Brand Management Final
Flankers
"Fighter Brands". Creates stronger points of parity with competitors' brands so that more important (and more profitable) flagship brands can retain their positioning (e.g. discount brands).
Principle of relevance
-Advantages of efficiency and economy. Marketers should create associations that are relevant to as many brands nested at the level below as possible, especially at the corporate or family brand level
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
Disadvantages of brand extensions
-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 the parent brand -Can dilute brand meaning -Can cause the company to forgo the chance to develop a new brand
principle of differentiation
-Disadvantages of redundancy. Marketers should distinguish brands at the same level as much as possible
Advantages of depth of branding strategy
-Increase shelf presence and retailer dependence in the store -Attract customers seeking variety who may otherwise switch to another brand -Increase internal competition within the firm -Yield economies of scale in advertising, sales, merchandising, and physical distribution
Behavioral Sustainability
-Measured by answering two questions: 1.Which brand did you buy last time? 2.If the brand had not been available, what would you have done? (waited, bought another brand, etc.) -Use answers to categorize consumers into segments.
What to track
-Product-brand tracking (e.g., McDonald's) -Corporate or family brand tracking (e.g., GE) -Global tracking
Behavioral Loyalty
-Provides information about brand attitudes and usage for a specific product, including gaps with competitors and other brands in the consideration set.
Disadvantages of co-branding
-loss of control -risk of brand equity dilution -negative feedback effects -lack of brand focus and clarity -organizational distractions
Guidelines For Brand Hierarchy Decisions
1) The number of levels of the hierarchy to use (Simplicity and clarity) 2) Decide on the levels of awareness and types of associations to be created at each hierarchy level (relevance and differentiation) 3) Decide on how to link brand elements from different levels for a product (prominence) 4) Decide on how to link a brand across multiple products (commonality)
Effects on Existing brand knowledge
1. awareness/knowledge of the entity 2. meaningfulness of the knowledge of the entity 3. transferability of the knowledge of the entity
Strategies for franchise-extension
1. introduce the same product in a different form 2. introduce products that contain the brand's distinctive taste, ingredient, or component 3. introduce companion products for the brand 4. introduce products relevant to the customer franchise of the brand 5. introduce products that capitalize on the firm's perceived expertise 6. introduce products that reflect the brand's distance benefits, attributes, or features 7. introduction products that capitalize on the distinctive image or prestige of the brand
Interbrand's Valuation Methodology Steps
1. market segmentation 2. financial (role of branding analysis) 3. demand (brand strength analysis) 4. competitive benchmarking 5. brand value calculation
How to interpret tracking studies
1. too much focus on "top level" boxes or scores and indices 2. targets what are not set at all, are unattainable, or are inappropriate for the management level that are given to 3. metrics treated as an independent research study and not integrated with other information such as category trends 4. too much focus on consumer attitudes and emotional connections without a link to behaviors
Corporate image campaigns
1.Building Awareness Of the Company And The Nature Of Its Business 2.Building Company Trustworthiness And Credibility 3.Creating Corporate Image Associations That Can Be Leveraged By Product Specific Marketing
Four conditions of managerial assumptions
1.Consumers have some awareness of and positive associations about the parent brand. 2.At least some of these positive associations will be evoked by the brand extensions. 3.Negative associations are not transferred from the parent brand. 4.Negative associations are not created by the brand extensions.
Guidelines of ingredient branding
1.Consumers must first perceive that the ingredient matters to the performance and success of the end product. 2.Consumers must then be convinced that not all ingredient brands are the same and that this ingredient is superior. 3.A distinctive symbol or logo must be designed to clearly signal to consumers that the host product contains the ingredient. 4.A coordinated push and pull program must be put in place such that consumers understand the importance and advantages of the branded ingredient.
Customer related benefits of positive brand equity
1.Different perceptions and interpretations of product performance. 2.Enjoy greater loyalty - less vulnerable to competitive marketing actions. 3.Command larger margins - more inelastic responses to price increases and more elastic responses to price decreases. 4.Receive greater trade cooperation and support. 5.Increase marketing communication effectiveness. 6.Yield licensing opportunities. 7.Support brand extensions.
Evaluating Brand Extension Opportunities
1.Does the parent brand have strong equity? 2.Is there sufficient transfer to the extension? 3.Is extension consistent with brand vision and essence? 4.Is it a logical fit that will make sense to target market(s)? 5.Will it create strong competitive positioning in new category? 6.Will it avoid creating negative associations in new category? 7.What implications will the extension have on brand equity? 8.Does it minimize downside risk and dilution? 9.Does it offer additional extension opportunities? 10.Will extension have necessary points of parity and points of difference? 11.How can the marketing program enhance extension equity? 12.Do the organizational skills and resources required to develop extension exist or can they be obtained? 13.How should extension feedback effects to the parent brand best be managed?
