MKT B377F

L12b
Revision
Overview
Topics
1. Brands and Brand Management Introduction
2. Customer-Based Brand Equity and Brand Positioning
3. Brand Resonance and the Brand Value Chain Brand equity
4. Choosing Brand Elements to Build Brand Equity
5. Designing Marketing Programs to Build Brand Equity
6. Integrating Marketing Communications to Build Brand Equity
Building brand
7. Branding in the Digital Era equity
8. Leveraging Secondary Brand Associations to Build Brand Equity
9. Developing a Brand Equity Measurement and Management System
Measuring brand
10. Measuring Sources of Brand Equity: Capturing Customer Mind-Set
11. Measuring Outcomes of Brand Equity: Capturing Market Performance equity
12. Designing and Implementing Brand Architecture Strategies
13. Introducing and Naming New Products and Brand Extensions Managing brand
14. Managing Brands over Time equity
15. Managing Brands over Geographic Boundaries and Market Segments
16. Closing Observations
 CHAPTER 1:

Brands and brand management

What is a Brand?

“A name, term, sign, symbol, or design, or

a combination of them, intended to identify
the goods and services of one seller or
group of sellers and to differentiate them
from those of competition”

(American Marketing Association)

What is a Brand?
• For practicing managers…
1. something that has created a certain amount of awareness, reputation,
prominence, and so on, in the marketplace.

2. It is the difference between a commodity and a distinctive offering that

constitutes a brand.
Brand can be differentiated on the basis of:

1. Packaging
2. Services provided
3. Customer advice
4. Financing
5. Delivery arrangements
6. Warehousing
7. Other things valued by the customers
To Sum Up ....
Through branding, organizations:

1. Create perceived differences amongst products

2. Develop loyal customer franchise

3. Create value that can translate to financial profits

Why Do Brands Matter?
1. Consumers’ perspective: encompass all types of customers, including
individuals as well as organizations

2. Firms’ perspective
Consumers
1. Functions provided by brands to consumers:

• Identify maker of the product

• Simplify product decisions

• Lower the search costs for products

• Helps set reasonable expectations

Consumers
2. Signal product characteristics and attributes.

a. Search goods (able to see and touch e.g. groceries)

b. Experience goods (able to feel through experience and trial, e.g.

education)

c. Credence goods (unable to see and feel, e.g. insurance)

The higher the product/service
intangibility is,

the more important the brand will

be.
Consumers
3. Reduce risks in product decision:

a. Functional,
b. Physical,
c. Financial,
d. Social / Psychological, and
e. Time
Firms
Brands provide valuable functions:

1. Simplify product handling and tracing

2. Help organizing inventory and accounting records

3. Offer the firm legal protection for unique features or aspects of the
product
Firms
4. Provide predictability and security of demand for the firm and creates
barriers of entry for competitors

5. Provide a powerful means to secure competitive advantage

 Top 10 Global brands 2022

Source: interbrand.com
Can Anything Be Branded

1. Physical Goods

2. Services
Branding Products
(commodities)…

A commodity is a product so
basic that it cannot be physically
differentiated from competitors
in the minds of consumers….

When branded, consumers are

convinced that it is not the same
as others and meaningful
differences existed.
Can Anything Be Branded
• Retailers and Distributors

• Online Products and Services

• People and Organizations

E.g. well-defined images… liked by others…
 CHAPTER 2:

Customer-based Brand Equity And Brand Positioning

Defining CBBE (Customer-Based Brand Equity)
1. Power of a brand lies in what resides in the minds and hearts of
customers

2. Brand knowledge

 The differential effect that brand knowledge has…

Summary of
Brand
Knowledge

2
Advantages of Strong Brands
1. Greater loyalty and less vulnerability to competitive marketing actions
and crises

2. Higher profit margins

3. Greater trade cooperation and support (e.g., stocking of products by

retailers)
Advantages of Strong Brands
4. Increased marketing communication effectiveness

5. Possible licensing and brand extension opportunities (e.g., Disney

characters to Uniqlo)

