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CHAPTER 9: MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET. Kevin Lane Keller Tuck School of Business Dartmouth College. Qualitative Research Techniques. Free association What do you like best about the brand? What are its positive aspects?

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chapter 9 measuring sources of brand equity capuring customer mindset
CHAPTER 9: MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET

Kevin Lane Keller

Tuck School of Business

Dartmouth College

qualitative research techniques
Qualitative Research Techniques
  • Free association
    • What do you like best about the brand? What are its positive aspects?
    • What do you dislike? What are its disadvantages?
    • What do you find unique about the brand? How is it different from other brands? In what ways is it the same?
free associations
Free Associations

ATTRIBUTES

User Imagery

Usage Imagery

Western, American,

blue collar, hard-working,

traditional, strong,

rugged, and masculine

Product-Related

Appropriate for outdoor

work and casual social

situations

Blue denim, shrink-to-fit

cotton fabric, button-fly,

two-horse patch,

and small red pocket tag

Brand Personality

Honest, classic,

Contemporary, approachable,

independent, and universal

LEVI’S

501

High quality, long lasting,

and durable

Feelings of self-confidence

and self-assurance

Comfortable fitting

and relaxing to wear

Functional

Symbolic

Experiential

BENEFITS

qualitative research techniques4
Qualitative Research Techniques
  • Projective techniques
    • Diagnostic tools to uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves on these matters
projective techniques
Projective Techniques
  • Consumers might feel that it would be socially unacceptable to express their true feelings
  • Projective techniques are diagnostic tools to uncover the true opinions and feelings of consumers
  • Examples:
    • Completion and interpretation tasks
    • Comparison tasks
projective techniques6
Projective Techniques
  • Word association tests
  • Sentence completion method
  • Third-person technique
  • Role playing
  • T.A.T.
  • Picture frustration version of T.A.T.
expressive techniques
Expressive Techniques

In expressive techniques, respondents are presented with a verbal or visual situation and asked to relate the feelings and attitudes of other people to the situation.

Role playing. Respondents are asked to play the role or assume the behavior of someone else.

Third-person technique. The respondent is presented with a verbal or visual situation and the respondent is asked to relate the beliefs and attitudes of a third person rather than directly expressing personal beliefs and attitudes. This third person may be a friend, neighbor, colleague, or a “typical” person.

word association
Word Association
  • Subject is presented with a list of words
  • Asked to respond with first word that comes to mind
word association examples
GREEN

Money

Lawn

Eggs and Ham

Word Association Examples
word association11
Word Association

EXAMPLE

STIMULUSMRS. MMRS. C washday everyday ironing fresh and sweet clean pure air soiled scrub don't; husband does clean filth this neighborhood dirt bubbles bath soap and water family squabbles children towels dirty wash

completion techniques
Completion Techniques

In sentence completion, respondents are given incomplete sentences and asked to complete them. Generally, they are asked to use the first word or phrase that comes to mind.

A person who shops at Sears is ______________________

A person who receives a gift certificate good for Sak's Fifth Avenue would be __________________________________

J. C. Penney is most liked by _________________________

When I think of shopping in a department store, I ________

A variation of sentence completion is paragraph completion, in which the respondent completes a paragraph beginning with the stimulus phrase.

slide13

Sentence Completion

People who drink beer are ______________________

A man who drinks light beer is ___________________

Imported beer is most liked by ___________________

A woman will drink beer when____________________

completion techniques14
Completion Techniques

Insentence completion, respondents are given incomplete sentences and asked to complete them. Generally, they are asked to use the first word or phrase that comes to mind.

A person who shops at Sears is ______________________

A person who receives a gift certificate good for Sak's Fifth Avenue would be __________________________________

J. C. Penney is most liked by _________________________

When I think of shopping in a department store, I ________

A variation of sentence completion is paragraph completion, in which the respondent completes a paragraph beginning with the stimulus phrase.

completion techniques15
Completion Techniques

In story completion, respondents are given part of a story – enough to direct attention to a particular topic but not to hint at the ending. They are required to give the conclusion in their own words.

construction techniques
Construction Techniques

With a picture response,the respondents are asked to describe a series of pictures of ordinary as well as unusual events. The respondent's interpretation of the pictures gives indications of that individual's personality.