New Product brand strategies
1.It can develop a new brand, individually chosen for the new product 2. It can apply, in some way, one of its existing brands 3. It can use a combination of a new brand and an existing brand
Relationship to the CBBE Model
1.It emphasizes brand salience and brand awareness as the foundation of brand building. 2.It recognizes the dual nature of brands and the significance of both rational and emotional considerations in brand building. 3.It places importance on brand resonance as the culmination of brand building and a more meaningful way to view brand loyalty. The 5 stages of Brown's Brand Dynamics model relate to the four ascending steps of the CBBE Model Similarly, the dimensions of the Equity Engine model directly relate to the components of CBBE:
Product Line
A group of products within a product category that are closely related.
Brand Value Chain
A structured approach to assessing the source and outcomes of brand equity and the manner by whichmarketing activities create brand value
permit subsequent extensions
A successful extension may serve as the basis for subsequent extensions
Recognition
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
Developing Brand Architecture
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 a means of complementing and strengthening brands selectively extend brands to establish new brand equity and enhance existing brand equity
Factors of breadth of branding strategy
Aggregate market factors, category factors, and environmental factors All these factors relate in some way to consumers, competition, and the marketing environment.
Measurement
Allocate inputs with specific objectives like changing consumer behavior and increasing purchase intensity
Parent brand
An existing brand that gives birth to a brand extension
Marketing Program Investment
Any marketing program that can be attributed to brand value development product communications trade employee other
Income Approach
Argues that brand equity is the discounted future cash flow from the future earnings stream for the brand. Three such income approaches are as follows: A.Capitalizing royalty earnings from a brand name (where these can be defined) B.Capitalizing the premium profits that are earned by a branded product (by comparing its performance with that of an unbranded product) C.Capitalizing the actual profitability of a brand after allowing for the costs of maintaining it and the effects of taxation
Brand 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. Beliefs - descriptive thoughts that a person holds about something Multidimensional Scaling (MDS) is a procedure for determining the perceived relative images of a set of objects or brands. - Helps create perceptual maps of consumer judgment.
Evaluation
Assess the outputs.
Interbrand's Valuation Methodology Step 3: demand
Assess the role the brand plays in driving demand for products and services in the markets in which it operates. Measure the proportion of intangible earnings attributable to the brand by an indicator referred to as the role of branding index (RBI), 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.
Affinity
Authority identification approval
Equity Engine
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. Overall equity is a combination of affinity measures and the brand's perceived functional performance.
Advantages of co-branding
Borrow needed expertise Leverage equity you don't have Reduce cost of product introduction Expand brand meaning into broaden meaning and increase access points categories Source of additional revenue
Comprehensive Models of Consumer-Based Brand Equity
Brand Dynamics Equity Engine Young & Rubicam's Brand Asset Valuator (BAV)
3 categories of intangible assets
Brand equity, Non-brand factors that reduce the firm's costs relative to competitors like R&D and patents, Industry-wide factors that permit monopoly profits, such as regulation.
Cash Cows
Brands kept around despite dwindling sales because they still have enough customers and remain profitable with virtually no marketing support.
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. •Best practices for inbound or outbound customer visits: Leverage the visits you already make by coordinating them Perennial questions, customer profiles Take every opportunity to ask questions Get engineers in front of customers, not just marketers Conduct programmatic visits Visit different kinds of customers Get out of the conference room
Interbrand's Valuation Methodology Step 5: brand value calculation
Calculate the brand as a net present value (NPV) of the forecast brand earnings, discounted by the brand discount rate.
Potential problems with celebrity endorsements
Celebrity endorses can endorse so many products that they lack any specific product meaning or are seen as opportunistic or insincere There must be a reasonable match between the celebrity and the product. Celebrity endorsers can get in trouble or lose popularity, diminishing their marketing value to the brand, or just fail to live up to expectations Many consumers feel that celebrities are only doing the endorsement for the money and do not necessarily believe in or even use the endorsed brand. Celebrities may distract attention from the brand in ads so that consumers notice the stars but have trouble remembering the advertised brand.
Celebrity endorsement guidelines
Choose a well-known and well-defined celebrity whose associations are relevant to the brand and likely to be transferable. There must be a logical fit between the brand and the person The advertising and communication program should use the celebrity in a creative fashion that highlights the relevant associations and encourages their transfer. Marketing research must help identify potential endorser candidates and facilitate the development of the proper marketing program, as well as track their effectiveness.
Comparison tasks
Consumers are asked to convey their impressions by comparing brands to people, countries, animals, activities, cars, vegetables, etc.
Advantages of qualitative techniques
Creative. Ascertain consumer perceptions that may otherwise be difficult to uncover. Range of possible techniques is limited only by the researcher's own creativity
Market Performance
Customer mind-set affects how customers react in marketplace in six main ways -price premiums -price elasticities -market share -expansion success -cost structure -profitability
Brand Equity Charter
Define the firm's view of the brand equity concept and explain why it is important Describe the scope of key brands in terms of associated products and the manner by which they have been branded and marketed Specify what the actual and desired equity is for a brand at all relevant levels of the brand hierarchy Explain how brand equity is measured in terms of the tracking study and the resulting brand equity report Suggest how marketers should manage brand equity with some general strategic guidelines Outline how to devise market programs along specific tactical guidelines, including criteria for ad evaluation and brand name choice Specify the proper treatment of the brand in terms of trademark usage, packaging, and communications
Aggregate market factors
Descriptive characteristics of the market itself. §Market size §Market growth §Stage in product cycle §Sales cyclicity §Seasonality §Profits
Interbrand's Valuation Methodology Step 4: competitive benchmarking
Determine the competitive strengths and weaknesses of the brand, deriving a specific brand discount rate that reflects the risk profile of its expected future earnings via a brand strength score.
