week 7 - leveraging secondary brand associations to build brand equity

Question 1

explain leveraging secondary brand associations

Answer 1

linking the brand to some other entity may
Create strong, favourable and unique associations, if existing brand associations or responses are weak in some way
Reinforce the existing set of brand associations in a fresh or different way
“Borrowing” some brand knowledge and depending on the nature of associations or responses, some brand equity
Unlike brand elements and communication strategies, this is an indirect approach to build brand equity

Question 2

Secondary brand associations are most likely to affect evaluations of a brand when

Answer 2

Consumers lack either the motivation or the ability to judge product- related concerns
Make brand decisions based on their judgements, feelings, and knowledge about the entity with which the brand is linked
Consumers may also infer that some of the associations, judgments or feelings that characterise the entity may also characterise the brand
“Cognitive consistency - What is true for the entity must be true for the brand”

Question 3

Important factors if understandng transfer of brand knowledge between secondary brand

Answer 3

Awareness and knowledge of the other entity

Meaningfulness of the knowledge of the entity

Transferability of the knowledge of the entity

Question 4

Three main options exist for a new product

Answer 4

Create a new brand (e.g. GM launched Saturn)

Adopt or modify an existing brand (e.g. Samsung Galaxy S, S2, S3, S4 ….)

Combine and existing and a new brand (e.g. Apple iPhone, iTunes, and iPad)

Question 5

explain cobranding

Answer 5

When two or more existing brands are combined into a joint product or are marketed together
Disney and McDonalds’
Betty Crocker’s brownie mix with Hershey’s chocolate syrup
Pay with Commbank Award points at Myer
Shell Gold MasterCard from Citibank
Airlines - Star Alliance (16 airlines)

Question 6

features of strong cobranding

Answer 6

Adequate brand awareness.
Sufficiently strong, favourable, and unique associations.
Positive consumer judgments and feelings.
There ‘should’ be a logical fit between the two brands.
Marketers should make detailed plans to legalise contracts, make financial arrangements, and coordinate marketing programs.

Question 7

advantages of cobranding

Answer 7

Core competency
Leverage equity you don’t have
Reduce cost of product introduction

Question 8

diadvantages of cobranding

Answer 8

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

Question 9

explain ingredient branding (e.g. intel in dell computers)

Answer 9

Creates brand equity for materials, components, or parts that are contained within other branded products

Branded ingredients are often a signal of quality (Intel Inside, Teflon)

Uniformity and predictability of ingredient brands can reduce risks and reassure consumers

Question 10

explain maximizing leverage through ingredient branding guidelines

Answer 10

. Create and strengthen a perception in the minds of the consumers that the ingredient matters to the success of the end product
intrinsic value of the ingredient brand should be visible and easy to experience

2.Convince the consumers that the ingredient brand is superior to others
Through innovation or other substantial advantage over available alternatives

3.Design a distinctive Logo or Symbol to signal that host brand contains the ingredient
Function as a “seal”, credibly communicates quality and confidence

4.Support with a coordinated Push and Pull Program
Consumer advertising and promotions, retail merchandising and promotion programs to gain cooperation from channel partners

Question 11

explain liscencing

Answer 11

Creates contractual arrangements whereby firms can use:
Names, logos, and characters of other brands to market their own brands for some fixed fee
Firms may license corporate trademarks to:
Generate extra revenue and profits
Protect their trademarks
Increase their brand exposure
Enhance their image
Risks:
Product may not live up-to the image established by the brand
A trademark may become overexposed if marketers adopt a saturation policy

Question 12

explain celebrity endorsement

Answer 12

Rationale
A famous person can:
Draw attention to a brand
Shape brand perceptions, by virtue of consumers perception of the famous person
Celebrity endorsers should have:
A high level of visibility
A rich set of potentially useful associations, judgments, and feelings

Question 13

potential problems of celebrity endorsement

Answer 13

Celebrity endorsers can be overused by endorsing many products that are too varied.
There must be a reasonable match between the celebrity and the product.
Celebrity endorsers can get in trouble or lose popularity.
Many consumers feel that celebrities are doing the endorsement for money and do not necessarily believe in the endorsed brand.
Celebrities may distract attention from the brand.