: each brand maximizes equity in combination with all other brands in the portfolio (and no one brand harms equity of others) - to maximize market coverage while minimizing brand overlap • pursue multiple customer segments • increase shelf presence and retailer dependence • attract consumers seeking variety (who might otherwise switch to a competitor) • increase internal competition within the firm • yield economies of scale in advertising, sales, etc. - BUT: • brands will compete for customers • challenge of having a unique target market and positioning

Steps in Defining Brand Architecture 1. Define the brand potential (3) - example

- articulate the brand vision- view of the brand's L-T potential, including current and possible future BE (aspirational but not obtainable) - define the brand bounderies- based on brand vision and positioning, identify the products the brand should offer, the benefits it should supply, and the needs it should satisfy -- "just because you can, doesn't mean you should" - Craft the brand positioning, including the brand mantra as guardrails - Crayola - from crayons to 'colorful arts and crafts for kids'

Part 2b: Quantitative Research - marketers should (2) - similar research...

- assess the strength, favorability, and uniqueness of all potentially salient associations identified by the qualitative research - examine overall brand attitudes and behaviors and should assess the depth and breadth of brand awareness - for competitor brands is also needed for comparison purposes (uncover POP and POD)

Adjustments to the Brand Portfolio - example - 2 parts a. sub-part

- brand architecture may also need cleaning up as part of managing brands over the long-term - P&G did extensive research, then reduced shampoos/conditioners/styling-aids by 1/3 1. Migration Strategy 2. Retirement a. Orphan Brand

Vertical Brand Extensions - disadvantages of downward extension - dis/advantages of upward extension - how do firms avoid problems of vertical extensions -- example of vertical extension

- brand extensions that extend the brand up into more premium market segments or down into more value‐ conscious segments - may harm the parent brand's image by introducing associations that are common to lower-priced brands (inferior quality, reduced service); may be esp. likely to cannibalize sale of a parent brand - can enhance the parent brand's image, but consumers may resist it (lacks credibility, seen with lower-end associations) - by using sub-branding -- Banana Republic, Gap, Old Navy (3-price tier)

Adjustments to the Brand Portfolio: 2. Retirement a. first step b. second step -- orphan brand c. third step -- example

- brands can also be retired if they are just not worth saving a. retrench: reduce the # of products for a fading brand b. withdraw marketing support to milk profits -- a once-popular brand with diminished equity that a parent company allows to decline by withdrawing marketing support; sometimes orphan brands are brought back to life c. eliminate the brand altogether, by discontinuing or selling off -- Campbell spun off Vlasic pickles

Brand Imagery Cont. - Brand Personality -five dimensions are -advertising...

- brands may take on personality traits or human values - like a person, brands may appear "modern", "old-fashioned", "lively", "exotic" - • Sincerity - down‐to‐earth, honest, wholesome, cheerful • Excitement - daring, spirited, imaginative, up‐to‐date • Competence - reliable, intelligent, successful • Sophistication - upper class, charming • Ruggedness - outdoorsy, tough - may be especially influential in creating user imagery and inspiring feelings for brands w/ personality traits

Brand Reinforcement: Protecting Sources of BE - what to do - example

- brands need to preserve and defend existing sources of BE - don't just leverage BE, need to reinforce it - Intel's "floating point" and "slight reduction in precision"; if you could prove you were affected by the flaw, you were offered a replacement; only 1-3% of customers took them up on it

Disadvantages of Brand Extensions (8)

- can confuse or frustrate consumers - can encounter retailer resistance - can fail and hurt parent brand image - can succeed but cannibalize sales of parent brand - can succeed but diminish identification with any one category - can succeed but hurt the image of parent brand - can dilute brand meaning - can cause the company to forgo the change to develop a new brand

Brand Reinforcement: Fine-tuning Supporting Marketing Programs - what to do - different associations - downside

- change marketing support programs when they're not working to reinforce BE - for performance associations, innovation will be critical (Gillette) - for imagery associations, relevance in user and usage imagery will be critical - ill-conceived or too frequent changes can confuse the consumer

5. Licensing

- contractual arrangements whereby firms can use the names, logos, characters, etc. of other brands to market their own brands for a fixed fee - the firm essentially "rents" another brand to contribute to its own BE - extremely popular and frequently profitable

2. Country‐of‐origin and other geographical areas - what it is - examples - country associations can -- example

- country or geographical location from which the company originates can also become linked to the brand and generate secondary associations - many locations have become known for expertise in certain product categories or for conveying a particular type of image - Levi's jeans - USA; Chanel perfume - France; Barilla pasta - Italy; BMW - Germany - work for you, but also against you -- US brands - patriotism benefits domestically but can hurt internationally