Projective Techniques
Diagnostic tools to uncover the true opinions and feelings of consumers when they are unwilling or unable to express themselves on these matters 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. Completion and interpretation tasks comparison tasks
Confuse/frustrate consumers
Different varieties of line extensions may confuse and perhaps even frustrate consumers about which version of the product is the "right one" for them.
family brand level
Efficient means to link common associations to multiple, but distinct products. Brands applied across a range of product categories. An efficient means to link common associations to multiple but distinct products. Brands applied across a range of product categories. Also referred to as range brands or umbrella brands.
Simon and Sullivan's Brand Equity Value
Estimates a firm's brand equity derived from financial market estimates of brand-related profits. Defines brand equity as the incremental cash flows that accrue to branded products over and above cash flows from unbranded products. Total Asset Value of a firm = Market Values of: (Common Stock + Preferred Stock + Long term Debt + Short-term Debt)
Cannibalize sales of parent brand
Even if sales of a brand extension are high and meet targets, this revenue may have resulted merely from consumers switching to the extension from existing product offerings of the parent brand — in effect cannibalizing the parent brand.
Environmental Factors
External forces unrelated to the product's customers and competitors that affect marketing strategies §Technological §Political §Economic §Regulatory §Social
Investor sentiment multiplier
Financial analyst and investors consider a host of factors in arriving at their brand valuations and investment decisions market dynamics growth potential risk profile brand contribution
Organizational design and structure
Firms should manage its marketing function to optimize brand equity. Several trends have emerged in organizational design and structure that reflect the growing recognition of the importance of the brand and the challenges of managing brand equity carefully.
Special Roles of Brands in the Brand Portfolio
Flankers Cash Cows Low-End Entry Level or High-End Prestige Brands
Brand Equity Report GAME Plan
Goal activity measurement evaluation
Brand Hierarchy
Graphically portrays a firm's 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. Corporate Family Individual Modifier
product descriptor
Helps consumers understand what the product is and does and also helps to define the relevant competition in consumers' minds. Important ingredient for branding strategy.
Contributing To Parent Brand Equity
How compelling the evidence is about the correspondence attribute or benefit association in the extension context. How relevant or diagnostic the extension evidence is for the attribute or benefit for the parent brand. How consistent the extension evidence is with the corresponding parent brand associations. How strongly existing attribute or benefit associations are held in consumer memory for the parent brand.
Consumer related factors in creating extension equity
How salient parent brand associations are in the minds of consumers in the extension context. How favorable any inferred associations are in the extension context. How unique any inferred associations are in the extension category.
Advantages of brand extensions
I. Facilitate new product acceptance II. Provide feedback benefits to the parent brand and company
Interbrand's Valuation Methodology Step 2: financial
Identify and forecast revenues and "earnings from intangibles" generated by the brand for each of the distinct segments determined in step 1.
Goal
Identify key brands for the next fiscal period.
Disadvantages of qualitative techniques
In-depth insights must be tempered by the small sample sizes - it is difficult to make generalizations. There may be questions of interpretation - different researchers may draw different conclusions.
Customer Mindset
Includes everything that exists in the minds of customers with respect to a brand: thoughts, feelings, experiences, images, perceptions, beliefs and attitudes awareness, associations, attitudes, attachment, activity
Managing Marketing Partners
Increasingly firms have been consolidating their marketing partners and reducing the number of their outside suppliers The trend especially apparent with global advertising accounts where a number of firms have placed most, if not all, their business with one agency. Factors such as cost efficiencies, organizational leverage, and creative diversification affect the number of outside suppliers the firm will hire in any one area. From a branding perspective, one advantage of dealing with a single major supplier such as an ad agency is the greater consistency in understanding and treatment of a brand.
Leveraging secondary brand knowledge
Indirect approach to building brand equity. When a brand borrows some brand knowledge and some brand equity from other entities. (other brands, people, places, things)
increase efficiency of promotional expenditures
It is easier to add a link to a new product from a brand already existing in the memory than it is to first establish the brand in memory and then also link the new product to it
Organizational design and structures
It is incumbent upon the whole organization to commit to a focus on the customer, and brands will increasingly become a means to that end Marketing must become far more active in initiating and driving innovation Information technology will increasingly become a tool for allowing and maintaining large-scale customer and consumer interaction and conversation The onus for ownership and management of change in brands and the brand management system will increasingly shift to senior management
Low-End Entry Level or High-End Prestige Brands
Line extension or brand variants in a certain product category that vary in price and quality. Low priced brands attract customers to brand franchise. Traffic builders, trade up customers to a higher priced brands. High priced brand adds prestige and credibility to entire brand portfolio.
Activity
Locate current status on a baseline, compared with brands owned by the firm or competition.
