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Chapter 11 Designing and Implementing Brand Architecture Strategies.docx

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Ryerson University
MKT 510
Ida Berger

MKT510 Innovations In Marketing CHAPTER 11 Designing and Implementing Brand Architecture Strategies DEVELOPING A BRAND ARCHITECTURE STRATEGY  Brand architecture strategy: determine which products and services to introduce, and which brand names, logos, symbols, and so forth to apply to new and existing products o Role of brand architecture is twofold: to clarify brand awareness and improve brand image  Developing brand architecture strategy requires three key steps Step 1: Defining Brand Potential  Brand vision: management’s view of brand’s long-term potential o Influences how well firm is able to recognize current and possible future brand equity  Defining boundaries (based on brand vision and positioning) identifies products or services brand should offer, benefits it should supply, and needs it should satisfy o To improve market coverage, companies target different segments with multiple brands in a portfolio  Crafting brand positioning includes competitive frame of reference, POD, POP, and brand mantra Step 2: Identifying Brand Extension Opportunities  Line extension: new product introductions within existing categories  Category extensions: new product introduction outside existing categories Step 3: Branding New Products and Services  Brand house: employing umbrella corporate or family brand for all its products  House of brands: collection if individual brands all with different names  Sub-brands: popular form of brand extension in which new products carries both parent brand name and new name o Can tap associations and attitudes about company or family brand as a whole, while also allowing for creation of new brand beliefs to position extension in new category BRAND PORTFOLIOS  Brand portfolio: all brands sold by a company in a product category that should not harm or decrease the equity of the others o Multiple brands allow firm to pursue different price segments, different channel distributions, different geographic boundaries, and so forth o Basic principle is to maximize market coverage but minimize brand overlap  Flankers brand typically to create strong POPs with competitors’ brands so that more important (and more profitable) flagship brands can retain their desired positioning  Cash cows brands keep around despite dwindling sales because they still manage to hold on to sufficient number of customers and maintain their profitability with virtually no marketing support BRAND HIERARCHIES  Brand hierarchy: geographically portraying firm’s branding strategy by displaying the number and nature of common and distinctive brand elements across products, revealing their explicit ordering Levels of a Brand Hierarchy  Different ways to define brand elements and levels of hierarchy (top to bottom) 1. Corporate or company brand: highest level of hierarchy technically always consist of one brand  Corporate image: consumers associates to company making the product or providing the service 2. Family brand (range brand or umbrella brand): uses more than one product category but is not necessarily the name of the company or corporation  Apply family brand name because as products become more dissimilar, harder for corporate brand to retain any product meanings or to effectively link disparate products 3. Individual brands: restricted to one product category, although multiple product types may differ on the basis of model, package size, flavour, and so forth 4. Modifier: designate specific item or model type or particular version or configuration of the product MKT510 Innovations In Marketing  Adding modifier signal refinements or differences between brands related to factors such as quality levels, attributes, function, and so forth 5. Product descriptor: helps consumers understand what the product is and does and also helps define relevant competition in consumers mind Designing a Brand Hierarchy  Challenges in setting up brand hierarchy is to decide: 1. Decide on which products are to be introduced  Principle of growth: investment in market penetration or expansion versus product development according to ROI opportunities  Principle of survival: brand extension must achieve brand equity in their categories  Principle of synergy: brand extensions should enhance equity of the parent brand 2. Decide on the number of 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 3. Decide on the levels of awareness and types of associations to be created at each level  Principle of relevance: create abstract associations that are relevant across as many individual items as possible o More abstract the association, the more likely to be relevant in different product settings  Principle of differentiation: differentiate individual items and brands o Implies that not all products should receive the same emphasis at any level of hierarchy  Flagship product: best represents or embodies the brand to consumers 4. Decide on how to link brands from different levels for a product  Principle of prominence: relative prominence of brand elements affects perceptions of product distance and the type of image created for new products o Primary brand elements should convey main product positioning and PODs; secondary brand element convey restricted set of supporting associations such as POP and additional POD  Brand endorsement strategy: brand element – often corporate brand name or logo – appears on package, signage, or product appearance in some way but is not directly included as part of brand name 5. Decide on how to link a brand across products  Principle of commonality: the more common elements products share, the stronger the linkages CORPOATE BRANDING  Corporate brand is distinct from product brand in that it can encompass much wider range of associations  Corporate brand equity: differential response by consumers, customers, employees, other firms, or any relevant constituency to the words, actions, communications, products, or services provided by any identified corporate brand equity Corporate Image Dimensions  Corporate image depends on a number of factors: o Common product attributes, benefits, or attitudes  Corporate brand may evoke in consumers a strong association to product attribute, type of user, usage situation, or overall judgement  Two specific product-related corporate image associations i. High-quality corporate image association: creates consumer perceptions that a company makes products of the highest quality ii. Innovative corporate image association: creates consumer perceptions of company as developing new and unique marketing programs, especially with respect to product introduction
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