Brand Judgments (rational) - four types of judgments

- customers' personal opinions and evaluations of the brand, formed by putting together brand performance and imagery associations - • Brand quality (extent to which brand meets important characteristics of category) • Brand credibility (expertise, trustworthiness, and likability) • Brand consideration (whether brand is considered for possible purchase/use) • Brand superiority (extent to which brand is viewed as unique and better than other brands)

Brand Revitalization Strategy 1. Expand Brand Awareness - what isn't the problem - what is the problem - what to do

- depth of awareness- consumers can still recognize and recall the brand - the breadth of brand awareness- consumers tend to think of the brand in very narrow ways - 1. Identify additional or new usage opportunities ("I could've had a V8" campaign) - 2. Identify new and completely different ways to use the brand (Arm & Hammer baking soda for cleaning/deodorizing; Tums as antacid AND calcium supplement; Coach and having a handbag for every occasion)

Qualitative Research 2. Projective Techniques - what is it? - marketers present... -- examples

- diagnostic tools to uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves on these matters - consumers with an incomplete stimulus and ask them to complete it or make sense of it...idea is that in the process consumers will reveal some of their true beliefs and feelings -- bubble exercise (fill in speech or description bubble); comparison tasks (see consumers' impressions by having them compare a brand to something that is a different object- if Dannon were a car which one would it be?- then ask why)

Brand Context indicators/measures

- economic indicators - media indicators - retail - technology - personal attitudes and values - demographic profile - other products and services - attitude to brands and shopping

Quantitative Research 5. Brand Relationships - how can they be assessed

- in terms of the four dimensions of brand resonance: behavioral loyalty, attitudinal attachment, sense of community, and active engagement

Quantitative Research 4. Brand Responses - what it measures -- Net Promoter Score (NPS) -- score typically falls in...

- key brand judgments and feelings may be measured directly - purchase intentions (0-10 definitely would/wouldn't buy) - likelihood to recommend (0-10 how likely is it that you would recommend this to a friend or colleague) -- Promotors (# of customers who rated 9 or 10) minus Detractors (# who rated 0-6) = NPS -- the 10-30% range

Types of Differential Response

- many positives • Improved perceptions of product performance • Greater loyalty • Less vulnerability to competitive marketing actions • Less vulnerability to marketing crises • Higher WTP --> larger margins • More inelastic consumer response to price increases • More elastic consumer response to price decreases • Increased marketing communication effectiveness • Licensing opportunities • Brand extension opportunities

- components of Brand Resonance Model can be... - strong brands appeal to

- measured - both the head and heart (both paths)

Quantitative Research 5. Brand Relationships cont. - Behavioral Loyalty - Attitudinal Attachment - Active Engagement

- measures include past purchase history and future purchases - "this is a wonderful brand", "this brand makes me feel good", "I am passionate about this brand" - the extent to which consumers are willing to invest their own personal resources (time, energy, money, etc) on the brand beyond purchase or consumption(word-of-mouth, online behavior)

Brand Architecture Strategies - in reality... - popular strategy that falls in between the endpoints and what it is - a good sub-branding strategy can... - signals to the consumer... - example

- most firms adopt a strategy between these 2 endpoints - use of sub-brands: a new product carries both the parent brand name and new name (Apple iPad, Ford Fusion) - tap into the brand equity of the parent brand but also create new brand beliefs to position the extension - to accept similarities and differences (so use only when there is a complementary benefit that is not captured by the parent brand) - Hershey's Kisses: uses quality/heritage of Hershey, but more playful and fun

Quantitative Research 3. Perceptual Mapping - what is it - example

- multidimensional scaling (MDS) is used to transform consumers judgments of similarity or preference into distances represented in perceptual space - consumers rate the similarity of pairs of brands and MDS then positions brands on a map so that brands that are closer together are more similar

4. Co-Branding (brand alliances) -- examples

- occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion - each brand needs sufficient brand equity and there should be a logical fit between the brands -- Lunchables and Dole fruit -- Shell and Citibank visa

Rational for Going International - ideal marketing program for a global brand

- perception of slow growth and increase competition in domestic markets - belief in enhanced overseas growth and profit opportunities - desire to reduce costs from economies of scale - need to diversify risk - recognition of global mobility of customers - consists of one product formulation, one package design, one advertising program, etc. - such a uniformly optimal strategy is rarely possible

Corporate Brand Equity

- point is that corporate brand equity is more than the sum of its brands' equities and can be leveraged to enhance the corporation (enhancing its brands, surviving a crisis, attracting and retaining employees, interactions with government, etc.)

