Extracts From Strategic Brand Management_Kevin Lane

7/26/2019 Extracts From Strategic Brand Management_Kevin Lane

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Strategic Brand ManagementBuilding, Measuring, and Managing Brand Equity

Kevin Lane Keller

Brands may represent invaluable intangible assets, creating and nurturing a strongbrand poses considerable challenges. Fortunately, the concept of brand equitythe main focus of this bookcan provide marketers with valuableperspective and a common denominator to interpret the potential effects and

trade-offs of various strategies and tactics for their brands. hink of brande!uity as the marketing effects uni!uely attributable to the brand. "n apractical sense, brand e!uity is the added value a product accrues as a resultof past investments in the marketing activity for the brand. "t#s the bridgebetween what happened to the brand in the past

and what should happen to it in the future.

A brand can be a person, place, frm, or organization

WHA !" A B#A$%&Branding has been around for centuries as a means to distinguish the goods of one

producer from those of another. "n fact, the word brand is derived from the $ld %orse wordbrandr, which means &to burn,' as brands were and still are the means by which owners oflivestock mark their animals to identify them.(

)ccording to the )merican Marketing )ssociation *)M)+, a brand is a &name, term, sign,symbol, or design, or a combination of them, intended to identify the goods and servicesof one seller or group of sellers and to differentiate them from those of competition.'echnically speaking, then, whenever a marketer creates a new name, logo, or symbol for anew product, heor she has created a brand.

"n fact, however, many practicing managers refer to a brand as more than thatassome-

thing that has actually created a certain amount of awareness, reputation, prominence, and

so on in the marketplace. hus we can make a distinction between the )M) denition of a&brand' with a small b and the industry#s concept of a &Brand' with a big B. he differenceis important for us because disagreements about branding principles or guidelines oftenrevolve around what we mean by the term.

Brand Elementshus, the key to creating a brand, according to the )M) denition, is to be able to choose aname, logo, symbol, package design, or other characteristic that identies a product anddistinguishesit from others. hese dierent components of a brand that identify and dierentiate itare brand elements.For eample, consider the variety of brand name strategies. Some companies, like /eneral0lectric and Samsung, use their names for essentially all their products. $ther manufacturersassignnew products individual brand names that are unrelated to the company name, like 1rocter 2/amble#s ide, 1ampers, and 1antene product brands. 3etailers create their own brandsbasedon their store name or some other means4 for eample, Macy#s has its own )lfani, "%5,5harter5lub, and 5lub 3oom brands.Brand names themselves come in many dierent forms. here are brand names basedon people#s names, like 0st6e 7auder cosmetics, 1orsche automobiles, and $rville3edenbacher

popcorn4 names based on places, like Sante Fe cologne, 5hevrolet ahoe S89, and


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British )irways4 and names based on animals or birds, like Mustang automobiles, :ove soap,and /reyhound buses. "n the category of &other,' we nd Applecomputers, Shell gasoline,and5arnation evaporated milk.Some brand names use words with inherent product meaning, like 7ean 5uisine, $ceanSpray ;


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0tending our previous eample, a branded product may be a physical good likeGellogg#s

5orn Flakes cereal, 1rince tennis rac!uets, or Ford Mustang automobiles4 a service such

as :elta )irlines, Bank of )merica, or )llstate insurance4 a store like Bloomingdale#s

department store, Body Shop specialty store, or Safeway supermarket4 a person such

as Earren Buffett, Mariah 5arey, or /eorge 5looney4 a place like the city of 7ondon, state

of 5alifornia, or country of )ustralia4 an organiDation such as the 3ed 5ross, )merican

)utomobile )ssociation, or the 3olling Stones4 or an idea like corporate responsibility, freetrade, or freedom of speech.

Some brands create competitive advantages with product performance. For eample,

brands such as /illette, Merck, and others have been leaders in their product categories

for decades, due, in part, to continual innovation. Steady investments in research and

development have produced leading-edge products, and sophisticated mass marketing

practices have ensured rapid adoption of new technologies in the consumer market. )

number of media organiDations rank rms on their ability to innovate. Figure ;-( lists ;ohn 5hambers, :ell#s Michael :ell, and *until (obs. "n each case, the 50$#s identity and persona are inetricably woven into the fabric of the

brand.

J. rand building on a small budget necessitates lever& aging every possible

positive association. echnology companies typically prioritiDe their marketing mi as follows *in

order from most important to least important+ industry analyst relations, public relations, trade

shows, seminars, direct mail, and advertising. $ften, direct mail and advertising are discretionary

items in a company#s marketing budget and may in fact receive no outlay.

K. 'echnology categories are created by customers and external orces! not bycompanies themselves. "n their !uest for product differentiation, new technology companies have a

tendency to reinvent the wheel and claim they have created anewcategory. Ret only two groups can truly

create categories analysts and customers. For this reason, it is important for technology companies to

manage their relationships with analysts in order to attract consumers.

L. 'he rapidly changing environment demands that you stay in tune with your

internal and external environment.he rapid pace of innovation in the technology sector dictates

that marketers closely observe the market conditions in which their brands do business. rends in

brand strategy change almost as rapidly as the technology.

; 1earson 1rentice ?all, (


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notable early eamples of place branding include &9irginia "s for7overs' and &Shrimp on the Barbie'*)ustralia+. %ow virtually every physical location, area, or region considers place branding. Morerecenteamples include Santa 3osa#s new slogan &1lace of 1lenty' and the &5leveland 1lus' campaign. he San:iego5onvention and 9isitors Bureau ran an integrated campaign, titled &?appy ?appens,' in (


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"avvy 7ustomers

"ncreasingly,consumers andbusinesses havebecome moreeperienced withmarketing, more

knowledgeable abouthow it works, and moredemanding. ) well-developed mediamarket pays increasedattention tocompanies# marketingactions andmotivations. 5onsumerinformation andsupport eists in theform of consumerguides *!onsumer#eports+, Eeb sites*0pinions.com+,in@uential blogs, and soon.

.!/0#E (1: 7andor Breakaway Brands *(


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of brands such as 5oke, %ivea, :ove, and 9irgin have added a host of new products under theirbrand umbrellas in recent years. here are few single *or &mono'+ product brands around,which complicates the decisions that marketers have to make.

Eith so many brands engaged in epansion, channels of distribution have become clogged,and many brand battles are waged ust to get products on the shelf. he averagesupermarket now holds N


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)t the same time that competition is increasing, the cost of introducing a new product or sup-porting an eisting product has increased rapidly, making it diAcult to match the investment andlevel of support that brands were able to receive in previous years. "n (


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N. Measuring and interpreting brand performanceI. /rowing and sustaining brand e!uity

!denti3ying and %eveloping Brand 'lanshe strategic brand management process starts with a clear understanding of what the brand isto represent and how it should be positioned with respect to competitors.I; Brand planning, asdescribed in 5hapters ( and N, uses the following three interlocking models.

he brand positioning model describes how to guide integrated marketing to maimiDe

competitive advantages. he brand resonance model describes how to create intense, activity loyalty relationshipswith customers.

he brand value chain is a means to trace the value creation process for brands, to betterunderstand the nancial impact of brand marketing ependitures and investments.

%esigning and !mplementing Brand Mar=eting 'rograms)s 5hapter ( outlines, building brand e!uity re!uires properly positioning the brand in the mindsof customers and achieving as much brand resonance as possible. "n general, this knowledge-building process will depend on three factors

;. he initial choices of the brand elements making up the brand and how they are mied

and matched4

(. he marketing activities and supporting marketing programs and the way the brand is integratedinto them4 and

N. $ther associations indirectly transferred to or leveraged by the brand as a result

of linking it to some other entity *such as the company, country of origin, channel of

distribution, or another brand+.

Some important considerations of each of these three factors are as follows.

"hoosing rand #lements. he most common brand elements are brand names,837s,logos, symbols, characters, packaging, and slogans. he best test of the brand-buildingcontribution of a brand element is what consumers would think about the product orservice if they knew only its brand name or its associated logo or other element.

Because different elements have different advantages, marketing managers often usea subset of all the possible brand elements or even all of them. 5hapter I eamines indetail the means by which the choice and design of brand elements can help to buildbrand e!uity.

Integrating the rand into )ar(eting *ctivities and the +upporting)ar(eting ,rogram. )lthough the udicious choice of brand elements can makesome contribution to building brand e!uity, the biggest contribution comes frommarketing activities related to the brand. his tet highlights only some particularlyimportant marketing program considerations for building brand e!uity. 5hapter Haddresses new developments in designing marketing programs as well as issues inproduct strategy, pricing strategy, and channels strategy. 5hapter O addresses issuesin communications strategy.

