Leveraging Secondary Brand Associations PDF

Week 6 -- leveraging secondary brand associations **[Brand awareness]** The basis of brand leveraging is brand awareness Brand Awareness - your product being the first that comes to mind in a given product category Eg : - running shoes = Nike - ride share= Uber - dental hygiene = Colgat...

Week 6 -- leveraging secondary brand associations **[Brand awareness]** The basis of brand leveraging is brand awareness Brand Awareness - your product being the first that comes to mind in a given product category Eg : - running shoes = Nike - ride share= Uber - dental hygiene = Colgate **[secondary brands]** an important part of brand identity can be used to create unique, distinct look or feel for an organisation. is a sub brand or an extension of the main brand and is used to differentiate products and services within an organization\'s portfolio or it may be part of a larger brand umbrella by creating this secondary brands organisation can create an additional layer of identity and focus on specific products or services. -- this helps company target new markets and increase their overall reach. Benefits ; - can help organise and establish unique and distinct identity. - help organisation differentiate their products and services, allowing them to target specific markets so they become different markets for that. - help organisations develop loyalty among customers as they can create a sense of familiarity and trust. **[Brand knowledge and leveraging secondary brand associations]** Secondary Brand Association will most likely affect evaluation of a new product. brand knowledge refers to a customer\'s understanding of a brand and is based on a customer\'s ability to recall and recognise a brand or its elements in different contexts or situations.  Brand knowledge depends on the level of brand awareness and brand image in the customer\'s mind -- Thus, the leveraging of secondary brand associations to create new associations can also be conceptualised using the Associative Memory Model  Brand associations can be with: - the company that makes the product - where the product is made - where the product is purchased - related people, places or things strong associations : - greater loyalty of the brand - less vulnerability of comparative marketing actions and - larger margins. **[Conceptualising the secondary association leveraging process]** Linking the brand to some other entity (eg another brand, a person, a place, an event, or thing) can create new brand associations to the entity and can positively or negatively affect existing brand associations. - **Creation of new brand associations** : Secondary brand associations are most likely to affect evaluations of new products when consumers lack either the motivation or ability to judge product-related concerns The ability to leverage associations depends on customers\' knowledge and perceptions of the entity being leveraged. The extent to which entities can be leveraged by the brand depends on - consumer knowledge of the entity - how easily appropriate associations are or - responses to the entity transfer to the brand. When a brand is identified as linked to an entity, customers infer that some of the associations, judgments, or feelings that characterize the entity may also characterize the focal brand -- This is based on cognitive consistency that what is true for the entity should hold true for the brand. Brand managers give up some control and take on the challenge of managing secondary associations when the brand is linked to other entities. There are 3 key predictors of the extent of leverage that can occur from linking the brand to another entity and there are shown in the figure below. 1. Transferability - Transferability of the knowledge of the entity - Effect what customers think about the brand when they think about the new association awareness and knowledge of the entity. - Does any of this knowledge affect what they think about the brand when they think about the brand when it becomes linked in some fashion with the other identity? 2. Awareness - Awareness and knowledge of the entity - What does consumers know about the other entity being leveraged? 3. Meaningfulness - Meaningfulness of the knowledge of the entity During the leveraging process, there is need for some degree of cognitive consistency between the focal brand and leveraged entity that customers can use to infer that any aspect of brand knowledge they hold about the entity can be leveraged to the brand. Some entities are more likely to create and/or affect brand knowledge than others. Some of the leveraged entities can be associated with multiple dimensions of knowledge or brand associations and these may directly or indirectly impact the focal brand knowledge during the leveraging process. Judgments or feelings seem to transfer more readily than other types of associations -- However, brand managers need to ensure that the transferred judgements and feelings are not irrelevant or too strongly aligned to the original entity as these would be difficult to transfer. Overall credibility or attitudinal dimensions may be more likely to transfer than specific attributes and benefit associations. The brand resonance/CBBE pyramid can be used to undertake a secondary association audit to evaluate the success of the leveraging process and how secondary associations have or can transform brand knowledge. In line with the CBBE Pyramid, the various stages of the pyramid will reflect the success of the leveraging process -- Thus, the first step in the leveraging process is to understand the breadth and depth of the knowledge that consumers have for both the linked entity and the brand itself (Keller, 2020). This process can be applied at the second to fourth stages of the CBBE pyramid **[Sources of secondary brand associations ]** Brands can "borrow" equity from their association with people, places, programs, and other nonproduct-based sources. The 4 major sources of secondary brand equity that a brand can leverage are 1. Other brands,  2. People, 3. Places and 4. Things the various factors that come under each of the 4 major sources : A diagram of brand components Description automatically generated [sources of brand equity depend on ] a. who makes the product, b. where the product is made or comes from, c. where it is purchased, and other issues related to individual causes, events, people, places, or things. [Grouping the sources of secondary brand associations]  **[Guidelines for leveraging secondary brand associations]** Leveraging secondary brand associations enables brand managers to create or reinforce important PODs or necessary or competitive POPs versus those of competitor brands. However, there are several issues that brand managers need to take into consideration to facilitate the leveraging process as well as ensure that no negative or unwanted brand associations are leveraged. Given that brand associations are constantly changing brand managers need to evaluate whether the desires associations are relevant, congruent, and transferable -- There is also a need to implement commonality leveraging and complementary branding strategies. The 8 different ways to leverage secondary associations to build brand equity are by linking the brand to : 1. the company making the product; 2. the country or some other geographic location in which the product originates; 3. retailers or other channel members that sell the product; 4. other brands, including ingredient brands; 5. licensed characters; 6. famous spokespeople or endorsers; 7. events; and 8. third-party sources. **[Leveraging the company or corporate brand]** Options : 1. Create a new brand 2. Adopt or modify an existing brand 3. Combine an existing brand with a new brand corporate brand name can be used to get a secondary brand association. a corporate brand -- It is the name of the large conglomerate that actually owns the brand. (not applicable for the newer companies that are just starting out) Brands can leverage secondary brand associations from other brands in the corporate brand portfolio as well as the company\'s reputation and corporate image. corporate brand name can be used to increase the brand value of a completely new brand. companies separate corporate brands and family brands because : - they don\'t want a diluted brand value, and - the new company is not likely to have similar offerings that the corporate brand already provides, so you will get recognition this way. When undertaking new product introduction (NPI), brands usually lavage secondary brand association from their own organisations. Eg : Arnott\'s cracker chips, is a good example of how the cracker chips leveraged on the Arnott\'s brand and company reputation to the extent of moving chips form the chip aisle to the biscuit one which dominated by arnotts. To facilitate the leveraging effects they also had an advert telling customers to find us in the biscuit aisle and by doing this they reminded customers about their brand dominance in the biscuit aisle- where they have such dominate Arnotts  brands like Tim Tams. Thus, during the leaving of the company brand managers can focus on leveraging corporate brand equity and influence customer\' purchase decision-making process the new associated equity. The secondary brand associations can emerge for managers transferring relevant : - corporate expertise  - attributes - benefits, judgments &  feelings - brand relationships - brand building capabilities - programs - values - corporate credibility - innovativeness associations and  - marketing programs At times leveraging secondary associations from the company is used as a strategic move in brand architecture when brands may be linked to support or complement each other, as well as to facilitate innovation. Company associations : - Existing brands can be related to a corporate or family brand - A corporate or family brand can be a source of brand equity - Leveraging a corporate brand may/may not be useful **[Co-branding ]** also known as brand bundling or brand alliances occurs when two or more brands combine to create a joint product or market together in some way. can create more compelling PODs and POPs that may not be feasible for brand alliance partners to attain on their own. Given that brand alliance partners are focusing on their core capabilities, co-branding can reduce new product introduction costs thereby accelerating NPI and the product adoption process. can enable brand alliance partners to benefit from the learning curve effects of the alliance partners in specific target markets and product categories.  In product categories where its not possible to create highly differentiated products or services, co-branding can create distinct PODs. To create strong co-brands, band alliance partners can evaluate and ensure the issues indicated are in place. [Guidelines for creating strong co-brands]  Brand managers should also analyse the situation by asking the following questions: 1. What capabilities does our brand have? 2. What capabilities do we not have? 3. What resource constraints does or brand face (people, time, and money)? 4.  What growth goals or revenue needs do we have? 5.  Is co-branding a profitable business venture? 6. How does the co-branding or brand alliance help us to maintain or strengthen brand equity? 7. Is there any possibility that the brand alliance will dilute or erode our as well as alliance partners\' brand equity? 8. Does the brand alliance offer us or the branding partner any extrinsic advantages such as learning opportunities? [Disadvantages of co-branding] Brand managers need to evaluate co-branding from a strategic perspective whether the brand alliance will result in loss of control of the brand when it is aligned with another brand in the minds of consumers. Most brand managers usually have very high expectations of brand alliances and at times overlook the potential negative repercussions for brand alliance partners if and when the brand alliance fails or does not perform as expected. In situations, where alliance partners do not have distinct brand images, customers may be unclear on what each brand alliance partner represents. **[Ingredient branding ]** creates brand equity for materials, components, or parts that are necessarily contained within other branded products. Through ingredient branding, brands are trying to create enough awareness and preference for their branded product or service so that consumers will not buy competitor products/service that does not contain the branded ingredient. Most ingredient branding partnerships are often meant to signal quality as well as reduce risk by signaling uniformity and predictability of the ingredient brands.  