1/83
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No study sessions yet.
What makes global brands so appealing to consumers?
Why preference for global brands?
• Have more ‘consistent’ quality and status.
Why preference for local brands?
• Suits local preferences and tastes.
• Often perceived as having lower quality
but better price (global brands tend to be
more expensive in developing markets).
What are some differences between Western markets and other cultures?
Global brands are often local ‘leaders’
• Quality and strong identity signals.
• Too ‘mainstream’ – not exotic or ‘authentic’
enough because of prevalence.
Sometimes there is a preference for ‘local’ products
• Local brands may be seen as ‘authentic’ and
reflect higher quality due to local
ingredients/associations.
What are 4 global brand consumer segments?
Global Citizens
Global Dreamers
Antiglobals
Global Agnostics
Global Citizens
Rely on a brand’s global success as
signal of quality and innovation. Concerned about
social responsibilities of large companies.
Global Dreamers
Admire global companies without
assessing their impact on society, the environment etc.
Antiglobals
Dislike brands that ‘preach’ “American”
values and don’t trust global companies
Global Agnostics
Make no assessment of the ‘global’
or ‘local elements of a brand. All types of brands are
evaluated equally
What is consumer ethnocentrism
strive to be ‘all local’ to
protect local interests and local preferences
Why does consumer ethnocentrism matter when evaluating global branding strategy?
Scale item examples (American perspective):
– “American people should always by American-made
products instead of imports”
– “Buy American products. Keep America working.”
– “A real American should always by American products”
– “It may cost me in the long run but I prefer to support
American products”
– “Purchasing foreign made products is un-American”
What is meant by glocalization?
Adapting products to meet local needs and
tastes
Why is glocalization important?
Global appeal
Examples of Glocalization
– Different ‘menu’ items (attributes).
– Different colors/numbers.
– Different brand name.
– Different scents.
What are the pros of using the same brand name across cultures?
– One consistent identity to
promote across cultures
– Marketing program
efficiencies
What are the cons of using the same brand name across cultures?
– Can be difficult to build long
lasting relationships with
consumers across cultures
(brand identity may not
resonate)
Brand portfolio
strategic and
organizational aspects of the management of a
brand and its affiliates – the collection of
brands owned and managed by a company
Brand architecture
an organizing structure of
the brand portfolio that specifies brand roles
and the nature of relationships between brands
in the brand portfolio.
Why do companies have brands portfolios?
1. Diversification - Reduces risk associated with
upward/downward brand extensions (ex. Toyota and
Lexus) and the product life cycle
2. Can target different segments with very different needs
(can leverage existing equity with line/brand extensions
for some consumers while creating new and exciting
brand for others)
What are the 3 main brand architectures?
-Branded Housse
-House of Brands
-Hybrid
Branded House
uses a single
master brand to span a set of offerings (i.e.,
reflecting a line/brand extension strategy)
EX: Virgin, Google, FedEx
House of Brands
involves an
independent set of stand-alone brands, each
maximizing the impact on a market.
– Often a very large brand portfolio/many product
lines
– “Independent” brands (no obvious link through
name)
EX: P&G
Hybrid
“Flagship”
• Some brands have a “branded house” architecture
that includes a flagship brand that carries its own
(strong) associations. The link between the flagship
brand and the other (independent) brands is not
always evident or marketed.
• Can build a brand portfolio that includes a strong
brand prototype while simultaneously serve other
segments with a diverse portfolio of brands.
“Endorsed By”
• Endorsed brands are still independent, but they
are also endorsed by another brand (usually
linked by part of the name or using “endorsed
by” as part of brand elements).
– An endorsement by an established brand
provides credibility and substance to the
offering and usually plays only a minor
management role.
EX: Marriott, Disney
What are the main advantages of Branded House architecture strategy?
– Enhances clarity, synergy, and leverage
associations/brand equity
– Brands more likely to become icons and cultural
symbols
– Can often leverage ‘heritage’ and expertise in
marketing programs
What are the main disadvantages of Branded House architecture strategy?
Puts “all eggs in one basket”
– The master brand may struggle to effectively serve
as an umbrella for a wide product line (no product
type takes on characteristics of the brand)
– It may be difficult to maintain a “cool image” or a
quality position with a large market share
Limits the firm's ability to target specific
groups; compromises must be made to make
all of the brands fit with the master brand.
What are the main advantages of House of Brands architecture strategy?
