Leveraging secondary brand knowledge to build brand equity

Leveraging Secondary Associations

Instructions:

This task requires you to apply the theories and concepts you learnt in week 7. In last mini task you selected brand elements to facilitate brand identification and differentiation.
In this mini task you need to focus on selecting some secondary associations for your brand. Leveraging secondary associations is an indirect approach to build brand equity.

Secondary associations are discussed in Chapter 7 (Leveraging Secondary Associations to build brand equity) of the text. Please read this chapter before you attempt this task.

Mini task 3 should contain the following:

 Very briefly describe your new product/brand and your positioning strategy (from mini task 1/2. No mark allocated for this. It is just to remind the reader what your product/brand is. This section is not counted in word limit)

 Choose any 3 (three) of the following secondary associations that you think are most appropriate for your brand.

o Country of origin or other geographic areas
o Channelsofdistribution
o Co-branding(thisincludesingredientbranding) o Spokesperson
o Events(throughsponsorship)
o Other third party sources

For each chosen secondary association discuss:

a. b.

c.

why the association is appropriate for your brand
what brand knowledge/ associations will transfer from the chosen entity to your

brand. (Please read p 261 to p263 of the text to understand the leveraging process) and
How it would help to build equity of your brand

Use a wide range and a variety of sources as a base of your discussion and to provide strong support for your arguments.

Grading Criteria:

Your assignment will be graded based on the following:

(i) Clear identification and justification of chosen secondary association (3 x 10 =
30% marks)

(ii) Discussion on transfer of knowledge/associations(3 x 10=30% marks)

(iii) Discussion on the contribution of the association to brand equity (3x10=30%
marks)

(iv) Structure, logical flow, originality, clarity of written expression, use of APA
referencing format (10% marks)

Submission instructions:

 Submit online via Moodle as a pdf file.

 Submit as an essay with headings/subheadings.

 Include a title page with your name and student ID.

Lecture 7: Leveraging

Secondary Associations

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Learning Objectives

• Explain the process by which a brand can leverage secondary associations

• List and describe the methods of linking secondary brand knowledge to a brand

• Discuss the impact of leveraging on both existing brand associations and the formation of new brand associations.

• Describe some of the key tactical issues in leveraging secondary associations from different entities

3.

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Leveraging Secondary Associations

• Brands can be linked to other entities that have their own associations.

• A brand might borrow brand knowledge, and therefore brand equity from another entity- other brands, people, places, things.

An indirect approach to building brand equity by leveraging secondary brand knowledge for a brand.

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Conceptualizing the Leveraging Process

• Linking the brand to some other entity may:

• Create a new set of associations from the brand to the entity

• Affect the existing brand associations

• Most likely to affect evaluations when consumers lack:

• Motivation

• Ability

• Cognitive consistency - What is true for the new association must be true for the brand

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Figure 7.2- Understanding Transfer of Brand Knowledge

Linking the brand to some other entity may not only create new brand associations to the entity but also affect existing brand associations.

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Three Factors of Leveraging

• Awareness and knowledge of the entity

• Meaningfulness of the knowledge of the entity

• Transferability of the knowledge of the entity

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• Fig. 7-1 Secondary sources of Brand knowledge

Brand

Other brands

People Places

Things

Country of origin

Channels

Third party endorsementsCauses

Events

Endorsers

Employees

Alliances Ingredients Company

Extensions

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Secondary sources of Brand knowledge

▪ The main methods by which we can link secondary

brand knowledge to the brand 1. Company

2. Country of origin and other geographic areas

3. Channels of distribution

4. Co-branding

5. Licensing

6. Celebrity endorsement

7. Sporting, cultural or other events

8. Third party sources

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Company • Existing brands can be related to a

corporate or family brand as they can be a source of brand equity

• Leveraging a corporate brand may or may not be useful

– Can you think of any reason why corporate branding may not work?

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Country of Origin or Geographic Location

• Can be linked to the brand to generate secondary associations

• Consumers choose brands originating in different countries based on:

– Their beliefs about the quality of certain types of products from certain countries

– The image that these brands or products communicate

• Can create strong points-of-difference

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Channels of Distribution

• Retail stores can indirectly affect brand equity through an “image transfer” process

• Retailers have their own brand images in consumers’ minds due to the following associations – Product assortment – Pricing – Credit policy – Quality of service

• Customer base can be expanded by tapping into new channels of distribution

– Sometimes this may have negative effects.

– Can you provide some reasons why this might happen?

•

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Co-branding

• When two or more existing brands are combined into a joint product or are marketed together in some fashion

• Examples:

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Co-branding

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Ingredient Branding

• A form of co-branding

• Creates brand equity for materials, components, or parts that are contained within other branded products

• Branded ingredients are often a signal of quality

• Uniformity and predictability of ingredient brands can reduce risks and reassure consumers

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Licensing

• Creates contractual arrangements whereby firms can use:

– Names, logos, and characters of other brands to market their own brands for some fixed fee

• What are the benefits and the risks?

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Celebrity Endorsement

• Rationale

– A famous person can:

• Draw attention to a brand

• Shape brand perceptions

• Celebrity endorsers should have: – A high level of visibility

– A rich set of potentially useful associations, judgments, and feelings

• What are the potential problems?

•

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Celebrity Endorsement

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Celebrity Endorsement

▪ Can you find some examples of celebrity endorsement

gone bad?

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Sporting, Cultural or Other Events • Have their own set of associations that may become linked

to a sponsoring brand under certain conditions

• How does this contribute to brand equity?

• Potential problems?

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Third Party Sources

• Involves linking the brand to various third party sources

• Examples –

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Lecture summary

• Consistency is the key to creating brand awareness and strong brand associations.

• Brands can “borrow” equity from their association with people, places, programs, and other non-product-based sources.

• The extent to which an entity can be leveraged as a source of equity depends on:

– Consumer knowledge of the entity

– How easily the appropriate associations or responses to the entity transfer to the brand