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Lecture notes, based on all lectures and corresponding dot


points within the textbook

Brand Management (Macquarie University)

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MKTG 311 FINAL EXAM NOTES


4 mid-length, long answer questions Marking criteria:
Some part questions- a and b parts Define key terms
10 marks per question = 40 marks Explain relevant brand management theory
40% of final grade Apply theory to answer the question

Time allocation: 30 mins per question Structure: All answers to be written in essay, extended
Answers: 2-2.5 pages paragraph style
Introduction/Body/Conclusion
Topics:
BUILDING
Ch 1 Brands and brand management
Ch 2-3 CBBE, brand positioning and brand resonance
Ch 7 Secondary brand associations

MEASURING
Ch 8 Brand measurement and management
Ch 9 Qualitative and quantitative brand research

MANAGING
Ch 11 Brand architecture
Ch 12 Brand extensions
Ch 13 Managing brands over time
Ch 14 Managing brands over geographies and market segments

Ch 1: Brands and Brand Management


- Brands are now much more linked to the social Sophisticated brand managers:
world - Understand marketing imperatives and the
- Changing market conditions economics underpinning a brand
- Potential for brand trouble - Know something of the history, the societies and
- Strategic thought needed cultures that surround their brands
- Possess communication and critical thinking skills

1. Define brand, state how brand differs from a product and explain what brand equity is
Brand: A name, term, design, symbol, or any other feature that identifies one sellers good or service as distinct from those of
other sellers and to differentiate them from those of competition (American Marketing Association, 2011 definition)

- Resides in consumers minds


- Provides a label and meaning to a product (what it stands for, what to expect, what levels of risk to expect from that
particular product)
- Optimal role in consumer choice situations: Affects purchase decision making process

Brand elements: Different components of a brand that identify and differentiate it from its competition e.g. name, logo, symbol,
package design

How do brands differ from products?


Product: Anything we can offer to a market for attention, acquisition, use or consumption that might satisfy a need or want i.e.
can be a physical good, service, a retail outlet

5 levels of meaning for a product (using example of coffee)


Core benefit: Fundamental need or want that consumers satisfy by consuming the product or service e.g. refreshment

Generic product: Basic version of the product containing only those attributes or characteristics absolutely necessary for its
functioning but with no distinguishing features. This is basically a stripped-down, no-frills version of the product that adequately
performs the product function e.g. requires a cup of different sorts, water, coffee (granules, filtered)

Expected product: Set of attributes or characteristics that buyers normally expect and agree to when they purchase a product e.g.
cup, liquid, coffee, service, good atmosphere

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Augmented product: Additional product attributes, benefits or related services that distinguish the product from competitors e.g.
soy milk and other variants that can be added to the coffee

Potential product: All the augmentations and transformations that a product might ultimately undergo in the future e.g.
environmentally friendly coffee cup

- A brand is more than a product because it has dimensions that differentiate it from other products meant to satisfy the
same need. These differences may be rational and tangible- related to product performance of the brand, levels of
expectation from the brand- or more symbolic, emotional and intangible- related to what the brand represents, meanings
of the brand in society and consumers emotional connections to brands.
BUT
- Many practitioners refer to a brand as creating certain levels of awareness, reputation and prominence in the marketplace
- Brands add other dimensions that differentiate them in some way from other products/services designed to satisfy the
same need

EXAMPLES- Branded products like a physical good- Kelloggs Corn Flakes cereal, Prince tennis racquets, service- Virgin
Airlines, store like The Body Shop, person like George Clooney

Brand equity: A set of brand assets and liability linked to a brand, its name, and symbol that add to or subtract from the value
provided by a product or service to a firm and/or to that firms customers

Equity: A brands set of assets (and liabilities) -> Company/customer value of brand name and symbol of a product

Understanding brand equity


- It stresses the importance of the brands role in marketing strategies
- Provides a common denominator to interpret marketing strategies and assess the value of a brand
- POINT TO NOTE: No common viewpoint on how it should be conceptualized and measured

Brand equity: Operational measures


- Associations, market behaviour, loyalty and awareness

Kellers Customer-Based Brand Equity (CBBE) model


- Differential effect
- Customer brand knowledge
- Customer responses to brand marketing

- Positive CBBE when consumers react positively/negatively to an element of the marketing mix for the brand than for the
same mix for an unnamed version of the product or service
- Brand knowledge is seen as an associative network memory model of brand awareness and brand image (a set of
associations)
- CBBE occurs when a consumer is familiar with the brand and holds favourable, strong and unique brand associations in
memory

Keller: Brands exist in the customers minds and must be looked at their perspective, mental node, psychological construct; brand
equity revolves around brand knowledge base don responses based on numerous marketing stimuli

2. Summarise why brands are important


For buyers, brands can: EXAMPLE: V energy drinks, TIPTOP bread
- Reduce search costs: Helps reduce time spent searching what a suite of brand and product categories are about, also
cognitive search time
- Reduce perceived risk
- Provide psychological and social reward: Important with purchases with social implications- cognitive dissonance,
brands help reduce that internal tension whether we made the right decision
- Act as identity symbols- Broadly tells us who we are in a consumer oriented culture, what values we have, what identity
categories we associate through, our lifestyle and announces that to others
- Signals quality- Particularly when there is an high involvement purchase situation at stake

Brands and risk reduction (using example of a car)


- Functional risk: The product does not perform up to expectations. How the product performs Does it do what it is
expected to do
- Physical risk: The products poses a threat to the physical well-being or health of the user or others. Risk of harm
- Financial risk: The product is not worth the price paid. No one wants to find out they have been sold a lemon
- Social risk: The product results in embarrassment from others.
- Psychological risk: The product affects the mental well-being of the user.
- Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product.

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For sellers, brands help:


- Stimulate repeat purchase: Good experiences with the brand
- New product introduction: Philadelphia and Cadbury mix spread into Australian market initially wasnt very
successful and consumers were confused as to what it was, product use was not clearly communicated to target audiences
when product was launched, a clear idea of what the brand is what it stands for and what it does is very important
- Promotional effectiveness: Rationalize brand across marketing efforts, brand extension and sub-brands, categorize
through product categories- blocks of chocolate, chocolate bars, bite size, boxed chocolates, biscuits
- Pricing decisions
- Market segment efforts
- Brand loyalty
- Competitive advantage

Brand names give market power and presence; organisations can differentiate themselves as economies grow

Strategy and brand management


POINT TO NOTE: Operational effectiveness (micro level, day to day tactics) and strategy are not the same thing- Porter 1996

Strategic brand management: Involves the design and implementation of marketing programs and activities to build, measuring
and interpreting brand performance and growing and managing brand equity.

Understanding strategy
- Careful evaluation, systematic understanding of market and competitive environment- know your competitors (SWOT analysis
and competitor analysis), external environment- political, cultural, economic and technological in order to identify branding
opportunities

Branding strategy: Marketing action within a dynamic environment. It begins with a market opportunity and capitalizes on that
opportunity through careful use of resources (brand assets and capabilities)

3. Explain how branding applies to virtually everything


Applies to physical goods, services, retail stores, online businesses, people, organisations, places and ideas

Why strategic brand management?


- Branding migrates from a specific function to a business philosophy
- Focus away from tactics to yield long term profit and shareholder value
- Research shows greater yields come from creation of value to customers
- Customer requirements, competitive positioning, implementation

Brand management: The basics


- Focus on the customer
- Compete in markets where a competitive advantage can be established
- Customers do not buy products- They buy potential solutions to satisfy needs and wants
- Markets are heterogeneous
- Markets and customers are constantly changing

Strategic brand management in a firm (using News Corp business units)


- Corporate brand management: Vision (News Corp)
- Product group- marketing management (News UK)
- Product- brand management (The Time, The Sunday Times)

4. Describe the main branding challenges and opportunities


- Savvy customers: Consumers being more experienced with marketing, more knowledgeable about how it works and
more demanding. Challenge in todays marketing environment is the vast number of sources of information consumers
may consult, more difficult to persuade with traditional communications
- Economic downturns: Affecting the choices consumers make when purchasing, research showing people buying lower-
priced brands and switching to less expensive products
- Brand proliferation: Spurred by the rise in line and brand extensions, brands names may now be identified with a
number of different products with varying degrees of similarity e.g. brands like Coke and Nivea have added a host of
new products under their umbrella brands
- Media transformation: Erosion/fragmentation of traditional advertising media and the emergence of non-traditional
media, promotion and other communication alternatives- spending more on new and emerging forms of communication
such as interactive digital media, in-store and event sponsorship and in-store advertising

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- Increased competition: Demand- consumption for many products has flattened and marketers have to achieve sales
growth by taking away competitors market share. Supply- new competitors emerging due to globalisation, low-priced
competition, brand extensions and deregulation
- Increased costs: Of introducing a new product or supporting an existing product, difficult to match the investment and
level of support that brands have received in previous years
- Greater accountability: Marketers find themselves responsible for meeting ambitious short-term profit targets because
of financial market pressures and senior management imperatives, dilemma of having to make decisions with short-term
benefits but long-term costs such as cutting advertising expenditures

Price wars: Tigerair- macro level challenge brands face today, increasingly being commoditized, brand meanings being eroded
Market fragmentation: Different types of milk- soy, almond, goats, lactose free, different percentages of fact- increased
competition in product category
Complex brand strategies: MQ- research house, as a teaching institution, different stakeholders, need to manage different
branding functions for different audiences, different funding and strategies, there can be mixed messages
Brand complacency: Qantas, banks
Shift in resources: BP- Oil spill in the gulf of Mexico in 2011 drained the firms resources, Malaysian Airlines- How much it is
spending in comforting affected families, search and rescue mission -> causes huge strain on resources, quick shifts
Short-term pressures: Pressures on chief marketing officers to hit performance criteria, 3-5 years contract to establish brand
mission for the long term?

5. Identify the steps in the strategic brand management process


1. Identifying and developing brand plans
- Brand positioning model
- Brand resonance model
- Brand value chain

2. Designing and implementing brand marketing programs


- Choosing brand elements (Ch 4)
- Integrating the brand into marketing activities and the supporting marketing program (Ch 5)
- Leveraging secondary associations (Ch 7)

3. Measuring and interpreting brand performance


- Brand equity measurement system (Ch 8)
- Brand audits
- Designing brand tracking studies
- Establishing a brand equity management system

4. Managing, growing and sustaining brand equity


- Defining brand architecture (Ch 12)
- Managing brand equity over time (Ch 13)
- Managing brand equity over geographic boundaries, cultures and market segments (Ch 14)

Ch 2: Customer- Based Brand Equity and Brand Positioning

1. Define customer-based brand equity

Customer-based brand equity: Differential effect of customer brand knowledge on consumer responses to brand marketing

KELLERS CBBE MODEL: Power of a brand lies in what resides in the minds and hearts of customers
Challenge in building a strong brand is ensuring that customers have the right type of experiences with products and services and
their accompanying marketing programs so that the desired thoughts, feelings, images, beliefs, perceptions, opinions and
experiences become linked to the brand

Brand knowledge: Consumers knowledge about the brand


Two components of brand knowledge: Brand awareness- Brand recognition and brand recall
Brand image- Brand associations (strong, favourable, unique)

Brand knowledge is the key to brand equity


- Consists of a mental structure in memory with associations
- Two components: Brand awareness and brand image

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E.g. Samsung III ad in 2012 served to position the model as being more sophisticated and cool as opposed to the iPhone and tried
to portray these users as being outdated, does it subtly and uses brand knowledge of brand awareness and brand image to
deconstruct what is going on in the ad

2. Outline the sources and outcomes of customer based equity


Sources of brand equity
BRAND AWARENESS
- Learning advantages: Registers the brand in consumers minds and learning-Aids in consumers learning about the
brand, defining the category and its competitive set
- Consideration advantages: Likelihood the brand will be a member of the consideration set- Strives to be a top of mind
brand in a consumers consideration set
- Choice advantages: Affects choices among brands in the consideration set- Important for high involvement products
with higher risk, brands with larger brand awareness does better when consumers are unsure in the decision making
process

Creating brand awareness


Brand recognition: Increasing the familiarity of the brand through repeated exposure

E.g. Advertisements involving Gok Wan Oh my GOK as a Target ambassador was seen on bus sites, TV, newspapers,
magazines for 6 weeks where research showed that consumers had high levels of recognition that Gok was apart of the Target
team but a feeling of overkill started to arise but it was successful in achieving its objective of raising the profile of Gok Wan
from an unknown identity to being associated as a Target ambassador through repeated exposure -> fairly high levels of
awareness in this case

Brand recall: Forging strong associations with the appropriate product category or other relevant purchase or consumption cues

E.g. McDonalds Australia- Big Mac Chant Challenge. 1987- Say it in 4 seconds to win a free Coke. 2012- Upload the mac chant
in a your own creative way to be voted on. Recycled brand strategies over time, to establish the Big Mac brand back into the
public consciousness, back into consumers considered set through rhythm

Three types of recall: Aided- prompted with ads or questions, unaided, first mention

BRAND IMAGE
Creating a positive brand image
Brand associations can be either attributes (function- how well the product performs, features, price) or benefits
(hedonic/experiential, psychological, social)
Link associations to brand in memory- strength (strong/weak), favourability (positivity/negativity), unique (how differentiated
they are from competitors)
- Source of brand associations does not matter, does not have to marketer created- can be from family and friends, movies aka
Cast Away and FedEx

Summary
Brand Equity arises from two major sources brand awareness and brand knowledge.
Customers, usually have a set of associations with a brand of what it means and what it delivers.
These associations help to establish a connection between the customer and the brand, and could include product
attributes, brand personality, symbols, organisational associations, etc.
Brand loyalty also affects the value of a brand, but it is more of a measure of brand equity than being a part of it.
So, building of brand equity could be considered to be a two-fold process 1. to develop brand awareness in the target
market and 2. to develop a strong, favourable and unique position in the minds of the customer.