In cartoon tests, cartoon characters are shown in a specific situation related to the problem. The respondents are asked to indicate what one cartoon character might say in response to the comments of another character. Cartoon tests are simpler to administer and analyze than picture response techniques.

a cartoon test

Figure 5.4

Sears

Let’s see if we can pick up some house wares at Sears.

A Cartoon Test
thematic apperception test tat
Thematic Apperception Test (TAT)
  • Construct a story about what you see on the following picture

Describe:

- what led up to the scene

- what is happening

- what the characters in the story might think or feel

- how the story will end

new approach zmet
New approach: ZMET
  • Zaltman Metaphor Elicitation Technique (ZMET)
  • ZMET is “a technique for eliciting interconnected constructs that influence thought and behavior.”
slide21
ZMET
  • The guided conversation consists of a series of steps that includes some or all of the following:
    • Story telling
    • Missed images
    • Sorting task
    • Construct elicitation
    • The most representative picture
    • Opposite images
    • Sensory images
    • Mental map
    • Summary image
    • Vignette
slide22
ZMET
  • Step 1. Storytelling: Participants describe the content of each picture.
  • Step 2. Missed Image: Participants describe the picture or pictures that he orshe was unable to obtain and explain their relevance.
  • Step 3. Sorting Task: Participants sort pictures into meaningful groups andprovide a label or description for each group.
    • Step 4. Construct elicitation: Participants sort pictures into meaningful groups andprovide a label or description for each group.
  • Step 5. The Most Representative Picture: Participants indicate which picture is mostrepresentative.
  • Step 6. Opposite Images: Participants indicate picture that describe theopposite of the brand or the task that they were given.
  • Step 7. Sensory Images: Participants indicate what does or does not describethe concept in terms of color, emotion, sound, smell, taste, and touch.
slide23
ZMET
  • Step 8. Mental Map: After reviewing the entire construct discussed andasking Participants if the constructs are accurate representations ofwhat was meant and if any important ideas are missing, Participantscreate a map or causal model connecting the constructs that havebeenelicited.
  • Step 9. Summary Images: Participants create a summary image or montageusing their own images (sometimes augmented by images from animages from an image bank) to express important issues. DigitalImaging techniques may be employed to facilitate the creation of theimage.
  • Step 10. Vignette: Participants put together vignette or short video to helpcommunicateimportantissues.
brand personality and values
Brand Personality and Values
  • Brand personality refers to the human characteristics or traits that can be attributed to a brand.
  • The Big Five
    • Sincerity (down-to-earth, wholesome, and cheerful)
    • Excitement (daring, spirited, imaginative, and up-to-date)
    • Competence (reliable, intelligent, and successful)
    • Sophistication (upper class and charming)
    • Ruggedness (outdoorsy and tough)

Jennifer Aaker, 1997

identifying key brand personality associations
Identifying Key Brand Personality Associations

BUSH KERRY

  • Coffee Dunkin’ Donuts Starbucks
  • Technology IBM Apple
  • Auto Ford BMW
  • Retail Kmart Target
  • Fast Food McDonald’s Subway

