CHAPTER 9:
MEASURING SOURCES OF BRAND EQUITY:
CAPURING CUSTOMER MINDSET
Kevin Lane Keller
Tuck School of Business
Dartmouth College
9.1
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?

9.2
Free Associations
ATTRIBUTES
Product-Related
Blue denim, shrink-to-fit
cotton fabric, button-fly,
two-horse patch,
and small red pocket tag
User Imagery
Usage Imagery
Western, American,
blue collar, hard-working,
traditional, strong,
rugged, and masculine
Appropriate for outdoor
work and casual social
situations
Brand Personality
LEVI’S
501
High quality, long lasting,
and durable
Functional
Comfortable fitting
and relaxing to wear
Honest, classic,
Contemporary, approachable,
independent, and universal
Feelings of self-confidence
and self-assurance
Symbolic
Experiential
BENEFITS
9.3
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
9.4
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

9.5
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
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


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

CHEESE



Kraft
Cheddar
Goat
Word Association
EXAMPLE
STIMULUS
washday
fresh
pure
scrub
filth
bubbles
MRS. M
everyday
and sweet
air
don't; husband does
this neighborhood
bath
family
towels
squabbles
dirty
MRS. C
ironing
clean
soiled
clean
dirt
soap and
water
children
wash
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.
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 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.
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
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.
Thematic Apperception Test
T.A.T.
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


Zaltman Metaphor Elicitation Technique
(ZMET)
ZMET is “a technique for eliciting
interconnected constructs that influence thought
and behavior.”
9.20
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
9.21
ZMET







Step 1. Storytelling: Participants describe the content of each picture.
Step 2. Missed Image: Participants describe the picture or pictures that
he or she was unable to obtain and explain their relevance.
Step 3. Sorting Task: Participants sort pictures into meaningful groups
and provide a label or description for each group.
Step 4. Construct elicitation: Participants sort pictures into meaningful
groups and provide a label or description for each group.
Step 5. The Most Representative Picture: Participants indicate which
picture is most representative.
Step 6. Opposite Images: Participants indicate picture that describe the
opposite of the brand or the task that they were given.
Step 7. Sensory Images: Participants indicate what does or does not
describe the concept in terms of color, emotion, sound, smell, taste, and
touch.
9.22
ZMET



Step 8. Mental Map: After reviewing the entire construct discussed and
asking Participants if the constructs are accurate representations of what
was meant and if any important ideas are missing, Participants create a
map or causal model connecting the constructs that have been elicited.
Step 9. Summary Images: Participants create a summary image or
montage using their own images (sometimes augmented by images from
an images from an image bank) to express important issues. Digital
Imaging techniques may be employed to facilitate the creation of the
image.
Step 10. Vignette: Participants put together vignette or short video to
help communicate important issues.
9.23
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-todate)
 Competence (reliable, intelligent, and successful)
 Sophistication (upper class and charming)
 Ruggedness (outdoorsy and tough)

Jennifer Aaker, 1997
9.24
Identifying Key Brand Personality
Associations
BUSH





Coffee
Technology
Auto
Retail
Fast Food
Dunkin’ Donuts
IBM
Ford
Kmart
McDonald’s
KERRY
Starbucks
Apple
BMW
Target
Subway
2004 U.S. presidential election, random sample of undecided voters
9.25
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.
9.26
Quantitative Research Techniques




Awareness
Image
Brand responses
Brand relationships
9.27
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

9.28
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.
9.29
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.
9.30
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)
9.31
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
9.32
Comprehensive Models of
Customer-Based Brand Equity



Brand dynamics
Equity engines
Young & Rubicam’s Brand Asset Valuator
(BAV)
9.33
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

9.34
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 longstanding 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
9.35
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
9.36
BrandAsset® Valuator (BAV)