Outcomes of brand equity


Improved perceptions of product performance e.g. Diamond Shreddies changed the orientation of the shape of the
biscuit and people thought it tastes better (boring to exciting)
Greater customer loyalty
Lower vulnerability to competition e.g. Helgas bread- Positions itself at the upper end of the market, by doing so it is
able to stave off lower end competition when supermarket giants are involved in a bread and milk price war
Lower vulnerability to marketing crises e.g. Philip Morris (tobacco company) owned up to 80% share in Kraft Foods,
by separating out their brand portfolios and reinforcing Krafts equity around food and health, they were able to separate
off any potential controversy from the links of ownership through the tobacco company
Higher margins e.g. Weetbix High fibre cereal- A high of equity within its market means its able to charge a price
premium over and above its competitors
More inelastic response to price increases
More elastic response to price decreases
Greater trade cooperation e.g. Samsung Galaxy IV- It enjoys a high level of favourability with its target audience
demand for the product, that means trade distribution channels are more favourable to stock the item

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Increased marketing communication effectiveness


Possible licencing opportunities
Brand extension opportunities e.g. Snickers from chocolate bars to ice-cream bars, Special K breakfast cereals to low
fat cracker chips

3. Identify the four components of brand positioning


Brand positioning: Act of designing the companys offer and image so that it occupies a distinct and valued place in the target
customers minds compared to its competition
- Central to marketing strategy

E.g. Converse All Stars, national cola brand in China, monarchy on government website with picture of the queen, Singapore
Airlines- worldwide reputation for service excellence through representation of its Singapore girls (flight attendants), built largely
on customer/flight attendant relations

The 4 brand positioning requirements


- Target market (Who is the target consumer?)

Market: Set of actual and potential buyers who have sufficient interest in, income for, and access to a product

Market segmentation: Divides the market into distinct groups of homogenous consumers who have similar needs and consumer
behaviour and who thus require similar marketing mixes > CREATES TARGET MARKET

Market segmentation requires making trade-offs between costs (of segmenting, cost of potential sales) and benefits (refine the
profile of the segment)

Segmentation bases: Behavioural, demographic, psychographic, geographic

Criteria for effective segmentation and targeting:


Identifiability- Can we easily identify the segment? Distinct group that is readily distinguishable
Size- Is there adequate sales potential in the segment, is it profitable for the brand to target? OVERRIDING CONCERN
Accessibility- Are specialised distribution outlets and communication media available to reach the segment, can it be reached via
various marketing channels?
Responsiveness- Willingness of the audience to respond to tailored marketing communication efforts

E.g. Justin Bieber- Pop, Artic Monkeys- Indie Rock group from the UK
Market explicitly on brand management principles

- Nature of competition (Who are the main competitors?)

Levels of competition (using Pepsi Max as example)


Product from competition: Diet colas e.g. Diet Coke, Coke Zero
Product category competition: Soft drinks e.g. Regular Coke and Pepsi, Regular and diet lemonade, fruit flavoured colas,
Generic competition: Beverages e.g. Beer, juices, coffee, tea, wine, bottled water
Budget competition: Food and entertainment e.g. Ice cream, fast food, baseball cards, video games

Determining product-competition structure


Generic product class > Product category > Product type > Variant A > Brands
E.g. Personal hygiene > toothpaste > fluoride toothpaste > normal, childrens, sensitive, whitening, tartar control > Sensodyne,
Colgate, Oral B

A brands competition can exist and be a couple of generations removed from its immediate competition
Competitive situation: Take home points
- Competition is usually at the (hedonic) benefit level than at the product attribute level
- Brand can share more abstract associations with other brands- Brands like Coca Cola and Pepsi can share very generic,
abstract associations (fun, happiness)
- Narrow definition may lead to failure to consider threats and opportunities- E.g. Pepsi Maxs competition is not just
Coke Zero
- Multiple frames of reference are better- To base product associations, instead of defining the brand according to a
singular base, multiple bases are better so that different consumers in a target market can experience the brand e.g. With
the arrival of Swedish fashion brand, H&M to Australia, it has put pressure on major department store Myer who has
failed to effectively position itself to more than one type of consumer and follow the lead of its competition such as
David Jones which is more upmarket or being innovative like Target which has repositioned itself to be of a higher class

COMPETITIVE FRAMES OF REFERENCE

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- Points of Parity (How is the brand similar to these competitors?)


Attributes that are not necessarily unique to the brand but may in fact be shared with other brands
E.g. Pauls Smarter White Milk (mid 2000s television commercial)
Category Points of Parity- Represent necessary- but not necessarily sufficient- conditions for brand choice, expected
product attributes e.g. White milk, bank- offers a range of checking and saving plans, ATMs, provides safety deposit
boxes, has convenient hours
Competitive Points of Parity- Associations designed to negate competitors points of difference e.g. Reduced fat white
milk
Correlational Points of Parity- Potentially negative associations that arise from the existence of other, more positive
associations for the brand e.g. Jetstar- low prices but can it be a high quality service experience? If a brand is good on
one dimension, it cant be on another, e.g. Low fat but tastes like full cream milk

- Points of Difference (How is the brand different from these competitors?)


Attributes or differences that consumers strongly associate with a brand, positively evaluate and believe that they could not find to
the same extent with a competitive brand
Performance benefits and proof points- Functional points, product attributes E.g. Mercedes Benz positioning through
technical capabilities Engineered like no other car in the world
Image associations- E.g. Jetstar print advertisement Bail, Exciting new destinations! Amazing prices! Holiday,
jumping for joy idea

POPS are important because they undermine PODs, unless certain POPs can be achieved to overcome potential weaknesses,
PODs may not even matter. To achieve a POP on a particular attribute or benefit, a sufficient number of consumers must believe
that the brand is good enough on that dimension- there is a range of tolerance and acceptance with POPs. Key to positioning is
not so much achieving a POD as achieving necessary, competitive and correlational POPs

4. Describe the guidelines in developing a good brand positioning

- Defining and communicating the competitive frame of reference


Communicate category benefits: Presented to note that the brand possesses them as a means to establish category POPs

- Choosing points of difference and establishing points of parity AND points of difference
Desirability: Needs to be personally relevant and important to consumers e.g. Nudies pure, natural fruit juices have ridden the
wave of the natural foods movement to find success in an increasingly health-minded beverage market
Deliverability: Depends on:
- Feasibility: Firms ability to actually make the product or service e.g. by pointing to a unique attribute of the product as
a proof point, Chanel No.5 may claim to be the quintessential elegant French perfume and support this claim by noting
the long association between Chanel and haute couture
- Communicability: Effectiveness in convincing customers of their ability to do so
Differentiation: Must be found distinctive and superior. Is the positioning preemptive, defensible, difficult to attack, can
it be reinforced and strengthened over time?

If these 3 criteria are satisfied, the brand association should have sufficient strength, favourability and uniqueness to be an
effective POD

Establishing POPs and POD


Separate the attributes: E.g. Launch two different marketing campaigns, each devoted to a different brand attribute or benefit-
Heads and Shoulders had a successful dual campaign in which one ad emphasized its dandruff removal efficacy while another ad
emphasizes the appearance and beauty of hair after its use
Leverage equity of another entity: Linking a brand with an entity that possesses the right kind of equity e.g. SK-II leverages the
equity of well-known and respected celebrities such as Cate Blanchett to lend credibility to its differentiation: an ability to clarify
skin

5. Explain brand mantra and how it should be developed


Brand mantra: Articulation of the heart and soul of the brand, short 3-5 word phrase that captures the irrefutable essence or
spirit of the brand positioning aka brand essence, core brand promise- e.g. Nike Authentic Athletic Performance
- Helps the brand present a consistent image, must economically communicate what he brand is and what it is not
Emotional modifier: How exactly does the brand provide benefits and in what ways?
Descriptive modifier: Clarifies its nature, creates brand boundaries with brand function e.g. Nikes performance is not any kind
(artistic for instance) but only athletic
Brand function: Describes the nature of the product or service or the type of experiences and benefits the brand provides

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Ch 3: Brand Resonance and the Brand Value Chain


1. Define brand resonance

Brand resonance: Creation of intense, active loyalty relationships with customers

2. Describe the steps in building brand resonance


Brand positioning > Brand resonance
E.g. Apple, Singapore Airlines

The shift occurs through brand building:


1. Ensure identification of the brand with customers and an association of the brand in customers minds (BRAND
IDENTITY)
2. Establish the totality of brand meaning in the minds of consumers (BRAND MEANING)
3. Elicit the proper customer responses to the brand identification and brand meaning (BRAND RESPONSES)
4. Convert brand response to create an intense, active loyalty relationship between customers and the brand (BRAND
RELATIONSHIPS)

CBBE pyramid and sub-dimensions

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Example: The Body Shop


Resonance: Describes the nature of the brand relationship with customers and to what extent to which they feel that they
are in sync with the brand- characterised in terms of intensity (depth of the psychological bond that customers have
with the brand) and the level of activity engendered by this loyalty (repeat purchase rates, to what extent they seek out
brand information, events and other loyal customers)
Social action program- Requiring each franchisee to run a local community program
Public relations programs and activities

Judgment: Customers personal opinions and evaluations of the brand base don different brand performance and image
associations and Feeling: Customers emotional responses and reactions to the brand
Judgement: Staff encouraged to be enthusiastic and informative concerning environmental issue
Feeling: Social approval, environmentally friendly

- Performance: How well the product meets customers more functional needs- product reliability, durability,
serviceability, price, style, design, effectiveness and Imagery: Ways in which the brand attempts to must customers
psychological or social needs, intangible aspects of the brand- user profiles, purchase and usage situations, personality
and values, history, heritage and experiences
Performance: Personal care and environmental concern through products
Imagery: Merchandising

- Salience: Measures various aspects of the awareness of the brand and how easily and often the brand is evoked under
various situations. Is the brand a top of mind brand and easily recognised, recalled? What types of cues or reminders are
necessary? How pervasive is this brand awareness?
A global brand image

3. Define the brand value chain

Brand value chain: Structured approach to assessing the sources and outcomes of brand equity and the manner by which
marketing activities create brand value

Sources of brand equity arise form the customer mindset. Measuring sources of brand equity requires a full understanding by
brand managers of how customers shop for and use products and services and most importantly, what customers know, think and
feel about various brands

In particular, measuring sources of CBBE requires measuring various aspects of brand awareness and brand image that lead to the
customer response that creates brand equity

Brand positioning > Brand resonance (brand attachment) > Brand value chain

4. Identify the stages in the brand value chain

Brand value chain

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POINTS TO NOTE:
- Recognises that many different people within an organisations can affect brand equity and need to be aware of relevant
branding effects
- The value chain exists from a simple marketing program level to shareholder value level
- Understand that the brand function from a brand management perspective works into something bigger towards a firms
value chain i.e. through shareholder value, market performance (higher order concerns beyond the brand management
function) There is something broader than the BM function and its sits within other higher order priorities

Ch 4: Choosing Brand Elements to Build Brand Equity


1. Identify the different types of brand elements
Brand elements: Trademarkable devices that serve to identify and differentiate the brand

Different types of brand elements:


- Brand names with or without symbols e.g. - Spokespeople e.g. Victoria Secret models
Country Road, Omega - Slogans e.g. Subway- Eat fresh
- URLs - Jingles
- Logos - Packages e.g. Tiffany distinctive robin egg blue
- Symbols coloured boxes
- Characters e.g. M and M characters - Signage e.g. McDonalds golden arches

Customer-based brand equity and brand elements


Brand knowledge structures depend on:
- The initial choice of the brand elements: Impacts on the first interpretations as it gives the initial ideas and associations to
the target audience
- The supporting marketing program and the manner in which the brand element is integrated i.e. marketing channels such
as advertising and social media has particular associations with it and in a sense defines the brand
- Test of CBBE: If consumers knew only a particular brand element and nothing else about it or its marketing- How
extendable are the brands?

2. List the general criteria for choosing brand elements

Criteria for choosing brand elements


Marketers offensive strategy to build brand equity
1. Memorability
Brand elements should be inherently be memorable and attention-getting and therefore facilitate recognition and recall
- Easily recognised
- Easily recalled
E.g. Silhouette of Apple character with distinct white earphones as part of the Apple advertisements

2. Meaningfulness
Brand elements may take on all kinds of meaning, with either descriptive or persuasive content
Two important criteria:
- General information about the nature of the product category
- Specific information about particular attributes and benefits of the brand

The first dimension is an important determinant of brand awareness and salience; the second of brand image and positioning
E.g. Kwik Kopy logo tells us what product category it is in and something about the brand offering- being quick. This is
reinforced by the visual imagery of the logo connoting rapidity with the hurried nature of man holding a document

Brands are malleable particularly with their meaning- we almost construct the meaning we want around brands

3. Likability
Do customers find the brand element aesthetically appealing?
Descriptive and persuasive elements reduce the burden on marketing communications to build awareness- simplifies the task as
there is less work on advertising spend which can be a large chunk of the marketing budget i.e. repetitive advertising and
extensive copy to explain what the product offering is about
- Fun and interesting-is there a connection?
- Rich visual and verbal imagery
E.g. Energy company BPs logo of a sun- Suggests heat, light and nature, the colour green indicates renewable energy, semiotics-
analysis of the signage, what the element means culturally and socially.