2004 U.S. presidential election, random sample of undecided voters

experiential methods
Experiential Methods
  • By tapping more directly into their actual home, work, or shopping behaviors, researchers might be able to elicit more meaningful responses from consumers.
  • Advocates of the experiential approach have sent researchers to consumers’ homes in the morning to see how they approach their days, given business travelers Polaroid cameras and diaries to capture their feelings when in hotel rooms, and conducted “beeper studies” in which participants are instructed to write down what they’re doing when they are paged.
quantitative research techniques
Quantitative Research Techniques
  • Awareness
  • Image
  • Brand responses
  • Brand relationships
awareness
Awareness
  • Recognition
    • Ability of consumers to identify the brand (and its elements) under various circumstances
  • Recall
    • Ability of consumers to retrieve the actual brand elements from memory
    • Unaided vs. aided recall
awareness29
Awareness
  • Corrections for guessing
    • Any research measure must consider the issue of consumers making up responses or guessing.
  • Strategic implications
    • The advantage of aided recall measures is that they yield insight into how brand knowledge is organized in memory and what kind of cues or reminders may be necessary for consumers to be able to retrieve the brand from memory.
    • The important point to note is that the category structure that exists in consumers’ minds—as reflected by brand recall performance—can have profound implications for consumer choice and marketing strategy.
image
Image
  • Ask open-ended questions to tap into the strength, favorability, and uniqueness of brand associations.
  • These associations should be rated on scales for quantitative analysis.
brand responses
Brand Responses
  • Research in psychology suggests that purchase intentions are most likely to be predictive of actual purchase when there is correspondence between the two in the following categories:
  • Purchase Intentions
    • Action (buying for own use or to give as a gift)
    • Target (specific type of product and brand)
    • Context (in what type of store based on what prices and other conditions)
    • Time (within a week, month, or year)
brand relationships
Brand Relationships
  • Behavioral loyalty
  • Brand substitutability
  • Other brand resonance dimensions
    • For example, in terms of engagement, measures could explore word-of-mouth behavior, online behavior, and so forth in depth
comprehensive models of customer based brand equity
Comprehensive Models of Customer-Based Brand Equity
  • Brand dynamics
  • Equity engines
  • Young & Rubicam’s Brand Asset Valuator (BAV)
brand dynamics
Brand Dynamics
  • The Brand Dynamics model adopts a hierarchical approach to determine the strength of relationship a consumer has with a brand.
  • The five levels of the model are:
    • Presence
    • Relevance
    • Performance
    • Advantage
    • Bonding
equity engines
Equity Engines
  • This model delineates three key dimensions of brand affinity—the emotional and intangible benefits of a brand—as follows:
    • Authority: The reputation of a brand, whether as a long-standing leader or as a pioneer in innovation
    • Identification: The closeness customers feel for a brand and how well they feel the brand matches their personal needs
    • Approval: The way a brand fits into the wider social matrix and the intangible status it holds for experts and friends
young rubicam s brand asset valuator bav
Young & Rubicam’s Brand Asset Valuator (BAV)
  • There are five key components of brand health in BAV—the five pillars.
  • Each pillar is derived from various measures that relate to different aspects of consumers’ brand perceptions and that together trace the progression of a brand’s development.
    • Differentiation
    • Energy
    • Relevance
    • Esteem
    • Knowledge
brandasset valuator bav
BrandAsset® Valuator (BAV)
  • 240,000+ consumers
  • Up to 181 categories
  • 137 studies
  • 40 countries
  • 8 years
  • 56 different brand metrics
  • Common methodology
slide38

How Brands Are Built

Four Primary Aspects

  • The culmination of brand building efforts;
  • acquisition of consumer experience

Knowledge

Esteem

  • Consumer respect, regard, reputation; a
  • fulfillment of perceived consumer promise

Relevance

  • Relates to usage and subsumes the five Ps of
  • marketing; relates to sale

Differentiation

  • The basis for consumer choice; the essence of
  • the brand, source of margin
healthy brands have greater differentiation than relevance
Healthy Brands Have Greater Differentiation than Relevance

D > R

100

90

Examples:

Harley Davidson

Yahoo!

AOL

Williams-Sonoma

Ikea

Bloomberg Business News

80

70

60

50

40

30

20

10

0

Differentiation

Relevance

Roomto grow...

