Leveraging brand equity

1MAR5007 Managing The Brand

Leveraging Brand Equity

In this presentation we will see how the brand can be leveraged using:

• Celebrity endorsement

• Sponsorship

• Product placement

2MAR5007 Managing The Brand

Celebrity Endorsement

• Role of Celebrity Endorsement– Build Brand Awareness

3MAR5007 Managing The Brand

Celebrity Endorsement

• Developing Brand Personality

4MAR5007 Managing The Brand

Celebrity Endorsement

• Generating Brand Imagery:

http://www.youtube.com/watch?v=yWJbTCd6hp4

http://www.youtube.com/watch?v=NLyXrznmfoY

http://www.youtube.com/watch?v=gq_EZjhHaDY

5MAR5007 Managing The Brand

Celebrity Endorsement

• Sales are greater for congruous rather than incongruous pairings

6MAR5007 Managing The Brand

Celebrity Endorsement

• Congruous stimuli generate unique memory traces making it easier to locate those memories

• Congruous stimuli conform to an individuals existing memory traces (selective attention)

7MAR5007 Managing The Brand

Celebrity Endorsement

• SOURCE FACTORS*Celebrity Attributes

- Credibility (Expertise) (Trustworthiness)Physical Attractiveness

8MAR5007 Managing The Brand

Celebrity Endorsement

• MANAGEMENT FACTORS1) Congruence

2) Multiplicity

3) Activation

9MAR5007 Managing The Brand

Co-Branding

• In BrandingUsed by component manufacturers to develop

pull strategy with consumer over assembler* To strengthen both brands* Brand Knowledge ? – in HIP’s? or brand value awareness in LIP’s?

10MAR5007 Managing The Brand

Sponsorship (Event)

• Events (six classes)– Sport– Music– Festival– Fine Art– Trade– Charity

11MAR5007 Managing The Brand

Sponsorship (Event)

• Key Factors– Degree of media exposure for event– Number of performers– Physical size of event– Venue locationIndividual Consumer Factors

Number of images held about the eventStrength of each imagePast history individual has with the event

12MAR5007 Managing The Brand

Sponsorship (Event)

• Attitudes toward Events based on• Experience• Remote Viewing• WOMEvents can be Characterised- Youthful- Highbrow- Fun- Serious

13MAR5007 Managing The Brand

Sponsorship (Event)

• Most Recent Experience most important• Number of People at event influences

perception of success• Professional standing of Participants• Tradition/History of Event• Venue – standing/reputation• Promotional Investment

14MAR5007 Managing The Brand

Sponsorship (Event)

• Only – Brand Name; Logo; Slogan– Known Brand (so brand reinforcement & association)– Peripheral Route– Classical Conditioning– BUT not just successful for low involvement FMCg’s

15MAR5007 Managing The Brand

Sponsorship (Event)

• Moderating Variables– Event/Sponsor Similarity

Functional (Mobil No1 oil & F1 Racing)Image (Rolex & World Ocean Racing)Both (Barbour and Three Counties Shows)

* Level of Sponsorship* Frequency

16MAR5007 Managing The Brand

Sponsorship • Incongruity Theory applies to e newspapers- lack of distinction between editorial and ads means

sponsorship difficult for readers to identify, so incongruent pairing can work

- Social Cause Sponsorship- (Persuasion Knowledge Model –PKM)

Increased scientism of consumers because of knowledge of marketer activity generate negative associations

17MAR5007 Managing The Brand

Event Sponsorship

• Number of Sponsors – greater the less impact for any individual sponsor

18MAR5007 Managing The Brand

Event Sponsorship

• Events with multiple activities are more difficult for consumers to associate with any single sponsor

19MAR5007 Managing The Brand

Product Placement

• What are we trying to achieve by the use of Product Placement?

Brand Recall?http://www.youtube.com/watch?v=QzaObD321Ww

20MAR5007 Managing The Brand

Product Placement

• Extending Brand knowledge– By direct celebrity usage.(3.10)http://www.youtube.com/watch?v=S39paDGZ0Ew&NR=1&feature=endscreen

21MAR5007 Managing The Brand

Product Placement

• Extending Brand Knowledge by content inclusion

22MAR5007 Managing The Brand

Product Placement

• De Lorme & Reid have shown that viewers – (1) appreciate the realism that product

placements add to a scene (2) familiarity of the brand gives comfort & reassurance to the viewer– (3) aids in relating to the characters within the

scenes

23MAR5007 Managing The Brand

Product Placement

• When brand awareness is already high product placement increases both brand recall and positive attitudes toward the brand. (Tasai et al

2007)

24MAR5007 Managing The Brand

Product Placement

• Obvious and prominent placement leads to negative shift in brand attitudes (Cowley & Barron 2008)

http://www.youtube.com/watch?v=LMaXcqD7CU0

Congruence between brand and scene is critical in building good positive brand

associations (Tangmanee & Rustanavibul 2012)

25MAR5007 Managing The Brand

Product Placement

• Product placement gives better brand recall than traditional advertising (Gupta & Lord 1999)

http://www.youtube.com/watch?v=LbwzviroHck

26MAR5007 Managing The Brand

Product Placement

• Works well in game formats, but conreuence is vital

• In violet games it was thought that physical arousal indicated increased brand awareness, but this is not the case.

• Found that individuals with trait aggression had greater spatial awareness & hence better receptivity to brand logo inclusions

27MAR5007 Managing The Brand

Product Placement

• The most negative attitudes toward brands comes from the inclusion of a brand in TV/film that is disliked by the audience.(d’Astous & Segmin 1999)

• Product Placement in documentaries & Quiz shows produces negative attitudes to those brands

28MAR5007 Managing The Brand

Product Placement

• Congruence between brand and the celebrity is critical in developing positive attitudes toward the brand(Tangmanee & Rustanavibul)