Defensive role for leveraging and maintain brand equity

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4. Transferability
- Important for strategy and tactics
- How useful is the brand element for line or category extensions?
E.g. Oral B is a simple logo that connotes health, dental hygiene and doesnt have elements that restrict it from extending out to
other dental hygiene product categories
- To what extent does the brand element increase brand equity across geographic boundaries and market segments?

5. Adaptability
- The more adaptable and flexible the brand element, the easier it is to update it to changes in consumer values and
opinions
E.g. Logos and characters can be given a new look or a new design to make them appear more modern and relevant as done by
brands such as Nike and Pepsi

6. Protectability
- Choose brand elements that can be legally protected internationally
- Formally register chosen brand elements with the appropriate legal bodies
- Vigorously defend trademarks from unauthorized competitive infringement
E.g. China clamping down on counterfeits where it is rife particularly with fake products related to luxury brands such as Louis
Vuitton

Tailoring cultural strategies for global brands: World Economic Forum (WEF) Davos 2006
Features 4 global big hitters
Michael Dell- Dell
Michael White- Former CEO of Pepsico
Shelly Lazarus- Chairperson of global advertising firm, Ogilvy
Doug Holt- Formerly from the University of Oxford, now a brand consultant

Whats it about: How global brands deal with the problem of extending their brand into new territories and what that means for
the various brand elements

Michael White- Pepsico approach to branding


- Brand Pepsi in carbonated soft drink business, consistent imagery of the brand- try to keep it clear the guidelines of the
look, brand logo and positioning, 50% of it is global and 50% local, balance global but with technology able to customize
locally,
- Chips Lays, Smiths, more local with some global elements- consistent in a lot more in tailoring form country to country
with eating habits and tastes are quite different.

Michael Dell- How does it uses the Dell brand to drive profits
- Distinctive differences in cultures and preferences to tailor to the local market e.g. China- concept of direct sales can be
translated to a pyramid scheme, need to go out of their way to explain what the message and value of their product
offering was. In Germany direct sales was a bit of new concept for consumers and were hesitant to call on the phone in
pre-Internet days but more willing to fax.
- There are some universal truths in economics, value, quality and product integrity that resonates with people worldwide
and thats how theyve built the brand

Shelly Lazarus- there is not a one size fits all formula, having a global brand 15 years ago, you did advertising in UK and US and
shipped it out to countries and have it translated to the local countries. Standardization > Localization. Have to figure out the core
truths of the brand that are universal, define that and send that out to various geographies and figure out how to make that as
potent and powerful it can possibly be to engage consumers, nothing as important as the brand, global nature means that
something that happens to brand in one place can affects the brands reputation elsewhere- need to be vigilant in marketing efforts

Doug Holt- Has done studies on brands that have developed culturally specific symbolism and brands using their globalness as a
point of difference. Post paradigm with standardization from the west being the way to localization being more typical and
conventional, now the world is separating into two brand strategies on a global level- Basing proposition on global nature of the
brand- part of that on pure economic proposition based on reliability of the product, technological sophistication of the product,
success in big global markets such as US and Europe has extraordinary sway around the world and does the brand a lot of good, it
transforms brands into becoming a global symbol where globalness is an asset. Alternatively compared to brands developing
indigenously in the culture and becoming deeply local and tailored but from a consumer perspective such brands do not have the
great economic power and success that global brands hold which people find attractive but then again not tailored

3. Describe the key tactics in choosing different brand elements

A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong,
favourable, and unique brand associations.

- Brand names with or without symbols

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- URLs
- Logos
Play a critical role in building brand equity and especially brand awareness
Logos range from corporate names or trademarks (word marks with text only) written in a distinctive form, to entirely abstract
designs that may be completely unrelated to the word mark, corporate name or corporate activities.

- Symbols
- Characters
- Spokespeople
- Slogans
- Jingles
- Packages
- Signage

4. Explain the rationale for mixing and matching brand elements


Building brand identity
Brand elements work together to build brand identity
- The entire set of brand elements makes up the brand identity, the contribution of all brand elements to awareness and
image
- The cohesiveness of the brand identity depends on the extent to which the brand elements are consistent
E.g. M and Ms spokecandies are witty and personable which is consistent with the fun and entertaining tone of the TV
commercial

Ch 5: Designing Marketing Programs to Build Brand Equity

1. Identify some of the new perspectives and developments in marketing

- The strategy and tactics behind marketing programs have changed dramatically in recent years as firms have dealt with
enormous shifts in their external marketing environments:

- Digitalization and connectivity

- Key point- Late 70s onwards- post modernity basically means that the key political, economic and social structures of
the past are eroding and there is a concerted effort to shore them up

New perspectives on marketing


- Rapid technological developments
- Greater customer empowerment
- Fragmentation of traditional media
- Growth of interactive and mobile marketing options
- Channel transformation and disintermediation
- Increased competition and industry convergence
- Globalization and growth of developing markets
- Heightened environmental, community and social concerns
- Severe economic recession

Signs that markets are changing character


- Value migration paths: How the idea of value has shifted- changes depending on category- transport to entertainment e.g.
Virgin
- Industry boundaries are blurring and evolving
- Competitive structure and players are shifting: Technological advancements
- Firms collaborate to influence industry standards
- Business design value flow in companies

Strategic marketing frameworks: A potted history

Framework Classic article/s

Organisational strategy leads to organisational Chandler 1962


restructure

Organisational strategies follow industry Porter 1979

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structure

Competitor- and customer-focused advantage Day and Wensley 1988


Comparative advantage view of marketing Hunt and Morgan 1995; 1997

Market orientation and resource-based Narver and Slater 1990; Day 1994
marketing

Service-dominant logic (SDL); Consumer Vargo and Lusch 2004; Arnould & Thompson
culture theory 2005

Developments in marketing
Service dominant logic (SDL)
- Traditional services marketing focuses on an augmented product surrounded by extended service offerings; vale
determined by producer
- Service logic focuses on the customer co-creating value through product use; value co-produced by customer
- Suggested that majority of value creation is based on such service

Service dominant logic (SDL) may be a useful way for marketers to evaluate strategic value creation for what may be developed
and shared in consumer environments
E.g. Samsung Galaxy smartphone- The SDL approach sees it as an appliance with a set of knowledge and applications that allows
users to create their own value. Apps are seen as services or additional appliances; users create value in use and through
experiences with their phone (or apps) in collaboration with the product (ideas about the product), the brand (image, associations
and identities we construct about the product) and in the use context.
Value is co-created experientially by the firm and the consumer; not extended from a salesperson or
aftersales care
Creating customer brand value from digital marketing
- Integrated customer experience
- Get customers to co-create brand value
E.g. Amazon- ability to review, integrates customers, also co create through reviews, by coordinating the consumers end to end
experience, companies could enjoy revenue increases of 10-20%.

- Use digital for customer intelligence


E.g. SMH gains intelligence about users and readers habits through click stream, cookies, panels, comments to create a valuable
set of forms of marketing intelligence data for the firm to use through digital means to create offering to further enhance the
customers site experience

2. Describe how marketers enhance product experience

Product strategy
Types of new product introductions
Low newness to company, low newness to market- Changes to augmented product
Mid newness to company, low newness to market- Core product revisions
High newness to company, low newness to market- New product lines
High newness to company, high newness to market- Completely new product
Mid newness to company, mid newness to market- Line extensions
Low newness to company, high newness to market- Repositionings

Relevant to brand management: Managing brands over their life cycle


- At different points through the life cycle, different brand strategies are required and should be built
E.g. Extensions at the maturity stage to extend the product life cycle, the longevity of the brand
Market introduction needs a large awareness campaign that helps build brand image in consumers minds

3. Explain the rationale for value pricing

Strategic role of price


Value pricing or everyday low pricing
- High quality and innovative products need higher prices to cover the extra costs e.g. Weetbix Hi-Bran commands a
premium price due to more ingredients and targeted to a more affluent consumer segment
- Competitive pricing is more important for intensive distribution than for selective or exclusive distribution e.g. LOreal
gloss is an everyday product and is priced more competitively as it is more readily available, if it were for selective
distribution it can command a more premium price

Importance of pricing objectives

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- Increase market share (by lowering price) e.g. Dominos Pizza- two for one offers
- Increase profitability
- Reinforce market image or position
- Stimulate demand e.g. milk at supermarkets, reduced prices > enhances store traffic impacts competitive price structure
at industry level, can enhance store traffic
- Influence competition e.g. same milk example

Example of value pricing strategy


BP suite of unleaded fuel offerings - Consumer perceptions of value ranging around the brands offerings:
- Low range: Unleaded 91 (users are satisfied with the pricing compared to value if they were use ultimate unleaded fuel
at an extra 20 cents or so)
- Mid range: Unleaded 95
- Premium: BP Ultimate

Building a pricing structure in line with consumer perceptions to build brand equity

4. List some of the direct and indirect channel options

Consumer-based channel decisions


Channel factor decisions
- Consumer learning
- Consumer entertainment
- Consumer participation and experience

E.g. Buying Apple via Apple retail store VS buying it in a Myer department store
- More technical service with dedicated and trained sales personnel, many consumers speak about the experience in the Apple
store in evangelical tones, high praise with co-creation of customer value- more interactive, high order level of experience in
terms of the brand itself when buying in the Apple store as opposed to going to Myer

Marketing channel design


Distribution options for manufacturers
- Direct e.g. Ikea products at the Ikea physical store
- Via intermediaries e.g. milk and bread through retailers, supermarkets
- Via intermediaries and direct e.g. Apple iPads online through their official website and department stores

Multi-channel retailing
- Important as different consumer segments have different requirements, they build different perceptions to different
channels
- Multi-channel approach to target various consumers through physical stores, catalogues and the Internet for example
- Each channel must place a clear role in supporting and reinforcing the retailers overall brand equity

E.g. Eagle Boys Pizza


- Online ordering accounts for at least 15% of national sales
- Key target audience of people aged 18-35 people
- Mobile is very attractive
- Digital channels have moved from a novelty to a mainstream marketing channel- social media presence not just website
online

Ch 6: Integrating Marketing Communications to Build Brand Equity


Integrated Marketing Communications
- Recognised as a business process, philosophy of the way the communication elements of a marketing program should
be implemented
- Multiple relevant audiences
- Demand for accountability and measurement
of outcomes

IMC: Strategic business process used to plan,


develop and execute coordinated, measurable,
persuasive brand communication programs

Marketing vs. communication objectives

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Nature of IMC mix depends on:


Campaign communication objectives
- Need recognition e.g. Hungry Jacks
- Finding buyers e.g. Subway targeting Islamic community with print advertisement and outdoor campaign
- Brand building e.g. Coles and 2008 Beijing Olympic TV advertisement- many marketing practitioners believe television
is by far the best way to construct a brand building campaign because there is time to tell a story using different elements,
music builds emotion along with visuals, narrative being told, voiceover
- Alternative evaluation e.g. Hungry Jacks coupons via flyers
- Purchase decision e.g. Subway print advertisement for $5 Footlongs to remind consumers and point of purchase of deals
available
- Customer retention

Role of IMC
- Previously, marketing communication was dominated by mass media advertising
- Others marketing communication elements added on as an afterthought
- Fragmented, uncoordinated campaigns
- IMC recognises the need to integrate all elements of the communication mix (holistic)

E.g. McDonalds 24-hour service in Singapore


Used print ads to inform public, outlets open 24 hours had signs around the store, banners in restaurant and road, posters on public
garbage bins
- Different media, one voice

INTEGRATING MCS TO BUILD BRAND EQUITY

Role of marketing communications


- Are the voice of the brand and are a means by which to establish a dialogue and build relationships with consumers
- Allows marketers to inform, persuade, motivate and remind consumers directly or indirectly
- Contribute to brand equity by coordinating and integrating a variety of communication options

IMC philosophy: By having an integrated campaign across different forms of promotional elements, whether its advertising and
social media, PR campaigns; they reach relevant target audiences at key moments and theyve got different communication
objectives that tie back into the overall promotional and communication functions for that brand

By working across different promotional elements, we can integrate and draw upon the synergies, strengths and weaknesses of
each of the promotional elements in a cost effective manner (key)

IMC objectives depend on desired response


3 stages of mental processes with brand response
- Cognitive (Thinking)
- Affective (Feeling)
- Behavioural (Acting)

AIDA MODEL
Attention > Interest and Desire > Action

- Is used to develop IMC objectives


- Considers what stage the target market is at in relation to the process
- Useful in measuring IMC effectiveness

Desired response and IMC


- The purpose of all marketing is to elicit a response from potential buyers

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- The AIDA model suggests that buyers are unlikely to take action unless they first have an awareness of the product, then
develop an interest in it and a desire for it
- After purchase, customers evaluate their satisfaction with the action
- This creates an additional step in the AIDA model- it then becomes AIDAS

IMC and strategic integration of communications


Avoid duplication > Synergy amongst promotional tools > More efficient and effective marketing

Simple test for IMC


1. Current brand knowledge: What is the current brand knowledge?
Communication
2. Desired brand knowledge: What is the desired brand knowledge (POP, POD, brand values)?
3. How does the communication option help the brand move form 1 to 2?