Cost Approach
Maintains that brand equity is the amount of money that would be required to reproduce or replace the brand (including all costs for research and development, test marketing, advertising, and so on).
Brand Equity Responsibilities
Managers must clearly define organizational responsibilities and processes with respect to the brand. Brands need constant, consistent nurturing to grow... weak brands often suffer from a lack of discipline, commitment, and investment in brand building overseeing brand equity organizational design and structure managing marketing partners
Value Stages
Marketing Program Investment Customer Mindset Market Performance Shareholder Value
Breadth of a Branding Strategy
Number and nature of different products linked to the brands sold by a firm
Cause The Company To Forego Chance To Develop New Brand
One easily overlooked disadvantage to brand extensions is that by introducing a new product as a brand extension, the company forgoes the chance to create a new brand, with its own unique image and equity.
Market Approach
Perceives brand equity as the present value of the future economic benefits to be derived by the owner of the asset
Managing marketing partners
Performance of a brand also depends on the actions taken by outside suppliers and marketing partners, thus these relationships have to be manage carefully.
Overseeing Brand Equity
Person responsible for providing central coordination; overseeing the implementation of the brand equity charter and brand equity reports; ensuring that product and marketing actions across divisions and geographic boundaries reflect their spirit as closely as possible; and maximizing long-term equity of the brand
Corporate/company brand level
Powerful means for firms to express themselves in a way that isn't tied to their specific products or services. To build this, the company needs to keep a high public profile, especially to influence abstract types of associations. perception of the firm's role in society the differential response by consumers, customers, employees, other firms or any relevant constituency to the words, actions, communications, products or services provided by an identified brand entity
Brand Line Campaigns
Promote a range of products associated with a brand line. useful in building brand awareness, clarifying brand meaning, and suggesting additional usage applications
Quantitative research techniques
Quantitative measures are often the primary ingredient in tracking studies that monitor brand knowledge structures of consumers over time •the depth and breadth of brand awareness • the strength, favorability, and uniqueness of brand associations • the valence of brand judgments and feelings • the extent and nature of brand relationships.
Brand personality and values
Refers to the human characteristics or traits that can be attributed to a brand. Five personality types for brands are Sincerity Competence Ruggedness Excitement Sophistication
modifier level
Signals refinements or differences in brands related to factors such as quality levels, attributes and functions. Plays an important organizing role in communicating how different products are within a category that share the same brand name. factors including: Quality levels, Attributes, Functions
Types of valuation approaches
Simon And Sullivan's Brand Equity Value: Accounting Background Interbrand's Brand Valuation Methodology
Mixed Dominance
Sometimes the individual product brands are dominant and sometimes the corporate name is dominant, and in some cases, they appear together with equal emphasis.
Interbrand's Valuation Methodology Step 1: market segmentation
Split the consumer market for the brand into non-overlapping and homogenous groups of consumers according to applicable criteria such as product or service, distribution channels, consumption patterns, purchase sophistication, geography, existing and new customers.
Program Quality Multiplier
The ability of the marketing program to affect customer mindset will depend upon its quality distinctiveness clarity relevance consistency The ability of a marketing program investment to transfer or multiply farther down the chain depends upon qualitative aspects of the marketing program and the program quality multiplier
Equal Dominance
The company maintains separate images for products but also associates each with the corporation.
Brand dominance
The company makes a strategic decision not to relate brand and corporate names.
Single Entity
The company offers one product line or set of services such that the image of the company and the product tend to be one and the same.
Corporate dominance
The corporate name is supreme and applies across a range of product lines, and communications tend to reinforce the corporate image.
Attribute-Perception Biased Component Of Brand Equity
The difference between subjectively perceived attribute values and objectively measured attribute values. Objectively measured attribute values come from independent testing services such as Consumer Reports or acknowledged experts in the field.
Non-attribute Preference Component of Brand Equity
The difference between subjectively perceived attribute values and overall preference. It reflects the consumer's overall appraisal of a brand that goes beyond the utility of individual product attributes.
Marketplace Conditions Multiplier
The extent to which the value created in the minds of customer affects market performance depends upon factors beyond the individual customer channel support consumer size and profits competitive reactions
Shareholder Values
The financial marketplace formulates opinions and assessments that have very direct financial implications for the brand value stock price P/E ratio Marketing captialization
Retailer resistance
The number of consumer packaged-goods SKUs outpaces the growth of retail space in year-on-year percentage growth. own-brand or private-label goods rose virtually impossible for a grocery store or supermarket to offer all the different varieties available across all the different brands in any one product category.
Dilute brand meaning
The potential drawbacks of a brand extension's lack of identification with any one category and a weakened image may be especially evident with high-quality or prestige brands.
Brand mix (brand assortment)
The set of all brand lines that a particular seller makes available to buyers.
Product Mix (product assortment)
The set of all product lines and items that a particular seller makes available to buyers.
Young and Rubicam Brand Asset Valuator
The world's largest database of consumer-derived information on brands. Measures brands on four fundamental measures of equity value and in terms of a broad array of perceptual dimensions. Recent BAV surveys have included greater emphasis on brand usage and future usage intent, and have also built in a specially developed set of measures of brand loyalty. differentiation relevance esteem knowledge use a power grid
Fail/hurt parent brand image
The worst possible scenario for an extension is not only to fail, but to harm the parent brand image in the process.