Brand has power to build relevance.

brands with greater relevance than differentiation are in danger of becoming commodities
Brands with greater Relevance than Differentiation Are in Danger of Becoming Commodities

R > D

100

90

Examples:

Exxon

Mott’s

McDonald’s

Crest

Minute Maid

Fruit of the Loom

Peter Pan (peanut butter)

80

70

60

50

40

30

20

10

0

Differentiation

Relevance

Uniqueness has faded; price becomes dominant reason to buy.

more esteem than knowledge means i d like to get to know you better
More Esteem than Knowledge Means, “I’d like to get to know you better”

E > K

100

90

Examples:

Coach leatherwear

Tag Heuer

Calphalon

Movado

Blaupunkt

Pella Windows

Palm Pilot

Technics

80

70

60

50

40

30

20

10

0

Knowledge

Esteem

Brand is better liked than known.

too much knowledge can be dangerous i know you and you re nothing special

K > E

100

90

80

70

60

50

40

30

20

10

0

Esteem

Knowledge

Too Much Knowledge Can Be Dangerous:“I know you and you’re nothing special”

Examples:

Plymouth

TV Guide

Spam

Woolworths

Chrysler

Maxwell House

National Enquirer

Sanka

Brand is better known than liked.

a two dimensional framework for diagnosing brands the power grid

Brand Strength

Brand Stature

Esteem

Knowledge

Differentiation

Relevance

Leading

Lagging

A Two-Dimensional Framework for Diagnosing Brands: The Power Grid

BrandAsset®Valuator

brand health is captured on the powergrid
Brand Health Is Captured on the PowerGrid

Power Leaders

Niche/

Unrealized Potential

Declining

Leaders

BRAND STRENGTH

(Differentiation and Relevance)

Eroded

New

Unfocused

BRAND STATURE

(Esteem and Knowledge)

Base: USA Total Adults BAV 2000

usa 1999 powergrid sample
USA 1999 PowerGrid Sample

100

Arizona Iced Tea

Aeropostale

Newman’s Own

Sundance Channel

DreamWorks

Bloomberg Business News

CDnow

IKEA

Coca-Cola

Ocean Spray

Nike

Pepperidge Farm

M&Ms

Disney

Jeopardy!

Hallmark

80

60

BRAND STRENGTH

Plymouth

Bazooka

Ivory Snow

Pert

Rolaids

Keds

Howard Johnson

TWA

Greyhound

San Pellegrino

Sun Microsystems

Wired

Quest Telecomm

Nokia

iVillage.com

NetGrocer

Iridium

40

20

0

0

20

40

60

80

100

BRAND STATURE

Base: USA Total Adults BAV 1999

y r resonance research
Y&R Resonance Research

Resonance

(10%)

Community

Engagement

15%

Attachment (30%)

Loyalty (60%)

Usage

Base: 2001 BAV Data

y r resonance research with bav
Y&R Resonance Research with BAV

Resonance

Resonance

100

Engaged

Community

Attached

Engaged

Loyal

Differentiation

Community

Non-Loyals

50

Brand Strength

Attached

Loyal Users

Non-Loyal Users

0

0

50

100

Brand Stature

Base: BAV USA Adults 2001

slide48

7%

Bonded

38%

32%

Advantage

20%

35%

Performance

19%

43%

Relevance

17%

76%

Presence

13%

Average U.S. Packaged Goods Brand

Consumer

Loyalty

Proportion

of Consumers

commonalty between the basic bav model and the cbbe framework
Commonalty Between the Basic BAV Model and the CBBE Framework
  • BAV’s knowledge relates to CBBE’s brand awareness and familiarity.
  • BAV’s esteem relates to CBBE’s favorability of brand associations.
  • BAV’s relevance relates to CBBE’s strength of brand associations (as well as perhaps favorability).
  • BAV’s energy relates to CBBE’s favorability of associations.
  • BAV’s differentiation relates to CBBE’s uniqueness of brand associations.
chapter 10 measuring outcomes of brand equity capuring market performance
CHAPTER 10: MEASURING OUTCOMES OF BRAND EQUITY: CAPURING MARKET PERFORMANCE