Goal of IMC: To generate short term financial returns and build long-term brand equity

Media and advertising strategy


Brand contact points- Touchpoint types: What can the firm control?
- Company created- Contact points that brand managers author
- Customer generated- Reviews, Facebook posts
- Unexpected- Brand managers cant do anything about it, experiences with a brand
- Intrinsic- Contact points that brand managers can control, ways we expect to find a particular piece of brand
communication e.g. Hungry Jacks and television

Analysing market potential


- Media planning is analysis-driven
- To whom shall we advertise?
- Where do we promote?
- What is the most cost-efficient way to get my clients message across to the target audience?

From awareness to consumer action

Advertising strategy- branding/brand building


- Brand advertising is used by organisations to build awareness
E.g. MQ advertising- Not your traditional university sets the tone and builds the image for the brand
-
Advertising strategy- direct response (retail advertising)
- The purpose of direct response advertising (DRA) is to produce a clear response
- Call to action to spend money, time and/or cognitive effort
E.g. Jetstar- Taking a break? Offer for its holidays alongside a picture of Kevin Rudd at the time of his removal in government;
decided to capitalize on a humourous way

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Evaluating IMC programs

Four major marketing communication options


Advertising and promotion, interactive marketing, events and experiences, mobile marketing

6 choice criteria for IMC programs


- Coverage: The proportion of audience reached by each communication option and how much overlap exists with each
other (MAIN OBJECTIVE) How widespread do the various promotional elements target the market e.g. Hungry Jacks
different communication elements as in outlets, television, flyers they cover different target audiences
- Contribution: The ability to create a desired response from consumers in the absence of exposure to any other
communication option. It influences customers processing of a communication and outcome. What part does each
element play in enhancing brand equity? E.g. Direct selling, paid advertising on radio, mobile billboards
- Commonality: Must be consistent across different media to create a cohesive brand image. The extent to which common
information conveyed by different communication options shares meaning across communication options
- Complementarity: Extent to which different associations and linkages are emphasizes across communication options.
More effective when used in tandem
- Conformability: Extent tat a marketing communication option is robust and effects for different groups of consumers.
How well it informs and persuades consumers with different communication history
- Cost: Is it an effective AND efficient communication program? (MAIN OBJECTIVE)

Ch 7: Leveraging Secondary Brand Knowledge to Build Brand Equity


Secondary brand associations: Associations that arent directly controllable or authored by a brand manager; these are
associations we all have and how do brand managers tap into them to them to build a more effective strategy around their brand

Leveraging secondary associations:


- Creation of new brand associations: Consumers may form a mental association from the brand to this other entity and
consequently to any or all associations, judgments, feelings linked to the brand. Most likely to affect the evaluations of a
new product when consumers lack either the motivation or the ability to judge product-related concerns
- Effects on existing brand knowledge: Build upon what consumers already think of the brand in their minds- cognitive
consistency- what is true for the entity must be true for the brand

Using Dolmio Pasta Sauce TV advertisement owned by Mars Inc. They are trying to dissociate from the corporate owner to a
particular country, plus usage occasion, families and familial identity
Three important factors in predicting the extent of leverage from linking the brand to another equity:
Awareness and knowledge of the entity- Country of origin- Italy, considered the home to pasta, pasta sauces > more authentic
Meaningfulness of the knowledge of the entity- Does pasta sauce and Italy go hand in hand? Meaningful link to make?
Transferability of the knowledge of the entity- Is the meaning logical and/or coherent?

1. Outline the eight main ways to leverage secondary associations

Eight different ways to leverage secondary associations to build brand equity are linking the brand to:

1. Company
- Brand strategies are an important determinant of the strength of association from brand to the company & any other
existing brands

- 3 main branding options exist for a new product:


- A new brand
- Adopt or modify an existing brand
- Combine an existing and a new brand

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We bring some of those associations to the other brand; may evoke associations of common product attributes, benefits or
attitudes e.g. Coles > Coles credit cards (Affordability, convenience)

2. Country of origin
- Linked to the brand and generates secondary associations
- Many countries have become known for expertise in certain product categories for conveying a particular type of image
- Choosing brands with strong national ties may reflect a deliberate decision to maximise product utility and communicate
self-image based on what consumers believe about products from that country
- Brands can create a strong POD because of consumers identification of and beliefs about the country of origin.
Examples:
- Levis jeans USA
- Chanel perfume France
- BMW Germany
- Gucci - Italy

3. Channel of distribution
- The channel of distribution can directly affect the equity of the brands they sell through the image transfer process of
consumers associations linked to the retail stores for example
- A consumer may infer certain characteristics about the brand based on where it is sold
- Consumers may perceive the same brand differently depending on whether it is sold in a store seen as prestigious or
exclusive or in a store designed for bargain shoppers and having more mass appeal
Examples: Myer and Big W, Woolworths and Aldi,
- Can be positive or negative for a brand- Vera Wang deciding to distribute her wares through Kohls led to Macys
deciding to drop her popular lingerie line

4. Co-branding

Co-branding: Occurs when two or more existing brands are combined into a joint product or are marketed together in some sort
of similar fashion
Example: Visa and Qantas Frequent Flyer- Image synergies between the associations; Nike and Lebron James

Advantages of co-branding
Expand on expertise Disadvantages of co-branding
Leverage equity you dont have Loss of control
Reduce cost of product introduction Risk of brand equity dilution
Expand brand meaning into related categories Negative feedback effects
Broaden meaning Lack of brand focus and clarity
Increase access points Organisational distractions
Source of additional revenue

Ingredient branding: A special case of co-branding that involves creating brand equity for materials, components, or parts that
are necessarily contained within other branded products
E.g. Intel and Centrino, Lays Super Chips with Heinz sauce

5. Licensing
Licensing: Involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands for
some fixed fee
Examples:
- Entertainment (Star Wars, Jurassic Park, etc.)
- Television and cartoon characters (The Simpsons)
- Designer apparel and accessories (Calvin Klein, Pierre Cardin, etc)- Can be lucrative for the licensor, command large
royalties for the right to use their name on a variety of merchandise such as clothing belts, ties and luggage

6. Celebrity endorsements
- 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, judgments, and feelings
- Ideally they would be credible in terms of expertise, trustworthiness, likability and attractiveness and having specific
associations that carry potential product relevance
- Q-Ratings to evaluate celebrities
- Risk: Celebrity endorsers can get in trouble, lose popularity, diminishing their marketing value to the brand or failing to
live up to expectations, consumers might think theyre only in it for the money, difficult to work with and may not
willingly follow the marketing direction of the brand
E.g. Gillette razor advertising featuring elite sportsmen: Thierry Henry, Roger Federer and Tiger Woods. These associations of
being elite are transferred onto the brands razors

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7. Sporting, cultural or other events


- Sponsored events can contribute to brand equity by becoming associated to the brand and improving
brand awareness, adding new associations, or improving the strength, favourability, and uniqueness of existing
associations.
- The main means by which an event can transfer associations is credibility- brand may seem more likable by virtue of
being linked to an event
E.g. Qantas- Official sponsor and partner of many national and international sporting events- Australian Rugby, Cricket Australia,
Formula 1 and the Olympic and Paralympics to name a few

8. Third-party sources
- Marketers can create secondary associations in a number of different ways by linking the brand to various third-party
sources
- Third-party sources can be especially credible sources
E.g. Good Housekeeping seal has been seen as a mark of quality for decades, offering product replacement or refunds for
defective products for up to two years from purchase, endorsements from acknowledged experts such as film critic Roger Ebert or
leading magazines like Choice magazine can improve perceptions of and attitudes towards brands

2. Explain the process by which a brand can leverage secondary associations


Secondary sources of brand knowledge
- Places: Country of origin, channels e.g. Kinokuniya book store/coffee shop, Japanese, images that come to mind and
the expectations of what youll find in the store- Japanese books and manga comics
- People: Employees, endorsers
- Other brands: Ingredients, company extensions, alliances e.g. Google and Android partnership
- Things: 3rd party endorsements, events, causes e.g. Mount Franklin and breast cancer research, goodwill associations for
the brand

These secondary associations may lead more to a transfer of:


Subjective associations
- Judgments (especially credibility)
- Feelings
E.g. Big W as a discount department store image, low rent image some people may hold

THAN

Objective associations
- Product or service performance
- Product or service imagery

Understanding transfer of brand knowledge

- Mirroring effect of secondary brand associations


- Taking an other entity and building its ideas off images, thoughts and feelings (Frenchness, technical performance of
Citroen) and transferring that onto the brand

Ch 8: Developing a Brand Equity Measurement and Management System


1. Describe the new accountability in terms of ROMI
- Virtually every marketing dollar spent today must be justified as both effective and efficient in terms of return of
marketing investment (ROMI)

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- Some observers believe that up to 70% (or even more) of marketing expenditures may be devoted to programs and
activities that cannot be linked to short-term incremental profits, yet improve brand equity.

Marketing effectiveness: more than ROI


- Return on investment is an important component that links finance to marketing
- Many marketing issues dont fit into the ROI framework
- Limits of ROI: awareness?
- Approximations of ROI
- Need for multiple measures of performance

2. Outline the two steps in conducting a brand audit

Brand audit: Comprehensive examination of a brand to discover its internal (brand inventory) and external (brand exploratory)
sources of brand equity

- Customer focused exercise to assess the health of the brand, uncovering sources of brand equity meaningful to
consumers and suggest ways to improve and leverage its equity
- Requires understanding brand equity from the firms and consumers perspective

Different from a marketing audit that is more holistic of the internal and external environments that a brand is in
Detailed situation analysis
Specific marketing objectives
Marketing strategy and program
Implementation program
Monitoring and evaluating performance

Two steps:
Brand inventory: A current comprehensive, up to date profile of how all the products and services sold by a company are
branded and marketed
- Requires identifying the associated brand elements as well as the supporting marketing program
E.g. Brand elements
Supporting marketing programs
Profile of competitive brands
PoPs and PoDs
Brand essence

Reasons for brand inventory


Suggests the bases (constructs) for positioning the brand
Offers insights to how brand equity may be better managed
Assesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies,
overlaps, and consumer confusion

Brand exploratory: Research directed to understanding what consumers think and feel about the brand and act toward it in order
to better understand sources of brand equity as well as possible barriers
- Awareness > recall, recognition
- Receptivity toward brand
- Uniqueness of associations

Three stages of brand exploratory phase


- Preliminary activities: Internal assessment of what you want to find out, objectives that are to be achieved, budgets to
be set, is it feasible?
- Interpreting qualitative research: Three criteria to classify and judge qualitative research: Direction, depth and
diversity (Is it related to the person or the brand, the extent to which responses are superficial and concrete as opposed to
deeper and more abstract thus requiring more interpretation and the way information relates to information gathered by
other projective techniques)
- Conducting quantitative research: Assess all potentially salient associations from qualitative research according to
their strength, favourability and uniqueness, examine specific brand beliefs and overall attitudes and behaviours to reveal
potential sources and outcomes of brand equity

E.g. Consumer knowledge: mental map- E.g. Nike (competitors: Adidas, Reebok, Converse, product: shoes, socks, trainers,
related concepts: air, running, sweatshops, price, stability, brand attributes: comfortable, cool, awesome, expensive)

Reasons for brand exploratory


Helps identify sources of customer-based brand equity (CBBE)
Uncovers knowledge structures for the core brand as well as its competitors

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Qualitative techniques
Projective techniques: Diagnostic tools to uncover the true opinions and feelings of consumers of a category, brand or product
when they are unwilling or unable to express themselves

Present consumers with ambiguous stimulus and ask them to make sense of it

Three main areas these techniques group around:


Completion and interpretation tasks
Comparisons task
Archetypes

Cultural codes and the reptilian brain


Imprints: When children learn a new word and the associated idea, they link it to certain emotions
Brain divided into 3 zones: Cortex (logic), limbic (emotions), and reptilian (instinctive)
Reptilian zone always wins out when 3-way conflicts
Reptilian hold the key to what products mean to consumers on the most fundamental basis
Reptilian zone delivers access to collective cultural unconsciousness to understand codes for product/service categories

Cultural codes and the product life cycle


- Each category has different dominant codes and consumers with different characteristics - each may justify distinct
marketing strategies
- Cultural codes shift (emergent: market growth, dominant: maturity, residual: market decline or extension)

Brand onion
Positioning > Personality > Values > Vision

Quantitative techniques
Brand positioning and the supporting marketing program
Ideally, aim is to achieve congruence, consistency, and alignment between:
What do customers currently believe about the brand?
What will customers value in the brand?
What is the firm currently saying about the brand?
Where would the firm like to take the brand?