Customer-Brand Relationships Brand-Person Typology -Fournier (see worksheet)

- proposes that consumers have relationships with their brands, such as: • Arranged marriages • Casual friends/buddies • Marriages of convenience • Committed partnerships • Best friendships • Compartmentalized friendships • Kinships • Rebounds/ avoidance‐driven relationships • Childhood friendships • Courtships • Dependencies • Flings • Enmities • Secret affairs

Part 2: Brand Exploratory A. Preliminary Activities B. Then... C. First Phase D. Second Phase

- provides detailed information about what consumers actually think of the brand in order to better understand its brand equity A. existing research should be identified and internal personnel should be interviewed to assess what may already be known B. research should be conducted C. usually qualitative to explore a broad range of issues and to pursue some in greater depth D. usual quantitative to provide more focused and definitive survey-based research

Part 1: Brand Inventory -- marketers should also...

- purpose is to provide a current, comprehensive profile of how all he products and services sold by a company are marketed and branded - each product might be profiled (brand elements, distribution policies, communication, product attributes, pricing; any other marketing activity related to the brand - firms set up a "war room" to display this info -- profile competitive brands to determine POP and POD

Brand-Product Matrix Cont. - breadth - depth

- refers to extent of brand‐ product relationships and brand extension strategy (rows-how many products a brand has) - refers to product brand relationships and the brand portfolio or mix (columns- how many brands make the same type of product under the same company)

Quantitative Research 1. Brand Awareness - what is it - various ways to assess awareness (2) -- example

- reflects the likelihood that a brand will come to mind in different situations and the ease with which it does so -1. Recognition: consumers are asked to identify the brand under a variety of circumstances based on any of the brand elements; may use decoy, degraded or masked elements; especially useful to increase sensitivity for brands that are highly recognizable -2. Recall: consumers are asked to retrieve the brand element from memory when given a cue (category, product attribute, usage situation) -- "When you think of snacks, which brands come to mind?" "If you were thinking of having a healthy snack, which brands come to mind?"

Brand Tracking Studies

- research conducted on a routine basis over time, usually quantitative in nature, that assesses brand performance on a number of key dimensions (that marketers have identified in a brand audit or by other means)

Prominence Cont. (vertical) - primary brand elements - secondary brand elements - example

- should convey the product positioning and points of difference - should convey supporting associations and points of parity - General Mills is not as closely linked to its cereal brands as Kellogg's is to its brands-- The G symbol serves as an 'endorsement' rather than being part of the brand name itself as Kellogg's is (Cheerios vs. Kellogg's Frosted Flakes)

Brand Revitalization - when/what to do - associations - marketers must decide - 2 parts - examples

- some brands in hard times can make a comeback by returning to their roots or changing their brand meaning - brand audit to assess awareness and associations and nature of relationships - are key associations still functioning as POD and POP; how are positive/negative associations linked to brand - whether to retain the same positioning or create a new one; whether the marketing program is delivering on positioning -1. Expand Brand Awareness -2. Improve Brand Image -Harley Davidson, Mountain Dew, and Burberry

7. Sporting, cultural, or other events -- examples

- sponsored events have their own set of associations that may become linked to a sponsoring brand - sponsored events can contribute to brand equity by improving brand awareness, via transfer to associations, or improving existing associations -- Dew tour, Louis Vuitton Cup

Brand Architecture - what is it - defines - role of BA (2-fold

- strategy helps determine which products to introduce and which brand elements to apply to new and existing products - defines both the brand's breadth (i.e. boundaries) and depth (i.e. complexity) -1. To clarify Brand Awareness- to improve consumer understanding of similarities and differences between individual products -2. To improve brand image - to maximize transfer of equity between the brand and individual products

Brand Image - brands aspire to have associations that are...

- strongly connected to associations (and awareness- how readily the brand comes to mind) - may be used to refer to the overall set of associations that consumers have for the brand - strong (come to mind readily), favorable (positively valenced in eyes of customer), unique (needed for comp. adv.)

What is (Consumer-Based) Brand Equity? - quote

- the differential effect that brand knowledge has on consumer response to the marketing of the brand - incremental utility or value added to a product by its brand name - emphasizes consumer perspective - "the power of a brand lies in what resides in the minds and hearts of customers"

Qualitative Research 5. Brand Personality and Values - what is it - how to measure

- the human characteristics or traits that consumers attribute to a brand - simplest way is to use open-ended questions, but can also be assessed quantitatively - "If the brand were to come alive as a person, what would it be like? What would it do? Where would it live? What would it wear? Who would it talk to if it went to a party (and what would it talk about)?"

