strategic brand management: building, measuring, and managing brand equity (3rd ed.) chapter 7...

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7. Leveraging Secondary Brand Associations to Build Brand Equity Suh-hee Choi HTM 631 (Spring 2009) Keller, K. L. (2008). Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.), Prentice Hall.

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This is the summary of Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.), chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity) by Keller, K. L. (2008, Prentice Hall.) I designed this powerpoint for an HTM631 class (Strategic Marketing in Hospitality and Tourism) in spring 2009.

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Page 1: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

7. Leveraging Secondary Brand Associations to Build Brand Equity

Suh-hee Choi

HTM 631 (Spring 2009)Keller, K. L. (2008). Strategic Brand Management:

Building, Measuring, and Managing Brand Equity (3rd ed.), Prentice Hall.

Page 2: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Strategic Brand Management Process:Where are we?

Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

Mixing and matching of brand elementsIntegrating brand marketing activities

Brand Value ChainBrand auditsBrand trackingBrand equity management system

Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization

Grow and SustainBrand Equity

Identify and EstablishBrand Positioning and Values

Plan and Implement Brand Marketing Programs

Measure and InterpretBrand Performance

Preview

Page 3: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

1. Co mpany

Brand

Things

6. People Places

Secondary Sources of Brand Knowledge

Endorsers

Alliances

Ingredients Company

Extensions

2. Country of origin

3. Channels

7. Events8. Third-partyendorsements

4. Other Brands

Preview

5. Licensing

Page 4: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Creation of New Brand Association + Effects on Existing Brand Knowledge

Conceptualizing the Process

BrandOther Entity

Mental Association

Associations

Associations

Associations

Associations

1. How much do people know about the entity?2. Is the knowledge MEANINGFUL to the brand?3. Is the knowledge transferable?

commonality complementarityGuidelines

Page 5: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Discussion

Let’s think of the example of successful “cause marketing programs” (p. 282) in hospitality and tourism industry. How do they enhance brand image, feelings, attitudes, and experiences?

Conceptualizing the Process

Page 6: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

1. Company (Branding Strategies)

1. Creating a new brand2. Adopting / modifying an existing brand 3. Combining brands

Ways of leveraging

Page 7: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

2. Country of Origin and Other Geographic Areas

Ways of leveraging

Page 8: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Country of Origin and Other Geographic Areas

Ways of leveraging

Page 9: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Country of Origin and Other Geographic Areas

Discussion “Events or actions associated with the

country may color people’s perceptions (Keller, p. 287).”

Ways of leveraging

Page 10: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Country of Origin and Other Geographic Areas

Example: British Airways “Utopia”

http://www.lockonaviation.net/html/utopia.htmlWays of leveraging

Page 11: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Country of Origin and Other Geographic Areas

Example: (p. 288)

• In 2003, Wedgwood closed two factories and move factories to Asia.

• Research in the U.S. showed that what customers wanted was the Waterford label and not where the crystal was made.

• Retailers worried that it could harm its brand image. http://www.youtube.com/watch?v=WP9RmuoZUpg

Ways of leveraging

Page 12: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

3.Channels of Distribution

Ways of leveraginghttp://www.careernomics.com/Loreal0709/can/excelling.php

Page 13: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

4. Co-branding- definition / examples

Brand bundling / brand alliances Existing brands combined into a joint product /

marketed together Hospitality examples

Mr. Clean®, THE NEW STAY SMART®

SHOWERHEAD BY KOHLER®

(Holiday Inn Express® )

Ways of leveraging

Page 14: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Advantages

1. Borrow needed expertise

2. Leverage equity you don’t have

3. Reduce cost of product introduction

4. Expand brand meaning into related categories

5. Source of additional revenue

Disadvantages

1. Loss of control2. Risk of brand equity

dilution3. Negative feedback

effects4. Lack of brand focus and

clarity 5. Organizational

distraction

Ways of leveraging

Co-branding- advantages/disadvantages

Page 15: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Co-branding-guidelines

Guidelines- Each brand should have adequate brand awareness +

judgment + feelings. - Marketers should ask:

• our capabilities• resource constraints (people, time, money)• our goals

- Marketers should check:• profitability• contribution to brand equity • extrinsic advantages

Ways of leveraging

Page 16: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Co-branding-ingredient branding

A special case of co-branding which creates brand equity for materials, components, or parts that are necessarily contained within other branded products.

Benefits- Consumers: a signal of quality + reduce risk - Host product producers : leverage the equity from the

ingredient brand to enhance its own brand equity Disadvantages : loss of control, consumer confusion Hospitality and tourism examples:

- Tourism package with …….. ?

Ways of leveraging

Page 17: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

5. Licensing

Contractual agreement to use names, logos, characters, etc. Entertainment licensing : characters from movies/cartoons Lucrative for licensors Guidelines : beware of short-lived brands! Corporate trademark licensing

- licensing a company’s names, logos, and brands to be used in various products.

