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LEVERAGING SECONDARY BRAND KNOWLEDGE LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY TO BUILD BRAND EQUITY
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Page 1: Leveraging Secondary brand

LEVERAGING SECONDARY BRAND LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITYKNOWLEDGE TO BUILD BRAND EQUITY

Page 2: Leveraging Secondary brand

Figure 2-9 Building Customer-Based Brand EquityBRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS

Choosing Brand Elements

Brand name MemorabilityLogo MeaningfulnessSymbol AppealCharacter TransferabilityPackaging AdaptabilitySlogan Protectability

Developing Marketing Programs

Product Tangible and intangible benefitsPrice Value perceptionsDistribution channels Integrate”push” and “pull”Communications Mix and match options

Leverage of Secondary Associations

CompanyCountry of originChannel of distributionOther brandsEndorsorEvent

AwarenessMeaningfulnessTransferability

Possible Outcomes

Greater loyalty

Less vulnerability to competitive marketing actions and crises

Larger margins

More elastic response to price decreases

More inelastic response to price increases

Greater trade cooperation and support

Increased marketing communication efficiency and effectiveness

Possible licensing opportunities

More favorable brand extension evaluations

Brand Awareness

Depth

Breadth

RecallRecognition

PurchaseConsumption

Brand Associations

Strong

Favorable

Unique

RelevanceConsistency

DesirableDeliverable

Point-of-parityPoint-of-difference

Page 3: Leveraging Secondary brand

Leveraging Secondary Leveraging Secondary AssociationsAssociations

Creation of new brand associationsCreation of new brand associations Effects on existing brand knowledgeEffects on existing brand knowledge

Awareness and knowledge of the entityAwareness and knowledge of the entity Meaningfulness of the knowledge of the Meaningfulness of the knowledge of the

entityentity Transferability of the knowledge of the Transferability of the knowledge of the

entityentity

Page 4: Leveraging Secondary brand

Leveraging Secondary Leveraging Secondary AssociationsAssociations

Brand associations may themselves be linked to Brand associations may themselves be linked to other entities, creating secondary associations:other entities, creating secondary associations: Company (through branding strategies)Company (through branding strategies) Country of origin (through identification of product Country of origin (through identification of product

origin)origin) Channels of distribution (through channels strategy)Channels of distribution (through channels strategy) Other brands (through co-branding)Other brands (through co-branding)

Special case of co-branding is Special case of co-branding is ingredient brandingingredient branding Characters (through licensing)Characters (through licensing) Celebrity spokesperson (through endorsement Celebrity spokesperson (through endorsement

advertising)advertising) Events (through sponsorship)Events (through sponsorship) Other third-party sources (through awards and Other third-party sources (through awards and

reviews)reviews)

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These secondary associations may These secondary associations may lead to a transfer of:lead to a transfer of: Response-type associationsResponse-type associations

Judgments (especially credibility)Judgments (especially credibility) FeelingsFeelings

Meaning-type associations Meaning-type associations Product or service performanceProduct or service performance Product or service imageryProduct or service imagery

Leveraging Secondary Leveraging Secondary AssociationsAssociations

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Co-BrandingCo-Branding

Occurs when two or more existing Occurs when two or more existing brands are combined into a joint brands are combined into a joint product or are marketed together in product or are marketed together in some fashionsome fashion

Examples:Examples: Sony EricssonSony Ericsson

Credit cards from:Credit cards from: ICICI & HPCLICICI & HPCL Air Sahara & Standard Chartered BankAir Sahara & Standard Chartered Bank HSBC & Star India BazaarHSBC & Star India Bazaar

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Advantages of Co-BrandingAdvantages of Co-Branding

Reduce cost of product introductionReduce cost of product introduction Expand brand meaning into related Expand brand meaning into related

categoriescategories Broaden meaningBroaden meaning Increase access pointsIncrease access points

Source of additional revenue Source of additional revenue

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Disadvantages of Co-Disadvantages of Co-BrandingBranding

Loss of controlLoss of control Risk of brand equity dilutionRisk of brand equity dilution Negative feedback effectsNegative feedback effects Lack of brand focus and clarityLack of brand focus and clarity Organizational distractionsOrganizational distractions

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7.9

Ingredient BrandingIngredient Branding A special case of co-branding that A special case of co-branding that

involves creating brand equity for involves creating brand equity for materials, components, or parts materials, components, or parts that are necessarily contained that are necessarily contained within other branded productswithin other branded products

Examples:Examples: Intel insideIntel inside

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LicensingLicensing Involves contractual arrangements Involves contractual arrangements

whereby firms can use the names, whereby firms can use the names, logos, characters, and so forth of other logos, characters, and so forth of other brands for some fixed feebrands for some fixed fee

Examples:Examples: Entertainment (Star Wars, Jurassic Park, Entertainment (Star Wars, Jurassic Park,

etc.)etc.) Television and cartoon characters (The Television and cartoon characters (The

Simpsons)Simpsons) Designer apparel and accessories (Calvin Designer apparel and accessories (Calvin

Klein, Pierre Cardin, etc.)Klein, Pierre Cardin, etc.)

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Celebrity EndorsementCelebrity Endorsement

Draws attention to the brandDraws attention to the brand Shapes the perceptions of the brandShapes the perceptions of the brand Celebrity should have a high level of Celebrity should have a high level of

visibility and a rich set of useful visibility and a rich set of useful associations, judgments, and associations, judgments, and feelingsfeelings

Q-Ratings to evaluate celebritiesQ-Ratings to evaluate celebrities

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Celebrity Endorsement: Potential Celebrity Endorsement: Potential ProblemsProblems

Celebrity endorsers can be overused by Celebrity endorsers can be overused by endorsing many products that are too varied.endorsing many products that are too varied.

There must be a reasonable match between There must be a reasonable match between the celebrity and the product.the celebrity and the product.

Celebrity endorsers can get in trouble or lose Celebrity endorsers can get in trouble or lose popularity.popularity.

Many consumers feel that celebrities are Many consumers feel that celebrities are doing the endorsement for money and do not doing the endorsement for money and do not necessarily believe in the endorsed brand.necessarily believe in the endorsed brand.

Celebrities may distract attention from the Celebrities may distract attention from the brand.brand.

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Sporting, Cultural, or Other Sporting, Cultural, or Other EventsEvents

Sponsored events can contribute to Sponsored events can contribute to brand equity by becoming associated brand equity by becoming associated to the brand and improving brand to the brand and improving brand awareness, adding new associations, awareness, adding new associations, or improving the strength, or improving the strength, favorability, and uniqueness of favorability, and uniqueness of existing associations. existing associations.

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

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Third-Party SourcesThird-Party Sources Marketers can create secondary Marketers can create secondary

associations in a number of different associations in a number of different ways by linking the brand to various ways by linking the brand to various third-party sources. third-party sources.

Third-party sources can be especially Third-party sources can be especially credible sources. credible sources.

Marketers often feature them in Marketers often feature them in advertising campaigns and selling efforts advertising campaigns and selling efforts .. Example: Example: J.D. Power and Associates’ well-J.D. Power and Associates’ well-

publicized Customer Satisfaction Index publicized Customer Satisfaction Index