SBM_L6_-_Secondary_brand_associations_55f67d64f11a48ac030d06fce5b34f7f

Page 1: Learning Objectives

• Eight Main Ways to Leverage Secondary Associations

• Process of Leveraging Secondary Associations

• Key Tactical Issues in leveraging secondary associations from different entities.

Page 2: Introduction

• Building Brand Equity:

  • Brands can enhance their equity by leveraging related or secondary brand associations.

  • Brands can be linked to entities with established knowledge structures in consumers' minds.

  • Consumers may associate responses from these entities with the brand, effectively allowing the brand to "borrow" brand knowledge and equity.

• Secondary Brand Associations:

  • Can offer strong, favorable, and unique associations.

  • Help reinforce existing associations or fill gaps when brand responses are weak.

• Linking to Secondary Associations:

  • Companies (branding strategies)

  • Geographic areas (product origin)

  • Distribution channels (channel strategy)

  • Other brands (co-branding)

  • Characters (licensing)

  • Spokespersons (endorsements)

  • Events (sponsorship)

  • Third-party sources (awards or reviews)

Page 3: Conceptualizing the Leveraging Process

• Secondary Sources of Brand Knowledge:

  • Employees, Endorsers, Alliances, Ingredients, Companies, Other brands, Extensions, Country of origin.

  • Key categories include People, Places, Things, Events, Causes, Third-party endorsements, Online and offline channels.

Page 4: Creation of New Brand Associations

• Impact of New Product Evaluations:

  • Secondary associations are particularly effective when consumers lack motivation or ability for product evaluation.

• Effects on Existing Brand Knowledge:

  • Linking to other entities influences both new and existing brand associations through:

    1. Consumer awareness of the entity.

    2. Meaningfulness of the knowledge.

    3. Transferability of the knowledge.

Page 5: Understanding Transfer of Brand Knowledge

• Inference of Knowledge:

  • Consumers can infer various knowledge aspects from associated entities.

  • Certain entities facilitate stronger transfer of brand knowledge, impacting brand associations positively or negatively.

Page 6: Guidelines (1 of 2)

• Strategic Advantages of Leveraging Secondary Brand Associations:

  • Create/reinforce brand differentiation or points-of-parity.

• Commonality vs. Complementarity:

  • Commonality: Leverage congruent associations with another entity.

  • Complementarity: Utilize diverse associations that deviate from existing brand associations.

Page 7: Guidelines (2 of 2)

• Risks in Leveraging:

  • Loss of control over brand image, associated with external perceptions of linked entities.

  • Difficulty in managing transfer of relevant knowledge can complicate outcomes.

• Market Challenges:

  • Consumer awareness and associations influence effectiveness of leveraging.

Page 8: Company Associations

• Corporate/Family Brand Relations:

  • Brands may relate to existing corporate brands (e.g., Samsung) creating potential brand equity.

  • Options for new product branding:

    1. Create a new brand

    2. Modify an existing brand

    3. Combine existing with new brand.

• Country/Geographic Associations:

  • Geographic origin impacts consumer perceptions based on quality belief and image.

Page 9: Country of Origin Influence

• Establishing Associations:

  • Brands can highlight geographic link through packaging or advertising.

  • Importance of legal representation for country of origin on products.

  • Marketing considerations include consumer definitions and significance of geographic association.

Page 10: Co-Branding (1 of 2)

• Joint Product Marketing:

  • Advantages include leveraging expertise, reducing costs, and expanding brand reach.

• Challenges of Co-Branding:

  • Potential dilution of brand equity and loss of clarity.

Page 11: Ingredient Branding (1 of 2)

• Creating Brand Equity for Materials:

  • Ingredient brands signal quality and can become industry standards.

  • Reflects a strategy for differentiation and expanding sales.

• Four essential tasks for ingredient branding:

  1. Consumer perception of value.

  2. Distinction and superiority of the ingredient.

  3. Clear identification through logos.

  4. Effective marketing programs for awareness.

Page 12: Licensing (1 of 2)

• Contractual Arrangements:

  • Use of brands’ names, logos, and characters for marketing.

  • Risks include overexposure and confused consumer perceptions.

Page 13: Celebrity Endorsement (1 of 2)

• Using Well-Known Figures for Promotion:

  • Celebrities draw attention and shape brand perceptions.

  • Effective endorsers should have high visibility and credibility.

• Evaluation Guidelines:

  • Ensure product match and manage celebrity brands.

Page 14: Social Influencers as New Celebrities

• Growth of Social Media Influencers:

  • Micro-influencers often have a greater impact on purchasing behavior than traditional celebrities.

  • YouTube reviewers increasingly influence market learning.

• Cultural Events Impact:

  • Sponsorship can transfer event associations to brands, enhancing equity.

Page 15: Third-Party Sources

• Credibility of Sources:

  • Linking brands to third-party endorsements enhances credibility and marketability.