3. Describe how to design, conduct and interpret a tracking study

Tracking studies involve information collected from consumers on a routine basis


Often continuous
Provide descriptive and diagnostic information

Brand tracking: the fundamentals


Provides consistent baseline information for day-to-day decision making
Understand category dynamics, consumer behaviour, competitive strategies

Product-brand tracking
Recall and recognition
Brand image
Competing brands
Strength, favourability, uniqueness
Corporate or family brand tracking
Relevant stakeholders
Global brand tracking
Broader set of background measures
calibrated to local markets

Net promoter score


Brand tracking methodology developed by Fred Reichheld
- Taking a snapshot of your percentage of
promoters and detracting the snapshot of your snapshot of
your detractors to obtain your net promoter score (NPS)
- Quick, simple diagnostic tool useful in telling
whats happening today but not the indication of the
dynamics of why consumers are moving from promoters
to detractors

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4. Identify the steps in implementing a brand equity management system

Brand equity management system: Set of organisational processes designed to improve the understanding and use of the brand
equity concept within a firm so that managers can make the best possible tactical decisions in the short run and strategic decisions
in the long run

- Conducting brand audits, designing brand tracking studies and establishing a brand equity system

Three major steps as part of the brand equity management system:


1. Creating brand charters- Formalize the company view of brand equity into a document to provide relevant guidelines
to marketing managers within the company and key marketing partners outside the company
2. Assembling brand equity reports- Describes what is happening with the brand and why it is happening; should include
all relevant measures of operational efficiency and effectiveness and external measures of brand performance and sources
and outcomes of brand equity
3. Defining brand equity responsibilities-

Ch 9: Measuring Sources of Brand Equity: Capturing Customer Mindset


(Qualitative and Quantitative Brand Research)
1. Describe the effective qualitative research techniques for tapping into consumer brand
knowledge
Qualitative research
Identify possible brand associations from the consumers point of view and sources of brand equity

Relatively unstructured measurement approaches that permit a range of possible consumer responses- Obtain a deeper
level of insights about a brand that often cant be tapped by top of mind, direct asking, techniques go to a deeper level
with the fundamental belief that the consumer cant articulate what they think or feel at the time (the primal motivators)

The first step in exploring consumer brand and product perceptions

Qualitative research techniques


Free associations
Projective techniques
Zaltman Metaphor Elicitation Technique (ZMET)
Neural research methods
Brand personality and value
Ethnographic and experiential methods

FREE ASSOCIATIONS
Powerful way to profile brand associations
Without any specific probe, consumers narrate:
o What comes to their mind when they think about the brand or the associated product category
Help form a rough mental map for the brand
Indicates the relative strength, favourability, and uniqueness of brand associations

BRAND PERSONALITY AND VALUES


Human characteristics or traits that consumers can attribute to a brand
If a brand were to come alive as a person, what would it be like? What would it do? Where would it live? What would it
wear? Who would it talk to if it went to a party and what would it talk about?

NEUTRAL AND ETHNOGRAPHIC RESEARCH APPROACHES


Neuromarketing: Studies how the brain responds to marketing stimuli, including branding and brand elements
Use of theory and tools from cognitive neurosciences to inform marketing activities and research
(Harris 2011)

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Research indicates that consumer buying decision is a unconscious habitual process

Insights from neurosciences are very similar


Antonio Damasio (Descartes Error, 1994)
Decision making heavily reliant on emotional processing that isnt necessarily rational and conscious
Ongoing research in psychology and neurosciences
A range of physiological measures that seems to reflect decision making process at play

Two streams linking neuroimaging and marketing research


Marketing research organisations interested in physiological measures (i.e., brain body signals) as sources of
information about consumer preferences
Academic researchers interested in neuroimaging techniques to improve decision making theory
Neuroeconomics research

Neuromarketing
Theory (internal mental processing)
Theories of interest consider how people take in information about the world to use and learn to use this to make decisions
Sensation and perception
Attention
Learning and memory
Reward value
Emotional valance and arousal

Tools (measuring internal states)


Tools (measurement techniques)
Physiological measurement of mental processes
fMRI- Functional magnetic resonance imaging, technique where the patient lies on the trolley and it is slowly directed
into the tunnel where image slices are made to measure brain activity on a moment to moment basis. Works to detect the
changes in blood flow that occur in response to neural activity
EEG- Electroencephalogram, less invasive procedure, used to measure the electrical activity of the brain via electrodes
applied to the scalp
Other psychophysiological methods:
- Facial electromyography (fEMG)- Records electrical signals linked to facial muscle activity (emotional measure)
- Eye tracking: Records the direction and duration of eye fixations (attention measure)
- Skin conductance response (EMG): Records changes in skin electrical conductance linked to arousal (emotional
measure) similar to a lie detector, increases in heat through perspiration when they look at a television ad

Informing theory and practice


Product design
What do people value?
Advertising and media testing
What do people pay attention to, connect with, learn from, and enjoy?
Marketing theory advancement
Enhances understanding of value and exchange
Neuroeconomic research
Understand mechanisms underpinning decision making

Ethnographic and experiential methods


Use thick description based on participant-observation
Extract and interpret the deep cultural meaning of events and activities

Contemporary consumer insights


Consumer and brand research dominated by psychological perspectives
Serves area well, in terms of predictive power. But:
Need to also deeply understand mechanisms (how) & meaning (why) of consumer & brand behaviour
Differences between what people say they do and what they actually do in natural consumer spaces
Triangulating research approaches
Multiple methodologies to get a more complete picture of the research problem
Ethnographic perspectives are a key plank in triangulation processes.
Recently covered in HBR, Fast Company etc.

Ethnography is the major method in Anthropology


The significance of behaviour is against the background of the emotions and values institutionalized in that culture."
(Benedict 1934, 49
Relating specific consumer behavior to the broader cultural values and situations, settings, and social contexts within
which its carried out.

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Consumer culture exists at various levels


Brand & Consumer Behaviour
Family
Friendship networks
Social class
Subcultures
National-regional

Consumer culture includes different elements


Societys personality
Beliefs
Codes, values, ideologies
Customs and

Consumer-brand ethnography in practice


Ethnography uses immersion, observation and interview to access a persons culture.
Also requires thinking insightfully on everyday, ordinary behaviour to get an insiders view on the meaning of specific codes
and ideologies, and behaviours of that culture

Standard consumer ethnography


Analyses consumer behaviour by interviewing and observing consumption in natural consumer environments and
reporting findings and strategies back to the client

QUALITATIVE RESEARCH: SUMMARY


Advantages: Creative means of ascertaining consumer perceptions that are difficult to uncover, extensive range of
possible qualitative research techniques limited only of the creativity of the marketing researcher
Disadvantages:
Small sample size may not necessarily generalize to broader populations
Due to qualitative nature, data is open to varied interpretations

2. Identify effective quantitative research techniques for measuring brand awareness, image,
responses and relationships
Quantitative research techniques
A means to better:
Approximate the breadth and depth of brand awareness
The strength, favourability and uniqueness of brand image/associations
The favourability of brand responses
The nature of brand relationships

BRAND AWARENESS
Recognition
Recall- When you think of breakfast cereals, which brands come to mind? Might be aided or unaided, shown an ad or not
Through surveys- online, face-to-face, mail

Corrections for guessing


Strategic implications
Yields insight into how brand knowledge is organized in memory
Identifies cues or reminders necessary for consumers to retrieve the brand from memory

BRAND IMAGE
Associations that consumers hold for a brand
Useful for marketers to make a distinction between:
Lower-level considerations (performance and imagery) and higher-level considerations (judgements and
feelings)
Beliefs: Descriptive thoughts that a person holds about something e.g. that a particular software package has many
helpful features and menus and is easy to use
To assess overall brand uniqueness: Multidimensional scaling- Advanced quantitative technique that tries to plot various
dimensions on a brand perceptual map

Brand perceptual map- Building a map for the brand manager to assess where the brand sits in the overall product category and
what are the dimensions of brand image that the brand manager has to work with when/if they are going to shift the brand against
its competitors

BRAND RESPONSES

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Purpose of measuring more general, higher level considerations is to find out how consumers combine all the more
specific lower level considerations about the brand in their minds to form different types of brand responses and
evaluations
Purchase Intentions: Likelihood of buying the brand or switching to another brand
Likelihood to Recommend- Net promoter score

BRAND RELATIONSHIPS
Characterized in terms of brand resonance and measures for following key dimensions:
Behavioural loyalty
Attitudinal attachment
Sense of community
Active engagement

E.g. Starbucks- Research in US about Brand Attitude to Rounded Logo


What happens when we take three different types of consumers that have different attitudes to the brand and you change aspects
of the brand element- logo. How do these different target audiences respond to changes?
Independent mindset, high brand commitment
Interdependent mindset, high brand commitment
Low brand commitment
- Those that had low brand commitment reacted more favourably to a changing of the brand logo and those with a tighter brand
connection were more resistant

Implications of lab research


Brand and consumer decisions are influenced by a range of processes and factors besides rational, conscious thought
Not all the factors about purchase and consumer decision making can be verbalised
Consumers do not usually know what they truly want

Ch 10: Measuring Outcomes of Brand Equity: Capturing Market


Performance

1. Recognise the multidimensionality of brand equity and the importance of multiple methods to
measure it

Measuring brand equity


Multi-dimensional concept
Many different measures required
CBBE: ultimate value of a brand depends on the underlying components of brand knowledge and sources of brand equity

2. Contrast different comparative methods to assess brand equity


To better assess the effects of consumer perceptions on consumer response to the specifics of brand equity and the
marketing program.

Comparative methods
Brand-based comparative approaches
Marketing-based comparative approaches
Conjoint analysis

BRAND- BASED APPROACHES


The marketing programs under consideration are fixed- studies and experiments in which we hold the marketing program
constant and change marketing aspects of the brand in comparison to competitor brands
Consumer response is examined based on changes in brand identification / elements or element of marketing program
Importance of brand exemplars

Application example: Pepsi vs. Coke taste test leveraged that Pepsi was more preferable in terms of taste in comparison to the
leading cola aka Coca Cola

Advantages
Understands how brand knowledge affects consumer response to marketing stimuli
New marketing stimuli
Disadvantages

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Realism: Do we really actually drink cola for its taste?


Over-emphasis on product characteristics increases salience (compared to how it might be emphasised in a real-life consumption
situation)

MARKETING- BASED APPROACHES


The brand elements are held fixed and consumer response is examined based on changes in marketing programs

Applications
Explore the effect of price premiums on switching, consumer evaluations of marketing activities, brand extensions

Advantages
Ease of implementation, not much cost involved easy for consumers to make their decisions as theres only brand in play, altering
an element in the brand mix
Disadvantages
Hard to discern what exactly causes consumer response, is it prior consumer knowledge or something held constant in the brand
mix?

How much are consumers are willing to pay for a brand extension over the original brand?
Price sensitivity?
Starbucks research example, logo is incrementally altered to be more rounded- different target consumers are surveyed to
find out their response to the change

CONJOINT ANALYSIS
Mix of brand-based and marketing-based comparative methods
Enables marketers to determine the power of a brand in consumer decision making
Brand is included in a series of product bundles that are traded off by consumers

3. Explain the basic logic of how conjoint analysis works

Conjoint analysis
Survey-based statistical method that profiles decision process with regard to brands and products
Consumers asked to choose among a number of different product profiles
Attributes are ranked according to importance to decision making
Consumers reveal how much their brand loyalty is worth, and which brands theyll forego for a lower price

Determine the company attributes relevant to customers;


Rank importance of these attributes;
Estimate costs of making improvements;
Prioritise image goals in line with consumer perceptions

Advantage
Study different brands and different aspects of the product or marketing program

Disadvantage
Marketing profiles may violate consumers expectations based on what they already know about the brand

4. Review different holistic methods for valuing brand equity

Estimate the overall or summary value of a brand


Comparative methods: approximate specific benefits of brand equity
Attempt to place an overall value on the brand in either abstract utility terms or concrete financial terms
Net out various considerations to determine the unique contribution of the brand

1. Residual approaches
The brand equity is what remains of consumer preferences and choices after subtracting objective physical product
effects.
DIFFERENT TO KELLER
Overall brand preference Objective characteristics of physical product = Brand equity
The brand equity is what remains of consumer preferences and choices after subtracting objective physical product effects
Scanner panel
Choice experiments
Multi-attribute attitude models

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Useful for approximating brand equity or a financially-oriented perspective of it


Disadvantage: Takes a static view of consumer preferences
Also, issues around separability of value of brand name or trademark

Discrete choice modelling


Quantitative technique used to better understand individuals preferences and the utility placed on various product and/or
service attributes in decision-making.
Evaluates the trade-offs that individuals make by estimating the joint effect of multiple product attributes simultaneously.

2. Valuation approaches
Attempt to place a financial value on brand equity for accounting purposes
Useful in cases of mergers and acquisitions, brand licensing, fund raising, and brand management decisions
1. Accounting background
2. Historical perspectives
3. General approaches
4. Simon and Sullivans brand equity value
5. Interbrands brand valuation methodology

Accounting background
Intangible assets are typically lumped under the heading of goodwill and include things such as patents, trademarks, and
licensing agreements, as well as softer considerations such as the skill of the management and customer relations.
In an acquisition, the goodwill item often includes a premium paid to gain control, which, in certain instances, may even
exceed the value of tangible and intangible assets.

Historical perspectives
British firms used brand values primarily to boost their balance sheets.
In the US, generally accepted accounting principles (blanket amortisation principles) mean that placing a brand on the
balance sheet would require amortisation of that asset for up to 40 years.
Such a charge would severely hamper firm profitability; as a result, firms avoid such accounting manoeuvers.