Kevin Lane Keller

Tuck School of Business

Dartmouth College

measuring brand equity
Measuring Brand Equity
  • Multi-dimensional concept
  • Many different measures required
  • The ultimate value of a brand depends on the underlying components of brand knowledge and sources of brand equity
comparative methods
Comparative Methods
  • Brand-based comparative approaches
  • Marketing-based comparative approaches
  • Conjoint analysis
brand based approaches
Brand-Based Approaches
  • The marketing element under consideration is fixed.
  • Consumer response is examined based on changes in brand identification.
  • Application example: Blind testing
  • Advantage: Isolates the value of the brand
  • Disadvantage: The totality of what is learned depends on how many applications are examined.
marketing based approaches
Marketing-Based Approaches
  • The brand is held fixed and consumer response is examined based on changes in marketing programs.
  • Applications: Explore price premiums’ effect on switching, consumer evaluations of marketing activities, brand extensions, etc.
  • Advantage: Ease of implementation
  • Disadvantage: Difficult to determine whether consumer responses are caused by brand knowledge or generic product knowledge
conjoint analysis
Conjoint Analysis
  • A survey-based multivariate technique that enables marketers to profile the consumer decision process with respect to products and brands
  • Helps researchers determine the trade-offs consumers make between brand attributes
  • Applications: Assess advertising effectiveness and brand value; analyze brand/price trade-off
  • Advantage: Allows for different brands or different aspects of the product to be analyzed simultaneously
  • Disadvantage:May violate consumers’ expectations based on what they already know about brands
holistic methods
Holistic Methods
  • 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
  • Holistic methods:
    • Residual approaches
    • Valuation approaches
residual approaches
Residual Approaches
  • Examine the value of the brand by subtracting consumers’ preferences based on physical product attributes alone from their overall brand preferences
  • Advantage: Useful benchmark for interpreting brand equity, especially from a financially oriented perspective
  • Disadvantage: Static view. Limited diagnostic value for strategic decision making
valuation approaches
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
  • Valuation approaches:
    • Accounting background
    • Historical perspectives
    • General approaches
    • Interbrand’s brand valuation methodology
accounting background
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
Historical Perspectives
  • In Australia Rupert Murdoch’s News Corporation included a valuation of some of its magazines on its balance sheets in 1984.
  • British firms used brand values primarily to boost their balance sheets.
  • In the United States, generally accepted accounting principles mean that placing a brand on the balance sheet would require amortization of that asset for up to 40 years. Such a charge would severely hamper firm profitability; as a result, firms avoid such accounting maneuvers.
general approaches
General Approaches
  • In determining the value of a brand in an acquisition or merger, firms can choose from three main approaches:
    • Cost approach: Brand equity is the amount of money that would be required to reproduce or replace the brand
    • Market approach: The present value of the future economic benefits to be derived by the owner of the asset
    • Income approach: The discounted future cash flow from the future earnings stream for the brand
interbrand s brand valuation
Interbrand’s Brand Valuation
  • Assumes that brand value is the present worth of the benefits of future ownership
  • Follows five valuation steps:
    • Market segmentation
    • Financial (role of branding) analysis
    • Demand (brand strength) analysis
    • Competitive benchmarking
    • Brand value calculation
  • Brand value calculation : Calculate the brand value as the net present value (NPV) of the forecast brand earnings, discounted by the brand discount rate
interbrand s brand valuation64
Interbrand’s Brand Valuation

1. Market segmentation. Brands influence customer choice, but the influence varies depending on the market in which the brand operates. The brand is valued in each segment and the sum of the segment valuations constitutes the total value of the brand.

2. Financial analysis. Identify and forecast revenues and earnings from intangibles generated by the brand for each of the distinct segments determined in Step 1. Intangible earnings are defined as brand revenue less operating costs, applicable taxes and a charge for the capital employed. The concept is similar to the notion of economic profit.

interbrand s brand valuation65
Interbrand’s Brand Valuation

3. Demand analysis. Assess the role that the brand plays in driving demand for products and services in the markets in which it operates, and determine what proportion of intangible earnings is attributable to the brand measured by an indicator referred to as the “role of branding index.” This is done by first identifying the various drivers of demand for the branded business, then determining the degree to which each driver is directly influenced by the brand. The role of branding index represents the percentage of intangible earnings that are generated by the brand. Brand earnings are calculated by multiplying the role of branding index by intangible earnings.

interbrand s brand valuation66
Interbrand’s Brand Valuation

4. Competitive benchmarking. Determine the competitive strengths and weaknesses of the brand to derive the specific brand discount rate that reflects the risk profile of its expected future earnings (this is measured by an indicator referred to as the “brand strength score”). This comprises extensive competitive benchmarking and a structured evaluation of the brand’s market, stability, leadership position, growth trend, support, geographic footprint and legal protectability.