-everaging +econdary *ssociations. he third and nal way to build brand e!uity is toleverage secondary associations. Brand associations may themselves be linked to other entitiesthat have their own associations, creating these secondary associations. For eample, the brandmay be linked to certain source factors, such as the company *through branding strategies+,countries or other geographical regions *through identication of product origin+, and channels ofdistribu- tion *through channel strategy+, as well as to other brands *through ingredients or co-branding+, characters *through licensing+, spokespeople *through endorsements+, sporting orcultural events *through sponsorship+, or some other third-party sources *through awards orreviews+.


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Because the brand becomes identied with another entity, even though this entity may notdirectly relate to the product or service performance, consumers may infer that the brand sharesassociations with that entity, thus producing indirect or secondary associations for the brand."n essence, the marketer is borrowing or leveraging some other associations for the brand tocreate some associations of the brand#s own and thus help build its brand e!uity.

Measuring and !nterpreting Brand'er 3ormance

o manage their brands protably, managersmust successfully design and implement a

brand e!uity measurement system. ) brandequity measurement system is a set of research procedures designed to

provide timely, accurate, and actionable information for marketers sothat they can make the best possible tactical decisions in the

short run and the best strategic decisions in thelong run. )s described in 5hapter K, implementing such a

system involves three key steps conducting brand audits, designingbrand trackingstudies, and establishing a brand equitymanagement system.

he task of determining or evaluating a brand#spositioning often benets from a brand audit. ) brand

audit is a comprehensive eamination of a brand to assess its health,uncover its sources of e!uity, and suggest ways to improve and leverage

that e!uity. ) brand audit re!uires understanding sources of brand e!uity from the perspective ofboth the rm and the consumer.

$nce marketers have determined the brand positioning strategy, they are ready to put into place

the actual marketing program to create, strengthen, or maintain brand associations. Brand trackingstudies collect information from consumers on a routine basis over time, typically through !uantitativemeasures of brand performance on a number of key dimensions marketers can identify in the brandaudit or other means.5hapters L and ;< describe a number of measures to operationaliDe it.

) brand equity management system is a set of organiDational processes designed to improvethe understanding and use of the brand e!uity concept within a rm. hree maor steps helpimplement a brand e!uity management system creating brand e!uity charters, assembling brande!uity reports, and dening brand e!uity responsibilities.

/ro;ing and "ustaining Brand EquityMaintaining and epanding on brand e!uity can be !uite challenging. Brand e!uity management

activities take a broader and more diverse perspective of the brand#s e!uityunderstanding howbranding strategies should re@ect corporate concerns and be adusted, if at all, over time or overgeographical boundaries or multiple market segments.

efning rand *rchitecture. he rm#s brand architecture provides general guidelines aboutits branding strategy and which brand elements to apply across all the different products sold bythe rm. wo key concepts in dening brand architecture are brand portfolios and the brandhierarchy. he brand portfolio is the set of different brands that a particular rm offers for sale tobuyers in a particular category. he brand hierarchydisplays the number and nature of commonand distinctive brand components across the rm#s set of brands. 5hapter ;; reviews a three-stepapproach to brand architecture and how to devise brand portfolios and hierarchies. 5hapter ;(


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concentrates on the topic of brand etensions in which an eisting brand is used to launch aproduct into a different category or sub-category.

)anaging rand #quity over 'ime. 0ffective brand management also re!uires taking along-term view of marketing decisions. ) long-term perspective of brand management recogniDesthat any changes in the supporting marketing program for a brand may, by changing consumerknowledge, affect the success of future marketing programs. ) long-term view also producesproactive strategies designed to maintain and enhance customer-based brand e!uity over timeand reactive strategies to revitaliDe a brand that encounters some diAculties orproblems. 5hapter ;N outlines issues related to managing brand e!uity over time.

)anaging rand #quity over /eographic oundaries! "ultures! and )ar(et+egments. )nother important consideration in managing brand e!uity is recogniDing andaccounting for different types of consumers in developing branding and marketing programs."nternational factors and global branding strategies are particularly important in these decisions. "nepanding a brand overseas, managers need to build e!uity by relying on specic knowledgeabout the eperience and behaviors of those market segments.

#E>!EWhis chapter began by dening a brand as a name, term, sign, symbol, or design, orsome combination of these elements, intended to identify the goods and services of

one seller or group of sellers and to differentiate them from those of competitors. hedifferent components of a brand *brand names, logos, symbols, package designs, andso forth+ are brand elements. Brand elements come in many different forms. ) brandis distinguished from a product, which is dened as anything that can be offered to amarket for attention, ac!uisition, use, or consumption that might satisfy a need or want.) product may be a physical good, service, retail store, person, organiDa- tion, place, oridea.

) brand is a product, but one that adds other dimensions that differentiate it insome way from other products designed to satisfy the same need. hese differencesmay be rational and tangiblerelated to product performance of the brandormore symbolic, emotional, or intangiblerelated to what the brand represents. Brandsthemselves are valuable intangible assets that need to be managed carefully. Brands

offer a number of benets to customers and the rms.he key to branding is that consumers perceive differences among brands in aproduct category. Marketers can brand virtually any type of product by giving theproduct a name and attaching meaning to it in terms of what it has to offer and howit differs from competitors. ) number of branding challenges and opportunities facedby present-day marketing managers were outlined related to changes in customerattitudes and behavior, competitive forces, marketing eAciency and effectiveness, andinternal company dynamics.

he strategic brand management process has four steps

;. "dentifying and developing brand plans(. :esigning and implementing brand marketing programsN. Measuring and interpreting brand performanceI. /rowing and sustaining brand e!uity


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"60#7E" 6. B#A$% E


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the brand given that they are able to recogniDe it there. )s is the case with most information inmemory, we are generally more adept at recogniDing a brand than at recalling it.

*dvantages o rand *wareness. Ehat are the benets of creating a high level of brandawarenessC here are threelearning advantages, consideration advantages, and choiceadvantages.

(earning Advantages: Brand awareness in@uences the formation and strength of theassociations that make up the brand image. o create a brand image, marketers must rstestablish a brand node in memory, the nature of which affects how easily the consumer learns

and stores additional brand associations. he rst step in building brand e!uity is to register thebrand in the minds of consumers. "f the right brand elements are chosen, the task becomeseasier.

!onsideration Advantages: 5onsumers must consider the brand whenever they are making apurchase for which it could be acceptable or fullling a need it could satisfy. 3aising brandawareness increases the likelihood that the brand will be a member of the consideration set, thehandful of brands that receive serious consideration for purchase.;N Much research has shownthat consumers are rarely loyal to only one brand but instead have a set of brands they wouldconsider buying and anotherpossibly smallerset of brands they actually buy on a regularbasis. Because consumers typically consider only a few brands for purchase, making sure that thebrand is in the consideration set also makes other brands less likely to be considered orrecalled.;I

!hoice Advantages: he third advantage of creating a high level of brand aware - nessis that it can affect choices among brands in the consideration set, even if there areessentially no other associations to those brands.;H For eample, consumers havebeen shown to adopt a decision rule in some cases to buy only more familiar, well-established brands.;Ohus, in low-involvement decision settings, a minimum level of brandawareness may be suAcient for product choice, even in the absence of a well-formed attitude.;J

$ne in@uential model of attitude change and persuasion, the elaboration-likelihood model,is consistent with the notion that consumers may make choices based on brand awarenessconsiderations when they have low involvement. 7ow involvement results when consumers lackeither purchase motivation *they don#t care about the product or service+ or purchase ability*they don#t know anything else about the brands in a category+.;K

;. !onsumer purchase motivation: )lthough products and brands may be critically importantto marketers, choosing a brand in many categories is not a life-or-death decision for mostconsumers. For eample, despite millions of dollars spent in 9 advertising over the years topersuade consumers of product differences, I< percent of consumers in one survey believedall brands of gasoline were about the same or did not know which brand was best. ) lack ofperceived differences among brands in a category is likely to leave consumers unmotivatedabout the choice process.(. !onsumer purchase ability: 5onsumers in some product categories ust do not have thenecessary knowledge or eperience to udge product !uality even if they so desired. heobvious eamples are products with a high degree of technical sophistication, liketelecommunications e!uipment with state-of-the-art features. But consumers may be unable to

udge !uality even in low-tech categories. 5onsider the college student who has not really hadto cook or clean before, shopping the supermarket aisles in earnest for the rst time, or a new

manager forced to make an epensive capital purchase for the rst time. he reality is thatproduct !uality is often highly ambiguous and diAcult to udge without a great deal of prioreperience and epertise. "n such cases, consumers will use whatever shortcut or heuristic theycan come up with to make their decisions in the best manner possible. Sometimes they simplychoose the brand with which they are most familiar and aware.

