5 – Building Brand Equity IV: Secondary Elements Flashcards
Leveraging Secondary Associations
The brand links itself in the hope that the entity is transferred to principle brand. Taking advantage of a brand image exists in the marketplace. By making a connection between the brand and another entity, consumers may form a mental association form the brand and consequently to any or all judgments, feelings and the like linked to that entity. The degree this happens if the consumer has knowledge from the entity. The idea of fit and how target market perceives the entity is important. The greater the knowledge, the greater the likelihood associations will be transferred. They may allow marketers to create/reinforce perceptions of a POD or POPs vs. competitors.
Company, Country of Origin, Celebrities etc.
It can build brand equity through leveraging any or all associations from another entity. Identity, meaning responses and relationships a customer has with that entity can be transferred to the brand. Brand knowledge. The degree of fit. Brand positioning needs to be taken into consideration to improve it, as well as POPs and PODs.
Company
Focus is on the product and the larger brand itself. Using sub branding strategy by taking advantage of its corporate reputation, and link to this when introducing new products. Types of associations that consumers have when related to the company/ corporate associations:
• Perceptions, inferences and beliefs about a company
• Person’s knowledge of prior behaviours with respect to the company
• Information about the company’s prior actions
• Moods and emotions experienced by the person with respect to the company
• Overall and specific evaluations of company & its perceived attributes
Apple iPod, PnG, Lexus and Toyota
Building brand equity through brand awareness, brand performance and imagery, consumer judgements and feelings. Brand architecture, brand hierarchy, and brand portfolio.
Sources of Corporate Associations
• Corporate ability (CA): related to the company’s expertise in producing and delivering its outputs. Skills and ability to produce good quality, innovative products. Technological innovation, manufacturing.
• Corporate social responsibility (CSR): reflects organisation’s status and activities in perceived societal obligations. Whether it is fair, good to environment, etc. Corporate giving, community involvement.
Apple, Earth’s Choice
Building brand equity through transferring corporate ability and corporate social responsibility to products. Active engagement, behavioural loyalty, consumer judgements, and brand salience.
Influence of CA on new product evaluations
Transference of how (CA+CSR) corporate evaluation, product sophistication (from CA) product social responsibility (from CSR) is transferred to the product evaluation. Findings show:
• CA associations can exert dual influence on evaluation of new products through their effect on product attribute perceptions and overall corporate evaluation.
• CSR associations appear to exert influence on product evaluations through influence on corporate evaluation rather than through any influence on specific product attributes.
• Consumers use CA associations as basis for inference about missing product attributes.
• A reputation based on a company’s abilities may have greater impact on specific product perceptions and overall corporate evaluation than a reputation for CSR. CSR companies
Apple, Earth’s Choice
Building brand equity through transferring corporate ability and corporate social responsibility to products. Easier to transfer CA to products in comparison to CSR. Allows for active engagement, behavioural loyalty, consumer judgements, and brand salience.
Country of Origin
Certain brands take advantage of where they come from because consumers have stereotypes about some countries. Effects:
• Any influence that the country of manufacture, assembly or design has on a consumer’s perception of a product. It could maximise product utility and communicate self-image.
• Positive associations of a country get transferred to a brand. We don’t fairly evaluate products.
• Deceptive practices to present a brand as made and assembled elsewhere, hiding label, or made in a positively stereotyped country but manufactured by illegal immigrants.
Egyptian cotton, British tea, Belgian chocolate.
Technological products from China.
Venezuelan chocolates El Rey.
Brand awareness, brand image creating strong, favourable, and unique associations. Building brand equity through brand salience, brand imagery, and consumer feelings.
Channels of Distribution
Where the brand is displayed as a huge impact on what people think about the brand. What we think about places transfer associations to what is being sold. Evaluation of quality of product could depend on where it is sold, what kind of store it is in etc. The transference is difficult to stop
Gucci selling in Sears and Gap
Building brand equity through brand performance, brand imagery, and consumer judgements. We judge from what type of store the product is in. Understanding quality, credibility, superiority, user profiles, service, etc. degree of fit.
Aspects in selecting distribution channels
• Access – location of the store
• Store atmosphere – colours, music crowding. Quality perception of store is higher when empty/ spacious.
• Price and promotion
• Cross category assortment – breadth of products. Types of products stores carry.
• Within category assortment – depth of products. Within each product ccategory, how many models are carried by a store.
Apple stores, Target, Myers, David Jones, brands of perfume sold
Building brand equity through brand performance, brand imagery, consumer judgements and feelings. Understanding quality, credibility, superiority, user profiles, service, etc.
Co branding
Brands come together in a joint product/ marketed together to take advantage of their unique identities. Leverage each other’s brand perceptions.
Cadbury and Vegemite, Nike and Apple
Improve brand equity through brand identity, meaning and response. Brand positioning. Degree of fit.
Unobservable quality
Suspect- brand alliances provide a reassurance of product quality. When people don’t know much about the brand, awareness, levels are low; it makes sense to align with a well-known brand. Ingredient branding, where ingredient in main product is branded and that can create awareness and preferences for their product.
Pepsi and Nutrasweet. Intel.
Improve brand equity through awareness (recognition and recall), performance and consumer judgements. It can be used as a signal of quality.
Observable Quality
Brand alliances add to number of product attributes. When people know about the two brands, it may not always succeed, as new information needs to be added by alliance. It makes sense when a brand becomes an ingredient to another as it adds an attribute through the alliance.
Betty Crocker and MnMs, Dolby and Sony.
Improve brand equity through brand image (strong, favourable, unique), imagery and consumer feelings.
Advantages of co branding
• Borrow needed expertise
• Leverage equity you don’t have
• Reduce cost of product introduction
• Expanding brand meaning into categories.
• Source of additional revenue
Betty Crocker and Hershey’s
Improve brand equity through brand identity, meaning and response.
Disadvantages of co branding
• Loss of control • Risk of brand equity dilution • Negative feedback effects • Lack of brand focus and clarity • Organisational distraction McDonald's and Fisher Price Could negative impact the brand equity of brands through identity, meaning and response. Brand crisis management.
Characters
Form associations with characters and can be used as licensing property. Licensing involves contractual agreement whereby firms can use names, logos, and characters of other brands for a fixed fee. Take advantage about what people think of characters, put them with other brands that are using these images. Marketers spend millions, as they look for the next blockbuster franchise.
Toy companies using Disney characters.
Improve brand salience, awareness, imagery and consumer feelings. Can create active engagement, sense of community and attitudinal attachment. Brand elements. Brand positioning.
Celebrity Endorsements
Organisation links itself with celebrities, as consumers have perceptions of these people. Celebrity fans will become fans of products/services. What we think about celebrity could get transferred onto a brand. The celebrity must be well known.
George Clooney and Nespresso
They can improve awareness, image and responses. They need to be highly visible, have useful associations, judgements and feelings, credible in terms of expertise, trustworthiness and likeability and be relevant.
Researching Celebrity Entity
• Q ratings/ Q score quotient: based by dividing total percentage of respondents who say celebrity is one of their favourites by total percentage of audience who are familiar with celebrity.
• Davie Brown Index (DBI): measures celebrities based on appeal, notice (pop ubiquity/culture), trendsetter (position), influence (if any on decision making and judgements), trust, endorsement (spokespersonability), aspiration and awareness. Gathers more info from consumers compared to Q score. Used by organisations when they are thinking of leveraging celebrities
Proactiv and Justin Bieber/ Katy Perry
Measuring sources of brand equity. Building brand equity needs to involve research before starting marketing campaigns. Degree of fit is important before leveraging celebrities.