Brand Awareness

- the strength of a brand trace in memory (recognition and recall) - provides a host of competitive advantages -- provides sense of familiarity that can drive CHOICE; drives the buying decision, esp. in low involvement products, but not only them -- determines if brand is recalled and part of the CONSIDERATION SET -- facilitates the LEARNING of brand associations (establishment of brand in mind is first)

Qualitative Research 4. Neuromarketing - what is it - researchers use technologies...

- the study of how the brain responds to marketing stimuli, including brands - such as functional magnetic resonance imaging (fMRI) and electroencephalography (EEG) to measure brain activity and/or sensprs to measure changes in physiological state (heart/respiratory rate, galvanic skin response) to learn why consumers make the decisions they do , and what part of the brain telling them to do it - very expensive and its usefulness is debated

The Challenge of Brand Positioning

- to achieve congruence among four key considerations - a positioning that balances the four considerations is key

Qualitative Research 6. Ethnographic Methods - what is it - goal - examples

- uses "thick description" based on participant observation - to extract and interpret the deep meaning of events and activities through various techniques,such as consumer immersion, site visits, shop-alongs, embedded research - P&G spends time in consumers' homes to observe how they actually use and experience products; HP medical products observes how surgeons use their medical products

Qualitative Research in Depth 1. Free Association - what it is - results... - tasks mainly identify... - other questions - always

- what comes to mind when respondents think of the brand, without any more specific probe or cue - can be used to form a mental map for the brand - the range of possible brand associations- but can provide a rough indication of relative strength, favorability, and uniqueness as well - follow-up questions can also be asked to help clarify associations: what do you find unique about the brand? how is it different from other brands); consumers can also be asked further follow-up q's about what the brand means in terms of who, what, where, when, why, and how questions - from general considerations to more specific considerations (to avoid bias)

Brand Associations - types of associations

- when you think of a brand, it activates associations/connections to that brand - nodes closest tot he brand are retrieved first - forms brand image and position of brand in mkt - cust. satisfaction are most heavily influends by pos. or neg. of nearest links - networks may be simple or complex • Concrete product attributes • Intangible attributes • Relative price • Customer • Geography • Product usage, applications • Experiences

Challenges of Tracking Studies (6)

-stability in the data may mask underlying change because the measures are not sufficiently sensitive - Comparative questions can help ("Compared to other brands... Compared to a year ago..." - Deciding on appropriate benchmarks is difficult (e.g., what is sufficiently high awareness?) - Again, comparisons can help against levels of competitors; experience also helps - Marketers must build in allowances for competition and the nature of the category - Esp. for low‐involvement products (e.g., light bulbs) where it is difficult to carve out a distinct brand image (e.g., 'don't know', 'no response'... may mean don't care)

Corporate Identity

-the physical tools, system and process firms use to manage their logos and trademarks often very challenging globally - "LogoCop" - protect trademark assets or lose them (not popular, takes courage, is a critical function)

Different Relationship Types Have Implications for... (3)

1. Brand loyalty, including relationship stability and durability 2. Marketing strategy (e.g., bolstering desired relationships, shifting customers between relationships) 3. Marketing tactics (e.g., pricing, promotion)

Brand Architecture Strategies (2)

1. "Branded House" approach 2. "House of Brands" approach

1. What is a brand? A. basic definition B. longer definition C. ISBM definition

1. A. a promise in terms of what to expect from the product B. a name, term, sign, symbol, design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors C. A relationship with a market based on cumulative customer experiencess, tied to trademarks and other identifying elements, which has economic impact for a firm

Brand Architecture Key Takeaways

1. Adopt a strong customer focus. Recognize what customers know and want and how they behave. 2. Create broad, robust brand platforms. (Strong umbrella brands are highly desirable. Maximize synergies.) • e.g., the enormous success of kindle gives Amazon a strong brand platform for future growth 3. Avoid overbranding and having too many brands. (e.g., high‐tech products that brand every ingredient) 4. Selectively employ sub‐brands to communicate relatedness and distinctiveness and to complement and strengthen other brands. 5. Selectively extend brands to establish new brand equity and enhance existing brand equity.