Interbrands brand valuation methodology


Assumes that brand value is the present worth of the benefits of future ownership
Brand financial performance through annual reports
Role of brand in purchase decision situations
Brand strength in purchase decision situations

E.g. Interbrand Best Global Brands 2013

Ch 11: Designing and Implementing Branding Strategies

1. Define the key components of brand architecture

Brand architecture: Critical because it is the means by which the firm can help consumers understand its products and services
and organise them in their minds
- Combining brand/product matrix, brand portfolio and brand hierarchy with customer, company and competitive
considerations to formulate the optimal brand architecture strategy

Mental representation of the organisation of a firms brands within the consumers mind

A branding strategy for a firm that reflects the number and nature of common or distinctive brand elements applied to the
different products sold by the firm.
E.g. Singapore Airlines has a large stake in Tiger Airways, Qantas and Jetstar- Links between the two brands, why do they operate
without endorsers?

Brand/product matrix
Graphical representations of all the firms brands and products, with brands as rows and the corresponding products as
columns; the rows represent brand/product relationships and capture the firms brand extension strategy
Marketer should judge potential extensions by how effectively they leverage existing brand equity to a anew product as
well as how effectively the extension in turn, contributes to the equity of the existing parent brand
The columns of the matrix present product/brand relationships and capture the brand portfolio strategy in terms of the
number and the nature of brands to be marketed in each category
Brand architecture strategy characterised according to its breadth in terms of brand-product relationships and brand
extension strategy (which products the firm should manufacture or sell) and depth in terms of its product-brand
relationships and the brand portfolio or mix (the set of brands and brand lines that a particular seller offers)

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Role of brand architecture


Clarify brand awareness
Improve consumer understanding and communicate similarity and differences between individual products
Improve brand image
Maximise transfer of equity between the brand to individual products to improve trial and repeat purchase
E.g. Pauls Milk (family brand) introduced the Zymil brand- their lactose free offering. They want to transfer the strong equity of
the Pauls brand (strong brand recognition and recall) to the new brand being launched

Developing a brand architecture strategy


1. Defining the brand potential (in terms of its market footprint)
2. Identifying brand extension opportunities
3. Branding new products and services

1. Defining the brand potential


Brand potential depends on-
Articulating the brand vision: Managements view of long term potential, how well the firm is able to recognise the current and
possible future brand equity
- Balance needed between what the brand is and what it could become and to identify the right steps to get there
- Higher order purpose of the brand based on a keen understanding of consumer aspirations and brand truths
- Successful brands have clear ideals such as eliciting joy and enabling connection and a strong purpose of building
customer loyalty and driving revenue growth

Defining the brand boundaries: Based on the brand vision and positioning, identifying the products or services the brand should
offer, the benefits it should supply and the needs it should satisfy
- Brand managers must evaluate extending their brand carefully and launch new products selectively
- E.g. Delta Faucet Company has taken its core brand associations of stylish and innovative and successfully expanded
the brand from faucets to a variety of kitchen and bathroom products and accessories. Although it would be very difficult
for Delta to introduce a car, tennis racquet or lawn mower.
- To improve market coverage, companies target different segments with multiple brands in a portfolio e.g. Coca Cola-
Diet Coke- traditionally female consumers, Coke Zero- traditionally male consumers

Crafting the brand positioning


- 4 key ingredients to consider: competitive frame of reference, points of difference, points of parity and brand mantra
- Brand mantra is particularly useful in establishing product boundaries, it should offer rational and emotional benefits and
be sufficiently robust to permit growth, relevant enough to drive consumer and retailer interest and differentiated enough
to sustain longevity

2. Identifying brand extension opportunities


- Brand extension: New product introduced under an existing brand name
- Line extension: New product introductions within the existing category e.g. modified product form- Coca Cola and
Coca Cola Cherry
- Category extension: New product introductions outside the existing category e.g. Pauls milk and Pauls juice
- To increase likelihood of success, marketers must be rigorous and disciplined in their analysis and development of brand
extensions
- E.g. Nike- Well planned and executed series of category extensions, evolved from selling sports shoes (basketball, tennis,
running) to mostly young American males to now selling shoes, clothing and equipment across a range of sports to men
and women of all ages in virtually all countries

Extension advantages:
- Known
- Understood
- Trusted
- Hit the ground running

3. Branding new products and services


- Branded house vs. house of brands
Branded house- A firm employs an umbrella or family brand for all its products e.g. Siemens, Goldman Sachs
House of brands- A collection of individual brands all with different names e.g. Wesfarmers houses Coles, Bi-Lo and Target

Brand architecture spectrum


Brands have room to move
House of brands > Endorser brands> Sub-branding > Branded house
- Fewer pure brands to more hybrid models of these different types of brands
- Most firms adopt a strategy somewhere between these two end points often employing various types of sub-brands
- Sub-brands: Brand extension where the new product carries both the parent brand name and a new name

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- E.g. Apple iPad, Apple iPhone etc.

House of brands
E.g. LVMH, Qantas

Advantages Avoids channel conflict


Targeting different segments- LMVH: Tag New innovations / experiments
Heuer and the more supreme end of the Mergers & acquisition flexibility
market- Hublot
Allows for competing brands- Quite large, Disadvantages
not branded with LVMH Low economies of brand- low equity to
Fighter brands- Qantas and Jetstar- sub-brands
introduced as a fighter brand to stave off Low social capital- not well recognised
direct competition from their Qantas Strategic neglect of smaller brands
domestic operator, which was in Complex
competition with new entrant Virgin. Quakerism- they dont believe in a deep
Moved Qantas domestic up as a premier hierarchical structure, exist amongst
brand in domestic travel and Jetstar serves themselves
as the budget carrier brand

Endorser branding
Made up of individual and distinct product brands, which are linked together by an endorsing parent brand e.g. Nestle and Kit Kat

Advantages Contradictory category presence


Fits traditional employee model- parents Positive parent influence
influence sub-brands and vice versa
Flexibility & scale combined Disadvantages
CSR & investor relations Reputation risk
Product launching Vulnerable to boycotting

Sub-branding
Parent brand and all other products are under the parent brand e.g. Audi have the Audi Super Mini for the young professional,
traditionally female consumer, also the Audi TT- sports model for different targets

Advantages Revitalisation of parent brand


Segment coverage
Market evolves within the brand Disadvantages
Relative protection for parent brand Loss of strategic focus from core
Lower launch costs Spread of personnel
Share of mind & shelf Lose core associations
Licensing option Weaker against specialist brands

Branded house
Standalone firms that work in traditionally one core product category, not only the parent brand but corporate brand e.g. David
Jones and department retailing, American Express and credit card services, Samsung electronics

Advantages
Maximum economies of brand Disadvantages
Single strategic focus- brand hasnt been Biggest reputational risk of all
diluted Risk averse
Employer brand Strength M & A issues
Controlling/ egotistical leader Limits niche markets
International businesses Weaker against specialist brands
Familiarity

Brand architecture guidelines


1. Adopt a strong customer focus- Recognise what customers know and want and how they will behave
2. Create broad, robust brand platforms- Strong umbrella brands are highly desirable. Maximise synergies and flow
3. Avoid overbranding and having too many brands- High tech products for example, are often criticized for branding
every ingredient
4. Selectively employ sub-brands- Sub-brands can communicate relatedness and distinctiveness and are a means of
complementing and strengthening brands
5. Selectively extend brands- Brand extensions should establish new brand equity and enhance existing brand equity

2. Outline the guidelines for developing a good brand portfolio

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Brand portfolio: Includes all brands sold by a company in a product category


Any one brand in the portfolio should not harm or decrease the equity of others, Ideally, each brand maximizes equity in
combination with all other brands in the portfolio

Reasons for introducing multiple brands into a product category


Market coverage- No one brand is viewed equally favourably by all the different distinct market segments the firm
would like to target therefore multiple brands allow firms to pursue and attract different consumers
To increase shelf presence and retailer dependence in the store
To attract consumers seeking variety who may otherwise switch to another brand
Increase internal competition
Economies of scale

Designing a brand portfolio: Basic principles


- Maximise market coverage so that no potential customers are ignored e.g. Coca Cola Amatil, subsidiary in Australia
covers product categories sparkling water, colas, diet drinks, lemonade
- Minimise brand overlap so that brands arent competing among themselves to gain the same customers approval e.g.
brands target different consumers with Coke Diet traditionally targeting women, Coke Zero traditionally targeting men

BRAND ROLES IN THE PORTFOLIO


Flanker brands
- Create a strong PoP with competitors brands so that the flagship (more profitable/important) brands can retain their
desired positioning
- E.g. In Australia, Qantas launched Jetstar airlines as a discount fighter brand to compete with the recently introduced
low-priced Virgin Blue airlines and protect its flagship premium Qantas brand

Cash cows
- Kept around despite dwindling sales because they still manage to hold on to a sufficient number of customers and
maintain their profitability without marketing support due to strong equity
- E.g. Gillette still sells its older razor brands despite much of its market has moved to its newer Fusion brand of razors as
withdrawing these may not necessarily switch customers to another Gillette brand, the company may profit more by
keeping than discarding them

Low-end, entry level brands


- A low-priced brand in the brand portfolio to attract customers to the brand franchise
- Introduce consumers at the low end to trial the brand and as trust and familiarity increases, they will move up to the
higher-priced brands in the brand portfolio
- E.g. BMW- Their 1- series to move up to their higher level 3 and 5 models when they traded their cars in

High-end prestige brands


- A traffic builder by adding prestige and credibility to the entire brand portfolio and is a relatively high-priced brand in
the brand family
- E.g. Chevrolet- Corvette high-performance sports cars ability to lure customers into showrooms, its technological image
and prestige casts a halo over the entire Chevrolet line

3. Assemble a basic brand hierarchy for a brand

Brand hierarchy: Useful means of graphically portraying a firms branding strategy


Displays the number and nature of common and distinctive brand elements across the firms products
Reveals the explicit ordering of brand elements
Graphically portrays a firms branding strategy

Brand hierarchy levels


Corporate or company brand- The owner
Almost always present for legal reasons
In some cases virtually the only brand used
Can be used with modifier
Sometimes hidden
E.g. Mars Incorporated has various business segments including chocolate, food, drinks and pet care

Family brand
Brand used in more than one product category but not necessarily the company brand
An efficient means to link common associations to multiple but distinct products- lower costs and higher likelihood of
acceptance when marketers apply an existing family brand to a new product
If not carefully considered and designed, the associations to the family brand may become weaker and less favourable
E.g. Mars- Pedigree, M&Ms

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Individual brand
Restricted to essentially one product category
There may be multiple product types offered on the basis of different models, package sizes, flavours
E.g. In the chocolate bar product category, Mars offers Mars, Snickers, Milky Way and Twix
Main advantage: Brand can be customized and all its supporting marketing activity to meet the needs of the specific
customer group
Main disadvantage: Difficulty, complexity, expense of developing separate marketing programs to build sufficient
levels of brand equity

Modifiers
Means to designate a specific item or model type or a particular version or configuration of the product
Can often signal refinements or differences in the brand related to factors such as quality levels, attributes, functions, etc.
Plays an important organising role in communicating how one brand variation relates to others in the same brand family
E.g. Attributes- M&Ms Milk Chocolate, Peanut, Dark Chocolate, Almond, Peanut Butter, Coconut flavours of chocolate
candies

Product descriptors
Helps consumers understand what the product is and does and also helps define the relevant competition in consumers
minds
E.g. M&Ms Snack-sized pieces of chocolate in a colorful candy shell

Ch 12: Introducing and Naming New Products and Brand Extensions

1. Define the different types of brand extensions


Brand extensions
Historically
One brand one product

Currently
Brand extension are not the default option for many consumer goods firms e.g. Apple, Nike, Cadbury

Definitions
Brand extension: Uses an established brand name to introduce a new product e.g. Oral B, toothbrushes and toothpastes
Sub-brand: New brand combined with an existing brand e.g. Virgin, Virgin Active (health clubs) and Virgin Atlantic (flights)
Parent brand: Existing brand that gives birth to a brand extension e.g. Coca Cola and Diet Coke, Coke Zero
Family brand: Parent brand already associated with multiple products through brand extensions e.g. Cadbury Milk dairy milk,
Turkish delight, coconut delight

New products and brand extensions


Brand extension: When a firm uses an established brand name to introduce a new product e.g. Nike moving from
footwear to other sportswear like caps
Brand extension = existing brand + new product
Brand extension variants- line extension and category extension

Line extension
Using a sub-brand to target a new market segment within the same product category
Sub-brand = new brand + existing brand
Involves different flavour or ingredient variety, different form, size or application
E.g. Cold Power laundry powder and their Sensitive Touch line

Category extension
Using the parent brand in a different product category
E.g. Cadbury Caramello chocolate block being used for ice-cream
Family brand = parent brand + new product category

Taubers brand extension matrix


Current category New category
Current brand name Line extension e.g. iPad mini Category extension e.g. iPad
range, tablet category

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New brand name Flanker brand e.g. Cussons New product e.g. Coca Cola and
Radiant to stave off competition Vitamin Water
within the market for its flagship
brand, to maximise market
coverage and shore up its
positioning, they introduced Duo
for its lower end category