#stablishing rand *wareness. ?ow do you create brand awarenessC "n the abstract,creating brand awareness means increasing the familiarity of the brand through repeatedeposure, although this is generally more effective for brand recognition than for brand recall.

hat is, the more a consumer &eperiences' the brand by seeing it, hearing it, or thinking aboutit, the more likely he or she is to strongly register the brand in memory.

hus, anything that causes consumers to eperience one of a brand#s elementits name,symbol, logo, character, packaging, or slogan, including advertising and promotion, sponsorship


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and event marketing, publicity and public relations, and outdoor advertisingcan increasefamiliarity and awareness of that brand element. )nd the more elements marketers can reinforce,usually the better. For instance, in addition to its name, "ntel uses the &"ntel "nside' logo and itsdistinctive symbol as well as its famous four-note ingle in 9 ads to enhance awareness.

3epetition increases recogniDability, but improving brand recall also re!uires linkages inmemory to appropriate product categories or other purchase or consumption cues. ) slogan or

ingle creatively pairs the brand and the appropriate cues *and, ideally, the brandpositioning as well, helping build a positive brand image+. $ther brand elements like logos,symbols, characters, and packaging can also aid recall.

he way marketers pair the brand and its product category, such as with an advertising slogan,helps determine the strength of product category links. For brands with strong category associations,like Ford cars, the distinction between brand recognition and recall may not matter muchconsumersthinking of the category are likely to think of the brand. "n competitive markets or when the brand isnew to the category, it is more important to emphasiDe category links in the marketing program.Strong links between the brand and the category or other relevant cues may become especiallyimportant over time if the product meaning of the brand changes through brand etensions, mergers,or ac!uisitions.Many marketers have attempted to create brand awareness through so-called shock advertising,using biDarre themes. For eample, at the height of the dot-com boom, online retailer$utpost.com used ads featuring gerbils shot from cannons, wolverines attacking marching bands,and preschoolers having the brand name tattooed on their foreheads. he problem with suchapproaches is that they invariably fail to create strong category links because the product is ust notprominent enough in the ad. hey also can generate a fair amount of ill will. $ften coming across as

desperate measures, they rarely provide a foundation for long-term brand e!uity. "n the case of$utpost.com, most potential customers did not have a clue what the company was about.

Brand !mage

5reating brand awareness by increasing the familiarity of the brand through repeated eposure *forbrand recognition+ and forging strong associations with the appropriate product category or otherrelevant purchase or consumption cues *for brand recall+ is an important rst step in building brande!uity. $nce a suAcient level of brand awareness is created, marketers can put more emphasis oncrafting a brand image.

5reating a positive brand image takes marketing programs that link strong, favorable, anduni!ue associations to the brand in memory. Brand associations may be either brandattributes or benets. Brand attributes are those descriptive features that characteriDea product or service. Brand bene&ts are the personal value and meaning that

consumers attach to the product or service attributes.5onsumers form beliefs about brand attributes and benets in different ways. he

denition of customer-based brand e!uity, however, does not distinguish between thesource of brand associations and the manner in which they are formed4 all that mattersis their strength, favorability, and uni!ueness. his means that consumers can formbrand associations in a variety of ways other than marketing activities from directeperience4 online surng4 through information from other commercial or nonpartisansources such as !onsumer #eports or other media vehicles4 from word of mouth4 andby assumptions or inferences consumers make about the brand itself, its name, logo,or identication with a company, country, channel of distribution, or person, place, orevent.

Marketers should recogniDe the in@uence of these other sources of information

by both managing them as well as possible and by ade!uately accounting for them indesigning communication strategies. 5onsider how he Body Shop originally built itsbrand e!uity.

HE B6%5 "H6'

he Body Shop successfully created a global brand image without using conventional advertising. "ts strongassociations to personal care and environmental concern occurred through its products *natural ingredients only, nevertested on animals+, packaging *simple, rellable, recyclable+, merchandising *detailed point-of-sale posters, brochures,and displays+, staff *encouraged to be enthusiastic and informative concerning environmental issues+, sourcing policies*using small local producers from around the world+, social action program *re!uiring each franchisee to run a localcommunity program+, and public relations programs and activities *taking visible and sometimes outspoken stands on

various issues+ (;


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"n short, to create the differential response that leads to customer-based brand e!uity,marketers need to make sure that some strongly held brand associations are not onlyfavorable but also uni!ue and not shared with competing brands. 8ni!ue associations helpconsumers choose the brand. o choose which favorable and uni!ue associations tostrongly link to the brand, marketers carefully analyDe the consumer and the competition todetermine the best positioning for the brand. 7et#s consider some factors that, in general,affect the strength, favorability, and uni!ueness of brand associations.

+trength o rand *ssociations. he more deeply a person thinks about product informa-tion and relates it to eisting brand knowledge, the stronger the resulting brand associations will be.

wo factors that strengthen association to any piece of information are its personal relevance and

the consistency with which it is presented over time. he particular associations we recall and theirsalience will depend not only on the strength of association, but also on the retrieval cues presentand the contet in which we consider the brand.

"n general, direct eperiences create the strongest brand attribute and benet associations andare particularly in@uential in consumers# decisions when they accurately interpret them. Eord-of-mouth is likely to be particularly important for restaurants, entertainment, banking, and personalservices. Starbucks, /oogle, 3ed Bull, and )maDon are all classic eamples of companies thatcreated amaDingly rich brand images without the benet of intensive advertising programs. Mike#s?ard 7emonade sold its rst ;< million cases without any advertising becauseit was a &discovery' brand fueled by word-of-mouth.((

$n the other hand, company-in@uenced sources of information, such as advertising, are oftenlikely to create the weakest associations and thus may be the most easily changed. o overcome

this hurdle, marketing communication programs use creative communications that causeconsumers to elaborate on brand-related information and relate it appropriately to eistingknowledge. hey epose consumers to communications repeatedly over time, and ensure thatmany retrieval cues are present as reminders.

0avorability o rand *ssociations. Marketers create favorable brand associations byconvincing consumers that the brand possesses relevant attributes and benets that satisfy theirneeds and wants, such that they form positive overall brand udgments. 5onsumers will not hold allbrand associations to be e!ually important, nor will they view them all favorably or value them alle!ually across different purchase or consumption situations. Brand associations may be situation- orcontet-dependent and vary according to what consumers want to achieve in that purchase orconsumption decision.(N )n association may thus be valued in one situation but not another.(I

For eample, the associations that come to mind when consumers think of Fed0 may be &fast,'

&reliable,' and &convenient,' with &purple and orange packages.' he color of the packaging maymatter little to most consumers when actually choosing an overnight delivery service, although itmay perhaps play an important brand awareness function. Fast, reliable, and convenient servicemay be more important, but even then only under certain situations. ) consumer who needsdelivery only &as soon as possible' may consider less epensive options, like 8S1S 1riority Mail,which may take one to two days.

Uniqueness o rand *ssociations. he essence of brand positioning is that the brand has asustainable competitive advantage or &uni!ue selling proposition' that gives consumers a compellingreason why they should buy it.(H Marketers can make this uni!ue difference eplicit through directcomparisons with competitors, or they may highlight it implicitly. hey may base it on performance-related or non-performance-related attributes or benets.

)lthough uni!ue associations are critical to a brand#s success, unless the brand faces no

competition, it will most likely share some associations with other brands. $ne function of sharedassociations is to establish category membership and dene the scope of competition with otherproducts and services.(O

) product or service category can also share a set of associations that include specic be- liefsabout any member in the category, as well as overall attitudes toward all members in thecategory. hese beliefs might include many of the relevant performance-related attributes forbrands in the category, as well as more descriptive attributes that do not necessarily relate toproduct or service performance, like the color of a product, such as red for ketchup.

5onsumers may consider certain attributes or benets prototypical and essential to all

brands in the category, and a specic brand an eemplar and most representative.(J Foreample, they might epect a running shoe to provide support and comfort and to be built wellenough to withstand repeated wearings, and they may believe that )sics, %ew Balance,


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or some other leading brand best represents a running shoe. Similarly, consumers mightepect an online retailer to offer easy navigation, a variety of offerings, reasonable shippingoptions, secure purchase procedures, responsive customer service, and strict privacy guide-lines, and they may consider 7.7. Bean or some other market leader to be the best eample of anonline retailer.