has become more prevalent with mature brands seeking the most cost-effective way to differentiate their brands. is a key branding strategy within B2B branding as most b2b brand alliances involve ingredient branding. Uniformity and predictability of ingredient brands can reduce risks and reassure consumers [Advantages ] Generate sales at higher margin (sell it for a good price) Leveraging ingredient brand can enhance brand equity of host product Create new product associations for host brand- enhanced differentiation & PODs On demand side : - create new product categories, - can reach new market segments and distribution channels [disadvantages ] Iinitial marketing costs may be high because they are trying to build up or create both co branding. Loss of control --due to differences in objectives and brand values Long-term competitive advantage may be uncertain Perceived incongruity of the brand alliance [Guidelines for ingredient branding] A close-up of a company logo Description automatically generated [Examples of some leading ingredients brands]  **[Licensing]** Contractual arrangements whereby firms can use names, logos, characters to market brands for some fixed fee Brands can leverage secondary brand associations from other brands by getting a licence to use the brand elements or other trademarkable factors that other brands have or excel in. Licensing is viewed as a fast and efficient way to build CBBE. For iconic and popular brands a licensing strategy can be an effective way to protect the brand from counterfeiting and to legally protect the use of the brand\'s assets. - Eg : Disney characters are very popular with clothing, toy and shoe manufacturers. Thus, to protect its brand Walt Disney has legal agreements with licensees who pay money to legally use its characters. The licensing brand, however, needs to have a saturation policy so as to reduce over-exposure. At times highly engaged customers may be unhappy with partnering agreements especially if they have negative perceptions of the alliance partners and some get angry or confused if the relationship is not clear Also provides legal protection for trademarks risk: a trademark may become overexposed if marketers adopt a saturation policy [corporate trademark licensing ] Licensing of company names, logos, or brands for use on various, often unrelated products Firms may license corporate trademarks to: - generate extra revenue and profits - protect their trademarks - increase their brand exposure - enhance their image Risk : product may not live up to the image established by the brand [Failed Brand Extensions] Violating customers fundamental associations Failure to see congruency in the partnering brands' - brand attributes, - brand benefits and - brand perceptions Lack of transferability of the brand knowledge [Guidelines for licensing partnerships] **[Leveraging geographic, region, and place of origin]** The geographic location from which a product originates can be effectively leveraged and used to generate secondary brand associations. Customers may choose brands based on what they believe to be true about products from a specific country or region.  Some countries or regions are closely linked to some products and the brands that leverage positive country of origin effects can benefit from these associations.  CoO effects : - refer to how customers evaluate products differently based on the country the product originated from - has been found to be highly correlated with the CoO\'s perceived level of economic development.  - can create strong PODs Brand managers can establish a geographic or country-of-origin association by embedding the location in the brand name by making the location the dominant theme in brand advertising. To facilitate the use place of origin as PODs some countries have developed labels or seals for their products.   Consumers choose brands originating in different countries based on: - stereotypes held about a country or region - beliefs about the quality of certain types of products from certain countries/regions - the image that the brands/products communicate [Factors that determine the leveraging of the country of origin] Brand managers need to critically evaluate the favourability of country-of-origin associations from both a domestic and foreign perspective and make strategic decisions on the issue. Whilst patriotic appeals have been the basis of marketing strategies all over the world, globalisation has resulted in country-of-origin becoming a confusing attribute in an increasingly globally connected world. Whilst it is typically a legal necessity for the country-of-origin to appear somewhere on the product or package, leveraging CoO effects depends on the relative emphasis put on the place of origin on the packaging and throughout the brand\'s  IMC program. Brand managers that want to leverage place or region of origin as a secondary brand association should take into cognizance the legal implications of doing this as some countries and trading blocs are using region and country of origin as a point-of-differences and are patenting regions and places.   As a purchase driver, country of origin ranks higher than price, availability and style. There are 4 key elements to leveraging country of origin effects to create secondary associations 1. Differentiation 2. Authenticity 3. Quality standards and expertise [Effects of country of origin or regional associations] There are tangible and intangible aspects to country of origin or geographic area branding. There is need to consider how country of origin or regional associations will be considered domestically and internationally. **[Leveraging retailing channels]** Consumers coercive products differently depending on where the product is sold. This is the reason why luxury brands are usually sold through selective distribution channels and in upmarket shopping precincts.  