Allows firms to clearly position brands on
specific functional/value benefits and to
dominate many niche segments.
1. The brand connects directly to the niche
customer with a targeted value proposition.
2. No compromise to be made in the
positioning of a given brand to accommodate
its use in other product-market contexts.
What are the main disadvantages of House of Brands architecture strategy?
Increase costs of marketing and brand building
• Sacrifices the economies of scale and synergies
• Requires a complex brand management system
• Creates brand cannibalization
• Multiple brand identities can create perception
of ‘lack of sincerity’ or consistency in brand
meaning “message”
What are secondary brand associations?
brand
associations that are linked to other “entities”. For
example...
• Other brands (co-branding or related brand
portfolio)
• Spokesperson (celebrity or not)
• Country of origin
• Non-profit initiatives (CSR efforts linking
brand to another organization)
• Sponsorships
What are two different types of “transfers” that may occur as a consequence of secondary brand associations?
Response-type associations
Meaning-type associations
Response-type associations
Judgments (especially credibility)
• Feelings/attitudes (“I love that brand because
____ endorses it”)
Meaning-type associations
Product/service performance (“brand X is
endorsed by ___ and must therefore have
better quality)
• Imagery (“brand X is endorsed by ____ so it
must be “cool”)
Explain the brand transfer model for celebrity endorsements?
The Brand “Transfer” Model:
The Sports
“Celebrity”
Awareness
Attributes
Benefits
Images
Thoughts
Feelings
Attitudes
Experiences
Transfer The Brand
Awareness
Attributes
Benefits
Images
Thoughts
Feelings
Attitudes
Experiences
What are the three requirements for successful brand transfer according to the celebrity endorsement model?
The (target) consumer has to have awareness
and knowledge of the celebrity.
• Positive/favorable associations?
2. Transferability of the awareness and
knowledge.
• Is it possible to transfer the associations through
some marketing tool?
3. Such awareness and knowledge should be
relevant to the brand/product (brand “fit”)
• Will it enhance the brand?
What are some alternatives to traditional celebrity endorsements?
Create secondary associations by creating a
spokesperson based on a fictional character
What is co-branding?
Occurs when two or more
existing brands are combined
into a joint product/offer
and/or are marketed
together.
What are the requirements for successful co-branding?
There is a “fit” between each of the brands that can
be conveyed to customers through:
• A joint product/service offer or an
appealing “bundle”
• A convincing branding/marketing program:
• Advertising
• Logo, slogan, packaging
2. Both brands will benefit from the co-branding (i.e.,
leverage each others brand equity)
What are the advantages of co-branding?
Create a more compelling positioning
• Leverage partner brand equity
• Enter new markets, new product categories
• Reduce risk of new product launch
• Share cost of production and distribution
What are the disadvantages of co-branding?
Loss of control
• Risk of brand equity dilution
• Negative feedback effects
• Lack of brand focus and clarity
• Organizational distractions
What are points of differences and why it is important to consider for co-branding?
A problem with choosing PODs is that some
attributes tend to be perceived by consumers as
negatively correlated. Examples include:
• Low price vs. high quality
• Taste vs. low calories
• Nutritious vs. good tasting
• Powerful vs. safe
• Effective vs. mild
Why are athletes considered high risk than other celebrity endorsements?
Positive associations may depend on:
• Personal characteristics (and lack of
scandals).
• Good/Bad athletic performance (and
injuries).
• Press coverage and visibility.
• Fit between the sport and the brand.
What are Q scores?
identifies the familiarity of an athlete, brand,
celebrity, entertainment offering (e.g., TV show), or
licensed property, and measures the appeal of each
among people familiar with the entity being measured.
Give examples of tangible sponsorship assets.
logo placement on uniforms and merchandise, signage at venue, tickets and hospitality packages, product sampling opportunities, naming rights for facilities
Give examples of intangible sponsorship assets.
Brand association and image transfer, access to influencer networks, exclusivity in category, emotional connection with fans, community goodwill and CSR alignment
Give examples of reasons why sponsorships are effective and popular.
Cross-Media Integration
• Sponsorship can help companies integrate (consistent)
message across fragmented media options (TV, online,
mobile apps) - the tools work better together to shape
ONE consistent message
Sponsorship can help marketers deliver a unified
theme!
Targeting Effectiveness
• By linking a beloved player, team or event with a brand, the
company can more effectively reach its target audience
(assuming there is a good fit with the product).