Because the brand is linked to the product category, some category associations mayalso become linked to the brand, either specic beliefs or overall attitudes. 1roduct categoryattitudes can be a particularly important determinant of consumer response. For eample, if aconsumer thinks that all brokerage houses are basically greedy and that brokers are in it forthemselves, then he or she probably will have similarly unfavorable beliefs about andnegative attitudes toward any particular brokerage house, simply by virtue of its member-ship in the category.

hus, in almost all cases, some product category associations will be shared with all brands inthe category. %ote that the strength of the brand associations to the product category is an

important determinant of brand awareness (K

!%E$!.5!$/ A$% E"ABL!"H!$/ B#A$%'6"!!6$!$/?aving developed the 5BB0 concept in some detail as background, we net outline

how marketers should approach brand positioning.

Basic 7oncepts

Brand positioning is at the heart of marketing strategy. "t is the &act of designing the company#soffer and image so that it occupies a distinct and valued place in the target customer#s minds.'(L

)s the name implies, positioning means nding the proper &location' in the minds of a group ofconsumers or market segment, so that they think about a product or service in the &right' ordesired way to maimiDe potential benet to the rm. /ood brand positioning helps guidemarketing strategy by clarifying what a brand is all about, how it is uni!ue and how it is similar tocompetitive brands, and why consumers should purchase and use it.

:eciding on a positioning re!uires determining a frame of reference *by identifying the targetmarket and the nature of competition+ and the optimal points-of-parity and points-of-differencebrand associations. "n other words, marketers need to know *;+ who the target consumer is,

*(+ who the main competitors are, *N+ how the brand is similar to these competitors, and *I+ howthe brand is different from them. Ee#ll talk about each of these.

arget Mar=et"dentifying the consumer target is important because different consumers may have differentbrand knowledge structures and thus different perceptions and preferences for the brand. Eith-out this understanding, it may be diAcult for marketers to say which brand associations should bestrongly held, favorable, and uni!ue. 7et#s look at dening and segmenting a market andchoosing target market segments.

) market is the set of all actual and potential buyers who have suAcient interest in, income for,and access to a product. 'arket segmentation divides the market into distinct groups ofhomogeneous consumers who have similar needs and consumer behavior, and who thus re!uire

similar marketing mies. Market segmentation re!uires making trade-offs between costs andbenets. he more nely segmented the market, the more likely that the rm will be able toimplement marketing programs that meet the needs of consumers in any one segment. hatadvantage, however, can be offset by the greater costs of reduced standardiDation.

+egmentation ases. Figures (-N and (-I display some possible segmentation bases forconsumer and business-to-business markets, respectively. Ee can classify these bases as de-scriptive or customer-oriented *related to what kind of person or organiDation the customer is+,or as behavioral or product-oriented *related to how the customer thinks of or uses the brandor product+.

Behavioral segmentation bases are often most valuable in understanding branding issuesbecause they have clearer strategic implications. For eample, dening a benet segment makes it


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clear what should be the ideal point-of-difference or desired benet with which to establish the

positioning. ake the toothpaste market. $ne research study uncovered four main segmentsNust being different is not enoughthe differences must matter to consumers. Foreample, at one time a number of brands in different product categories *colas,dishwashing soaps, beer, de- odorants, gasoline+ introduced clear versions of theirproducts to better differentiate themselves. he &clear' association has not seemed tobe of enduring value or to be sustainable as a point-of- difference. "n most cases, thesebrands eperienced declining market share or disappeared altogether.

eliverability "riteria. he deliverability of an attribute or benet brand associationdepends on both a company#s actual ability to make the product or service *feasibility+as well as their effectiveness in convincing consumers of their ability to do so*communicability+, as followsHapan has done

this well. 0very week, employees from all over >apan would meet to discuss hypotheses tested and veried in the stores.

"deas such as changing the lunch menu for the net day based on the predicted weather *like serving hot noodles on a cool

day+ were heard throughout the company.

Sources: 7arry Selden and /eoffrey 5olvin, &H 3ules for Finding the %et :ell,' ortune, ;( >uly (


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primary characteristics and related features before attempting to link additional, more peripheral

associations.

Similarly, brand imagery often begins with a fairly concrete initial articulation of user and

usage imagery that, over time, leads to broader, more abstract brand associations of personality,

value, history, heritage, and eperience. Brand udgments usually begin with positive !uality and

credibility perceptions that can lead to brand consideration and then perhaps ultimately to

assessments of brand superiority. Brand feelings usually start with either eperiential ones

*warmth, fun, and ecitement+ or inward ones *security, social approval, and self-respect.+ Finally,

resonance again has a clear ordering, whereby behavioral loyalty is a starting point, but

attitudinal attachment or a sense of community is almost always needed for active engagement to

occur.

rand Resonance ,rovides Important 0ocus. )s Figure N-; shows, brand resonance is the

pinnacle of the brand resonance model and provides important focus and priority for decision

making about marketing. Marketers building brands should use brand resonance as a goal and a

means to interpret their brand-related marketing activities. he !uestion to ask is, o what etent

is marketing activity affecting the key dimensions of brand resonanceconsumer loyalty, at-

tachment, community, or engagement with the brandC "s marketing activity creating brand

performance and imagery associations and consumer udgments and feelings that will support

these brand resonance dimensionsC

"t is virtually impossible, however, for consumers to eperience an intense, active loyalty

relationship with all the brands they purchase and consume. hus, some brands will be more

meaningful to consumers than others, because of the nature of their associated product or

service, the characteristics of the consumer, and so on. Some brands have more resonance

potential than others. Ehen it is diAcult to create a varied set of feelings and imagery

associations, marketers might not be able to obtain the deeper aspects of brand resonance like

active engagement. %evertheless, by taking a broader view of brand loyalty, they may be able to

gain a more holistic appreciation for their brand and how it connects to consumers. )nd by

dening the proper role for the brand, they should be able to obtain higher levels of brand

resonance.

.!/0#E +1 -Brand >alue78ain

' A # ! ! ! : 0 S " / % " % /) % :" M 1 7 0 M 0 % " % / B3 )%:M ) 3 G 0 " % / 1 3 $ / 3 ) MS

5hoosing Brand0lementsto Build Brand0!uity


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7#!E#!A .6# 7H66"!$/ B#A$% ELEME$""n general, there are si criteria for brand elements *with more specic subchoices for each, asshown in Figure I-;+

;. Memorable(. MeaningfulN. 7ikableI. ransferableH. )daptableO. 1rotectable

he rst three criteriamemorability, meaningfulness, and likabilityare the marketer#s

offensive strategy and build brand e!uity. he latter three,however, play a defensive role for leveraging and maintaining brande!uity in the face of different opportunities andconstraints. 7et#s consider each of these general criteria.

Memorability

) necessary condition for building brand e!uity is achievinga high level of brand awareness. Brand elements that

promote that goal are inherently memorable andattention-getting and therefore facilitate recall orrecognition in purchase or consumption settings. Foreample, a brand of propane gas cylinders named Blue 3hinofeaturing a powder-blue animal mascot with a distinctive yellow@ame is likely to stick in the minds of consumers.

Meaning3ulness

Brand elements may take on all kinds of meaning, witheither descriptive or persuasive content. Ee saw in 5hapter ; thatbrand names can be based on people, places, animals or birds,or other things or obects. wo particularly important criteria

are how well the brand element conveys the following 1eneral information about the function of the product or service: :oes the brandelement have descriptive meaning and suggest something about the product category, theneeds satised or benets suppliedC ?ow likely is it that a consumer could correctlyidentify the product category for the brand based on any one brand elementC :oes thebrand element seem credible in the product categoryC Speci&c information about particular attributes and bene&ts of the brand: :oes thebrand element have persuasive meaning and suggest something about the particular kindof product, or its key points-of-difference attributes or benetsC :oes it suggestsomething about some aspect of the product performance or the type of person who mightuse the brandC

he rst dimension is an important determinant of brand awareness and salience4 the second,of brand image and positioning.

Li=ability

"ndependent of its memorability and meaningfulness, do customers nd the brand elementaesthetically appealingC; "s it likable visually, verbally, and in other waysC Brand elementscan be rich in imagery and inherently fun and interesting, even if not always directly relatedto the product.

) memorable, meaningful, and likable set of brand elements offers many advantages be-cause consumers often do not eamine much information in making product decisions.:escriptive and persuasive elements reduce the burden on marketing communications to build


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awareness and link brand associations and e!uity, especially when few other product-relatedassociations eist. $ften, the less concrete the possible product benets are, the moreimportant is the creative potential of the brand name and other brand elements to captureintangible characteristics of a brand.

rans3erabilityransferability measures the etent to which the brand element adds to the brand e!uity for newproducts or in new markets for the brand. here are several aspects to this criterion.

