Integrated Advertising, Promotion,
and Marketing Communications
Eighth Edition
Chapter 2
Brand
Management
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Chapter Objectives (1 of 2)
1. How does a brand’s image affect consumers, other
businesses, and the company itself?
2. What are the different types of brands and brand
names?
3. What are the characteristics of effective logos?
4. What elements are involved in identifying, creating,
rejuvenating, or changing a brand’s image?
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Chapter Objectives (2 of 2)
5. How are brands developed, built, and sustained in
order to build brand equity and fend off perceptions
of brand parity?
6. What current trends affect private brands?
7. How can packages and labels support an IMC
program domestically and in foreign settings?
8. How are brands managed in international markets?
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Domino’s
• New trend – pizza pickup
• Added big screen TVs,
improved seating, watch pizza
preparation
• Name changed to Domino’s
• New menu items, beyond
pizza
• Simplified logo
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Chapter Overview
• Managing a brand image and
logo
• Develop and promote brands
• Brand equity versus brand
parity
• Importance of packaging and
labels
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Brand image advertisement for
Kraft Singles
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Figure 2.1 Components of a Brand
Image
Tangible Elements
Intangible Elements
• Goods or services sold
• Corporate personnel
• Retail outlets where the
product is sold
• Advertising
• Marketing communications
• Name and logo
• Packaging and labels
• Employees
– Ideals
– Beliefs
– Conduct
• Environmental policies
• Corporate culture
• Country location
• Media reports
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Role of Brand Image
Consumer Perspective
• Provides positive assurance
– Unfamiliar settings
– Little or no previous experience
• Reduces search time
• Provides psychological reinforcement
• Provides social acceptance
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Social acceptance
A consumer benefit
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Figure 2.3 Top 10 Corporate Global
Brands
Rank
Company
Brand Value (Billions)
1
Apple
$170.3
2
Google
$120.3
3
Coca-Cola
$78.4
4
Microsoft
$67.7
5
IBM
$65.1
6
Toyota
$49.1
7
Samsung
$45.3
8
General Electric
$42.3
9
McDonald’s
$39.8
10
Amazon
$38.0
Source: Based on “Best Global Brands, 2015 Rankings,” Interbrand, http://interbrand.com/best-brands/best-globalbrands/2015/ranking/ accessed December 4, 2015.
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Role of Brand Image—Company
Perspective
• Extension of feelings to new products
• Ability to charge more
• Consumer loyalty
• More frequent purchases
• Positive word-of-mouth
• Greater channel power
• Attracts higher quality employees
• More favorable ratings
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Corporate Names
• Overt names
• Implied names
• Conceptual names
• Iconoclastic names
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Figure 2.6 Origins of Some Unique
Corporate Names
• Google–name started as a joke about the way search engines search for
information. Word “googol” is one followed by 100 zeros.
• Lego–combination of Danish phrase “leg godt” which means “play well” and
Latin word “lego” which means “I put together.”
• Reebok–alternative spelling of “rhebok” which is an African antelope
• Skype–original name was “sky-peer-to-peer,” which was changed to “skyper”
then to “skype.”
• Verizon–combination of Lain word “veritas” which means “truth” and “horizon”
• Volkswagen–created by Adolph Hitler as a car for the masses that could
transport 2 adults and 3 children at speeds up to 62 mph. Name means
“people’s car.”
• Yahoo–word from Jonathan Swift’s book Gulliver’s Travels, which
represented a repulsive, filthy creature that resembled a Neanderthal man.
Yahoo founders, Jerry Yang and David Filo considered themselves yahoos.
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Types of Brands
• Family brands
– Multiple products under one brand
– Transfer associations
• Brand extension
– New good or service
• Flanker brand
– New brand within current category
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Figure 2.8 Brands Sold by Procter &
Gamble
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Figure 2.9 Forms of Co-Branding
(Alliance Branding)
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Brand Alliance
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Figure 2.10 Tests of Quality Logos
and Brand Names
• Easily recognizable
• Familiar
• Consensual meaning
– Stimulus codeability
• Evokes positive feelings
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Brand Logos
• Aids in recall of specific brands
• Aids in recall of advertisements
• Reduces shopping effort
• Reduces search time and evaluation of alternatives
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Figure 2.11 Some of the Oldest Logos
Year Company
Founded
Year Logo First Used
John Deere
1837
1876
Coca-Cola
1886
1886
Johnson & Johnson
1886
1886
Union Pacific Railroad
1862
1888
Prudential Life Insurance
1875
1896
Campbell’s Soup
1869
1898
General Electric
1892
1900
Goodyear
1898
1901
Sherwin-Williams
1866
1905
DuPont
1802
1907
Company/Brand
Source: Based on Samuel Weigley, Alexander Hess, and Paul Ausick, “The Oldest Company Logos in America,”
http://247wallst.com/special-report/2013/06/18/the-oldest-company-logos-in-america, June 18, 2013.