General strategies for establishing an extension: Tauber


Introduce the same product in a different form e.g. Pauls milk in different quantities- 2L, 1L and 600mL
Introduce products that contain the brands distinctive taste, ingredient, or component e.g. Haagen-Dazs ice-cream
well-known for creating ice-cream with no emulsifiers and no stabilisers from a tub form to stick form keeping the same
formula
Introduce companion products for the brand e.g. Duracell batteries and their range of safety lights bundled in the
offering
Introduce products relevant to the customer franchise of the brand e.g. Dominos- introducing gluten free and low
carb crust offerings to meet market demand
Introduce products that capitalise on the firms perceived expertise e.g. Kraft Philadelphia- well known for its cream
cheese spread, extended brand into the frosting category which in the consumers minds was not such a leap out from its
traditional product
Introduce products that reflect the brands distinctive benefit, attribute, or feature e.g. Dettol- liquid antiseptic
extend that benefit to laundry trading on the brands distinctive benefit of cleanliness and relaying that into their brand
communications
Introduce products that capitalise on the distinctive image or prestige of the brand e.g. Sergio Tacchini iconic
sports brands into the 70s and 80s, named after a professional tennis player, Italian sports elegance- extended the brand
out to perfumes, jewellery and other sports wear (overextended, bought by a Chinese company and now doing its best to
reclaim its status)

2. List the main advantages and disadvantages of brand extensions

ADVANTAGES OF BRAND EXTENSIONS

Facilitate new product acceptance


Improve brand image
Reduce risk perceived by customers- Consumers know theyre getting e.g. A distinctive Sprite taste for Spite Zero
Increase the probability of gaining distribution and trial- Brand has traction and equity with the consumers, less
resistance to give it a try
Increase efficiency of promotional expenditures
Reduce costs of introductory and follow-up
Marketing programs
Avoid cost of developing a new brand
Allow for packaging and labeling efficiencies
Permit consumer variety seeking

Provide feedback benefits to parent brand


Clarify brand meaning
Enhance the parent brand image
Bring new customers into brand franchise and increase market coverage
Revitalise the brand
Permit subsequent extensions

DISADVANTAGES OF BRAND EXTENSIONS


Can confuse or frustrate consumers e.g. Kraft Philadelphia with Cadbury Chocolate
Can encounter retailer resistance e.g. Vegemite iSnack 2.0 had negative customer sentiments which can come back to
retailer resistance
Can fail and hurt parent brand image e.g. Starbucks extended out to various coffee related categories but they didnt
seem to gain traction with consumers
Can succeed but cannibalise sales of parent brand e.g. Coca Cola and their many offerings can seem to take sales
away from the parent brand
Can succeed but diminish identification with any one category e.g. Virgin, no strong identification and connection in
the category- can be very well stretched across various categories but have loose associations according to research
Can succeed but hurt the image of the parent brand e.g. Gucci brand symbolizes luxury, status, elegance and quality,
Its extension into watches was seen as not being fully in line with the brands image- more of an attempt to move into

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another market and eroded the brands equity due to sloppy manufacturing, countless knock-offs and too many items (not
exclusive)
Can cause the company to forgo the chance to develop a new brand e.g. Successful brand extensions could perhaps
have been built as an entirely new brand around it, with its own unique image and equity- consider benefits Disney
enjoyed from introducing Touchstone Pictures films, which attracted an audience interested in more adult themes and
situations than its traditional family-oriented releases. Introducing a new product as a brand extension can have
significant and potentially hidden costs in terms of lost opportunities of creating a new brand franchise- less flexible as t
as to live up tot the parent brands promise and image

3. Summarise how consumers evaluate extensions and how extensions contribute to parent brand
equity

Consumer response to brand extensions

Understanding how consumers evaluate brand extensions


MANAGERIAL ASSUMPTIONS
1. Consumers have some awareness of and positive associations about the brand in memory
2. At least some of these positive associations are evoked by the brand extension
3. Negative associations are not transferred from the parent brand
4. Negative associations are not created by the brand extension

BRAND EXTENSIONS AND BRAND EQUITY


Salience of parent brand associations in the minds of consumers in the extension context
Favourability of any inferred associations in the extension context
Uniqueness of any inferred associations in the extension context

Contributing to parent brand equity


1. How compelling the evidence is concerning the corresponding attribute or benefit association in the extension context
2. How relevant or diagnostic the extension evidence is concerning the attribute or benefit for the parent brand
3. How consistent the extension evidence is with the corresponding parent brand associations
4. How strong existing attribute or benefit associations are held in consumer memory for the parent brand

4. Outline the key assumptions and success criteria for brand extensions

Successful brand extensions


Create points-of-parity and points-of-difference in extension category
Enhance points-of-parity and points-of-difference of parent brand
Maximise the advantages and minimise the disadvantages of brand extensions

66 well-known, real brand extensions


German FMCG market
Extensions introduced between 1998 2001
Survey questionnaire then SEM

Depends on:
Fit between parent brand and extension product category
Importance of advertising and brand communication in delivering the message back to the potential target
markets
Parent-brand conviction and parent-brand experience
Build CBBE or acquire strong brands
There has to be a positive likability and positive experiences around the parent brand
Retailer acceptance Relative importance of success factors
Marketing support

E.g. Panadol and Panadol Rapid (distinction being the rapid absorption), Lego moving into video games, Apple suite of I-branded
products

Unsuccessful brand extensions


E.g. Colgate and the takeaway meal/frozen meal category, Vegemite extending into iSnack 2.0 which had initial backlash but is
doing reasonably well after being re-branded into Cheesymite

Evaluating brand extensions

1. Define actual & desired consumer knowledge about the brand

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- Critical for marketers to understand the depth and breadth of awareness of the parent brand and the strength,
favourability and uniqueness of its associations
- Must know what is to be basis of positioning and core benefits satisfied by the brand
- Helps identify possible brand extensions and guide decisions that contribute to their success

2. Identify possible extension candidates


- Consider parent brand associations- especially as they relate to brand positioning and core benefits- and product
categories that might seem to fit with that brand image in the minds of consumers

3. Evaluate the potential of the extension candidate


Consumer factors
Corporate-competitive factors
Category factors

4. Design marketing programs to launch extension


Choosing brand elements
Designing optimal marketing program
Leveraging secondary brand associations

5. Evaluate extension success and effects on parent brand equity

Ch 13: Managing Brands over Time

1. Understand the important considerations in brand reinforcement

Reinforcing brands
Generally, brand equity is reinforced through brand awareness and brand image.
Brand equity is enhanced by marketing actions that consistently convey and reinforce the meaning of the brand to
consumers
E.g. BMW- An expression of joy

Brand reinforcement is all about maintaining brand equity; in other words, it is about making sure that the consumers
do have the desired knowledge structures so that the brands continues having its necessary sources of brand equity.
This could be done by marketing activities that would persistently carry the meaning of the brand, to the consumers
which could be in form of brand awareness and brand image

Long term effects of marketing activity on brand equity

Managing brands over time


Effective brand management requires taking a long-term view of marketing decisions
What products does the brand represent?
How does the brand make those products superior?

Considerations for reinforcing brands


1. Maintain brand consistency
Nature and amount of marketing support is critical
Necessary for maintaining brand associations

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But brands can make numerous tactical shifts and changes to maintain brand equity
Yet strategic position must be kept uniform

This helps to enhance brands positive reputation with customers and without it, the meaning of the brand would
vary across its several touch points
Brand consistency leads consumers to get familiarised with the brand and enhance their perception about brand
uniqueness, resulting in brand reputation.

E.g. Coca Colas open happiness proposition across the globe


Omega- They use film celebrities such as Nicole Kidman, George Clooney and Daniel Craig to endorse their watches. They
reinforce the central themes of what omega stand for- prestige, attractiveness, sophisticated imagery

2. Protect sources of brand equity


Preserve and defend existing sources of brand equity
Key sources are of enduring value, signify the brand to the target audience
The value of heritage

E.g. Louis Vuitton- Their monogrammed logo, product attributes i.e. the solid brass locks, come to be seen iconic statement of the
brand, leather casing- sources of brand equity for Louis Vuitton trunks
Tiffany- Tiffany boxes with its white ribbon and distinctive robin egg light blue shade

3. Fortifying versus leveraging


Can design marketing programs that capitalise on or maximise brand awareness and image
Need to ensure existing sources of brand equity arent neglected

E.g. Coles and its extension into insurance- category, Coles Insurance- very well known and trusted into the supermarket
category, they have been able to transfer its trust and authenticity based on its reputation as an iconic Australian brand
Nike Now do all sorts of sportswear, they effectively leverage their sources of equity of high sports performance, brand mantra
of authentic athletic performance

4. Fine-tuning the supporting marketing program


More likely to change specific tactics than strategic brand position and direction
This could be done through improving product related performance associations and non-product related imagery
associations.
This should also be done, only when the current ones are no longer creating the desired results to maintain and
strengthen brand equity
Innovative product design, manufacturing, & merchandising important for product-related performance associations
E.g. Tech industry largely plays up innovation in features and design- iPhone, Nikon cameras
Relevance in user and usage imagery is important for non-product-related associations
E.g. Good taste is about making a statement Diet Coke

2. Describe the range of brand revitalization options to a company

Brand revitalization

Reviving the fortunes of brands that have fallen on hard times or disappeared in order to recapture the lost sources of equity,
which has occurred for various reasons like emergence of new technology or competitors, change in customers taste and
preference.

How do we revitalise once prominent and admired brands?

Marketers should look to original sources of brand equity


Do key PoD and PoP function adequately?
Is the existing positioning still working for the brand?

Brand revitalization strategy


1. Expand depth or breadth of brand awareness, or both, by improving consumer recall and recognition during purchase
or consumption
2. Improve the strength, favourability, and uniqueness of the associations making up brand image

Strategies to revitalize brands


Expanding the depth or breadth of brand awareness or both by improving customer recall and recognition of the brand
during purchase or consumption settings
Breadth challenge- Expand the number of ways it can be used

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Improving strength, favourability and uniqueness of the brand associations making up the brand image
Repositioning the brand
Changing brand elements

3. Outline the various strategies to improve brand awareness and brand image

Tactics to expand brand awareness


Identifying additional or new usage opportunities
Communicate appropriateness and advantages of more frequent brand usage in new or existing situations
E.g. Wrigleys Extra chewing gum advertising touts it as a substitute for smoking

Remind consumers to use the brand as close as possible to situations for which it could be used
E.g. Neutrogenas launch of oil-free acne face wash

Tactics to expand brand image


1. Identifying the appropriate target market
Retain vulnerable customers
Recapture lost customers
Identify neglected segments
Attract new customers

E.g. Allens lollies explicitly targeting parents through nostalgia- having grown up with brand, iconic Australian brand,
identifying to try and revive the brand- hidden with the social and cultural discourses surrounding junk food and marketing to kids

2. Repositioning the brand


Requires more compelling PoDs or firmer PoPs
Problems may arise with heritage brands
May need a new marketing mix

E.g. Kelloggs Cornflakes, The original and the best on the packaging- inclusion of a product modifier on the packaging to help
reposition the brand amongst its other competitors on the supermarket shelf

3. Changing brand elements


Conveys new information or signal new brand meanings
Changing brand names is difficult but may be necessary
Easier to change other elements to remain contemporary

E.g. Pepsi- Incremental changes to its logo throughout the years in regards to cultural sentiment to make it more contemporary
and subtly changing the meaning of the brand
McDonalds- Overt changes to usage of polystyrene packaging for most of its products to cardboard formats in line with broader
discourses around sustainability and environmental friendliness, subtly changes the meaning of the brand to be slightly more eco-
conscious

4. Define the key steps in managing a brand crisis

Managing BE and the brand portfolio requires a long-term view and carefully considering the role of different brands in the
portfolio and their relationships over time. Sometimes a brand refresh just requires cleaning up the brand architecture.