Third party sources
Third-party sources can be especially credible sources. As a result, marketers often feature them in advertising campaigns and selling efforts
Designing Brand Tracking Studies
Tracking studies involve information collected from consumers on a routine basis over time -Often done on a "continuous" basis -Provide descriptive and diagnostic information provides consistent baseline information to facilitate day to day decision making
Category Factors
Underlying structural factors affecting the category. §Threat of new entrants §Bargaining power of buyers §Bargaining power of suppliers §Current category rivalry §Pressures from substitutes §Category capacity
Completion and interoperation tasks
Use incomplete or ambiguous stimuli to elicit consumer thoughts and feelings.
Archetype
a fundamental psychological association shared by members of a culture, with a given cultural object. Initial exposure to an element creates an "imprinting moment," often during childhood. can be used to elicit deeply held consumer attitudes and feelings.
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 branded ingredients are often a signal of quality become more prevalent as mature brands seek cost-effective means to differentiate themselves while potential ingredient products seek means to expand their sales
Comparative methods
are research studies or experiments that examine consumer attitudes and behavior toward a brand to directly estimate the benefits arising from having a high level of awareness and strong, favorable, and unique brand associations •Brand-Based Comparative Approaches •Marketing-Based Comparative Approaches •Conjoint Analysis
Principle of simplicity
based on the need to provide the right amount of branding information to consumers — no more and no less
Brand Relationships
behavioral loyalty behavioral sustainability fournier's brand relationship research in terms of engagement, measures could explore word-of-mouth behavior, online behavior, and so forth in depth.
The New Accountability
beyond ROI measurement 1.To qualify a brand as an asset in financial terms, marketers need to measure it in terms of its ability to generate future cash flows 2.Marketers can create value only by changing customer behavior- changes in attitude don't generate cash flow 3.Marketers should measure brand equity in a way that captures the source and scale of the emotion component the brand adds to functionality of the product
Co-branding guidelines
both brands should have adequate brand awareness; sufficiently strong favorable and unique associations ; positive consumer feelings ensure the right kind of fit in values, capabilities, and goals
Hurt The Image of the Parent Brand
brand extension has attribute or benefit associations that are seen asinconsistent or perhaps even as conflicting with the corresponding associations for the parent brand, consumers may change their perceptions of the parent brand as a result.
Complementarity
branding strategies can be strategically critical in terms of delivering the desired position
Licensing guidelines
caught up in licensing a brand that might be popular at the moment but is really only a fad and produces short-lived sales Corporate trademark licensing firms may have different motivations
Provide feedback benefits to the brand
clarify brand meaning enhance the parent brand image bring new customers into the brand franchise and increase market coverage revitalize the brand permit subsequent extensions
Sub-branding
combining an existing brand with a new brand subordinate brand is a means of modifying the super-ordinate brand
Conceptualizing the leveraging process
commonality vs complementarity leveraging secondary brand knowledge bay be risky because the marketer gives up some control of the brand image
Srinivasan, Park, and Chang
comprehensive model to measure brand equity based on the multi-attribute model. Three components: A. Brand Awareness B. Attribute-Perception Biases C. Non-attribute Preferences
Licensing
contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands to market their own brands for some fixed fee "renting" another brand to contribute to the brand equity of its own product shortcut means of building brand equity, licensing has gained in popularity in recent years
Sporting, Cultural, or Other Events
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 all about credibility extent to which this transfer takes place will depend on which events are selected and how the sponsorship program is designed and integrated into the entire marketing program to build brand equity
Disadvantages of ingredient branding
cost os supporting marketing comm. program loss of control manufacturers may resent any consumer confusion about what is the "real brand" if the branded ingredient gains too much equity
Country of origin effects
country of origin can become linked to the brand and generate secondary associations in certain product categories or for conveying a particular type of image disadvantage: events/actions associated with the country may color people's perceptions patriotic appeal can be overused and lack uniqueness
Branding options for a new product
create a new brand adopt/modify an existing brand combine an existing and a new brand
Gray and Smeltzer designing brand strategy
define corporate/product relationships as the approach a firm follows in communicating the relationship of its products to one another and to the corporate entity single entity brand dominance equal dominance mixed dominance corporate dominance
principle of prominence
determines which element becomes the primary one(s) and which becomes the secondary one(s)
BAV Brand's strength
differentiation and relevance
Country of origin effects implemented
embed the location in the brand name associations to the origin almost always have the potential to be created at the point of purchase and to affect brand decisions there consider the favorability of a country-of-origin association from both a domestic and a foreign prospective
Kamaruka and russel approach
employs consumer purchase histories from supermarket scanner data to estimate brand equity. •This approach explains brand choices observed from a panel of consumers as a function of the store environment (sales promos, displays, prices, etc), the physical characteristics of available brands, and a residual term called 'brand equity'. •By controlling for other aspects of the marketing mix, they infer the aspect of brand preference that is unique to a brand and not duplicated by its competitors.