First, how useful is the brand element for line or category etensionsC "n general, the less

specic the name, the more easily it can be transferred across categories. For eample, )maDonconnotes a massive South )merican river and therefore as a brand can be appropriate for avariety of different types of products. Books &3' 8s obviously would not have afforded the same@eibility if )maDon had chosen that name to describe its original line of business.

Second, to what etent does the brand element add to brand e!uity across geographicboundaries and market segmentsC o a large etent this depends on the cultural content andlinguistic !ualities of the brand element. $ne of the main advantages of nonmeaningful, syntheticnames like 0on is that they transfer well into other languages.

he diAculties or mistakes that even top marketers have encountered in translating their brandnames, slogans, and packages into other languages and cultures over the years have be- comelegendary. )s an eample, Microsoft was challenged when launching its 9ista operating system in

7atvia, because the name means &chicken' or &frumpy woman' in the local language.N

Figure I-( includes some of the more notorious mishaps.Io avoid such complications, companiesmust review all their brand elements for cultural meaning before introducing the brand into a newmarket.

Adaptability

he fth consideration for brand elements is their adaptability over time. Because of changes in

consumer values and opinions, or simply because of a need to remain contemporary, most brand

elements must be updated. he more adaptable and @eible the brand element, the easier it is to

update it. For eample, logos and characters can be given a new look or a new design to make

them appear more modern and relevant.

'rotectability

he sith and nal general consideration is the etent to which the brand element isprotectable both in a legal and a competitive sense. Marketers should *;+ choose brand

elements that can be legally protected internationally, *(+ formally register them with the

appropriate legal bodies, and *N+ vigorously defend trademarks from unauthoriDed

competitive infringement. he necessity of legally protecting the brand is dramatiDed by

the billions of dollars in losses in the 8nited States alone from unauthoriDed use of patents,

trademarks, and copyrights, as described in he Science of Branding I-;.

)nother consideration is whether the brand is competitively protectable. "f a

name, package, or other attribute is too easily copied, much of the uni!ueness of the

brand may disappear. For eample, consider the once red-hot ice-beer category.

)lthough Molson "ce was one of the early entries in the category, it !uickly lost its

pioneering advantage when Miller "ce and what later became Bud "ce were introduced.Marketers need to reduce the likelihood that competitors can create a derivative based

on the product#s own elements.

6'!6$" A$% A7!7" .6# B#A$% ELEME$"5onsider the advantages of &Apple' as the name of a personal computer. Applewas a simplebut well-known word that was distinctive in the product categorywhich helped develop brandawareness. he meaning of the name also gave the company a &friendly shine' and warm brandpersonality. "t could also be reinforced visually with a logo that would transfer easily across geo-


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graphic and cultural boundaries. Finally, the name could serve as a platform for sub-brands likethe Macintosh, aiding the introduction of brand etensions. )s Appleillustrates, a well-chosenbrand name can make an appreciable contribution to the creation of brand e!uity.

Ehat would an ideal brand element be likeC 5onsider brand namesperhaps the mostcentral of all brand elements. "deally, a brand name would be easily remembered, highlysuggestive of both the product class and the particular benets that served as the basis of itspositioning, inherently fun or interesting, rich with creative potential, transferable to a widevariety of product and geographic settings, enduring in meaning and relevant over time, andstrongly protectable both legally and competitively.

8nfortunately, it is difficult to choose a brand nameor any brand element, for thatmatterthat satises all these criteria. he more meaningful the brand name, for eample, themore diAcult it may be to transfer it to new product categories or translate it to other cultures.

his is one reason why it#s preferable to have multiple brand elements. 7et#s look at the maorconsiderations for each type of brand element.

Brand $ames

he brand name is a fundamentally important choice because it often captures the central themeor key associations of a product in a very compact and economical fashion. Brand names can bean etremely effective shorthand means of communication.O Ehereas an advertisement lasts half aminute and a sales call could run to hours, customers can notice the brand name and register itsmeaning or activate it in memory in ust a few seconds.

Because it is so closely tied to the product in the minds of consumers, however, the brand name isalso the most diAcult element for marketers to change. So they systematically research them beforemaking a choice. he days when ?enry Ford "" could name his new automobile the&0dsel' after the name of a family member seem to be long gone.

"s it diAcult to come up with a brand nameC "ra Bachrach, a well-known branding consultant, hasnoted that although there are ;I


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years 5hevrolet cars have also become known as &5hevy,' Budweiser beer has become &Bud,' and5oca-5ola is also &5oke.'K

"urname :ell, Siemens, /illette

%escriptive )merican $nline, 1iDDa ?ut, /eneral Motors

!nvented ?\agen-:aDs, Godak, [ero

7onnotative :uracell, ?umana, "nniti

Bridge Eestin, :aimler5hrysler, 0onMobilArbitrary Apple, RahooX, "nniti .!/0#E ,1+ 7ippincott Brand %ameaonomy

Source: httpYYww w .lippincott.comY

o encourage word-of-mouth eposure that helps build strong memory links, marketers shouldalso make brand names easy to pronounce. )lso keep in mind that rather than risk theembarrassment of mispronouncing a diAcult name like ?yundai automobiles, Shiseido cosmetics,or Fa]onnable clothing, consumers may ust avoid pronouncing it altogether.

Brands with difficult-to-pronounce names have an uphill battle because the firm has todevote so much of its initial marketing effort to teaching consumers how to pronounce thename. 1olish vodka Eyborowa *pronounced 900-ba-ro-va+ was supported by a print ad to helpconsumers pronounce the brand namea key factor for success in the distilled spirits category,

where little self-service eists and consumers usually need to ask for the brand in the store.L

"deally, the brand name should have a clear, understandable, and unambiguouspronunciation and meaning. ?owever, the way a brand is pronounced can affect its meaning, soconsumers may take away different perceptions if ambiguous pronunciation results in differentmeanings. $ne research study showed that certain hypothetical products with brand namesthat were acceptable in both 0nglish and French, such as 9aner, 3andal, and Massin, wereperceived as more &hedonic' *providing pleasure+ and were better liked when pronounced inFrench than in 0nglish.;uicy>uice ;uicy>uiceX

ierentiated! istinctive! and Unique. )lthough choosing a simple, easy-to-pronounce,familiar, and meaningful brand name can improve recallability, to improve brand recognition, onthe other hand, brand names should be different, distinctive, and unusual. )s 5hapter ( noted,
http://www/http://www/


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recognition depends on consumers# ability to discriminate between brands, and more complebrand names are more easily distinguished. :istinctive brand names can also make it easier forconsumers to learn intrinsic product information.;H

) brand name can be distinctive because it is inherently uni!ue, or because it is uni!ue inthe contet of other brands in the category.;O :istinctive wordsmay be seldom-used or atypi- cal words for the product category,like Applecomputers4 unusual combinations of real words,like oys&3'8s4 or completely made-up words, like 5ognos or7uottica. 0ven made-up brand names, however, have tosatisfy prevailing linguistic rules and conventions foreample, try topronounce names without vowels such as Blfft, [gpr, or MsdyX

.!/0#E ,1, Sample Suggestive Brand

%ames

?ere too there are trade-offs. 0ven if adistinctive brand name is advantageous for brand

recognition, it also has to be credible and desirable in the product category. ) notable eception isSmuckers elly, which has tried to turn the handicap of its distinctivebut potentially dislikablename into a positive through its slogan, &Eith a %ame 7ike Smucker#s, "t ?as to Be /oodX'

rand *ssociations Because the brand name is a compact form of communication, the eplicitand implicit meanings consumers etract from it are important. "n naming a new peer-to-peercommunication technology, the founders landed on the descriptive &Sky peer-to-peer' which theydecided to shorten to Skyper. Ehen the corresponding Eeb address Skyper.com was not available,they shortened it again to the much more user-friendly Skype.;J

he brand name can be chosen to reinforce an important attribute or benet association thatmakes up its product positioning *see Figure I-I+. Besides performance-related considerations,brand names can also communicate more abstract considerations as do names like >oydishwashing li!uid, 5aress soap, and $bsession perfume. 5onsider the reasoning behind the nameof 5olgate#s new mini toothbrush.