5. Brand value calculation. Brand value is the net present value (NPV) of the forecast brand earnings, discounted by the brand discount rate. The NPV calculation comprises both the forecast period and the period beyond, reflecting the ability of brands to continue generating future earnings.

chapter 11 designing and implementing branding strategies
CHAPTER 11: DESIGNING AND IMPLEMENTING BRANDING STRATEGIES

Kevin Lane Keller

Tuck School of Business

Dartmouth College

branding strategy
Branding strategy
  • Branding strategy is critical because it is the means by which the firm can help consumers understand its products and services and organize them in their minds.
  • Two important strategic tools: The brand-product matrix and the brand hierarchy help to characterize and formulate branding strategies by defining various relationships among brands and products.
branding strategy or brand architecture
Branding Strategy or Brand Architecture
  • The branding strategy for a firm reflects the number and nature of common or distinctive brand elements applied to the different products sold by the firm.
    • Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products
the role of brand architecture
The role of Brand Architecture
  • Clarify: brand awareness
    • Improve consumer understanding and communicate similarity and differences between individual products
  • Motivate: brand image
    • Maximize transfer of equity to/from the brand to individual products to improve trial and repeat purchase
brand product matrix

Products

1

2

3

4

A

Brands

B

C

Brand-Product Matrix
  • Must define:
    • Brand-Product relationships (rows)
      • Line and category extensions
    • Product-Brand relationships (columns)
      • Brand portfolio
important definitions
Important Definitions
  • Product line
    • A group pf products within a product category that are closely related
  • Product mix (product assortment)
    • The set of all product lines and items that a particular seller makes available to buyers
  • Brand mix (brand assortment)
    • The set of all brand lines that a particular seller makes available to buyers
breadth of a branding strategy
Breadth of a Branding Strategy
  • Breadth of product mix
    • Aggregate market factors
    • Category factors
    • Environmental factors
  • Depth of product mix
    • Examining the percentage of sales and profits contributed by each item in the product line
    • Deciding to increase the length of the product line by adding new variants or items typically expands market coverage and therefore market share but also increases costs
depth of a branding strategy
Depth of a Branding Strategy
  • The number and nature of different brands marketed in the product class sold by a firm
  • Referred to as brand portfolio
  • The reason is to pursue different market segments, different channels of distribution, or different geographic boundaries
  • Maximize market coverage and minimize brand overlap
designing a brand portfolio
Designing a Brand Portfolio
  • Basic principles:
    • Maximize market coverage so that no potential customers are being ignored
    • Minimize brand overlap so that brands aren’t competing among themselves to gain the same customer’s approval
brand roles in the portfolio
Brand Roles in the Portfolio
  • Flankers: Flanker or "fighter" brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.
  • Cash cows: Some brands may be kept around despite dwindling sales because they still manage to hold on to a sufficient number of customers and maintain their profitability with virtually no marketing support. These "cash cow" brands can be effectively "milked" by capitalizing on their reservoir of existing brand equity.
brand roles in the portfolio78
Brand Roles in the Portfolio
  • Low-end entry-level: The role of a relatively low-priced brand in the brand portfolio often may be to attract customers. Retailers like to feature these "traffic builders" because they are able to "trade up" customers to a higher-priced brand. For example, BMW introduced certain models into its 3-series automobiles in part as a means of bringing new customers into the brand franchise with the hope of later "moving them up" to higher-priced models when they later decided to trade in their cars.
  • High-end prestige brands
brand roles in the portfolio79
Brand Roles in the Portfolio
  • High-end prestige brands: The role of a relatively high-priced brand in the brand family often is to add prestige and credibility to the entire portfolio. For example, one analyst argued that the real value of its Corvette high performance sports car to Chevrolet was in "its ability to lure curious customers into showrooms and at the same time help improve the image of other Chevrolet cars.
brand hierarchy
Brand Hierarchy
  • A means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements
  • A useful means of graphically portraying a firm’s branding strategy
brand hierarchy tree toyota
Brand Hierarchy Tree: Toyota