• Increased Ad-avoidance
• Sponsorship allows the company to embed the brand into the
viewing experience (not just in traditional advertisements).
• Credibility
• 68.6% of Americans report that they have felt mislead by
advertising.
• Tend to view sponsorship more favorably (support of the
sport/event rather than manipulative messages).
What are the different types of customer-sponsorship fit?
Category
Target Customer
Consumption
Category
The brand offers products in the same category
as the sponsorship venue/event/sport.
• Nike sponsors sporting events because it sells sports
apparel/equipment
Target Customer
The brand’s target market overlaps with
the team/sport/player fan base
• Lexus sponsoring premium MLB seating areas
because affluent fans also buy premium cars
Consumption
The brand’s products are frequently
consumed as part a viewing experience related to the
sponsorship
• Budweiser sponsor NFL because people drink beer
when they watch football
What is sponsorship activation?
when a brand uses its
sponsorship of an event, team or individual to connect
with and create memorable, interactive experiences for its
target audience.
Give examples of activation through event based and interactive experiences.
1. Event based/interactive experiences – primarily
about activation
2. Communication/Promotions - both activate and
leverage the sponsorship.
Experiential activations: Engage your audience on a
deeper level by creating immersive experiences. For
example, you could set up interactive installations, utilize
virtual or augmented reality, create relaxing zones for
people to recharge, set up pop-up shops, and design
Instagram-worthy sets and photo booths
Product sampling/product displays: Involves featuring a
brand’s products directly within the event, such as
exclusive product samples for fans. The unforced, natural
incorporation of products into the sporting environment
makes the brand feel like a natural part of the experience.
• Provide seamless brand exposure
• Encourage audience engagement
• Create credibility through association
directly with the event/sport.
nteractive/social media/ “special access” content and
events: Involves creating “live” content and special access
to behind the providing exclusive access, creating unique
experiences, and generating engaging content that goes
beyond traditional advertising. Examples include offering
backstage passes to fans or influencers, live streams,
interviews, and interactive experiences that allow attendees
to see how things work and make them feel like insiders.
Games and contests: Tap into people's competitive spirit with games
and contests that are fun, challenging and rewarding. This is a great way
to get people actively involved with your brand and create a buzz around
your products and activation.
• Branded wearables: Give people something they can wear long after
the event is over. Some options include bracelets and wristbands,
badges, caps, t-shirts, masks and even wearable technology that’s both
functional and adds an extra cool factor.
• Logo Displays and Banners at the event: Most common and often
directly part of the sponsorship contract.
What are the benefits of sponsorship over traditional advertising?
Enhanced Brand Visibility
• Sponsorships allow brands to appear in high-profile contexts (e.g., sports
events, concerts, festivals). Traditional ads (TV, print, billboards) featuring
sponsorships gain attention through association with popular events or figures.
Credibility & Trust
• Being linked to respected organizations or events can boost consumer trust.
Example: A financial institution sponsoring the Olympics may be seen as stable
and reputable.
Emotional Connection
• Sponsorships tap into the passion people feel for sports, music, or causes.
Traditional ads can use this emotional resonance to deepen brand affinity.
Content Opportunities
• Sponsorships provide access to exclusive content (e.g., behind-the-scenes
footage, interviews) that can be used in traditional ads. This enriches
storytelling and makes ads more engaging.
What is the AIDA model (related to brand identity)
-Get Attention
-Hold Interest
-Arouse Desire
-Obtain Action
How does AIDA relate to brand identity?
SHOULD COMMUNICATE THE
IDENTITY OF THE BRAND
• This is who we are
• This is what we can do for
you
• This is what we stand for
What is word of mouth?
the passing of (product or experience
related) information from person to person through oral
(face-to-face) communication or through online channels.
Immediate Word of Mouth
when you pass on
details about an experience or share information soon
after it was acquired.
Ongoing word of mouth
when you continuously
share information for weeks or even months after you
acquired the information.
How can we encourage positive word-of-mouth?
STEPPS framework
STEPPS framework
Social Currency:
• People care about how they look to others.
They want to seem cool, smart and in the
know.
• Make them feel like insiders or give
them an opportunity to share
something “remarkable” that makes
them look cool.
• Ex. a secret “club” or bar that is
never advertised. Special access to a
“pit stop” event.
Triggers:
• Stay top of mind (and tip of tongue) through contextual
cues.