) descriptive brand name should make it easier to link the reinforced attribute or benet.;L

5onsumers will nd it easier to believe that a laundry detergent &adds fresh scent' to clothes if ithas a name like &Blossom' than if it#s called something neutral like &5ircle.'(apan.IK

Finally, because brand characters do not typically have direct product meaning, they may also betransferred relatively easily across product categories. For eample, )aker notes that &theGeebler#s elf identity *which combines a sense of home-style baking with a touch of magicand fun+ gives the brand latitude to etend into other baked goodsand perhaps even into othertypes of food where homemade magic and fun might be perceived as a benet.'IL 1opular char-acters also often become valuable licensing properties, providing direct revenue and additionalbrand eposure.


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"autions. here are some cautions and drawbacks to using brand characters. Brand characters canbe so attention getting and well liked that they dominate other brand elements and actuallydampen brand awareness.

5haracters often must be updated over time so that their image and personality remain rel-evant to the target market. >apan#s famous ?ello Gitty character, which became a multibillion dollarproduct and license powerhouse, found its sales shrinking over the last decade, a victim in part ofovereposure and a failure to make the character modern and appealing across multiple media.H;

"n general, the more realistic the brand character, the more important it is to keep it up-to-

date. $ne advantage of ctitious or animated characters is that their appeal can be more endur- ingand timeless than that of real people. Branding Brief I-; describes the efforts by /eneral Mills toevolve the Betty 5rocker character over time. Finally, some characters are so culturally specic thatthey do not travel well to other countries. he Science of Branding I-( describes some guidelinesfrom a leading consultant.

"logans

Slogans are short phrases that communicate descriptive or persuasive information about thebrand. hey often appear in advertising but can play an important role on packaging and in otheraspects of the marketing program. Ehen Snickers advertised, &?ungryC /rab a Snickers,' theslogan also appeared on the candy bar wrapper itself.

Slogans are powerful branding devices because, like brand names, they are an etremely ef-

cient, shorthand means to build brand e!uity. hey can function as useful &hooks' or &handles' tohelp consumers grasp the meaning of a brandwhat it is and what makes it special. H(hey are anindispensable means of summariDing and translating the intent of a marketing programin a few short words or phrases. For eample, State Farm "nsurance#s &7ike a /ood %eighbor, StateFarm "s here' has been used for decades to represent the brand#s dependability and aura offriendship.

enefts. Some slogans help build brand awareness by playing off the brand name in some way,as in &he 5iti %ever Sleeps.' $thers build brand awareness even more eplicitly by making stronglinks between the brand and the corresponding product category, like when 7ifetime wouldadvertise that it was &elevision for Eomen.' Most important, slogans can help reinforce the brandpositioning as in &Staples. hat Eas 0asy.' For ?B$, a slogan was critical to convey-ing its uni!ue positioning.

Balance 7reative and "trategic 8in=ing to 7reate /reat 78aracters

/reat characters, the 1illsbury :oughboy, for eample, can embody a brand#s story and spark enthusiasm for it. But bring-ing a character to life through advertising re!uires navigating a host of pitfalls. 5haracter, a company based in 1ortland,$regon, helps create new corporate brand characters and revitaliDe old ones.

:uring three-day &5haracter' camps, a team from a client company learns to @esh out a new or current brand characterthroughimprovisational acting, discussion, and re@ection. )c- cording to 5haracter president :avid )ltschul, brand charac- tersare uni!ue in that they straddle the worlds of marketing and entertainment. heir function is to represent a brand, but they

compete for attention with other characters to which consumers are eposed through television, movies, video games, andnovels. )ltschul emphasiDes maintaining consistency across all communications and familiariDing all employees with the storybehind the brand. he results of 5haracter 5amps are intended to e!uip creative directors with background and in- sights intothe company#s character that can spur new ideas and approaches.

hese are some tips for brand characters presented at5haracter 5amps.

;. on4t be a shill. ?uman traits are appealing. M2M#s were successful in giving the brand more appeal once the M2Mcharacters were given more human traits.(. "reate a lie. 5reate a full backstory to ll out the character. his ensures that the character can evolve over timeand continue to connect with consumers.N. )a(e characters vulnerable. 0ven superheroes have @aws. Maytag launched a new character, the )pprentice,to complement its famous lonely repairman.I. Imagine the long run. 5haracters like /eneral Mills#s >olly /reen /iant have been around for decades. :on#t get rid of

oldercharacters ust to make room for new ones. 5on- sumers can get very attached to longtime characters.


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H. on4t as( too much. 5haracters with a simple task or purpose work best. 8sing characters for new lines or otherpurposes can dilute their effectiveness.

o be truly effective, brand characters have to be engag-ing in their own right while staying true to the brand. Most characters though, are conceived as short-term solutions to solvespecic problems. "f the audience likes a character, companies face the challenge of turning it into an asset. )t this point,some companies try to freeDe all the character#s attributes and preserve them. But )ltschul cautions against this strategy,saying static characters can lose their appeal and fail to emotionally connect with consumers. $n the other hand, charactersthat are mass-marketed too heavily can also crash and burn. he 5alifornia 3aisins met such a fate when their licensingprogram pushedthem into every possible type of paraphernalia without much thought about their backstory.

)ltschul maintains that viewers connect with characters whose struggles are familiar. ?e says the way to ensure that abrandcharacter adds value for the long run is to address strategic !uestions such as &Ehat is this story aboutC' &Ehat are the

@aws,vulnerabilities, and sources of con@ict that connect the character to the brand in a deep, intrinsic wayC' &Ehat human truth isrevealedthrough the story that audiences can relate toC' )ltschul#s company helps clients nd this intersection between story and

marketingby dening the essence of a brand and the character and then clarifying the connection between the two. he brandcharacter isproled to bring out the personality traits, behavior, and mission that may be used for future sto- rylines. )nd the

participants talk abouthow the character should look, act, and interact with others to most effectively communicate the essence ofthe brand. he goal is tocreate guidelines for how the character may evolve and suggests ways the character could be used

beyond traditional advertisingmedia. )ltschul suggests that companies also establish principles for the brand to stay &in character,'including ways the charactercan serve as conscience for the brand when making decisions such as line

etensions, alliances, and competitive responses.

Sources: Fara Earner, &Brands with 5haracter,' ast !ompany, May(ust :o "t.' Such substitutions can emphasiDe that the ad campaignrepresents a departure of some kind from the message conveyed by the brand slogan, or ust a

means to give the brand slogan a rest so that it remains fresh.

esigning +logans. Some of the most powerful slogans contribute to brand e!uity inmultiple ways.HIhey can play off the brand name to build both awareness and image, such as&Be 5ertain with 5erts' for 5erts breath mints4 &Maybe She#s Born with "t, Maybe "t#s Maybelline'for Maybelline cosmetics4 or &he Big V Stands for Vuality' for Vuaker State motor oil.

Slogans also can contain product-related messages and other meanings. 5onsider thehistorical 5hampion sportswear slogan, &"t akes a 7ittle More to Make a 5hampion.' he slogancould be interpreted in terms of product performance, meaning that 5hampion sportswear ismade with a little etra care or with etra-special materials, but it could mean that 5hampionsportswear is associated with top athletes. his combination of superior product performanceand aspirational user imagery is a powerful platform on which to build brand image and e!uity.

Benetton has had an e!ually strong slogan on which to build brand e!uity *&8nited 5olors of

Benetton'+, but as Branding Brief I-( describes, the company has not always taken full advantageof it.

Updating +logans. Some slogans become so strongly linked to the brand that it becomesdiAcult to introduce new ones *take the famous slogan !uiD in Figure I-J and check the ac-companying footnote to see how many slogans you can correctly identify+. Marketers of J81tried a number of different successors to the popular &8ncola' sloganincluding &Freedom of5hoice,' &5risp and 5lean and %o 5affeine,' &:on#t Rou Feel /ood )bout J81,' and &Feels So/ood 5oming :own,' and for over ve years the somewhat edgy &Make J81 Rours.' ) new ad in(


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) slogan that becomes so strongly identied with a brand can bo it in. $r successful sloganscan take on lives of their own and become public catch phrases *like Eendy#s &Ehere#s theBeefC' in the ;LK


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Facilitate product transportation and protection. )ssist in at-home storage. )id product consumption.