Three Major Approaches

1. Brand Reinforcement 2. Brand Revitalization 3. Adjustments to the Brand Portfolio

Building Brand Equity via Brand Associations - Brand equity can be built through (3) - brands can be...

1. Choice of brand elements 2. Marketing program activities (4 P's, integrated marketing communications) 3. The leverage of related or secondary brand associations - linked to other entities with their own knowledge structures in the minds of consumers; consumers may think that associations for one brand are true for the other - the brand "borrows" associations and brand equity from the other entities

8 ways to leverage secondary brand associations

1. Company 2. Country‐of‐origin and other geographical areas 3. Channels of distribution 4. Co‐branding 4a. Ingredient Branding 5. Licensing 6. Celebrity endorsement 7. Sporting, cultural, or other events 8. Third‐Party Sources

Celebrity Endorsement Guidelines

1. Credibility 2. Global appeal 3. Personality 4. 'Matching ' power (i.e., celebrity must not over‐shadow the brand) (Angelina Jolie and St. Johns) 5. Constancy

Guidelines for Brand Hierarchy (5)

1. Decide on which products are to be introduced 2. Decide on the number of levels 3. Decide on the levels of awareness and types of associations to be created at each level 4. Decide on how to link brands from different levels for a product 5. Decide on how to link a brand across products

Steps in Defining Brand Architecture (3)

1. Define the brand potential 2. Identify Brand Extension Opportunities 3. Branding new products

Three Main Ways to Enter a Global Market

1. Export existing brands into the new market ('geographic extension') 2. Acquire existing brands already sold in the new market but not owned by the firm 3. Create some for of brand alliance (joint venture, partnership, licensing agreement)

Advantages of Brand Extensions (2 main)

1. Facilitate New Product Acceptance - improve brand image - reduce risk perceived by customers - increase the probability of gaining distribution and trail - increase efficiency of promotional expenditures - reduce cost of introductory and follow-up mktg programs - avoid cost of developing a new brand - allow for packaging and labeling efficiencies - permit consumer variety seeking 2. Provide Feedback Benefits to the Parent Brand and Company - clarify brand meaning - enhance the parent brand image - bring new customers into brand franchise and increase market coverage - revitalize the brand - permit subsequent extensions

1. What can be a brand? 2. What CAN'T be a brand?

1. Goods (consumer, business, high-tech products), Services (professional, retailers/distributors, online, sports/arts/entertainment), People and Organizations, Geographic Locations, Ideas and Cause 2.

Global Brands - likely candidates for global campaigns that retail a similar marketing strategy worldwide (4)

1. High‐technology products with strong functional images • E.g., televisions, watches, digital cameras, automobiles 2. High‐image products with strong associations to fashionability, sensuality, wealth, or status • E.g., cosmetics, clothes, jewelry, liquor 3. Services and b2b products that emphasize corporate images in their global marketing campaigns • E.g., airlines, banks 4. Brands positioned primiarly on the basis of their country of origin • E.g., Foster's beer, Marlboro cigarettes

Steps in Strategic Management 1. "Build" - key concepts

1. Identify and establish brand positioning and values - Mental maps, Competitive frame of reference, Points‐of‐parity and points‐of‐difference, Core brand associations, Brand mantra 2. Plan and implement brand marketing programs - Mixing and matching of brand elements, Integrating brand marketing activities, Leveraging secondary association

Brand Reinforcement - 3 parts

1. Maintaining Brand Consistency 2. Protecting Sources of Brand Equity 3. Fine-Tune Supporting Marketing Programs

Building Blocks reflect... - most strong brands

1. Rational Route to brand building on the left side 2. Emotional Route to brand building on the right side - are built via BOTH routes

Pyramid (from top to bottom)

1. Resonance 2. Judgments (Rational/left); Feelings (Emotional/right) 3. Performance (Rational/left); Imagery (Emotional/right) 4. Salience

Brand=

1. Set of ideas: which forms an image about the product, service or company triggered by a stimulus 2. mental response: can make a product, service, or relationship worth more or less to a customer

Fundamentals of positioning

1. Target Customers 2. Frame of Reference 3. Point of Difference 4. Reasons to Believe

Why is Brand Inventory Valuable? (3) - a "______ view" that...

