Anda di halaman 1dari 30

LEVERAGING SECONDARY

BRAND KNOWLEDGE TO
BUILD BRAND EQUITY

LECTURE 7 15 MARCH 2017


PREVIEW

Marketing Program
Brand Elements
Activities (4Ps)

Leverage of related or
secondary brand
association

To creating strong, favorable, and unique associations or positive


responses if existing brand associations or responses are deficient in
some way
Secondary sources of brand knowledge
CONCEPTUALIZING THE LEVERAGING
PROCESS

Outcomes of linking the brand to some other entities:

1. Creation of new brand associations

By making connection between the brand and


another entity, consumers may form a mental
association from a brand to this or other
entity and, consequently, to any or all
associations, judgments, feelings, and the like
linked to that entity.
CONCEPTUALIZING THE LEVERAGING
PROCESS

2. Effects on existing brand knowledge


When a brand is identified as linked to other entity, consumers
may infer that some of the particular associations, judgments, or
feelings

According to cognitive dissonance theory, there is a tendency for


individuals to seek consistency among their cognitions (eg: beliefs,
opinions). When there is an inconsistency between attitudes or
behaviors (dissonance), something must change to eliminate the
inconsistency .
CREATING SECONDARY BRAND
KNOWLEDGE
Linking the brand to the following :

1. Companies (through branding strategies)

2. Countries or other geographic areas (through identification of


product origin)

3. Channels of distributions ( through channel strategy)

4. Other brands (through co-branding)

5. Characters (through licensing)

6. Spokespersons (through endorsement)

7. Events (through sponsorship)

8. Other third-party sources (through award or reviews)


1. COMPANY
Branding strategies are an important determinant of the
strength of association from the brand to the company and any
other existing brands.
2. COUNTRY OF ORIGIN AND OTHER
GEOGRAPHIC AREAS
Country-of-origin effect where a product or brand comes
from often influences a consumer perception of the product.

Based on their beliefs about the quality of certain types of


products from certain countries or the image that these
brands or products communicate.

A survey of consumers in the Czech Republic found that 72


per cent of Japanese products were considered to be of the
highest quality, German goods followed with 51 per cent,
Swiss goods with 48 per cent, Czech goods with 32 per cent
and, last the United States with 29 per cent.
ITALY

USA
PARIS

IRISH
JAPAN
3. CHANNELS OF DISTRIBUTION

Channels of distribution can directly affect the


equity of the brand they sell because of consumers
association linked to the retail stores.

Because associations to product assortment, pricing


and credit policy, quality of service, retailers have
their own brand images in consumers minds.
4. CO-BRANDING
Through a brand extension strategy, a new product can
become linked to an existing corporate or family brand that
has its own set of associations.

Co-branding also called brand


bundling or brand alliances
occurs when two or more
existing brands are combined
into a joint product or are
marketed together in the same
fashion.
4. CO-BRANDING

Ingredient brands attempt to create enough awareness and


preference for their product that consumers will not buy a
host product that does not contain the ingredient.
Both brands should have adequate brand awareness,
sufficiently strong, favorable , unique associations, positive
consumer judgments and feelings
Logical fit between the two brands and combined to
maximizes the advantages of the individual brands while
minimizing the disadvantages.
5. LICENSING
Licensing creates 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.

Essentially, a firm is renting another brand to contribute to the


brand equity of its own product.

Sometime, to avoid immediate risk of enter into the market, even


to check market feasibility and to avoid the risk of being treated
as an outsider; companies may prefer to enter through licensing.
5. LICENSING

Corporate trademark licensing:


Generating extra revenues and profits
Protecting their trademarks
Increasing brand exposure
Enhancing brand image
No inventory expenses, Account receivable, manufacturing
expenses
Risk : product wont live up to the reputation established by
the brand; inappropriate licensing will dilute brand meaning
5. LICENSING
6. CELEBRITY ENDORSEMENT
Using well-known and admired people to promote product.
The celebrity must be well enough known to improve awareness,
image and responses to brand.
Potential problem of celebrity endorsement:
1. Celebrity endorsers can endorse so many products
2. There must be a reasonable match between the celebrity and
the product.
3. Celebrity endorsers can get in trouble or lose popularity
4. Many consumers feel that celebrities are only doing the
endorsement for money
7. SPORTING, CULTURAL, OR OTHER
EVENTS
Events have their own set of associations that may become
linked to a sponsoring brand under certain conditions.
Sponsored events can contribute to brand equity by
becoming associated to the brand and improving brand
awareness, and adding new associations, improving the
strength, favorability and uniqueness of existing associations.
7. SPORTING, CULTURAL, OR OTHER
EVENTS

It is very important to choose the appropriate event,


design the optimal sponsorship program and measure
the effects of sponsorship on brand equity.
8. THIRD PARTY SOURCES

Linking the brand to various third-party sources.


Endorsement from leading magazines, organizations and
experts can obviously improve perceptions of and attitudes
toward brands.
Third-party sources can be especially credible sources. As a
result, marketers often feature them in advertising campaigns
and selling efforts.
SUMMARY
Brand associations may themselves be linked to other
entities, creating secondary associations:

1. Companies (through branding strategies)


2. Countries or other geographic areas (through
identification of product origin)
3. Channels of distributions ( through channel strategy)
4. Other brands (through co-branding)
5. Characters (through licensing)
6. Spokespersons (through endorsement)
7. Events (through sponsorship)
8. Other third-party sources (through award or reviews)