Marketers must choose the aesthetic and functional components of packaging correctly toachieve marketing obectives and meet consumers# needs. )esthetic considerations govern apackage#s siDe and shape, material, color, tet, and graphics. "nnovations in printing processes nowpermit eye-catching and appealing graphics that convey elaborate and colorful messages on thepackage at the &moment of truth'the point of purchase.HL

Functionally, structural design is crucial. For eample, innovations over the years haveresulted in food packages that are resealable, tamperproof, and more convenient to useeasy tohold, easy to open, or s!ueeDable. 5onsider these recent /eneral Mills packaging innovations

Roplait /o-/urt#s yogurt in a tube packaging concept was a huge hit with kids and their parents4packaging for Betty 5rocker Earm :elights showcased a microwavable *two minutes+, convenient,single-serve dessert treat4 and /reen /iant 9alley Fresh Steamers uses materials that withstandmicrowave cooking temperatures to offer steamable vegetables with sauce O51enney#s channel mi, which reveals that its most profitable customers were those whoshopped multiple channels. Similarly, a :eloitte study revealed that multichannel shoppers spent K(

percent more in each transaction than those who shopped in only one store.LN

he Boston 5onsulting /roup concluded that multichannel retailers were able to ac!uirecustomers at half the cost of "nternet-only retailers, citing a number of advantages for the multi-channel retailersLI

hey have market clout with suppliers. hey have established distribution and fulllment systems *7.7. Bean and 7and#s 0nd+.

hey can cross-sell between Eeb sites and stores *he /ap and Barnes 2 %oble+.

Many of these same advantages are realiDed by multichannel product manufacturers.3ecogniDing the power of integrated channels, many "nternet-based companies are also en-gaging in &physical world' activities to boost their brand. For eample, RahooX opened apromotional store in %ew Rork#s 3ockefeller 5enter, and erade.com opened a @agship own- brandnancial center on %ew Rork#s Madison )venue as well as mini-centers and kiosks in argetstores.

"ummary

5hannels are the means by which firms distribute their products to consumers. 5hannelstrategy to build brand e!uity includes designing and managing direct and indirect channels tobuild brand awareness and improve the brand image. :irect channels can enhance brande!uity by allowing consumers to better understand the depth, breadth, and variety of theproducts associated with the brand as well as any distinguishing characteristics. "ndirectchannels can in@uence brand e!uity through the actions and support of intermediaries such asretailers, and the transfer of any associations that these intermediaries might have to thebrand.


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.!/0#E -1 >51enney 5ustomer 5hannel 9alue )nalysisSource: 5ustomer 9alues )nalysis, :oublecheck *(


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HE $EW ME%!A E$>!#6$ME$)lthough advertising and other communication options can play different roles in the marketingprogram, one important purpose they all serve is to contribute to brand e!uity. )ccording to thecustomer-based brand e!uity model, marketing communications can contribute to brand e!uity in anumber of different ways by creating awareness of the brand4 linking points-of-parity and points- of-difference associations to the brand in consumers# memory4 eliciting positive brand udgments orfeelings4 and facilitating a stronger consumerQbrand connection and brand resonance. "n addition toforming the desired brand knowledge structures, marketing communication programs can provide

incentives eliciting the differentialresponse that makes up customer-

based brand e!uity.

he @eibility of marketingcommunications comes in partfrom the number of different

ways they can contribute to brand e!uity. )tthe same time, brand e!uity helps marketers

determine how to design and implementdifferent marketing communication options. "n

this chapter, we consider how to developmarketing communication programs to build

brand e!- uity. Ee will assume the otherelements of the marketing program have beenproperly put into place.

.!/0#E A1(Marketing 5ommunications

$ptions

hus, the optimal brand positioning hasbeen denedespecially in terms of thedesired target marketand product,

pricing, distribution, and other marketingprogram decisions have largely been made.

5omplicating the picture formarketing communications

programs, however, is that fact that the media environment haschanged dramatically in recent years. raditional advertisingmedia such as 9, radio, magaDines, and newspapers seem to belosing their grip on consumers due to increased competition for consumerattention. he digital revolution offers a host of new ways for consumers to learn and talk

about brands with companies or with each other.

his changing media landscape has forced marketers to reevaluate how they should best

communicate with consumers.( 5onsider how ?yundai deed convention in launching its latestmodels and strengthened its brand and generated customer loyalty by integrating social media.


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78allenges in %esigning Brand1Building 7ommunicationshe new media environment has further complicated marketers# perennial challenge to build effectiveand eAcient marketing communication programs. he ?yundai eample illustrates the creativity andscope of what will characteriDe successful twenty-rst century marketing communication programs.Skillfully designed and implemented marketing communications programs re!uire careful planningand a creative knack. 7et#s rst consider a few useful tools to provide some perspective.

1erhaps the simplestbut most usefulway to udge any communication option is by itsability to contribute to brand e!uity. For eample, how well does a proposed ad campaigncontribute to brand awareness or to creating, maintaining, or strengthening certain brandassociationsC :oes a sponsorship cause consumers to have more favorable brand udgments andfeelingsC o what etent does an online promotion encourage consumers to buy more of a productC)t what price premiumC Figure O-( displays a simple three-step model for udging the effectivenessof advertising or any communication option to build brand e!uity.

.!/0#E 1*

Simple est forMarketing

5ommunication

0ectiveness

Inormation ,rocessing )odel o"ommunications.

o provide someperspective, let#s consider in more depth the processby which marketingcommunicationsmight affect consumers.) number of different models have been putforth over the years to eplain communications and the steps in the persuasion processrecall thediscussion on the hierarchy of effects model from Brand Focus (.


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N. !omprehension: ) person must understand the intended message or arguments of thecommunication.I. =ielding: ) person must respond favorably to the intended message or arguments of thecommunication.

H. +ntentions: ) person must plan to act in the desired manner of the communication.O. Behavior: ) person must actually act in the desired manner of the communication.

Rou can appreciate the challenge of creating a successful marketing communication pro-gram when you realiDe that each of the si steps must occur for a consumer to be persuaded. "fthere is a breakdown or failure in any step along the way, then successful communication will not

result. For eample, consider the potential pitfalls in launching a new advertising campaign

;. ) consumer may not be eposed to an ad because the media plan missed the mark.(. ) consumer may not notice an ad because of a boring and uninspired creative strategy.N. ) consumer may not understand an ad because of a lack of product category knowledge ortechnical sophistication, or because of a lack of awareness and familiarity about the brand itself.I. ) consumer may fail to respond favorably and form a positive attitude because of irrelevant orunconvincing product claims.H. ) consumer may fail to form a purchase intention because of a lack of an immediateperceived need.O. ) consumer may fail to actually buy the product because he or she doesn#t remember any-thing from the ad when confronted with the available brands in the store.

o show how fragile the whole communication process is, assume that the probability of eachof the si steps being successfully accomplished is H< percentmost likely an etremely generousassumption. he laws of probability suggest that the likelihood of all si steps success- fullyoccurring, assuming they are independent events, is


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budget of the rm, product characteristics, siDe of budget, and media strategy of competitors.hese factors are typically contrasted with the different characteristics of the media.

For eample, marketing communication budgets tend to be higher when there is lowchannel support, much change in the marketing program over time, many hard-to-reachcustomers, more comple customer decision making, differentiated products and

nonhomogeneous customer needs, and fre!uent product purchases in small !uantities.H

Besides these eAciency considerations, different communication options also may targetdifferent market segments. For eample, advertising may attempt to bring new customers intothe market or attract competitors# customers to the brand, whereas promotions might attemptto reward loyal users of the brand.

"nvariably, marketers will employ multiple communications to achieve their goals. "n doingso, they must understand how each communication option works and how to assemble andintegrate the best set of choices. he following section presents an overview and criti!ue of fourmaor marketing communication options from a brand-building perspective.

.60# MA@6# MA#KE!$/ 76MM0$!7A!6$ 6'!6$"$ur contention is that in the future there will be four vital ingredients to the bestbrand-building communication programs *;+ advertising and promotion, *(+interactive marketing, *N+ events and eperiences, and *I+ mobile marketing. Eeconsider each in turn.

AdvertisingAdvertising is any paid form of nonpersonal presentation and promotion of ideas,goods, or services by an identied sponsor. )lthough it is a powerful means of creatingstrong, favorable, and uni!ue brand associations and eliciting positive udgments andfeelings, advertising is controversial because its specic effects are often diAcult to!uantify and predict. %evertheless, a number of studies using very differentapproaches have shown the potential power of advertising on brand sales. )s 5hapter; noted, the latest recession provided numerous eamples of brands beneting fromincreased advertising ependitures. ) number of prior research studies are consistentwith that view.O

/iven the compleity of designing advertisingthe number of strategic roles it might play, thesheer number of specic decisions to make, and its complicated effect on consumersit is the

sheer number of specic decisions to make, and its complicated effect on consumersit is diAcultto provide a comprehensive set of detailed managerial guidelines. :ifferent advertising mediaclearly have different strengths, however, and therefore are best suited to play certain roles in acommunication program. Brand Focus O.< provides some empirical generaliDations aboutadvertising. %ow we#ll highlight some key issues about each type of advertising medium in turn.