1. To help suggest what consumers' current perceptions may be based on 2. To provide initial insights into how brand equity might be better managed (e.g., are brand elements used consistently? Are marketing programs logical?) 3. To reveal a lack of perceived differences among different products sharing the brand name - a "supply-side view" that reveals what the marketer intended

The "Ten Commandments" of Global Brand‐Building

1. Understand similarities and differences in the global branding landscape 2. Don't take shortcuts in brand building 3. Establish marketing infrastructure 4. Embrace integrated mktg communications 5. Cultivate brand partnerships 6. Balance standardization and customization 7. Balance global and local control 8. Establish operable guidelines 9. Implement a global brand equity measurement system 10. Leverage brand elements

1. Standardization vs. 2.Adaptation - any market segment is... - segments can be based on... - differences can serve as...if... - there is ______ across all ______

1. keeping the strategy uniform regardless of location, culture, etc. 2. adapting the strategy to consider the location, cultures, etc. - a candidate for a specialized marketing and branding program - demographics (age, income, gender, ethnicity, etc.) and psychographics (lifestyle, values) that relate to differences in customer behavior - the rationale for a separate branding and marketing program if the costs and benefits of customized mktg efforts offset standardization - tension across all aspects of the branding and marketing program regarding standardization vs adaptation

Brand Hierarchy Terms 1. Corporate (or company) brand 2. Family brand 3. Individual brand 4. Modifier (designating item or model) 5. Product description - examples --specific example

1. Varies in visibility - Siemens appears everywhere, Black & Decker is not used on DeWalt professional power tools - GM 2. also called a range or umbrella brand and is used in more than one product category but is not necessarily the corporate name - Kit Kat (Nestle), Mountain Dew and Quaker Foods (PepsiCo) -- Buick 3. Restricted to one product category with multiple products - Frito‐Lay offers Fritos, Doritos, Lays, and Ruffles -- Regal 4. further distinguishes the product within the family brand and may signal how one brand variation relates to others - Johnnie Walker Red label, Black Label, and Gold Label Scotch whiskey) -- GS 5. describes what the product is and does -- midsize luxury sport sedan vehicle

The Four Key Considerations

1. What customers currently believe about the brand and thus find credible 2. What customers will value in the brand 3. What the firm is currently saying about the brand 4. Where the firm would like to take the brand

1. Low-end entry-level brands - example 2. High-end prestige brands - example

1. brings new customers into the brand franchise - BMW 3-series, later the BMW 1-series 2. add prestige and credibility - Corvette for Chrysler brands

1. Active (Brand ) Engagement Scale 2. Specific Dimensions of Brand Engagement

1. can replace "I have a special bond with the brands I like" to "I have a special bond with Nike" - also "I consider my favorite brands to be part of myself", "My favorite brands are an important indication of who I am" 2. Collecting Brand Information, Participating in Brand Marketing Activities, Interacting with Other People

Why brand? 1. consumer benefits 2. company benefits

1. consumer loyalty- reduces time and effort because you know what you like; status symbol, company ownership, allow for predictable quality; consumers can tell if they're reliable 2. consumers' willingness to pay a premium price; increase probability of brand choice; increase marketing communication effectiveness; increase brand name extendability & licensing opportunities; decrease vulnerability to competitive marketing actions, decrease elastic responses

The Leveraging Process (2 parts)

1. creation of new brand associations 2. effects on existing brand knowledge

Fundamentals of positioning (cont) 1. Target Customers 2. Frame of Reference 3. Point of Difference 4. Reasons to Believe - in contrast, points of parity are...

1. describe the segment they're in with relevant dimensions 2. what goal will be served by the target by consuming the brand; what is the category of consideration/key competititor/consumer goal defining the category? 3. what distinguishes you from other offerings in the competitive set? 4. Compelling evidence that your claim of difference is true - what is necessary to compete in the market and shared across competitive set

Four steps that form into the four fundamental questions 1. Who are you? 2. What are you? 3. What about you? What do I think or feel about you? 4. What about you and me? What kind of association and how much of a connection would I like to have with you?

1. ensure identification of the brand with customers and an association of the brand in customers' minds with a specific product class or customer need (deep, broad-based awareness) 2. Establish the totality of brand meaning in the minds of customers by linking a host of tangible and intangible brand associations with the brand (POP, POD) 3. Elicit the proper customer response to this brand identification and brand meaning (positive, accessible reactions) 4. Convert brand response to create an intense, active, loyalty relationship between customers and the brand

Brand-Product Matrix Cont. 1. Product Line -- example 2. Product Mix -- example 3. Brand Mix -- example

1. group of products within a product category that are closely related (e.g., similar function, sold to similar customers, marketed similarly) - may include different brands or a single family brand -- Campbell's soup products (vary in flavor, type, size, etc.) 2. (or product assortment) the set of all product lines and items that a firm offers -- Campbell's sells soups, tomato sauces, salsa, etc. 3. (or brand assortment) the set of all brand lines that a firm offers -- Campbell's brand lines include Prego, V8, Pepperidge Farm, etc.