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Figure 2.12 Tips on Creating or
Changing Logos
• The logo is a reflection of the brand
• Creating logos requires knowledge and expertise
• Use professional designers
• Make the logo simple
• Make the logo media transferrable
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What colors should you use in your
logo? (1 of 2)
• Black – seriousness, distinctiveness, boldness, power, sophistication,
and tradition
• Blue – authority, dignity, security, faithfulness, heritage, corporate
stability, and trust
• Brown/gold – history, utility, earthiness, richness, tradition, and
conservative
• Gray/silver – somberness, authority, practicality, corporate mentality,
and trust
• Green – tranquility, health, freshness, stability, and appetite
• Orange – fun, cheerfulness, warmth, exuberance, health, and youth
Bonus
Slide
Source: Adapted from “Jared McCarthy, “Logos: What Makes Them Work (Part
1 of 2),” (http://www.marketingprofs.com/5/mccarthy4.asp), February 22, 2005.
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What colors should you use in your
logo? (2 of 2)
• Pink – femininity, innocence, softness, health, and youth
• Purple – sophistication, spirituality, wealth, royalty, youth, and mystery
• Red – aggressiveness, passion, strength, vitality, fear, speed, and
appetite
• White/silver – purity, truthfulness, faith, contemporary, refined, and
wealth
• Yellow – youth, positive feelings, sunshine, cowardice, refinement,
caution, and appetite
Bonus
Slide
Source: Adapted from “Jared McCarthy, “Logos: What Makes Them Work (Part
1 of 2),” (http://www.marketingprofs.com/5/mccarthy4.asp), February 22, 2005.
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Identifying the Desired Image
• Evaluate current image
– Ask customers
– Ask non-customers
• Can be strategic advantage
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Creating the Right Image
• Sends clear message
• Portrays what the firm sells
• Business-to-business may be challenging
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Rejuvenating an Image
• Sells new products
• Attracts new customers
• Retains current customers
• Key – Remain consistent with old and new
• Takes time and effort
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Figure 2.13 Keys to Successful Image
Rejuvenation
• Help former customers rediscover the brand
• Offer timeless consumer value
• Stay true to original, but contemporize
• Build a community
Source: Based on “Comeback Kids: Haggar, Keds Stage Brand Revival,” Advertising Age,
October 30,2011, http://adage.com/print/230721.
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Changing an Image
• Extremely difficult
• Necessary when target market declines or product no
longer matches industry trends
• Requires more than advertising
• Begins internally – then moves outward
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Developing Strong Brands
Begins with understanding why consumers buy a
brand.
• Where does your brand stand now?
• What are your objectives?
• What are you doing in terms of building your brand
and business?
• What are your brand’s strengths? Weaknesses?
• Which opportunities should be pursued first?
• Where are the pitfalls?
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Figure 2.14 Building Powerful
Brands (1 of 2)
• Invest in the brand
• Create awareness
• Offer authenticity or uniqueness
• Build trust
• Deliver an experience
• Offer value
• Utilize social media
• Utilize mobile phones
• Act responsibly
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Figure 2.14 Building Powerful
Brands (2 of 2)
Skyjacker has built a powerful brand by providing
customers with a good experience and delivering value.