Toyota

Corporation

Toyota

(SUV/vans)

Toyota

(Cars)

Toyota

Financial

Services

Toyota

(Trucks)

Lexus

MR2

Spyder

Corolla

Camry

Avalon

Celica

ECHO

Matrix

Prius

Platinum

Edition

XL

XLS

CE

S

LE

SE

LE

XLE

SE

SLE

brand hierarchy levels
Brand Hierarchy Levels

Corporate Brand (General Motors)

Family Brand (Buick)

Individual Brand (Park Avenue)

Modifier: Item or Model (Ultra)

corporate brand equity
Corporate Brand Equity
  • Occurs when relevant constituents hold strong, favorable, and unique associations about the corporate brand in memory
  • Encompasses a much wider range of associations than a product brand
family brands
Family Brands
  • Brands applied across a range of product categories
  • An efficient means to link common associations to multiple but distinct products
individual brands
Individual Brands
  • Restricted to essentially one product category
  • There may be multiple product types offered on the basis of different models, package sizes, flavors, etc.
modifiers
Modifiers
  • Signals refinements or differences in the brand related to factors such as quality levels, attributes, functions, etc.
  • Plays an important organizing role in communicating how different products within a category that share the same brand name are
corporate image dimensions
Corporate Image Dimensions
  • Corporate product attributes, benefits or attitudes
    • Quality
    • Innovativeness
  • People and relationships
    • Customer orientation
  • Values and programs
    • Concern with the environment
    • Social responsibility
  • Corporate credibility
    • Expertise
    • Trustworthiness
    • Likability
brand hierarchy decisions
Brand Hierarchy Decisions
  • The number of levels of the hierarchy to use in general
  • How brand elements from different levels of the hierarchy are combined, if at all, for any one particular product
  • How any one brand element is linked, if at all, to multiple products
  • Desired brand awareness and image at each level
number of hierarchy levels
Number of Hierarchy Levels
  • Principle of simplicity
    • Employ as few levels as possible
  • Principle of clarity
    • Logic and relationship of all brand elements employed must be obvious and transparent
levels of awareness and associations
Levels of Awareness and Associations
  • Principle of relevance
    • Create global associations that are relevant across as many individual items as possible
  • Principle of differentiation
    • Differentiate individual items and brands
linking brands at different levels
Linking Brands at Different Levels
  • Principle of prominence
    • The relative prominence of brand elements affects perceptions of product distance and the type of image created for new products
linking brands across products
Linking Brands Across Products
  • Principle of commonality
    • The more common elements shared by products, the stronger the linkages
brand architecture guidelines
Brand Architecture Guidelines
  • Adopt a strong customer focus
  • Avoid over-branding
  • Establish rules and conventions and be disciplined
  • Create broad, robust brand platforms
  • Selectively employ sub-brands as means of complementing and strengthening brands
  • Selectively extend brands to establish new brand equity and enhance existing brand equity
corporate brand campaign
Corporate Brand Campaign
  • Different objectives are possible:
    • Build awareness of the company and the nature of its business
    • Create favorable attitudes and perceptions of company credibility
    • Link beliefs that can be leveraged by product-specific marketing
    • Make a favorable impression on the financial community
    • Motivate present employees and attract better recruits
    • Influence public opinion on issues
using cause marketing to build brand equity
Using Cause Marketing to Build Brand Equity
  • The process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives
advantages of cause marketing
Advantages of Cause Marketing
  • Building brand awareness
  • Enhancing brand image
  • Establishing brand credibility
  • Evoking brand feelings
  • Creating a sense of brand community
  • Eliciting brand engagement
green marketing
Green Marketing
  • A special case of cause marketing that is particularly concerned with the environment
  • Explosion of environmentally friendly products and marketing programs
crisis marketing guidelines
Crisis Marketing Guidelines
  • The two keys to effectively managing a crisis are that the firm’s response should be swift and that it should be sincere.