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Secondary Brand Associations (Related ppl, places, things (Co-branding…
Secondary Brand Associations
Outcome- depends on awareness, knowledge (+ meaningfulness depending on brand and product context, transferability) of other entity
Create new associations- affects cust product evaluation esp when they lack motivation/ability to judge product-related concerns (i.e. cust typically chooses brand on secondary considerations when dont care/lack knowledge to choose appropriate brand)
Affects existing brand knowledge- infer associations of entity also characterise brand, esp if both entities similar
Strategies
Commonality leveraging- association to other entity congruent with desired brand association
Complementarity- chosen entities departs from the brand (few common associations); need to overcome initial consumer confusion
Source factor
Companies- branding strategies
Create new brand
Adopt/modify existing brand
Combine new, existing brand
Countries- identifying with product origin; cust beliefs about product quality/image from specific countries e.g. Japan = quality
Distribution channel- channel strategy e.g. "image transfer" from retail stores (product assortment, pricing, credit policy, service quality)
Related ppl, places, things
Co-branding (brand bundling/alliances)- 2/+ brand combine into a joint product/marketed together; share equity
Pros
Borrow needed expertise, equity- more unique, compelling positioning
Reduce product introduction cost- 2 well-known images combined facilitates product adoption
Expand brand meaning into related categories
Broaden meaning
Increase access points- new consumers, channels
Additional revenue source- stronger positioning leads to greater sales
Cons
Lose control
Brand equity, focus, clarity dilution risk- consumers unsure what each brand represents
Negative feedback effects- from unsatisfactory performance
Organisational distraction- lack of focus on existing brands
How?
Both brands to have adequate individual equity (brand awareness, image, feelings), similar values, goals
Plan legal contract, financial arrangement, marketing programme
Consider equity changes, profitability, extrinsic advantages (e.g. learning opportunities)
Ingredient branding- creates brand equity for components within other branded products e.g. Intel, Teflon
Pros
Branded ingredient ("industry standard"- signal quality, reassures consumers, reducing risk, affecting choices
Differentiating means
Higher consumer pull, demand, sales, profit margin
Access to new markets, distribution channel
Shared production, development cost btw product host/manufacturer + ingredient supplier
Cons
Lose control
Marketing programme dissonance btw supplier + manufacturer- different objectives, signals
Manufacturer resentment If branded ingredient gains too much equity
How?
Superior ingredient brand- contributes to product performance (intrinsic value)
Emphasise that host product contains branded ingredient- conveys quality, confidence
Combine push, pull (ads, promotions, retail merchandising) programme- state branded ingredient benefits, gain channel member support
Characters- licensing; use other entity's brand elements (e.g. characters, logo) to market own brand for a fixed fee; "rent" equity
Cons
Overexposed trademark (saturation policy)- wears out
Dilutes brand meaning/focus- consumers unsure product motivation, esp. if no seeming relation between licensed brand + product
Brand name tarnished if product falls below expectations; product does not live up to licensed brand's reputation
Licensed brand- momentarily popular (fad), short lived sales
Corporate trademark licensing- license name, logo, brands for unrelated products
Pros for licensor
Extra revenue, profit- no inventory/manufacturing expenses
Increase brand exposure
Enhance brand image
Spokespersons- celebrity endorsement
Cons
Overendorse/overexposure- appears insincere; only done for money; does not believe in brand
Endorser gets into trouble/loses popularity- diminishes marketing value
Celebrity fees- unnecessary cost to brand, products
Difficult to work with- unwilling to follow brand marketing direction
Distract attention away from brand- rmbs celebrity but not brand
How to choose?
Well known- high visibility level, useful/relevant/transferable association
Credible- expert, trustworthy, likable, attractive
Reasonable match/logical fit btw celebrity, product
Conduct background checks- strategically evaluate, ensure not linked to too many brands
Pros
Draw attention to brand
Shapes brand perceptions- inferences
Fans of celebrity become fans of brand
Events- sponsorships; transfer credibility (likable, trustworthy, expert)
Depends which event, sponsorship programme design
3rd pt sources- awards, reviews e.g. endorsement from credible/leading organisation, acknowledged experts; improves brand perception, attitude
Typically featured in ad campaigns
Rationale- when brand linked to another entity, cust infers that they share similar associations