- advantage : increase brand exposure, generate extra revenues, enhance brand image

- disadvantage : inappropriate licensing harm the brand reputation

Ways of leveraging

Page 18: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Licensing

Hospitality industry examples?

http://www.nick.comhttp://www.nickhotel.com

Ways of leveraging

Page 20: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

6. People:Celebrity Endorsement

"What do I wear in bed? Why, Chanel No.5, of course."

Using well-known and admired people : Consumers judge based on the knowledge about the celebrities.- Advantage : easier to draw attention to a brand.- Potential problems

• when celebrity endorse too many products.... • when the celebrity’s image and brand image doesn’t match….• when people think the celebrities endorse just for the money

- Strategic evaluation / selection of celebrity required

Ways of leveraging

Page 21: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Celebrity Endorsement

Example

Ways of leveraging

December 11, 2008 02:10:41 GMT “Chris Brown's "Got Milk?" print ad has hit the Internet…”

February 11, 2009 02:49:48 GMT “Having his "Got Milk?" ad campaign coming to an end this week, Chris Brown will no longer be used as the celebrity face of the project.”“The dropping of Chris Brown by several companies, which products he endorses, adds fuel to the existing speculation that his felony battery case can ruin not only his reputation, but also his career. Still, there have yet comments issued by the star himself or his people.”

Page 22: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

7. Sporting, Cultural, or Other Events

Ways of leveraging

Associations

Sponsor

Brand equity

awareness

Strengthfavorability

Page 23: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

8. Third-party Sources

Brand

Third-party endorser

Hospitality and Tourism industry examples?

Ways of leveraging http://www.dinegreen.com/

Page 24: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Gnoth, J. (2002). Leveraging export brands through a tourism destination brand. Journal of Brand Management, 9(4/5), 262.

Page 25: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Article: Gnoth (2002)

Country as a tourism

destination brand Products and

services in export market

Creates Leverage

Page 26: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Article: Gnoth (2002)

Tourism Systems:Networks Vs. Channels

Tourism product

HospitalityTransport Accommodation

Attraction

Page 27: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Article: Gnoth (2002)

Tourism Systems:Networks Vs. Channels

Difficulty of developing strategic modelsIdiosyncrasies and complexity of the tourism industry

Difficulty of branding countries and tourism destinations (because of complexity)

NETWORK APPROACH helps

Page 28: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Article: Gnoth (2002)

Tourism Systems:Networks Vs. Channels

Networks The notion of ‘community’

1. Commonality: members share an intrinsic connection to one another.

2. Values: they have shared rituals and traditions

3. Moral responsibility: they share a sense of moral responsibility.

Network theory supports the development of the thetourism industry as an extended community.

Page 29: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Article: Gnoth (2002)

Brand extension to other products and service (producers or those product brands would like to leverage country brand image)

which contribute to the pull to the destination

Branding the essential tourism servicewhich facilitate the tourism experience

Brand extension to non-tourism and export industries

Extension of the tourism brand to other products and services

Page 30: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

which contribute to the pull to the destination

Article: Gnoth (2002)

Tourists interact with these attributes, and it characterizes their tourism experiences and defines the qualities of services of experiences.

Page 31: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

2. Branding the essential tourism servicewhich facilitate the tourism experience

Article: Gnoth (2002)

Intangibles allows a company, region, or country to provide unique service delivery. Branding the services facilitating the attraction the second level of brand extension.

Page 32: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

3. Brand extension to supporting infrastructure, non-tourism, and export industries

Article: Gnoth (2002)

Food grown in the country

Technological products (e.g. skis)

Socio-political infrastructure (reputational capital)

---------------------------------------------------------------------

Strategies to select important attributes are important.

Page 33: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

4. All other products and services (producers or those product brands would like to leverage country brand image)

Article: Gnoth (2002)

There are also brands which are strong enough on their own and don’t need a country brand’s help derived from tourism. example:

“While there may be brand connections from tourism to these brands, the process is not always reversible.”

Page 34: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Article: Gnoth (2002)

The emergence and role of a country as a brand

Again, network is important! When tourists experience cohesive attributes within a

contiguous network throughout the country, new information is interpreted in a way that has been organized through past destination (country) brand experiences.

Page 35: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Article: Gnoth (2002)

Gnoth (2002) : Discussion Isn’t is necessary in some cases that export brands

need to be disjoined from tourism destination brand? Some researchers argue that three levels of

experiences (functional, experiential, and symbolic level) are not accumulative while others don’t. What do you think?

Isn’t it possible that “unifying” the brand image limits the scope of destination images and eventually narrows down the target market?

“While there may be brand connections from tourism to corporate brands, the process is not always reversible.” What do you think of this statement?

Page 36: Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.) Chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)

Conclusion Gnoth (2002)

Managing tourism systems as network + managing brand attributes are important.

Keller, Ch. 7 Customers expect that there are same attributes between

the source factors and the brand. Consequently, marketers can borrow the brand equity from these source to enhance their own brand equity.

8 ways to leverage secondary associations : 1) the company 2) the country or other geographic location 3) other channel members that sell the product 4) other brands such as ingredient brands 5) licensed characters 6) endorsers 7) events 8) third-party sources

Risks exist : Marketers have to sacrifice control.

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