Vertical brand extensions
equity of the parent brand can be transferred in either direction in order to appeal to consumers who otherwise would not consider the parent brand upward extension can improve brand image, as a more premium version of a brand often brings with it positive associations new price point, either higher or lower, can confuse or frustrate consumers who have learned to expect a certain price range from a brand
BAV Brand's stature
esteem and knowledge
Managerial assumptions
expect consumers to use their existing brand knowledge, as well as what they know about the extension category, to try to infer what the extension product might be like.
Celebrity endorsements
famous person can draw attention to a brand and shape the perceptions of the brand, by virtue of the inferences that consumers make based on the knowledge they have about the famous person celebrity must be well enough known to improve awareness, image, and responses of the brand high level of visibility and a rich set of potentially useful associations, judgments, and feelings credible in terms of expertise, trustworthiness, and likability or attractiveness, as well as having specific associations that carry potential product relevance
Branding Strategy
firm determines which brand elements a firm chooses to apply across the products it offers for sale brand-product mix brand hierarchy
Advantages of ingredient branding
generate greater sales at higher margins more stable and broader customer demand better long-term supplier-buyer relationships ability to leverage the equity from the ingredient brand to enhance its own brand equity access to new product categories, different markets, etc. share in the production and development costs
Brand-Product Matrix
graphical representation of all the brands and products sold by the firm Columns represent product-brand relationships and capture the brand portfolio strategy Rows represent relationships and capture the brand extension strategy product line product mix brand mix
Measuring sources of brand equity
holistic and comparative method
Global tracking
if tracking covers diverse geographic markets, then you may need a broader set of background measures to put the brand development in those markets in the right perspective
Facilitate new product acceptance
improve brand image reduce resin perceived by customers increase the probability of gaining distribution and trial increase efficiency of promote expenditures reduce costs of introductory and follow-up marketing programs avoid cost of developing a new brand allow for packaging and labeling efficiencies permit consumer variety-seeking
Dimensions of Brand Relationships quality
interdependence self-concept connection commitment love/passion intimacy partner quality
Commonality
leveraging strategy makes sense when consumers have associations to another entity that are congruent with desired brand associations
Corporate trademark licensing
licensing of company names, logos, or brands for use on various, often unrelated products
Diminish Identification With Any One Category
linking multiple products to a single brand is that the brand may not be strongly identified with any one product... brand extensions may obscure the identification of the brand with its original categories, reducing brand awareness.
Creation of new brand associations
making a connection between the brand and another entity consumers may form a mental association Secondary brand associations are most likely to affect evaluations of a new product when consumers lack either the motivation or the ability to judge product-related concerns
Corporate or Family brand tracking
marketers may also want to track the corporate or family brand separately or concurrently with individual products when a brand is identified with multiple products, one important issue is which particular products are most influential in affecting consumer perceptions about the brand
negatives of residual approaches
most appropriate for brands with a lot of product-related attribute associations, because they are unable to distinguish between different types of non-product -related attribute associations.
Creating extension equity
must have a sufficiently high level of awareness and achieve necessary and desired points of parity and points of difference... Initially, creating a positive image for an extension
brand endorsement strategy
operation when a brand element appears on the package, a signage, or product appearance in some way but is not directly included as part of the brand name
Disadvantages of green marketing
overexposure and lack of credibility consumer behavior poor implementation
Performance
product service
Multipliers in the Brand Value Chain
program quality multiplier marketing place conditions multiplier investor sentiment multiplier
Disadvantages of cause marketing
promotional efforts behind a cause marketing program could backfire if cynical consumers question the link between the product and the cause and see the firm as being self-serving and exploitative as a result realize brand equity benefits, firms must brand their cause marketing efforts in the right manner
positives of residual approaches
provide a usual benchmark for interpreting brand equity, especially when we need approximations of brand equity or a financially oriented perspective on it.
Brand Awareness
recognition and recall Improve customer understanding and communicate similarity and differences between individual products
Individual brand level
restricted to essentially one product category, although multiple product types may differ on the basis of model, package size, flavor, etc. Customize the brand for specific customer groups. If the brand runs into difficulty or fails, the risk to other brands & the company is minimal. Disadvantages include the difficulty, complexity, and expense of developing separate marketing programs to build sufficient levels of brand equity
Channels of distribution
retailers create these brand associations through the products and brand they stock and the means by which they sell them aggressively advertises and promote directly to customers
Overseeing brand equity
review brand-sensitive material review the status of key brand initiatives review brand sensitive projects review new product and distribution strategies with respect to core brand values resolve brand positioning conflicts
vertical brand extension
scenario where the brand is either extended up into more premium market segments or down into more value-conscious segments. These are a common means of attracting new groups of consumers.