Customers develop a retailer brand image based on associations that emerge from the retailer\'s product assortment, pricing and credit policy, quality of service. These issues affect customers\' perceptions of the products the retailer sells.  Retailers also create secondary associations for brands they sell based on how and where the products are displayed, the inventory management systems used, and the way the retailer promotes and prices the branded products.  The transfer of store image associations can have positive or negative effects on the leveraging brand. (can indirectly affect brand equity) [Channels of distribution ] customer base can be expanded by tapping into new channels of distribution Retailers have their own brand images in consumers' minds due to the following associations - product assortment - pricing - credit policy - quality of service [Retailers' brand image factors that affects leveraging effects]  **[Leveraging secondary associations from other supply chain partners]** Supply chain partners also affect customers\' brand perceptions. Customers are increasingly requiring brands to enhance supply chain visibility and transparency -- As a result, behaviour of any supply chain partner can negatively impact CBBE and the brand value of other brands in the supply chain. Increasingly, buyers and customers in some markets are requiring suppliers to have certification such as GRI that ensures SDG and/or ethical and environmental standards are met. - Eg : Timberland has a 'nutritional label' on each shoebox, educating consumers where, how its products were manufactured as well as the product\'s environmental footprint. Both brands need to be complimentary The brand alliance should be beneficial to both product brand and retailer brand Need to understand retailer brand image **[Leveraging people]** Brands can use well-known and admired people to promote their products or services. The growth in the use of social media has resulted in this way of leveraging secondary associations increasingly is becoming a popular way to create new brand associations. the growth in the use of digital media has led to the widespread phenomenon of using celebrities as well as other online influencers. Famous people can draw attention to the brand and shape customers\' brand perceptions of the brand the celebrity is associated with. To succeed, celebrity endorsers need to have the following characteristics: - high level of visibility - rich set of potentially useful associations, judgments, and feelings, and - credibility Factors determining an endorser\'s credibility - Trustworthiness - Expertise - Likeability - Relevant product associations [Problems of celebrity endorsers] To ensure successful leveraging of secondary associations from people, brand managers need to manage the following issues associated with celebrity endorsements: - **over-endorsement** : celebrity endorsers can endorse too many products, and this reduces specific product meaning. - celebrity endorsers can get in trouble or lose popularity, diminishing their marketing value to the brand. - celebrities may fail to live up to expectations. -  some customers consumers may feel celebrities are doing it only for the money, and - consumers may notice the stars but have trouble remembering the advertised brand. [Managing celebrity endorsers] brand managers should strategically evaluate, select, and use celebrity endorsers using the following guidelines - choosing well-known and well-defined celebrities whose associations are relevant and likely to be transferable. - evaluating the logical fit between the brand and the person. -  ensuring the brand\'s IMC program uses the celebrity in a creative way that highlights the relevant associations and encourages image transfer. - identifying potential endorser candidates and facilitating the development of an effective marketing program, - tracking and evaluating the effectiveness of the IMC program involving the endorser, and - celebrities must manage their own brands to ensure they provide value to partnering brands. [Guidelines for managing a person brand] A group of blue and white text Description automatically generated  **[Leveraging events, causes, and other things]** [Events] Events have their own set of associations that can become linked to the sponsoring brand under certain conditions. Sponsored events contribute to the sponsor\'s brand equity and improve brand awareness by - becoming associated to the brand and improving brand awareness - adding new associations or - improving the strength, favorability, and uniqueness of existing associations. Eg : the A\$6.25 million Lexus Melbourne Cup event enabled Lexus to leverage on favorable associations Australians have with sports, resulting in the development of strong, positive, and favorable brand associations for Lexus.  [Third-parties sources or endorsements] Brand managers can create secondary brand associations by linking the brand to third-party sources. Third-party sources are viewed as more credible sources of information that the brand can use in advertising campaigns. Increasingly, experts and other organizations are undertaking reviews and/or ranking brands on basis of some criteria that are viewed by customers to be important. - Examples of third-party reviewers : Choice, Yelp, Glassdoor, etc. Other organisations also give industry awards that are viewed as more authentic and credible than any other IMC option. - Examples of this : the highly acclaimed Michelin Stars that are awarded to chefs and restaurants, and the Hardy\'s wine awards in Australia. Achieved through establishing brand in sport More than just sponsorship -- invested time and money to develop sports. Positive associations: - benefits -- energy, caffeine (Red Bull) - experiences -- fun, adventurous, excitement (Lexus & Red Bull) [Causes] Brands can also sponsor causes to create new brand associations. Cause-related marketing programs (CRMPS) are increasingly becoming popular in Australia. In Australia, there is a cause that brands can align with every month and brand managers need to develop CRM strategies. [Sponsorship] brands get : - greater brand awareness - new associations - improved strength and favourability - credibility for their money