Chapter 7:
LEVERAGING SECONDARY BRAND
ASSOCIATIONS TO BUILD BRAND EQUITY
“ Brands themselves may
be linked to other entities
that have their own
knowledge structures in
the minds of consumers.
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Learning
Objectives
❑ Outline the eight main ways to leverage secondary
associations
❑ Explain the process by which a brand can leverage
secondary associations
❑ Describe some of the key tactical issues in leveraging
secondary associations from different entities
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Secondary Sources of
Brand Knowledge
8 Entities for Leveraging:
✓ Companies (through branding strategies)
✓ Countries or other geographic areas
(through identification of product origin)
✓ Channels of distribution (through channel
strategy)
✓ Other brands (through co-branding)
✓ Characters (through licensing)
✓ Spokespersons (through endorsements)
✓ Events (through sponsorship)
✓ Other third-party sources (through
awards or reviews)
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CONCEPTUALIZING THE
LEVERAGING PROCESS
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Creation of
New Brand Associations
Secondary brand associations are most likely to affect evaluations
of a new product when consumers lack either the motivation
or the ability to judge product-related concerns
.
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Effects on
Existing Brand Knowledge Meaningfulness
of the
knowledge
of
Awareness the entity
and
Cognitive consistency - What knowledge
is true for the new of the entity
association must be true for
the brand.
Transferability
of the
knowledge
of the entity
Three important factors in predicting the extent of
leverage from linking the brand to another entity 7
Effects on
Existing Brand Knowledge
Leveraging secondary brand associations may allow marketers to create or
reinforce an important point-of-difference or a necessary or competitive
point-of-parity versus competitors
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Understanding Transfer of
Brand Knowledge
A commonality
leveraging strategy
makes sense when
consumers have
associations to
another entity that
are congruent with
desired brand
associations
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Understanding Transfer of
Brand Knowledge - Example
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8 ENTITIES FOR LEVERAGING
Brand Association
Co-branding
Company
Third-party Licensing
sources
Country
Channels of and other Sporting,
Celebrity
distribution Geographic Cultural, or
Endorsement
areas Other Events
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8 ENTITIES FOR LEVERAGING
Brand Association
Company Three entities reflect source factors:
➢ who makes the product?
➢ where the product is made?
Country
Channels of and other ➢ where it is purchased?
distribution Geographic
areas
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8 ENTITIES FOR LEVERAGING
Brand Association
Co-branding
Third-party Licensing The entities deal with related people,
sources places, or things
Sporting,
Celebrity
Cultural, or
Endorsement
Other Events
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COMPANY ❑ 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 or may
not be useful
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COMPANY
Example
➢ Company brand: Samsung
➢ Family brand: Samsung Galaxy
➢ Product brand: Samsung Galaxy Note
➢ Company brand: Unilever
➢ Family brand: different
➢ Product brand: different
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COUNTRY
AND OTHER
GEOGRAPHIC
AREAS
Can
create
strong
POD
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CHANNELS
OF
DISTRIBUTION
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CHANNELS OF DISTRIBUTION
Example
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CO-BRANDING
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CO-BRANDING
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CO-BRANDING To create a strong co-brand, both brands should have:
Brand equity
(awareness,
associations, Logical fit
judgement
and feelings)
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CO-BRANDING
A special case
of this strategy
is
ingredient
branding
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Creates contractual arrangements whereby
LICENSING
firms can use brand elements (names, logos,
and characters) of other brands to market
their own products
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Advantages and Disadvantages of
CO-BRANDING & LICENSING
Advantages Disadvantages
➢ Borrow needed expertise ➢ Loss of control
➢ Leverage equity you don’t have ➢ Risk of brand equity dilution
➢ Reduce cost of product introduction ➢ Negative feedback effects
➢ Expand brand meaning into related ➢ Lack of brand focus and clarity
categories ➢ Organizational distraction
▪ Broaden meaning
▪ Increase access points
➢ Source of additional revenue
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CELEBRITY
ENDORSEMENT
Celebrities themselves must manage
their own “brands”
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Celebrity should have a high level of visibility and a rich
CELEBRITY set of useful associations, judgments, and feelings
ENDORSEMENT
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SPORTING,
CULTURAL, OR
OTHER EVENTS
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SPORTING,
CULTURAL, OR
OTHER EVENTS
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THIRD-PARTY
SOURCES
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THIRD-PARTY SOURCES
Example
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Managing
Person Brand
“ Person brands are
more abstract and
intangible but have
very rich imagery”
(See Brand Brief 7-4)
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Thanks!
!
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