Brand Equity Management System
set of research procedures designed to provide marketers with timely, accurate, and actionable information on brands, so they can make the best possible tactical decisions in the short run, and strategic decisions in the long run
Zaltman Metaphor Elicitation Technique (ZMET)
technique for eliciting interconnected constructs that influence thought and behavior." Based on the idea that "most social communication is nonverbal" and as a result approximately two-thirds of all stimuli received by the brain are visual. About a week prior to their interviews, each participant is asked to gather 8-10 pictures that reflect their thoughts and feelings about the research topic. Most participants devote several hrs to selecting pictures and thinking about the assignment. Begin with a group of participants who bring 12 images of the research topic beforehand. Conduct one-on-one, 2-hour interviews, or "guided conversations" through a series of steps:
Brand architecture
tells marketers which brand names, logos, symbols, etc. apply to which new and existing products clarity and motivate
Cause-related (cause) marketing
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".
brand extension and brand equity
the ultimate success of an extension will depend on its ability to both achieve some of its own brand equity in the new category and contribute to the equity of the parent brand.
Co-branding (brand building, brand alliance)
two or more existing brands are combined into a joint product or are marketed together in some fashion
Implications of the brand value chain
value creation begins with the marketing program investment value creation requires more than the initial marketing investment tracking value creation that make marketing research and intelligence efforts easier the mean and the variance of some brand value chain measures could matter
How to track
whom to track when & where to track how to interpret tracking studies
avoid cost of developing a new brand
§ Developing a new brand element is an art and a science. § Quite expensive with no assurance of success.
enhance parent brand image
§By strengthening existing brand associations, improving the favorability of existing brand, adding a new brand associations, or a combination of these.
Improve Brand Image
§Consumers form expectations of performance of well-known and well liked brands. § Brand inferences improve strength, favorability, and uniqueness of the extension's brand associations.
Increase the probability of gaining distribution and trial
§Increase in consumer demand for a new product makes it easier to convince retailers to stock and promote it.
Bring New Customers into the Brand Franchise and Increase Market Coverage
§Line extension can benefit the parent brand by expanding market coverage.
permit consumer variety seeking
§Offering a portfolio of brand variants within a product category for the consumer who needs a change.
Reduced risks perceived by customers
§Perceptions of corporate credibility - in terms of expertise and trustworthiness can be a valuable association in introducing brand extensions.
allowing for packaging and labeling efficiencies
§Similar or virtually identical packages and labels for extensions can result in lower production costs and if coordinated properly, can create a "billboard" effect.
revitalizing the brand
§Sometimes brand extensions can be a means to renew interest in and liking for the brand.
Reduce Costs of Introductory and Follow-up Marketing Programs
§When a brand becomes associated with multiple products, advertising can be more cost effective for the family brand as whole.
clarify brand meaning
§clarify the meaning of the brand to consumers and define the kinds of markets in which it competes.
Corporate Image dimensions
• Common product attributes, benefits, or attributes • People and relationships • Values and programs • Corporate credibility
Positives of conjoint analysis
•Allows simultaneous study of different brands and aspects of the product or marketing program •Can uncover information about consumers' responses to different marketing activities for both the focal and competing brands
When and where to track?
•Collect information from consumers continually over time.
Negatives of brand based comparative approaches
•Does not work well if a marketing activity is already strongly identified with the brand •Results may be distorted because simulations and concept statements may unnecessarily highlight particular product characteristics Requires that scenarios be as realistic as possible
Positives of brand based comparative approach
•Effective in isolating the value of a brand •Useful in developing pricing and advertising strategies •Ability to study an infinite variety of marketing activities •Works well for new sales, promotions, campaigns or brand extensions
Fournier's Brand Relationship Research
•Fournier argues that the relationship role view of brand personality provides more actionable guidance than does the trait-based view, which identifies general personality tendencies that might or might not be connected to marketing strategies and goals.
Interbrand's Valuation Methodology
•Goal is to identify an approach that incorporated marketing, financial, and legal aspects; followed fundamental accounting concepts; allowed for regular revaluation on a consistent basis; and was suitable for acquired and home-grown brands •Decided to approach the problem of brand valuation by assuming that the value of a brand, like the value of any other economic asset, was the present worth of the benefits of future ownership •Follows a methodology largely based on an income approach
Marketing based comparative approaches
•Holds the brand fixed and examines consumer response based on changes in the marketing program •Many firms try to assess price sensitivity and thresholds for different brands Applications: Explore price premiums' effect on switching, consumer evaluations of marketing activities, brand extensions, etc. •Can also be used to assess consumer response to different advertising strategies, executions or media plans through multiple test markets
Free Association
•Identify possible brand associations and sources of brand equity •Relatively unstructured measurement approaches that permit a range of possible consumer responses. •Subjects are asked what comes to mind when they think of a brand, without any specific cue •It is the simplest and most powerful way to profile brand associations •Used primarily to identify the range of possible brand associations in the consumer's mind Must consider which probes to use, and how to interpret the resulting data. Best to move from general to more specific considerations. some rough indication of the relative strength, favorability, and uniqueness of brand associations Attributes and benefits archetype
Product-brand tracking
•It is usually necessary to customize tracking surveys to address the specific issues faced by the brand or brands in question •Tracking an individual branded product requires measuring brand awareness and image, using both recall and recognition measures and moving from one more general to more specific questions.
