MKT 4340 - exam 2

to get an internal and external focus of the brand
- a 360 view of the brand

Why are Brand Audits important?

understand the feasible sources of the brand equity

from the firm perspective (brand inventory) and consumer perspective (brand exploratory)

internal and external focus:

- understand sources of brand equity
- clearer focus and vision
- deeper understanding of customer and strategic/competitive position/advantage
- more consistency across all brand touchpoints
- focused on maximizing long-term brand equity

how do you measure brand equity?

- qualitative research
- quantitative research

qualitative research techniques

- free association
- means-end chain analysis
- projective techniques (ZMET, comparison)

quantitative research techniques

- survey with scaled items
- likert
- semantic differential
- experimental study

brand personality

refers to the human characteristics or traits that can be attributed to a brand

ways to measure brand personality

- open-ended questions
- ZMET
- scaled

ZMET

collects picutres that would represent the brand and explain

scaled - the big 5 dimensions

- sincerity (down-to-earth)
- excitement (daring)
- competence (reeliable)
- sophistication
- ruggedness (tough)

what can you measure with quantitative technniques?

awareness, brand performance, brand imagery, judgements feelings resonance
- scaled, likert, counts, recognition

brand equity management system

is a set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm

parts of the brand equity management system

brand equity charter, brand equity report, brand equity responsibilities

Brand Equity Charter

general guidelines for marketing managers within the company or outside the company

brand equity charter components

- define the firm's view of the brand equity
- describe the scope of key brands
- specify actual and desired equity of brand
- explain how equity is measured
- suggest how equity should be measured
- outline how marketing programs should be devised
- proper treatment of brand trademark, usage and packaging

what is a 'touchpoint'?

all the ways your brand interacts with and makes impressions on customers, employees, and other stakeholders

3 basic frameworks to assess 'touchpoints'

- product levels (core, actual, augmented)
- 4 P's/marketing mix
- customer experience segments

integrate the brand into marketing programs

- product strategy
- pricing strategy
- channel strategy
- promo strategy

customer experience segments

-pre purchase experience
-purchase experience
-post purchase experience

pre-purchase experience

- advertising, website, direct mail, samples, displays, signs

purchase experience

display, packaging, service, price, mobile

post-purchase experience

performance, satisfaction, loyalty program, support

5 steps to get Brand Touchpoints Right

1. use a framework to identify all existing and potential touchpoints
2. provide an internal evaluation to each touchpoint
3. determine which touchpoints have the greatest impact
4. address the ones that matter most while balancing cost & feasibility
5. develop a touchpoint action plan

branding elements

name, URLs, logos, symbols, characters, slogans, packaging

criteria for choosing brand elements

memorability, meaningfulness, likability, transferability, adaptability, protectability

branding elements (def)

anything trademarkable that is used to differentiate the brand

what criterion create brand equity

- memorability
- meaningfulness
- likabilitiy

what criterion maintains, leverages, and protects brand equity

- transferability
- adaptability
- protectability

Simple Memory Model

sensory memory -> working memory (attention) -> long-term memory (encoding/elaboration)

characterisitics of attention

selective, voluntary vs involuntary, can be divided, limited

methods of enhancing attention

personally relevant, pleasant, surprising, easy to process

how is memory enhanced

- chunking
- rehearsal
- recirculation
- elaboration

Brand Meaningfulness

- elements take on meaning with descriptive or persuasive content
- category information
- specific attributes and benefits of the brand
1. salience
2. brand image and positioning

Brand Likability

do customers find the brand element aesthetically appealing?
- reduces the marking com burden

Transferability

- extendable to new lines
- does the element add to brand equity across geographic boundaries
- category-based vs attribute-based vs benefit-based
- concrete vs abstract elements (Nike swoosh is easy)
- coined (Verizon) vs known brand names

Brand Adapibility

- the more adaptable and flexible the element, the easier it is to update it to changes in consumer values and opinions

Brand Protectability

- choose elements that can be legally protected internationally, need to defend trademarks from unauthorized competitive infringement

Brand Naming Guidelines

brand awareness: simplicity and ease of pronunciation, familiarity & meaningfulness, differentiated, distinctive, and unique
brand associations: explicit and implicit meanings, can reinforce attributes

URL

uniform resource locator
- domain names
- register all variations ahead of time
- copyright fringement
- buy the name from the current owner

branding naming adaption

if you wanna move into global markets, make sure the name can too

logos and symobls

- critical role in building brand equity (awareness!)
- range from corporate names/trademarks to abstract designs that could be completely unrelated

characters

special type of symbol - one that takes on human life or real-life characteristics (NOT endorsers)
- animated, live-action figures

slogans and jingles

- short, easy to remember
- great for rehearsal and recirculation of information

Packaging

objectives:
- identify brand
- convey descriptive/persuasive info
- facilitate product transportation/protection
- assist at-home storage
- aid product consumption

can influence:
- taste
- value perceptions
- consumption (how much and how)

Trademarks qualify for protection by

- first to use
- register

Trademark Infringement

- protects consumers
- if likely to cause consumer confusion as to the source of goods/sponsorship or approval of goods

Trademark Dilution

- protects brand's equity
- must have requisite fame
- harm: tarnishment, blurring

what harm has to occur for there to be trademark dilution

- tarnishment: association with unfavorable aspects
- blurring: weakening of associations by addition of new assocations

Leveraging Secondary Associations

- linkage of brand to some entity
- inference of shared characteristics
- creation of new brand associations
- effects on existing brand knowledge (awareness, meaning, judgements, feelings)

what effects on existing brand knowledge can leveraging brands have on?

awareness, meaning, judgements, feelings

what are some examples of secondary association?

