CHAPTER: 7 LEVERAGING SECONDARY BRAND ASSOCIATIONS TO BUILD BRAND EQUITY
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Learning Objectives
Outline the eight main ways to leverage secondary associations Explain the process by which a brand can leverage secondary associations Describe some of the key tactical issues in leveraging secondary associations from different entities
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Conceptualizing the Leveraging Process
Linking the brand to some other entity may:
Create
a new set of associations from the brand to the entity Affect the existing brand associations
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Creation of New Brand Associations
Secondary brand associations are most likely to affect evaluations of a new product when:
Consumers
lack either the motivation or the ability to judge product-related concerns
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Effects on Existing Brand Knowledge
Cognitive consistency - What is true for the new association must be true for the brand
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Figure 7.2- Understanding Transfer of Brand Knowledge
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Company
Existing brands can be related to a corporate or family brand A corporate or family brand can be a source of brand equity Leveraging a corporate brand may or may not be useful
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Country of Origin or Geographic Location
Can be linked to the brand to generate secondary associations Consumers choose brands originating in different countries based on:
Their
beliefs about the quality of certain types of products from certain countries The image that these brands or products communicate
Can create strong points-of-difference
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Channels of Distribution
Retail stores can indirectly affect brand equity through an image transfer process Retailers have their own brand images in consumers minds due to the following associations
Product Pricing
assortment
Credit
policy Quality of service
Customer base can be expanded by tapping into new channels of distribution
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Co-branding
When two or more existing brands are combined into a joint product or are marketed together in some fashion Example - Betty Crocker paired with Sunkist Growers to market a lemon chiffon cake mix
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Ingredient Branding
Creates brand equity for materials, components, or parts that are contained within other branded products Branded ingredients are often a signal of quality Uniformity and predictability of ingredient brands can reduce risks and reassure consumers
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Licensing
Creates contractual arrangements whereby firms can use:
Names,
logos, and characters of other brands to market their own brands for some fixed fee
Can also provide legal protection for trademarks Risk - A trademark may become overexposed if marketers adopt a saturation policy
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Corporate trademark licensing
Licensing of company names, logos, or brands for use on various, often unrelated products Firms may license corporate trademarks to:
Generate
extra revenue and profits Protect their trademarks Increase their brand exposure Enhance their image
Risk - Product may not live up-to the image established by the brand
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Celebrity Endorsement
Rationale
A
famous person can:
attention to a brand
Draw
Shape
brand perceptions, by virtue of consumers perceptions of the famous person
Celebrity endorsers should have:
A
high level of visibility A rich set of potentially useful associations, judgments, and feelings
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Sporting Cultural or Other Events
Have their own set of associations that may become linked to a sponsoring brand under certain conditions Contribute to brand equity by:
Becoming
associated to the brand and improving brand awareness Adding new associations Improving the strength, favorability, and uniqueness of existing associations
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Third Party Sources
Involves linking the brand to various third party sources Example - Grey Goose's eventual success was a taste-test result from the Beverage Testing Institute that ranked Grey Goose as the number-one imported vodka
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.
To Sum Up...
Other entities include:
The
company that makes the product Where the product is made Where the product is purchased Related people, places, or things
The extent to which an entity can be leveraged as a source of equity depends on:
Consumer
knowledge of the entity How easily the appropriate associations or responses to the entity transfer to the brand
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