CHAPTER Choosing brand elements to build brand equity MK321 by Wittaya C.Sopon 4 1 Preview • • • Brand elements are those trademarkable devices that serve to identify and differentiate the brand. The brand elements are brand names, URLs, Logos, symbol, characters, spokespeople, slogans, jingles, packages, and signage. Brand elements can be chosen to enhance brand awareness; facilitate the formation of strong, favorable, and unique brand associations; or elicit positive brand judgments and feelings. 2 Criteria for choosing brand elements (1) There are six criteria in choosing brand elements: 1.Memorability : A necessary condition for building brand equity is achieving a high level of brand awareness.Toward that goal, brand elements can be chosen that are inherently memorable and therefore facilitate recall or recognition in purchase or consumption settings. 2.Meaningfulness: Besides choosing brand elements to build awareness, brand elements can also be chosen whose inherent meaning enhances the formation of brand associations.Brand elements may take all kind of meaning, varying in descriptive, as well as persuasive, content. 3 Criteria for choosing brand elements (2) 3.Linkability : The associations suggested by a brand element may not always be related to the product.Thus, brand elements can be chosen that are rich in visual and verbal imagery and inherently fun and interesting. Because consumers often do not examine much information in making product decisions, it is often desirable that brand elements be easily recognized and recalled and inherently descriptive and persuasive. 4 Criteria for choosing brand elements (3) 4.Transferability ( in both a product category and geographic sense) First,How useful is the brand element for line or category extensions? In general, the less specific the name, the more easily it can be transferred across categories. Second,to what extend does the brand element add to brand equity across geographic boundaries and market segments? To a large extent this depends on the cultural content and linguistic qualities of the brand element. 5 Criteria for choosing brand elements (4) 5.Adaptability Because of changes in consumer values and opinions, or simply because of a need to remain contemporary, brand elements often must be updated over time. 6.Protectability • • • Choose brand elements that can be legally protected on an international basis. Formally register them with the appropriate legal bodies Vigorously defend trademarks from unauthorized competitive infringement. It is important to reduce the likelihood that competitors can imitate the brand by creating a derivative based on salient prefixes or suffixes of the name. 6 Brand Names (1) • • Brand name is a fundamentally important choice because it often captures the central theme or key associations of a product in a very compact and economical fashion.Brand names can be an extremely effective shorthand means of communication. In general, it is believed that brand awareness is improved the extent to which brand names are chosen that are simple and easy to pronounce or spell; familiar and meaningful; and different; distinctive, and unusual. 7 Brand Names (2) • • • To enhance brand recall, it is desirable for the brand name to be simple and easy to pronounce or spell.Short names often facilitate recall because they are easy to encode and store in memory. Easy of pronunciation is critical to obtain valuable repeated word-of-mouth exposure that helps to build strong memory links. Ideally, the brand name should have a clear, understandable, and unambiguous pronunciation and meaning. 8 Brand Names (3) • • • To enhance brand recall, it is desirable for the brand name to be simple and easy to pronounce or spell.Short names often facilitate recall because they are easy to encode and store in memory. Easy of pronunciation is critical to obtain valuable repeated word-of-mouth exposure that helps to build strong memory links. Ideally, the brand name should have a clear, understandable, and unambiguous pronunciation and meaning. 9 Brand Names (4) • • • To improve pronouncability and recallability, many marketers seek a desirable cadence and pleasant sound in their brand names. To enhance brand recall, brand name should be familiar and meaningful so that it is able to tap into existing knowledge structures. Hypothetical brand names showed that “highimagery” brand names,(e.g. ocean,frog,plant) were significantly more memorable across a variety of recall and recognition measures than “low-imagery” words(e.g.truth,moment) 10 Brand Names (4) • • • The brand name may be chosen to reinforce an important attribute or benefit association that makes up its product positioning. A morpheme is the smallest linguistic unit having meaning.There are 6,000 morphemes in the English language. Compaq “computers + communication” Nissan’s Sentra “central + sentry” Alphanumeric brand names contain one or more numbers in either digit form(e.g.5) or written form 11 (e.g. five) Naming criteria • • • • • • Descriptive : describes function literally Suggestive : suggestive of a benefit or function Compounds : combination of two or more words Classical : based on Latin, Greek, Sanskit Arbitrary : real words with no obvious tie-in to company Fanciful : coined words with no obvious meaning 12 Naming Procedures 1. 