'elevision. elevision is a powerful advertising medium because it allows for sight, sound, andmotion and reaches a broad spectrum of consumers. 9irtually all 8.S. households have tele- visions,and the average hours viewed per person per week in the 8nited States in (


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over P;


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!%E$!.5 7#EA!>E "#AE/5 676MM0$!7AE '6"!!6$!$/ 76$7E'

.!/0#E 1+Factors in :esigning 0ective )dvertising 5ampaigns

Source: Based in part on an insightful framework put forth in >ohn 3. 3ossiter and7arry 1ercy,Advertising and %romotion

'anagement, (nd ed. *%ew RorkMc/raw-?ill, ;LLJ+.

8nfortunately, these attention-getting tacticsare often too effective and distract

from the brand or itsproduct claims. hus, the

challenge in arriving at the best creative strategy isguring out how to break through the clutter to

attract the attention of consumers by offeringa creative, consistent, and uni!ue message. 0tisalat#s &More to 7ife'

campaign in 0gypt presents an eemplary case.

Ehat makes an effective 9 adC;( Fundamentally, a 9 ad should contribute tobrand e!uity in some demonstrable way, for eample, by enhancing awareness,

strengthening a key association or adding a new association, or eliciting a positive consumerresponse. 0arlier, we identied si broad information-processing factors as affectingthe success of advertising consumer targeting, the ad creative, consumerunderstanding, brand positioning, consumer motivation, and ad memorability.

)lthough managerial udgment using criteria such as these can and should be employed inevaluating advertising, research also can play a productive role. )dvertising strategy research is ofteninvaluable in clarifying communication obectives, target markets, and positioning alternatives. oevaluate the effectiveness of message and creative strategies, copy testing is often conducted, in whicha sample of consumers is eposed to candidate ads and their reactions are gauged in some manner.

8nfortunately, copy-testing results vary considerably depending on eactly how tests areconducted. 5onse!uently, the results must be interpreted as only one possible data point thatshould be combined with managerial udgment and other information in evaluating the merits of anad. 5opy testing is perhaps most useful when managerial udgment reveals some fairly clear positiveand negative aspects to an ad and is therefore somewhat inconclusive. "n this case, copy- testingresearch may shed some light on how these various con@icting aspects &net out' and collectivelyaffect consumer processing.

3egardless, copy-testing results should not be seen as a means of making a &go' or &no go'decision4 ideally, they should play a diagnostic role in helping to understand how an ad works.)s an eample of the potential fallibility of pretesting, consider %B5#s eperiences with thepopular 9 series Seinfeld.

0uture ,rospects. "n the new "nternet era, the future of television and traditionalmass mar-keting advertising is uncertain as top marketers weigh their new communicationoptions. Some

&%ew Rear#s 3esolutions' drafted for (


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said, &9 will continue to be an essential part of our marketing mi to reach people with ourbrands.';H9 spending is forecast to continue to make up almost I< percent of all 8.S. adspending through (


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uncommon for two-thirds of a magaDine audience to not even notice any oneparticular print ad, or for only ;< percent or soof the audience to read much of the copy of any one ad. Many readers only glance at the mostvisible elements of a print ad, making it critical that an ad communicate clearly, directly, andconsistently in the ad illustration and headline. Finally, many consumers can easily overlook thebrand name if it is not readily apparent. Ee can sum the creative guidelines for print ads in threesimple criteria clarity, consistency, and branding.

irect Response. "n contrast to advertising in traditional broadcast and print media, whichtypically communicates to consumers in a nonspecific and nondirective manner, directresponse uses mail, telephone, "nternet, and other contact tools to communicate with or solicit aresponse from specic customers and prospects. :irect response can take many forms and isnot restricted to solicitations by mail, telephone, or even within traditional broadcast and printmedia.

:irect mail still remains popular, with 8.S. businesses generating PHJ; billion in sales from directmail in (


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called out*of*home advertising, is a broadly dened category that capturesadvertising outside traditional media. "ncreasingly, adsand commercials are showing up in unusual spots, sometimes as parts of eperientialmarketing programs.

he rationale is that because traditional advertising mediaespeciallytelevision advertisingare becoming less effective, marketers are better offreaching people in other environments, such as where they work, play, and, ofcourse, shop. $ut-of-home advertising picked up as the economy started to pick up in(


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1ieces increased OH percent after the candy appeared prominently in the blockbuster

movie


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5hange the behavior of consumers so that they buy a brand for the rst time, buy more ofthe brand, or buy the brand earlier or more often

)nalysts maintain that the use of sales promotions grew in the ;LK


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the point of use, growing more precise about where and how they deliver samples to maimiDebrand e!uity. For a P;< monthly subscription, one new rm, Birchbo, sends consumers a bo ofdelue-siDe samples from such notable beauty brands as Benet, Giehl#s, and Marc >acobs. Memberscan go to the Eeb site to collect more information, provide feedback, and earn points for full- siDedproducts. he beauty brands like the selectivity and customer involvement of the promotion.I(

hus, marketers increasingly udge sales promotions by their ability to contribute to brande!uity as well as generate sales. 5reativity is as critical to promotions as it is to advertising or anyother form of marketing communications. he 0l-0Daby pharmacy chain in 0gypt uses creativepromotional appeals and multiple communication channels to engage in constant dialogue withcustomers in their day-to-day health care issues.

1romotion strategy must re@ect the attitudes and behavior of consumers. he percentage ofcoupons consumers redeem dropped steadily for yearsin part due to the clutter of coupons thatwere increasingly being distributedbefore eperiencing an uptick more recently redemptionrates peaked in ;LL( but fell for the net ;H years until eperiencing an increase in the tougheconomic climate of late (


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have different levels of knowledge and interest about a brand, a well-designed Eeb site caneffectively communicate to consumers regardless of their personal brand or communicationshistory.

Because consumers often go online to seek information rather than be entertained, some of themore successful Eeb sites are those that can convey epertise in a consumer-relevant area. Foreample, Eeb sites such as 12/#sww w .pampers.co m and /eneral Mills#s ww w .cheerios.co m offerbaby care and parenting advice. Eeb sites can store company and product information, pressreleases, and advertising and promotional information as well as links to partners and key vendors.Eeb marketers can collect names and addresses for a database and conduct e-mail surveys andonline focus groups.

Brand-building is increasingly a collaborative effort between consumers and brand marketers.)s part of this process, there will be many consumer-generated Eeb sites and pages that mayinclude ratings, reviews, and feedback on brands. Many consumers also post opinions and reviewsor seek advice and feedback from others at commercial sites such as Relp, rip)dvisor, and0pinions. )s will be discussed in greater detail below, marketers must carefully monitor thesedifferent forums and participate where appropriate.

"n creating online information sources for consumers at company Eeb sites, marketers mustprovide timely and reliable information. Eeb sites must be updated fre!uently and offer as muchcustomiDed information as possible, especially for eisting customers. :esigning Eeb sites re-!uires creating eye-catching pages that can sustain browsers# interest, employing the latesttechnology and effectively communicating the brand message. Eeb site design is crucial, becauseif consumers do not have a positive eperience, it may be very diAcult to entice them back in the

highly competitive and cluttered online world.

$nline *ds and 1ideos. "nternet advertising comes in a variety of formsbanner ads, rich-media ads, and other types of ads. )dvertising on the "nternet has grown rapidlyin (


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)s a manifestation of permission marketing, e-mail ads in generaloften including advancedfeatures such as personaliDed audio messages, color photos, and streaming videohave increasedin popularity. 0-mail ads often receive response rates of (


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here is no !uestion that some consumers are choosing to become engaged with a brand at adeeper and broader level, and marketers must do everything they can to encourage them to do so.12/ invested heavily in (


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sponsorship has grown rapidly in recent years, to total PIO.N billion globally in (


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"o permit merchandising or promotional opportunities: Many marketers tie in contests orsweepstakes, in-store merchandising, and direct response or other marketing activities withtheir event. Earner-7ambert sponsors the &aste of 5hicago' promotion in part so it can gainshelf space in stores and participate in retailer co-op advertising.

:espite these potential advantages, there are a number of potential disadvantages tosponsorship. he success of an event can be unpredictable and out of the sponsor#s control. herecan be much clutter in sponsorship. Finally, although many consumers will credit sponsors for pro-viding necessary nancial assistance to make an event possible, some consumers may still resentthe commercialiDation of events through sponsorship.

/uidelines. :eveloping successful event sponsorship means choosing the appropriateevents, designing the optimal sponsorship program, and measur

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Extracts From Strategic Brand Management_Kevin Lane