• Make sure your contextual cues are embedded in
consumers natural habitat.
• Ex. Cheerios for breakfast, Kit-Kat for break, build
on day of the week or other continuously
occurring theme.
Emotion:
• Emotions encourage sharing because it makes the
message resonate. Especially true for high arousal
emotions.
• Focus on feelings rather than function.
• Ex. Emotional advertising
Public:
• The more public something is, the more likely people are
to imitate it.
• Design products that advertise themselves or
creates some visible behavioral signals.
• Ex. Unique shoe design, Livestrong wristbands
Practical value:
• Useful information is more likely to get
shared.
• “How-to” videos and important
information in association with a
product.
Stories:
• Stories are vessels for word-of-mouth sharing.
• Build a story around your brand (maybe an
underdog story) that encourages people to share
your information in an exciting way.
Why do we need to assess sponsorships?
Ensure strategic alignment with broader goals of the
brand (e.g., building brand identity, appealing to a new
target market)
2. Maximize return on investment (e.g., identifying which
sponsorships drive the most engagement or sales)
3. Improve future decision-making (build a data-driven
approach to sponsorship strategy)
4. Justify budget allocation (secure future funding and
demonstrate accountability)
5. Strengthen relationships with sponsored party
(provide feedback and negotiate better terms)
Consumer Outcomes
Awareness
• Recall
• Engagement
• Sentiments/attitudes
• Loyalty
• Purchase intentions
• Net promoter score
Organizational Outcomes
Media value of exposure
• Sales
• Engagement (yes, again)
• Event participation
• Lead generation (B2B)
• Stakeholder feedback
• Media mentions
• Share of Voice
• Content creation
How can we assess engagement in social media and on-site?
Social media/website:
• Likes, shares, comments,
retweets, Hashtag usage
(e.g., #BrandXFestival).
• Mentions and tags of
your brand or campaign.
• Time on site and pages
per session.
• Downloads or sign-ups
from event-specific
landing pages.
On-Site or Event:
• Booth visits, contest
entries, product trials.
• Use of posted QR codes
at the event (and sign-ups
or browsing time from
codes).
• Time spent at your
activation area.
• Lead capture forms filled
out.
What is the net promoter score and how is it calculated?
“How likely are you to recommend our
brand/product/service to a friend or
colleague?”
Respondents answer on a scale from 0 to
10, and are categorized as:
• Promoters (9–10): Loyal enthusiasts
who will keep buying and refer others.
• Passives (7–8): Satisfied but
unenthusiastic customers.
• Detractors (0–6): Unhappy customers
who may damage your brand through
negative word-of-mouth.
How to Calculate NPS
The formula:
NPS= % Promoters − % Detractors
Example:
60% promoters
25% passive
15% detractors
NPS = 60-15=45
(compare pre and post sponsorship
NPS)
What is the “media value of exposure”?
The traditional way to estimate
the effectiveness of sponsorship exposure (as compared
to traditional advertising).
How is media value of exposure calculated?
Per “game” broadcasting measure (or tournament, race):
1. Examine how much it costs to use traditional
advertising during the game (for a specific number
of seconds).
2. Examine for how many seconds your logo was
visible during the broadcast.
3. Calculate the media value of the sponsorship deal
What are the pros of the “media value of exposure” assessment metric?
1. Easy to calculate!
2. Provides and opportunity to directly compare
sponsorship with traditional promotion tools
(advertising)
What are the cons of the “media value of exposure” assessment metric?
1. Advertising is about a lot more than just the visibility of
logo!
2. Exposure does not necessarily mean effectiveness in
terms of actually reaching the customer!
Media Mentions
Track how the brand/sponsorship is
mentioned in news articles, TV/radio segments, blogs and
online publications:
• Example: Your brand is mentioned in 45 articles following a
sponsored charity run, with 12 of those in top-tier outlets like USA
Today or Forbes.
Share of Voice
Measure your brand’s visibility
compared to competitors in the same media space.
• SOV % = Your brands mentions/total mentions in the
category
• Example: Your brand accounts for 30% of all sponsorship-related
media mentions in your industry during a major event.
Why are the three main reasons consumers buy traditional luxury brands?
Rational/functional attributes
– Design value and higher quality.
2. Relational/identity attributes
– Signal status and connection with
aspirational groups.
3. Emotional attributes
– More enjoyment from consumption
(more pleasurable to use).
– Memorable consumption and
purchase experiences.