Adjustments to the Brand Portfolio: 1. Migration Strategy - example

1. helps consumers understand how brands in the portfolio can satisfy their needs as they change over time - BMW 3-, 5-, 7- series show increasing levels of quality to encourage consumers to trade up over time

Corporate Branding 1. Corporate Brand 2. Corporate Brand Equity 3. Corporate Brand Image

1. is distinct from a product brand in that it can encompass a much wider range of associations 2. the differential response by consumers, employees, other firms, or any relevant constituency to the communications or actions of the corporate brand entity 3. depends on multiple factors: • Common product attributes, benefits, or attitudes (e.g., quality and innovativeness • People and relationships (e.g., customer orientation) • Values and programs (e.g., CSR) • Corporate credibility (e.g., expertise, trust, likability)

1. relationship quality is more than just 2. brand relationships..

1. liking and commitment, but needs to consider other dimensions (intimacy, partner quality, self-concept connection) 2. develop and evolve over time

1. Strong Brands vs. 2. Weak Brands

1. make clear promises; have rich, unique, brand equity (strong thoughts/feelings); are dependable and deliver consistently; have a loyal franchise 2. make vague promises; have low BE (low emotional commitment); have spotty reputations, create doubt; have little loyalty, rely on pricing and S-T promo incentives

1. how have brands changed role of marketing 2. Strategic Brand Management (and steps)

1. shifted the role of marketing from being tactical, reactive and S-T oriented to being strategic and visionary 2. = the design and implementation of marketing programs and activities to build, measure and manage brand equity

1. creation of new brand associations 2. effects on existing brand knowledge

1. the brand is now linked to another entity/association, which can influence brand evaluations (especially when motivation or ability to judge the brand otherwise is low) 2. consumers may transfer some knowledge from the entity to the brand itself, especially if the associations are meaningful and useful

Special Roles in the Brand Portfolio

1. to attract a particular mkt segment not currently being covered by other brands of the firm 2. to serve as a flanker and protect flagship brands 3. to serve as a cash cow and be milked for products 4. to serve as a low-end entry-level product to add prestige and credibility to the entire brand portfolio 5. to serve as a high-end prestige product to add prestige and credibility to the entire brand portfolio 6. to increase shelf presence and retailer dependence in the store 7. to attract consumers seeking variety who may otherwise have switched to another brand 8. to increase internal competition within the firm 9. to yield economies of scale in advertising, sales, merchandising, and physical distribution

4. Co-Branding Cont. 1. Advantages 2. Disadvantages

1. • Borrow needed expertise • Leverage equity you don't have • Reduce cost of product introduction • Expand brand meaning • Source of additional revenue 2. • Loss of control • Risk of brand equity dilution • Negative feedback effects • Lack of brand focus and clarity • Organizational distraction

Steps in Strategic Management Cont. 2. "Measure" - key concepts 3. "Manage" - key concepts

2. Measure and Interpret Brand Performance - Brand value chain, Brand audits, Brand tracking, Brand equity management system 3. Grow and Sustain Brand Equity - Brand‐product matrix, Brand portfolios and hierarchies, Brand expansion strategies, Brand reinforcement and revitalization

Defining and communicating a competitive frame of reference

3 main ways to communicate the category: - category benefits - exemplars - product descriptors

Choosing Points of Difference (example)

Based on 3 criteria: - desirability - deliverability (feasible, communicate) - differentiability (mountain dew has more caffeine)

CRM

Customer Relationship Management; track consumer activity and manage consumer interactions w/ company; objective is to build relationship not just data mine; should increase value for both company and customer

4. Decide on how to link brands from different levels for a product a. Principle of Prominence

a. the relative prominence of brand elements affects perceptions of product distance and the type of image created for new products

Prada example

Miu Miu is its "little sister" - Prada is the flagship premium brand - Miu Miu is an entry-level brand, more playful and more experimental

Vs. Trademark (aka brand elements)

Symbols, Logos, Typography,colors, sounds, and other identifiers and marks which indicate the source of goods or services offerings and trigger the "Brand Response"

WTP

Willingness to Pay

Brand Resonance Model - four fundamental questions that customers ask about brands (implicity)

a customer-based brand equity model that suggests a "ladder" to build brand equity 1. Who are you? (brand identity) 2. What are you? (brand meaning) 3. What about you? What do I think or feel about you? (brand response) 4. What about you and me? What kind of association and how much of a connection would I like to have with you? (brand relationships) - order matters (can't establish brand meaning w/o creating a brand identity, etc.)