Line extensions
•Marketers apply the parent brand to a new product that targets a new market segment within a product category the parent brand currently serves adds a different flavor or ingredient variety, a different form or size, or a different application for the brand Typically 80% - 90% of new products
Category Extensions
•Marketers apply the parent brand to enter a different product category from the one it currently serves
Negatives of conjoint analysis
•Marketing profiles may violate consumers' expectations based on what they already know about brands
negatives of marketing based comparative approaches
•May be difficult to discern whether consumer responses are caused by brand knowledge or generic product knowledge
# of levels of brand hierarchy
•Most firms choose to use more than one level for two main reasons: -Each successive branding level allows the firm to communicate additional, specific information about its products -Developing brands at higher levels of the hierarchy is obviously an economical means of communicating common or shared information and providing synergy across the company's operations, both internally and externally
Qualitative Research Techniques
•Often identify possible brand associations and sources of brand equity. • Relatively unstructured measurement approaches that permit a range of possible consumer responses. • Useful first step in exploring consumer brand and product perception. Effective brand management requires a thorough understanding of the customer Requires a simple insight into how consumers think of or use products and brands in the category Use "brand audits" to conduct exhaustive research
Holistic Methods
•Places an overall value on the brand in either abstract utility terms or concrete financial terms. •Attempts to "net out" various considerations to determine the unique contribution of the brand. Residual and valuation approaches
Residual Approaches
•Residual approaches are based on the the idea that brand equity is what remains of consumer preferences and choices after we subtract physical product effects. •The idea is that we can infer the relative valuation of brands by observing consumer preferences and choices if we take into account as many sources of measured attribute values as possible. •We can calculate brand equity by subtracting preferences for objective characteristics of the physical product from overall preference. Kamaruka and russel Srinivasan, Park, and Chang
Brand Value Chain Process
•Stage 1 : Firm invests in marketing program •Stage 2 : Associated marketing activity then affects customer mind set •Stage 3 : This mind set, across a broad group of customers, produces the brand performance •Stage 4 : Finally the investment community considers this market performance
Conjoint Analysis
•Survey- based multivariate technique that enables marketers to promote the consumer decision process with respect to products and brands. •Consumers are asked to choose among a number of carefully designed product profiles. •Researchers can determine the trade-offs consumers are making between various brand attributes and the importance they are attaching to them.
Accounting background
•Tangible assets include property, plant and equipment; current assets (inventories, marketable securities, and cash); and investments in stocks and bonds •Intangible assets are any factors of production or specialized resources that permit the company to earn cash flows in excess of the return on tangible assets •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 cost, market, income approach
Valuation approaches
•The bulk of corporate value for many companies is wrapped up in a brand. ability to put a specific price tag on a brand's value may be useful mergers and acquisitions brand licensing fund raising brand management decision
Brand Dynamics
•The model adopts a hierarchical approach to determine the strength of a relationship a consumer has with a brand. presence, relevance, performance, advantage, bonding
Brand Responses
•The purpose of measuring more general, higher-level considerations is to find out how consumers combine all the morespecific, lower-level considerations about the brand in their minds to form different types of brand responses and evaluations.
Depth of Product Mix
•To pursue different price segments, distribution channels, geographic boundaries, etc. •Number and nature of different brands marketed in the product class sold by a firm •they need to choose the optimal product line strategy •Product line analysis requires a clear understanding of the market and the cost interdependencies between products
How to interpret tacking studies
•To yield actionable insights and recommendations, tracking measures must be as reliable and sensitive as possible •Another challenge is deciding on appropriate benchmarks.
Whom to track
•Tracking often concentrates on current customers, but it can also be rewarding to monitor nonusers of the brand or even of the product category as a whole.
Brand-based comparative approaches
•Uses experiments in which one group of consumers responds to an element of the marketing program or some marketing activity when it is attributed to the target brand, and another group responds to that same element or activity when it is attributed to a competitive or fictitiously named brand. "blind testing" useful to determine brand equity benefits related to price margins and premiums.
Positives of marketing based comparative approaches
•Very easy to implement •Can compare any set of marketing actions for the brand
Linking brand elements
•any one brand element to multiple products — the "horizontal" aspect of the brand hierarchy principle of commonality •simplest way to link products is to use the brand element "as is" across the different products involve. Adapting the brand, at some part of it, to make the connection offers additional possibilities •logically order brands in a product line, to communicate how they are related and to simplify consumer decision making We can communicate the order though colors
Brand Equity Report
•assemble the results of the tracking survey and other relevant performance measures for the brand into a brand equity report or scorecard, to be distributed to management on a regular basis. •The brand equity report should describe what is happening with the brand as well as why it is happening. •It should include all relevant internal and external measures of brand performance and sources and outcomes of brand equity. One section of the report should summarize consumers' perceptions of key attributes or benefit associations, preferences, and reported behavior Another section of the report should include more descriptive market-level information such as the following: •Product shipments •Retail category trends •Relevant cost breakdowns •Price and discount schedules •Sales and market share information •Profit assessments
Brand extension
•firm uses an established brand name to introduce a new product
Prominence
•relative visibility compared with other brand elements
Principle of commonality
•the more common brand elements products share, the stronger the linkages between the products.
Family brand
•the parent brand is already associated with multiple products through brand extensions
