6: Leveraging Secondary Brand Associations to Build Brand Equity

Question 1

What are the three important factors in predicting the extent of leverage from linking the brand to another entity?

Answer 1

1. Awareness and knowledge of the entity
2. Meaningfulness of the knowledge of the entity
3. Transferability of the knowledge of the entity

Question 2

What does leveraging secondary associations allow marketers to do?

Answer 2

– Create or reinforce an important point-of-difference or

– Create or reinforce a necessary or competitive point-of parity versus competitors

Question 3

What is the commonality leveraging strategy?

Answer 3

– Makes sense when consumers have associations to

another entity that are congruent with the brand

Question 4

What is the complementarity branding strategy?

Answer 4

– Makes sense when entities represent a departure for the brand because there are few if any common or similar associations

Question 5

What are the 8 ways to leverage secondary

associations?

Answer 5

1. Company
2. Country of Origin and other geographic areas
3. Channels of Distribution
4. Co-branding
5. Ingredient branding
6. Licensing
7. Celebrity endorsement
8. Sports, Cultural, Other Third-Party sources

Question 6

What are the advantages of co-branding?

Answer 6

• Borrow needed expertise
• Leverage equity you don’t have
• Reduce cost of product introduction
• Expand brand meaning into related categories
• Broaden meaning
• Increase access points
• Source of additional revenue

Question 7

What are the disadvantages of co-branding?

Answer 7

• Loss of control
• Risk of brand equity dilution
• Negative feedback effects
• Lack of brand focus and clarity
• Organizational distraction

Question 8

What are the advantages of ingredient branding?

Answer 8

• Firm can generate greater sales at a higher margin
• From the standpoint of the manufacturer of the host
  product, benefit is in leveraging the equity from the
  ingredient brand to enhance its own brand equity
• On the demand side, the host product brands may
  achieve access to:
  -New product categories
  -Different market segments
  -More distribution channels than otherwise
  could have been expected

Question 9

What are the disadvantages of ingredient branding?

Answer 9

• Costs of a supporting marketing communication programs can be high
• Loss of control, because marketing programs for the supplier and manufacturer may have different objectives
• The sustainability of the competitive advantage may be somewhat uncertain

Question 10

What are the guidelines for ingredient branding?

Answer 10

• Consumers must first perceive that the ingredient matters to the performance and success of the end product.
• Consumers must then be convinced that not all ingredient brands are the same and that the ingredient is superior.
• A distinctive symbol or logo must be designed to clearly signal to consumers that the host product contains the ingredient.
• A coordinated program must be put into place so that consumers understand the importance and advantages of the branded ingredient.

Question 11

How can sponsored event contribute to brand equity?

Answer 11

By becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of existing associations.