MKT 510 Lecture 7: Mkt510-Ch7

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11 Aug 2016
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Mkt 510: Chapter 7
Chapter 7: Leveraging Secondary Brand Associations to Build Brand Equity
- Linking the brand to some other entity – some source factor or related person,
place, or thing – may create a new set of associations from the brand to the entity, as
well as affecting existing brand associations
Creation of new brand associations
- These secondary brand associations are most likely to affect evaluations of a
new product when consumers lack either the motivation or the ability to
judge product related concerns.
- Basically if consumers don’t know much about a product they normally look
to see whom they are associated with (secondary sources) such as the
country the product came from, the store it was sold in etc.
Effects on existing brand knowledge
- Consumers may have some previous knowledge regarding an entity
- When a brand is linked to that entity, consumers may infer that some of the
particular associations, judgements, or feelings, that characterize the entity
may also characterize the brand
- Cognitive consistency – in the minds of consumers, what is true for the entity,
must be true for the brand
- 3 important factors in predicting the extent of leverage from linking the
brand to another entity:
1. Awareness and knowledge of the entity
if consumers know nothing about the secondary entity then
they wont be able it transfer anything from it
if consumers are aware of the entity, they may hold some
strong, favourable or unique associations with it
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2. Meaningfulness of the knowledge of the entity
The meaningfulness may vary depending on the brand and
product context
Some associations may be relevant and meaningful to the
brand while others may have little connection to consumers
3. Transferability of the entity
Basically looking at how strong that link is between knowledge
and the brand – how easily are consumers able to transfer
meaning, judgements or feelings to the brand
- Leveraging secondary brand associations may allow marketers to create or
reinforce an important POD or a necessary or competitive POP versus
- Marketers can pick and choose entities for which consumers have some or
even greater deal of similar associations
- Commodity leveraging strategy – makes sense to use when consumers have
associations to another entity that are congruent with desired brand
oEx. New Zealand is known for having an abundance of sheep. If a
sweater manufacturer were to position its sweaters on the basis of
being “New Zealand wool” it could be more easier to establish
stronger, and favourable brand associations because New Zealand is
already known for its wool
- Complementarity branding strategies – can be strategically critical in terms
of delivering the desired position – this is when entities are chosen that
represent a departure for the brand because there are few if any common or
similar associations
oEx. When Buick signed Tiger woods – many questioned whether
consumers would find a fit or consistency between the golfer and car
maker and how much value it would actually make
- Leveraging secondary brand associations can be risky because the marketer
gives up some control of the brand image
- Branding strategies are important determinant of the strength of association
from the brand to the company and any other existing brands
- 3 main branding options exist for a new product:
1. Create a new brand
2. Adopt or modify an existing brand
3. Combine an existing and a new brand
- The country or geographic location from which it originates may also become
linked to the brand and generate secondary associations
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- Choosing brands with strong national ties may reflect a deliberate decision to
maximize product utility and communicate self-image, based on what
consumers believe about products from those countries – many company’s
use this to make a strong POD with consumers identification and beliefs
about the country of origin
- Some examples:
oLevis Jeans – United States
oBMW – Germany
oCadbury England etc.
- States, regions and cities can also be used to do this
- There are different ways in which marketers establish a geographic or
country-of-origin associations – some put it in the name such as Irish Spring
Soap – others make the location the dominant theme in brand advertising
- Disadvantage  events or actions associated with the country may affect
consumers perceptions
- Another challenge with country-of-origin is how consumers define it and
under what circumstances they care
- Some governments have even taken it further to protect their popular
oThis can be seen through the Swiss watches – there’s a law in
Switzerland where the local watchmakers can only label their product
Swiss-made if the non-Swiss parts equal less than 50% of the value of
the watch’s movement, or motor
- Retail stores can indirectly impact brand equity through an “image transfer”
process because consumers associations linked to retail stores
- Because od associations to product assortment, pricing and credit policy,
quality of service and so on, retailers have their own brand image in
consumers minds
- A consumer may infer certain characteristics about a brand on the basis of
where its sold  for ex. Many consumers may feel that if a product is sold in
Nordstrom then it must be good quality
- Co-branding – occurs when two or more existing brands are combined into a
joint product or are marketed together in some fashion – Ex. Betty Crocker’s
brownie mix with Hershey’s chocolate syrup
- Advantages:
oBurrow needed expertise
oLeverage equity you don’t have
oReduce cost of a product introduction
oExpand brand meaning into related categories
Broaden meaning
Increase access points
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