2. Decide on the number of levels a. Principle of Simplicity b. Principle of Clarity

a. Employ as few levels as possible b. Logic and relationship of all brand elements employed must be obvious and transparent

1. Decide on which products are to be introduced a. Principle of Growth b. Principle of Survival c. Principle of Synergy

a. Invest in market penetration or expansion vs. product development according to ROI opportunities b. Brand extensions must achieve brand equity in their categories c. Brand extensions should enhance the equity of the parent brand

3. Decide on the levels of awareness and types of associations to be created at each level a. Principle of Relevance b. Principle of Differentiation

a. create abstract associations that are relevant across as many individual items as possible b. differentiate individual items and brands

5. Decide on how to link a brand across products a. Principle of Commonality

a. the more common elements products share, the stronger the linkages

Qualitative Cont. Mental Map Cont. - Core Brand Associations

associations (attributes and benefits) that characterize the 5-10 most important aspects or dimensions of a brand and that can serve as the basis of positioning in terms of how they create POP and POD

Brand Salience - depth - breadth -- example - Sub-Dimensions

awareness of the brand (what basic functions does the brand provide to customers? - how likely it is that a brand element comes to mind (recall vs recognition) - range of purchase and usage situations in which brand element comes to mind -- Tropicana (not just breakfast drink and orange juice (narrow), but also a healthy beverage drink) - customer identification; needs satisfied

Brand Resonance - four types of resonance

extent to which customers identify with the brand and feel that they are "in sync" with the brand; brand-person relationships 1. Behavioral Loyalty (e.g., frequency/ volume of purchase) 2. Attitudinal Attachment (e.g., positive attitude, loving the brand) 3. Sense of Community (e.g., affiliation with other consumers of the brand) 4. Active Engagement (e.g., willingness to invest time, energy, money or other resources in the brand beyond purchase/ consumption)

Brand Performance (rational) - five types of attributes and benefits often underlie brand performance (same as Sub-Dimensions)

how well the brand meets customers' more functional needs 1. Primary ingredients/characteristics and supplementary (secondary) features 2. Product reliability, durability, and serviceability - consistency of performance over time, expected life of product, and ease of repairing 3. Service effectiveness, efficiency, and empathy - how well the brand satisfies service needs, speed and responsiveness of service, and trust/care of service providers toward customers 4. Style and design: functional and aesthetic considerations, including sensory aspects 5. Price - price is associated with performance, also products may be organized in price tiers

Brand Imagery (emotional) - four main intangibles (same as Sub-Dimensions) -- example

intangible aspects of the brand, including how people think abstractly about the brand 1. User profiles 2. Purchase and usage situations 3. Personality and values 4. History, heritage, and experiences -- Nivea in Europe is associated with family/maternal experiences, multi-purpose use, classic/timeless appeal, and childhood memories

ways to compare/ contrast relationships -examples

relationship maps -1. vertical: intense vs. superficial; horizontal: functional vs socio-emotional -2. vertical: equal vs. unequal; horizontal: competitive/hostile vs cooperative/friendly

Brand Mantra

short 3-5 word phrase that captures the essence or spirit of the brand positioning (aka brand essence or core brand promise) - designed to simplify, communicate, and inspire - relates to positioning statement • No other brand should deliver on all aspects of mantra • Brand mantra captures POD • Intellectual guard‐rails to avoid brand‐inconsistent actions • e.g., Disney mutual funds to save for children's future?

What is positioning? - Goal of positioning - Good brand positioning guides marketing strategy by

the heart of the mktg strategy--the act of designing the company's offer and image to occupy a distinct and valued place in the target customer's minds - to create strong brand equity (the differential response of customers that add value to a firm's offering) - clarifying what the brand is all about, how it is unique and how it is similar to competitive brands, and why consumers should purchase/use it

Brand Tracking Studies Cont. - What to track - marketers should also carefully...

• Brand awareness (recall and recognition) • Brand image (brand associations and brand meaning) • Associations should be assessed on the basis of their strength, favorability, and uniqueness - in that order • More general higher‐level judgments, feelings, and other outcome‐related measures (e.g., brand loyalty) • Specific brand elements may also be assessed • Firms may also track corporate brand equity • When tracking across diverse markets, 'brand context indicators' are useful - carefully whom to track (light vs heavy users; loyal vs non-loyal; etc) and when and where to track (annually, rolling weekly, etc.)