How is materialism stigmatized?
Research indicates that materialistic consumers
(especially those that like luxury) are perceived as
being:
• Selfish and narcissistic.
• Immoral and inauthentic.
• Unattractive relationship partners.
Deceptive counterfeit consumption
When consumers are aware that they are
purchasing a counterfeit brand.
Non-deceptive counterfeit consumption
When consumers are not aware that the
brand is a counterfeit (so deceptive sales but non-
deceptive consumer usage motives).
Why do consumers knowingly buy counterfeits?
Seen as more affordable than the ‘real’ version
• Buying situations may favor counterfeit purchases:
– Vacations and thrill-seeking “backstreet” purchases.
• Social influence
– “Purse-parties” where sellers are “friends of friends”.
• May believe that counterfeits is not criminal or
morally wrong (justifications):
– Purchasing counterfeits is not illegal in the U.S.
(counterfeiting is considered different from ‘piracy’)
– However, selling counterfeits is illegal!
What are some examples of “moral considerations” that consumers consider when deciding to purchase (or not purchase) counterfeits?
Consumers are more likely to buy counterfeits in
status categories and for conspicuous products
– 99% of consumers think buying counterfeits is morally
wrong
– Moral concerns are often related to:
• Conditions of the producers of counterfeits (sweatshop
labor) and being deceptive to close others (pretending to
own the real thing)
The strongest deterrent of buying counterfeits is product safety (it is
estimated that up to 15% of all medicines are counterfeited; alcohol is
another frequently counterfeited product category).
What can brands do to combat counterfeits?
Have a counterfeit “hotline” to encourage consumers
to report counterfeit sellers (create “vigilante”
customers).
2. Lobbying to support stricter regulations and
punishment (including laws prohibiting counterfeit
purchases).
3. Make logos more inconspicuous (less likely to be
counterfeited).
4. Create “authenticity” labels that cannot be replicated
(or are to costly to replicate).
Why do we need to measure brand performance?
Marketing departments are finding themselves
under increasing pressure to justify their
spending, prove the effects of their marketing
campaigns, and demonstrate program success...
or risk losing their budgets.
Accountability: We are expected to show
return on marketing investments (including
our brand building efforts)
What are the “pillars” of brand equity?
Assets
Strength
Value
Assets
• Awareness
• Reputation
• Personality
• Values
• Imagery
• Preferences/
attachments
• Patents and
Trademarks
Strength
• Market share
• Market
leadership
• Growth rate
• Loyalty rate
• Price
premium
• Market
penetration
rate*
Value
• Net
discounted
cash flow
attributable
to the brand
(after capital
invested to
produce and run
the business and
the cost of
marketing)
What is goodwill?
the difference between the price paid
and the book value of the company. Aligns the tangible assets with
intangible assets
What influences goodwill?
• Consumer loyalty, awareness, brand image and
“coolness”.
• Growth potential (the brand’s future).
• Brand synergy (acquisition of a well-known brand
can influence other brands in the brand portfolio).
• Brand-related resources (creative products and
brand elements) and human resources.
• Media connections (leveraging existing connections).
What are the six main outcomes we need to measure to capture brand performance?
Brand awareness: Recall and/or recognition?
Q: Which product category (what type of product)
does these brands currently serve? (Brand
recognition)
Q: When you think of cereal, which brands come to
your mind? (Brand recall)
Brand Attitudes (favorability)
• How much do you like brand X? (scale)
• Bipolar: “Positive – Negative”
3. Brand Attachment and Brand Love
• Connection (to self or others)
• Passion for the brand (likelihood of
advocating for the brand and/or join a brand
community)
• “I love brand X” (agree-disagree)
4. Brand Separation Distress:
• How upset would you be if Brand X was
discontinued?
5. Purchase Intentions:
• How likely are you to purchase brand X
during the next week/3 months/6 months?
6. Brand Loyalty
• When you buy _____how often do you buy
brand X?
• Would you buy another brand if the price of
brand X was increased to ____?
• Do you buy a different brand if there is a
sale?
• “I am loyal to brand X” (agree-disagree)
What is a brand tracking study?
involve information collected
from consumers on a routine basis over time
– Often done on a “continuous” basis
– Provide descriptive and diagnostic information
– Often done by (or with help from) consulting firms
What is the role of “field experiments” when tracking brands over time?
To see if there is a difference or increase in brand awareness, brand attitudes, brand image and traits