240,000+ consumers
Up to 181 categories
137 studies
40 countries
8 years
56 different brand
metrics
Common methodology
9.37
How Brands Are Built
Four Primary Aspects
Knowledge
Esteem
• The culmination of brand building efforts;
acquisition of consumer experience
• 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
9.38
Healthy Brands Have Greater
Differentiation than Relevance
100
D>R
90
Examples:
80
70
Harley Davidson
Yahoo!
AOL
Williams-Sonoma
Ikea
Bloomberg Business News
60
50
40
30
20
10
0
Differentiation
Relevance
Room to grow...
Brand has power to build relevance.
9.39
Brands with greater Relevance than Differentiation
Are in Danger of Becoming Commodities
R>D
100
90
Examples:
80
70
60
50
40
30
20
10
0
Differentiation
Relevance
Exxon
Mott’s
McDonald’s
Crest
Minute Maid
Fruit of the Loom
Peter Pan (peanut butter)
Uniqueness has faded; price becomes
dominant reason to buy.
9.40
More Esteem than Knowledge Means, “I’d
like to get to know you better”
100
E>K
90
Examples:
80
70
60
50
40
30
20
10
0
Esteem
Knowledge
Coach leatherwear
Tag Heuer
Calphalon
Movado
Blaupunkt
Pella Windows
Palm Pilot
Technics
Brand is better liked than known.
9.41
Too Much Knowledge Can Be Dangerous:
“I know you and you’re nothing special”
K>E
100
90
Examples:
80
70
60
50
40
30
20
10
0
Esteem
Knowledge
Plymouth
TV Guide
Spam
Woolworths
Chrysler
Maxwell House
National Enquirer
Sanka
Brand is better known than liked.
9.42
A Two-Dimensional Framework for Diagnosing
Brands: The Power Grid
BrandAsset® Valuator
Brand Strength
Differentiation
Leading
Relevance
Brand Stature
Esteem
Knowledge
Lagging
9.43
Brand Health Is Captured on the
PowerGrid
BRAND STRENGTH
(Differentiation and Relevance)
Niche/
Unrealized Potential
Base: USA Total Adults BAV 2000
Power Leaders
Declining
Leaders
Eroded
New
Unfocused
BRAND STATURE
(Esteem and Knowledge)
9.44
USA 1999 PowerGrid Sample
100
BRAND STRENGTH
80
60
40
20
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
San Pellegrino
Sun Microsystems
Wired
Quest Telecomm
Nokia
iVillage.com
NetGrocer
Iridium
Plymouth
Bazooka
Ivory Snow
Pert
Rolaids
Keds
Howard Johnson
TWA
Greyhound
0
0
Base: USA Total Adults BAV 1999
20
40
60
80
100
BRAND STATURE
9.45
Y&R Resonance Research
Resonance
(10%)
Community Engagement
15%
Attachment (30%)
Loyalty (60%)
Usage
Base: 2001 BAV Data
9.46
Y&R Resonance Research with BAV
Resonance
Resonance
Engaged
100
Community
Attached
Engaged
Differentiation
Loyal
Brand Strength
Community
Non-Loyals
50
Attached
Loyal Users
Non-Loyal Users
0
0
50
100
Brand Stature
9.47
Base: BAV USA Adults 2001
Average U.S. Packaged Goods Brand
Proportion
of Consumers
Consumer
Loyalty
7%
Bonded
38%
32%
Advantage
20%
35%
Performance
19%
43%
Relevance
17%
76%
Presence
13%
9.48
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.
9.49
CHAPTER 10:
MEASURING OUTCOMES OF BRAND EQUITY:
CAPURING MARKET PERFORMANCE
Kevin Lane Keller
Tuck School of Business
Dartmouth College
10.50
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
10.51
Comparative Methods



Brand-based comparative approaches
Marketing-based comparative approaches
Conjoint analysis
10.52
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.
10.53
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
10.54
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
10.55
Example: Laptop Profiles
Brand
Hard Drive
RAM
Screen
Price
A
B
Dell
320 GB
2 GB
15.4 in
$1,200
9
6
Apple
320 GB
4 GB
15.4 in
$1,200
6
12
Dell
160 GB
4 GB
15.4 in
$900
12
5
Apple
320 GB
2 GB
15.4 in
$900
11
11
Dell
320 GB
4 GB
12.1 in
$1,500
4
3
Apple
320 GB
2 GB
12.1 in
$1,500
1
9
Apple
160 GB
4 GB
15.4 in
$1,500
3
10
Apple
160 GB
2 GB
12.1 in
$900
8
7
Apple
160 GB
4 GB
12.1 in
$1,200
5
8
Dell
160 GB
2 GB
12.1 in
$1,200
7
1
Dell
320 GB
4 GB
12.1 in
$900
10
4
Dell
160 GB
2 GB
15.4 in
$1,500
2
2
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

10.57
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
10.58
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

10.59
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.
10.60
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.
10.61
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
10.62
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
10.63
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.
10.64
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.
10.65
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.
10.66
CHAPTER 11:
DESIGNING AND IMPLEMENTING
BRANDING STRATEGIES
Kevin Lane Keller
Tuck School of Business
Dartmouth College
11.67
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.
11.68
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
11.69
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
11.70
Brand-Product Matrix
1
Products
2
3
4
A
Brands
B
C

Must define:

Brand-Product relationships (rows)


Line and category extensions
Product-Brand relationships (columns)

Brand portfolio
11.71
Important Definitions

Product line


Product mix (product assortment)


A group pf products within a product category that
are closely related
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
11.72
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

11.73
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
11.74
Ford Brand Portfolio
11.75
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

11.76
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.
11.77
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.
11.78
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.
11.79
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
11.80
Brand Hierarchy Tree: Toyota
Toyota
Corporation
Toyota
(Trucks)
Corolla
CE
S
LE
Toyota
(SUV/vans)
Camry
SE
LE
XLE
Avalon
Platinum
Edition
XL
XLS
Toyota
(Cars)
Celica
Toyota
Financial
Services
ECHO
Matrix
Lexus
MR2
Spyder
Prius
SE
SLE
11.81
Brand Hierarchy Levels
Corporate Brand (General Motors)
Family Brand (Buick)
Individual Brand (Park Avenue)
Modifier: Item or Model (Ultra)
11.82
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
11.83
Family Brands


Brands applied across a range of product
categories
An efficient means to link common associations
to multiple but distinct products
11.84
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.
11.85
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
11.86
Corporate Image Dimensions

Corporate product attributes, benefits or attitudes



People and relationships


Customer orientation
Values and programs



Quality
Innovativeness
Concern with the environment
Social responsibility
Corporate credibility



Expertise
Trustworthiness
Likability
11.87
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
11.88
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
11.89
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
11.90
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
11.91
Linking Brands Across Products

Principle of commonality

The more common elements shared by products,
the stronger the linkages
11.92
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
11.93
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
11.94
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
11.95
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
11.96
Green Marketing


A special case of cause marketing that is
particularly concerned with the environment
Explosion of environmentally friendly products
and marketing programs
11.97
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.
11.98