Adjustments to the brand portfolio


Three major strategies
Migration strategies
Acquiring new customers
Retiring brands

BRAND MIGRATION STRATEGIES


Helps consumers to understand how various brands in a portfolio can satisfy their needs as they change over time
Important in rapidly changing, tech-intensive markets
Ideally, brands organised in consumers minds

E.g. BMW- Promote the 1, 3, 5 and 7 series through a hierarchical lens, their brand portfolio is arranged with the intention of
bringing consumers in with the 1 model, consumers trial and experience the brand, building resonance and an affinity with the
brand and moving to the more expensive, executive models throughout time as income, lifestyle and status grows

ACQUIRING NEW CUSTOMERS


Some customers inevitably leave the brand franchise

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Firms must develop strategies to attract new customers


Challenge in making the brand relevant across different generations, cohorts, and lifestyles

E.g. Old Spice expanded its brand portfolio through category extension with its Old Spice High Endurance gel deodorants (not
only aftershave and fragrances), Qantas introducing the flanker brand, Jetstar through brand extension were able to attain
customers through the budget category while protecting the flagship brand in the domestic market

RETIRING BRANDS
Downscaling the financial and branding commitment to the brand
Sources of brand equity may have diminished or have been damaged
Can rationalise product lines e.g. Blackberry- Had major financial issues over the last 3 years, rationalised its product
line from 6 to 4 product models, question marks over whether it will be revitalised or discontinued
Product discontinuance e.g. VB introduced VB Raw to target the low carb segment of the beer market in 2009, it was
rejected by consumers and subsequently shelved as the brand equity stored up in VB brand was around working class
masculinity which was not congruent to the Raw low carb offering

Ch 14: Managing Brands over Geographic Boundaries and Market


Segments
1. Understand the rationale for developing a global brand
Globalisation vs. regionalization
Globalisation: When a brand is looking to take their offerings into the global marketplace
Regionalization: Keeping the brand local- tailoring local strategies for its local audience

Discourses
- Inner city vs. suburbs
- Educated cities vs. less educated regions
- Flexible lifestyles vs. traditional family lifestyles
- Big country vs. small country
- Transnational (urban, mobile, elite) vs. national identity

Regional market segments


Regionalisation is an important recent trend that, perhaps on the surface, seems to run counter to globalisation
Global market program cannot over he micro targets within a particular geography

Reasons for regional marketing


Need for more focused targeting toward particular market segments
The shift from national advertising to localised promotion

Many Australian brands will have different communication offers to different states. Each state has a different cultural
sentiment; different things attract people in Sydney to Melbourne and Brisbane

Drawbacks
Production headaches- continually having to tailor the offerings to work at not only a national level but a state
level e.g. Target working at also a city level with their stores
Marketing efficiency may suffer and costs may rise- More production time, more brand communication effort
across different geographies

E.g. McDonalds in India- Cow are sacred animals, beef is not eaten by the majority Hindu population, pork is not eaten by the
significantly large Muslim population therefore McDonalds in India generally goes for a more chicken based menu to be
consistent with these views

Starbucks in Australia- In 2007 they had 84 stores in the country, they went in hard and opened up many stores promoting the idea
of an urban Americanized caf coffee experience which worked to some extent in the capital cities but didnt take hold in the
suburban areas. In 2008 they decided to close 61 of them as they found that they had misread the coffee culture in Australia and
this spurred the action of ceasing the operation of unprofitable outlets which left the stores in the major capital cites where
Starbucks expectedly would strive in this globalized transnational, urban brand notion

Other demographic and cultural segments


Important for marketers to consider age, ethnicity and gendered segments and how potential consumers can be brought
into the consumer franchise

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E.g. Age- McDonalds in the US markets were neglecting the aged market- an untapped source of revenue and neglecting to tell
the seniors market that instead of going to a Starbucks or other global coffee chains, they can go to McDonalds experience some
of the same experiences. Localised to the US senior market.

Race- Tourism Australia partnered up with China Southern Airlines, a strategic joint venture to try to tap into the increasingly
affluent Chinese urban market and bring more Chinese tourists to Australia

Glocalization: Structures of common difference


Local plus global coming together to produce a variant or hybrid consumer culture that is calibrated to local, regional audiences
Tension between global and local culture
Hybridised, glocalised

Global cultural flows operate through five domains


People
Technology
Finance and capital
Media images
Ideas and ideologies

Rationale for going international


Perception of slow growth and increased competition in domestic markets e.g. Samsung- it decided to move out into
other markets from Korea
Belief in enhanced overseas growth and profit opportunities e.g. Hilton Hotels- Started off in Texas and Conrad Hilton
recognised the need for his brands offering to move overseas and position the brand as a high-end, luxury hotel
Desire to reduce costs from economies of scale
Need to diversify risk
Recognition of global mobility of customers e.g. Subway very much operates in the transnational market economy,
recognises people move around the world- people will recognise the Subway brand and they know what they are going to
receive

2. Outline the main advantages and disadvantages of developing a standardized global marketing
program

ADVANTAGES OF GLOBAL MARKETING PROGRAMS


Economies of scale in production and distribution-
Lower marketing costs
Power and scope
Consistency in brand image
Ability to leverage good ideas quickly and efficiently
Uniformity of marketing practices

DISADVANTAGES OF GLOBAL MARKETING PROGRAMS


Differences in consumer needs, wants, and usage patterns for products
Differences in consumer response to branding elements
Differences in consumer responses in marketing mix elements
Differences in brand and product development and the competitive environment
Differences in the legal environment
Differences in marketing institutions
Differences in administrative procedures

3. Define the strategic steps in developing a global brand positioning

Global brand strategy


Necessary to create different marketing programs to address different market segments

Identify differences in consumer behaviour


How they purchase and use products
What they know and feel about brands- would they be willing to entertain another entrant into that category for
example

E.g. H&M- Fast fashion organisation, conducted detailed consumer research into the Australian market, have tailored their
offering to the local Australian fashion climate

Adjust branding program accordingly through:


Choice of brand elements

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Nature of supporting marketing program


Leverage of secondary associations

E.g. McDonalds ad used in US markets targeting seniors- To work for the Australian market, the accent and some of the language
to be changed, cultural practices around seniors and relationships to be fine-tuned and made acceptable for an Australian market

Developed vs. developing markets


Applicability- Product must suit local culture. Heinz ketchup has a slightly sweet taste in the United States but
in certain European countries, it is available in hot, Mexican and curry flavours. In the Philippines, it includes
bananas as an ingredient.

Availability- Product must be sold in channels that are relevant to the local population. In Indonesia, two-thirds
of people buy food in tiny grocery stores or open-air markets, so Heinz must be there.

Affordability- Product cant be priced out of the target markets range. To meet consumer budget constraints in
emerging markets, Heinz employs different packaging sizes or recipes. In Indonesia, it sells billions of small
packets of soy sauce for 3 cents apiece.

Standardization vs. customization


Ted Levitt (1983)
World is shrinking
Leaps in technology, communication

Well-managed companies should shift their emphasis from customising items to offering globally standardized products
that are advanced, functional, reliable, and low priced for the global market

Blending global objectives with local or regional concerns


Think global. Act local.

A global brand has a clear, consistent equity across geographies: same positioning, same benefits plus local tailoring if
needed e.g. Coca Cola- consumers know what they are going to get

4. Describe some of the unique characteristics of brand building in global markets like India and
China

Global customer-based brand equity


Similarities and differences in the global branding landscape
Brand building
Establish marketing infrastructure
Embrace IMC
Cultivate brand partnerships
Balance standardisation and customisation
Balance global and local control
Operable guidelines
Global brand equity measurement system
Leverage brand elements e.g. McDonalds- Golden arches, Apple and its apple logo- speaks for the brand across
geographies

BRAND MANAGEMENT OVERVIEW



Strategic brand management
Building
- Complementarity e.g. One brand element covers up the weaknesses of another, or one brand elements has a sense of
affinity with one target audience and a jingle for example, has an affinity with another
- Consistency e.g. Coca Cola and its brand elements- remains the same across its brand portfolio (logo)

Measuring
- Measurement system
- Full suite of research techniques (qualitative and quantitative)

Managing
- Maintain balance
- Making changes over time and space (geographies) e.g. new distribution channels in line with changing consumer
sentiments

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CBBE defined as:


Differential effect
of customer brand knowledge
on consumer responses to brand marketing

Kellers CBBE model


Customer-based brand equity (CBBE)
Brand knowledge (consumers knowledge about the brand)- Ideas, feelings, opinions, experiences
Brand awareness- Aspects that make the brand salient in the consumers mind
Brand recognition
Brand recall
Brand image- Ideas that we bring to the brand, whether directly authored by brand managers or we do
or popular culture author it for us
Brand associations (strong, favourable & unique)

Outcomes of brand equity


Improved perceptions of product performance e.g. Diamond Shreddies changed the orientation of the shape of the
biscuit and people thought it tastes better (boring to exciting)
Greater customer loyalty
Lower vulnerability to competition e.g. Helgas bread- Positions itself at the upper end of the market, by doing so it is
able to stave off lower end competition when supermarket giants are involved in a bread and milk price war
Lower vulnerability to marketing crises e.g. Philip Morris (tobacco company) owned up to 80% share in Kraft Foods,
by separating out their brand portfolios and reinforcing Krafts equity around food and health, they were able to separate
off any potential controversy from the links of ownership through the tobacco company
Higher margins e.g. Weetbix High fibre cereal- A high of equity within its market means its able to charge a price
premium over and above its competitors
More inelastic response to price increases
More elastic response to price decreases
Greater trade cooperation e.g. Samsung Galaxy IV- It enjoys a high level of favourability with its target audience
demand for the product, that means trade distribution channels are more favourable to stock the item
Increased marketing communication effectiveness
Possible licencing opportunities
Brand extension opportunities e.g. Snickers from chocolate bars to ice-cream bars, Special K breakfast cereals to low
fat cracker chips

BUILDING STRONG BRANDS


What makes a strong brand?
Brand strength
Understanding brand meaning
Live up to brand expectations to the target audiences e.g. through product quality, distribution channels
Adequately support brand
Patience with the brand
Adequately control the brand
Balance consistency and change- Maintain authenticity to the brand meaning and stretching that meaning to new
offerings e.g. Coke and Cherry Coke
Understand brand equity measurement and management

FUTURE BRAND PRIORITIES


Brand management: The future
1. The consumer in the branding function
Customer diversity- Understanding that a brand can have different target audiences
Customer empowerment- Important to understand that consumers dont always want to engage with firms,
recognise what audiences want to be empowered and which ones dont -> relates to cost effectiveness

2. Transcend product performance and rational benefits


Functional and psychological / social benefits

3. Marketing programs should be greater than the sum of the parts


Use of social media

4. Where can the brand go (and whats the roadmap)?


Brand potential
Brand extensions
Brand elements

5. Brands and social responsibility

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Importance of cause marketing


Fortifying brand equity

6. The big picture of branding effects


Justifying brand investments
Achieving deep brand understanding
Brands emplaced in a global world
















































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MKTG 311 Brand Management Pop Quiz Questions and Answers


1. The five levels of meaning for a product are:

1. Core benefit
2. Generic product
3. Expected product
4. Augmented product
5. Potential product

2. Recent developments that have complicated marketing practice and challenge brand managers are:

1. Savvy customers
2. Economic downturns
3. Brand proliferation
4. Media transformation & fragmentation
5. Increased competition
6. Increased costs
7. Greater accountability

3. Customer based brand equity can be formally defined as:

The differential effect that brand knowledge has on consumer response to the marketing of that brand.

4. List three advantages of brand awareness

- Consideration set advantages


- Choice advantages
- Consumer learning advantages

5. What are the four steps of brand building? POSSIBLE EXAM QUESTION

a. Brand identity
b. Brand meaning
c. Brand response
d. Brand relationship

6. What are the six sub-dimensions of the brand resonance pyramid?

a. Salience
b. Performance
c. Imagery
d. Judgements
e. Feelings
f. Resonance

7. What are the six criteria for choosing brand elements?

a. Memorable
b. Meaningful
c. Likable
d. Transferable
e. Adaptable
f. Protectable

8. The entire set of brand elements for a brand makes up its __________

Brand identity

9. Two major ways to set a discount-pricing policy are:

a. Value pricing
b. Everyday low pricing

10. Two major channel design types are:

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a. Indirect channels
b. Direct channels

11. Four ingredients vital to the best brand-building communication programs are:

a. Advertising and promotion


b. Interactive marketing
c. Events and experiences
d. Mobile marketing

12. List three of the 6 Cs, the relevant criteria for creating an effective and efficient communications program

a. Coverage
b. Contribution
c. Commonality
d. Complementarity
e. Conformability
f. Cost

13. The eight ways that secondary brand associations can be linked to the brand are:

a. Companies
b. Countries or other geographic areas
c. Channels of distribution
d. Other brands (co-branding)
e. Characters
f. Spokespeople
g. Events
h. Other 3rd party sources such as awards

14. Three important factors help predict the extent of leveraging of one brand to another:

a. Awareness and knowledge of entity


b. Meaningfulness of the knowledge of the entity
c. Transferability of the knowledge of the entity

15. BRAND TRACKING STUDIES collect information form consumers on a routine basis over time, usually through
quantitative measures of brand performance on a number of key dimensions that marketers can identify in the brand
audit.

16. A BRAND EQUITY MEASUREMENT SYSTEM is a set of research procedures designed to provide marketers with
timely, accurate and actionable information about brands so that they can make the best possible tactical decisions in the
short run and strategic decisions in the long run.

17. Quantitative measures of brand knowledge can be made along four dimensions:

a. Brand awareness
b. Brand image
c. Brand responses
d. Brand relationships

18. PROJECTIVE TECHNIQUES are diagnostic tools to uncover the true opinions and feelings of consumers when they are
unwilling or otherwise unable to express themselves on these matters.

Questions 15-18: All linked to research- measurement

19. Two types of comparative methods to examine consumer attitudes or behaviour are:

a. Brand-based approaches
b. Marketing-based approaches

20. Two types of holistic methods are used to place an overall value on a brand:

a. Residual approaches
b. Valuation approaches

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21. The three steps involved in developing a brand architecture strategy are: POSSIBLE EXAM QUESTION, linked to
question 24

a. Defining the brand potential


b. Identifying brand extension opportunities
c. Branding new products and services

22. The five levels in a brand hierarchy are:

a. Corporate or company brand


b. Family brand
c. Individual brand
d. Brand modifier
e. Product description

23. CATEGORY EXTENSION is when marketers apply the parent brand to enter a different product category from the
one it currently serves

24. List five ways through which marketers can evaluate brand extension opportunities POSSIBLE EXAM QUESTION

a. Define actual and desired consumer knowledge about the brand


b. Identify possible extension candidates
c. Evaluate the potential of the extension candidate
d. Design marketing programs to launch extension
e. Evaluate extension success and effects on parent brand equity

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