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Brand Loyalty
• Ultimate objective
• Only brand that customers
purchase
• Drivers of brand loyalty
– Emotion
– Value
• Consumer experience
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Figure 2.15 Top Vehicle Models and
Brand Imagery
Vehicle Model
Percent Loyal
Imagery
Ford F-150
45%
Functional, reliable, leader
Honda Civic
40%
Sensible, safe, smart
Toyota Camry
49%
Economical, reliable, conservative
Honda Accord
44%
Reliable, safe, honest
Honda CR-V
44%
Sensible, economical, reliable
Chevrolet Silverado
1500
62%
Safe, honest, functional
Toyota Corolla
42%
Reliable, safe, functional
Ford Escape
54%
Technological, sporty, powerful
Ram 1500
46%
Powerful, sporty, bold
Source: Based on “Consumers on the Go: Top 10 Models in 2016,” Advertising Age’s Consumers on the
Go Fact Pack, September 28, 2015, page 20.
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Figure 2.16 Top Brands on CLEI
Category
Top Brand
CLEI Emotional Engagement
Athletic Footwear
Sketchers
86%
JP Morgan Chase
79%
Car Insurance
State Farm
82%
Casual Dining
Applebee’s
82%
Clinique
93%
Gasoline
Shell
80%
Major League Sports
NFL
86%
Domino’s
84%
Subway
95%
Diet Coke
89%
Bank
Cosmetics
Pizza
Quick Service Restaurant
Soft Drinks (Diet)
Source: Based on “Brand Keys 2013 Customer Loyalty Index Finds Seismic Shift I How Consumers Emotionally Engage
with Products, Services,” Press Release, http://brandkeys.com/wp-content/uploads/2013/02/2013-CLEI-Press-ReleaseFINAL-Overall.pdf
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Brand Equity
• Brand parity
• Brand equity
– Set of characteristics makes brand unique
– Helps fight brand parity
– Perceived better
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Figure 2.18 Methods of Measuring
Brand Equity
• Financial value
• Stock market value
• Revenue premium
• Consumer value
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Figure 2.18 Top Ten Most Loved
Brands
Rank
Company
Emotional Index
1
Disney
74.7
2
Yahoo!
74.3
3
Google
74.2
4
Sony
74.1
5
Nestle
73.3
6
Auchan
72.9
7
Netflix
72.8
8
Whole Foods
72.7
9
Apple
72.7
10
Lowe’s
72.5
Source: Based on Christopher Heine, “Check Out the Top 100 Beloved Brands,” Adweek,
http://www.adweek.com/news/advertising-branding/check-out-top-100-beloved-brands-last-decade153026, October 10, 2013.
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Private Brands
• Popularity has fluctuated
• Connotation of low price, low quality
• Historically  price-sensitive consumers
• Retailers investing in private brands
• Consumers see few differences
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Figure 2.19 Changes in Private Labels
• Improved quality
• Perceived as a value purchase
• Higher loyalty towards retail outlets and lower loyalty
towards specific brands
• Used to differentiate retail outlets
• Increased advertising of private brands
• Increased quality of in-store displays and packaging of
private brands
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Advantages to Retailers
Private Labels
• Higher gross margins
• Lower prices
• Greater loyalty to stores and brands within a store
• Differentiates stores from national brands
• J.C. Penney – private labels
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Figure 2.20 Tactics Used by Manufacturers
to Combat Private Labels
• Focus on core brands
• Increase advertising
• Introduce new products
• Focus on in-store selling, packaging
• Use alternative methods of marketing
Source: Adapted from Vanessa L. Facenda, “A Swift Kick to the Privates,” Brandweek, Vol.
48, No. 31 (September 3, 2007), pp. 24-28.
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Packaging
• Final opportunity to make impression
• 69% of purchase decisions made in-store
• Have three seconds to catch attention
• Must stand out
• Tell customers what is inside
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Figure 2.21 Primary Purposes of
Packaging
• Protect product
• Provide for ease of shipping and handling
• Provide for easy placement on shelves
• Prevent or reduce theft
• Prevent tampering (drugs and food)
• Meet consumer needs for speed, convenience, and
portability
• Communicate marketing message
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Labels
• Must meet legal requirements
• Provide marketing opportunity
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QR Code for More Information
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Ethical Issues
• Brand infringement
• Brand name becomes a generic term
• Domain or cyber squatting
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International Implications
• Adaptation vs. standardization
• Standardization reduces costs
• Shrinking world  standardization
• High-profile, high-involvement – global brand
• Low-involvement products – local brand
• Packaging and labeling
• Image and positioning issues
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Blog Exercises
• Sears
• Target
• Branding
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Copyright
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