- company (through branding strategies)
- country of origin
- channels of distribution
- other brands (co-branding)
- characters
- celebrity spokesperson
- events
- other thrid-party sources (awards/reviews)

company associations

- corporate reputation
- corporate ability
- corporate social responsibility
- corporate liking

country of origin associations

- implicit leveraging (IKEA, Swedish)
- explicit leveraging (Volkswagen, German)

channel associations

store >>> brand <<< store
- Levi's signature jeans & target
- liz claiborne and JC Penny's

Co-branding definition

when two or more existing brands are combined into a joint product or are marketed together in some fashion
- ex: nike & apple, Doritos & taco bell

Advantages of Co-Branding

- borrow needed expertise
- leverage equity
- reduce cost of product introduction
- expand brand meaning into related categories
- source of additional revenue

Disadvantages of Co-Branding

- loss of control
- risk of brand equity dilution
- negative feedback effects
- lack of brand focus/clarity
- organizational distractions

Ingredient Branding

- a special case of co-branding that involves creating brand equity ffor materials, components, or parts that are necessarily contained within other branded products

Examples of ingredient branding

- betty crocker baking mixes with hershey's chocolate syrup
- intel inside dell computers

Licensing

- contractual arrangements whereby firms can use the names, logos, characters, etc
* very complex agreements

examples of licensing

- entertainment (star wars, jurassic park)
- TV (the simpson)
- apparel &B accessories (calvin klien)

Celebrity Endorsement

- draws attention to the brand
- shapes the perceptions of the brand
- celebrity should have a high level of visibility and a rich set of useful associations, judgements, and feelings
**celebrities must have some level of match with a brand

protentional problems with celebrity endorsers

- overuse
- poor match and transfer of meaning
- celebrity transgressions
- perceived profit motive/skepticism
- celebrities may distract attention from the brand

Sporting, Cultural, or other Events

- good for awareness, new associations or improving the strength of existing associations
- shown to impact stock price
- repeat attendees/exposure
- incorporating event with other marketing communications multiplies the effect
- can have negative feedback/spillover to brand

Third-Party Sources

- can be especially credible sources
- feature them in ads
ex: JD Power

brand extensions

when a firm uses an established brand name to introduce a new product
- classifications: line or category extension

brand extension classifications

- line extension
- category extension

line extension

using a sub-brand to target a new market segment within the same product category

category extension

using the parent brand in a different product category

successful extension examples

- JEEP: cars to strollers (safety, rugged, dependable, protectable)
- CATERPILLAR: equipment to boots (not related categories, but it just makes sense)

failed extension examples

- DR PHIL: health bars (no one take him serious, so why would ppl trust these bars)
- NESTLE: ice cream to condoms (it just doesn't make sense)

Brand Driven Model for Profitable Growth

Brand Relevance/Fit = market opportunities = organizational capabilities
- ven diagram

taxonomic categories and their structure

- prototypically: "red things"
- fit based on category relatedness

- list fruits: strawberries, kiwi, pear, apple

goal-derived categories

- fit based on specific association related to purchasing goals
- need something to "quench my thirst," "good for breakfast"

- list fruits that are good for cereal: blueberries

when do SUCCESSFUL EXTENSIONS occur

when the parent brand is seen as having favorable associations and there is a perception of fit between the parent brand and the extension product creating an inference of similar association to the extension.

issues with successful brand extension

1. how SALIENT are the associations of the parent brand in teh extension context or is there FIT between parent and extension?
2. how FAVORABLE are any inferred associations from the parent brand in the extension context?
3. How UNIQUE are these inferred associations relative to competition in the extension context?
4. are there any POTENTIONAL NEGATIVE aspects for parent brand?

brand:
- cheerios
- fruit loops

extensions:
- fruit loops can't make oatmeal or waffles
- fruit loops could make lollipops

advantages of extensions

- facilitate new product acceptance
- provide feedback benefits to parent brand

disadvantages of extensions

- confuse or frustrate costumers
- can encounter resistance
- can fail and hurt parent brand image
- cannibalizations of sales
- can dilute brand meaning
- can diminish identification with any one category

types of fit

- category
- specific association

Branding Architecture def

- the external 'face' or your business strategy; consumers know you through your brands and your brands support your business strategy
- establishes the optimal interrelationships of brands within a single company
- describes the role of each brand in the corporate portfolio and specifies the linkages between brands

Branding Architecture Overview

- critical bc it defines the conversation about brands to help cosumers understand the firm's products and services and organize them in their minds

important Brand Architecture strategic tools

- brand-product matrix
- brand hierarchy

key strategic issues (brand architecture)

- breadth of product mix
- depth of brands offered (brand portfolio)
- level of connection across company and brands
- leveraging of other brand associations

BA issue: breadth of product mix

- attractiveness of the product category
- are the categories attractive?

BA issue: depth of brands offered

- greater market coverage: different segments, channels
- con: higher costs

BA issue: level of connection across company & brands

- leveraging of company associations
- leveraging of other brand associations

Designing a Brand Portfolio

Basic Principles:
- maximize market coverage so that no potential customers are being ignored
- minimize brand overlap so that brands aren't competing among themselves to gain the same customer's approval

architecture solutions

- branded house
- house of brands
- hybrid

branded house

- google _____
- all sub-brands use the same master brand and only differentiate in their descriptions

house of brands

- P&G (Tide, Pampers, Folgers, etc)
- consist of various brands, each sub-brand operates independently and obtain separate market share and profits

hybrid

- Coca-Cola (Coke, sprite, min maid, etc.)
- combine the two types; this type enjoys the advantages of both, however it requires higher brand management standards and more resource inputs

Minute Maid Squeeze Play Case

- coca-cola created minute maid, competing with tropicana.
- so coke created simply orange