2. 3. 4. 5. 6. Define the branding objectives Generate as many names and concepts as possible. Screen based on the branding objectives and marketing considerations.(double meaning, unpronounceable,already in use, contradiction of the positioning) Collect more extensive information of the final 5-10 names. Consumer testing Formally register the name 13 URLs (Uniform Resource Locators) • • • • • Brand recall is critical for URLs . Number of registered domain names, 20 million Every three-letter combination was registered. 98% of the words in a typical English dictionary had been registered. The rate of URL registrations, 84,000 per day. 14 Logos and Symbols • • • Non-word mark logos called symbols. Word marks (e.g. Coca-Cola, Dunhill) Abstract logos (e.g. Mercedes star, Rolex crown) • Because of their visual nature, logos and symbols are often easily recognized and can be a valuable way to identify products, although a key concern is how well they become linked in memory to the corresponding brand name and product to boost brand recall. Unlike brand names, logos can be easily changed over time to achieve a more contemporary look. • 15 Character • • • Characters represent a special type of brand symbol-one that takes on human or real life characteristics. Brand characters can provide a number of brand equity benefits.Because they are often colorful and rich in imagery, they tend to be attention getting.Consequently,brand characters can be quite useful for creating brand awareness. Cautions,brand characters can be so attention getting and well linked that they dominate other brand elements and actually dampen brand awareness. 16 Slogans • • • • Slogans are short phrases that communicate descriptive or persuasive information about the brand Slogans can function as useful”hooks” or “handles” to help customers grasp the meaning of a brand in terms of what brand is and what makes it special. Slogans can help to reinforce the brand positioning and desired point of difference. Slogans often become closely tired to advertising campaigns and can be used as tag lines to summarize the descriptive and persuasive information conveyed in ads. 17 Jingles • • • Jingles are musical messages written around the brand. Jingles can communicate brand benefits, but they often convey product meaning in a nondirect and fairly abstract fashion given their musical foundation,related to feelings and personality. The jingle will repeat the brand name in clever and amusing ways that allow consumers multiple encoding opportunities. 18 Packaging (1) • Packaging involves the activities of designing and producing containers or wrappers for a product. Packaging must achieve the objectives: • • • • • • Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption 19 Packaging (2) • Level of package • • • • Primary package Secondary package Transportation package Main functions of package 1. Protection 2. Handling 3. Identification 4.Convenience 5.Attractiveness 6.Suitable cost 20 Packaging (3) • Packaging materials 1. Paper • bag, folding boxboard carton, corrugated fiberboard box, fiber drum, 2. Metal • can, drum, collapsible tubes, aluminum foil 3. Glass 4. Plastic • PE, PP, PS, PET, PVC 5. Wood 21 Packaging (4) • Designing packaging process 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Analysis of the market Retail environment Product’s strengths and weakness Competitors’ strengths and weakness Packaging option Packaging positioning Copy strategy Package design brief Package test (functional, visual, dealer, consumer) Evaluation 22 Packaging (5) • • • Functionally, structural design is crucial.for example,packaging innovations with food products over the years have resulted in packages being resealable, tamperproof, and more convenient to use(e.g. easy to hold,easy to open, or squeezable) Structural packaging innovations can create a point of difference that permits a higher margin.New packages can also expand a market and capture new market segments. “less cost-effective” and “last five seconds of marketing” 23 Packaging (6) • • • • • • • Packaging color can affect consumer’s perceptions of the product itself. Packaging changed for a number of reasons: Upgraded to signal a higher price Sell products through new or shifting distribution channels. When there is a significant product line expansion that would benefit from common look. Package redesign may also accompany a new product innovation to signal changes to consumers. If changed too significantly, consumers may not recognize the package when confronted with it in the store. 24 Putting it all together • • Each of different brand elements can play a different role in building brand equity. Conceptually,it is necessary to “mix and match” these different brand elements to maximize brand equity. 25