6. Other Benefits (e.g. employee motivation)

Brand Positioning
1. Basic Concepts

2. Target Market

3. Nature of Competition

4. Points-of-Parity and Points-of-Difference

 POP vs POD…the case of Starbucks
Starbucks
Competitors POP (similarity) POD (difference)
Fast-food restaurants (e.g. Convenience Quality
McDonald’s) Value Image
Experience
Variety
Take-home brands (e.g. Convenience Quality
Nescafe) Value Image
Experience
Variety
freshness
“Upstairs” cafe Quality Convenience
Variety
Price
3 & 4.
CHAPTER 3:

Brand resonance and the brand value chain

Building A Strong Brand

4 steps:

1. Brand identification

2. Brand meaning

3. Customer responses towards the brand

4. Customer loyalty relationships

Customer-Based Brand Equity: the Brand Resonance Model
Brand Building
Blocks
1. Brand Salience

1. Breadth and Depth of Awareness

- Breadth: Range of purchase and usage situations…
- Depth: Ease of recall

2. Product Category Structure

3. Strategic Implications (e.g. top of mind choice)

2. Brand Performance

Describes how well the brand performs:

1. Primary and supplementary features

2. Product reliability and durability
3. Service effectiveness, efficiency and empathy
4. Style and design
5. Price
3. Brand Imagery

Intangible, psychological (aspect of association):

1. User profile/imagery
2. Purchase and usage situations/imagery
3. Brand personality and values
4. Brand history, heritage, and experiences
3. Brand Imagery

Brand personality and values

 Through consumer experience or marketing activities, brands may take on
personality traits.
 Five dimensions of brand personality:
• Sincerity (down-to-earth, honest, wholesome, and cheerful)
• Excitement (daring, spirited, imaginative, and up-to-date)
• Competence (reliable, intelligent, successful)
• Sophistication (upper class and charming)
• Ruggedness (outdoorsy and tough)
4. Brand Judgements

1. Quality (overall evaluation)

2. Credibility (trustworthiness)

3. Consideration (top choice)

4. Superiority (competitive edge)

5. Brand Feelings

 Customers’ emotional responses and reactions to the brand

Important brand building feelings

• Warmth - Soothing feelings that make consumers feel a sense of calm or peacefulness.
• Fun - Upbeat feelings that make consumers feel amused, light-hearted, joyous, playful, and cheerful.
• Excitement - Ability of the brand to make consumers feel energized and experience something
special.
• Security - Ability of a brand to produce a feeling of safety, comfort, and self-assurance.
• Social approval - Gives consumers a belief that others look favorably on their appearance and
behavior.
• Self-respect - Brand makes consumers feel better about themselves.
6. Brand Resonance

Brand identification: whether the brand and the customer are in “sync”

1. Behavioral loyalty (repeat purchase)

2. Attitudinal attachment (perceived as sth special)
3. Sense of community (brand community)
4. Active engagement (willing to invest time/resources in the brand)
Apple brand community…

1. Apple user groups to learn more

about products, share ideas,
friendships with fellow users

2. Sponsor special activities and

events
3 & 4.
CHAPTER 4:

Choosing brand elements to build brand equity

Criteria for Choosing
Brand Elements…
Brand
Elements…
Types of Brand Elements

1. Brand Names
2. Uniform Resource Locators [URLs]
3. Logos and Symbols
4. Characters
5. Slogans / Taglines
6. Jingles
7. Packaging
1. Brand Names

1. Captures the central theme or key associations of a product in a

very compact and economical fashion

2. Closely tied to the product in the minds of consumers

3. Naming guidelines
Naming guidelines…

1. Simplicity

2. Ease of pronunciation/spelling

3. Familiarity

4. Meaningfulness

5. Unique
2. URLs

1. Known as domain names

2. Specify locations of pages on the Web

3. Protect the brands from unauthorized use in other domain names

3. Logos and Symbols

1. Indicate origin, ownership, or association

2. Corporate names or trademarks written in a distinctive form

3. Abstract designs that may be completely unrelated to the

corporate name or activities
“our brains are hardwired to learn and
memorize new shapes, so the way a logo is
presented can have a big impact on its
effectiveness.”

1. Brand mark
2. Word mark
3. Letter mark
4. Combo mark
5. Emblem
4. Characters

1. Special type of brand symbol

2. Takes on human or real-life characteristics

3. Introduced through advertising and/or package designs

“Sound Bear”
Great character…some tips
1. Human traits are appealing

2. Create a full backstory to fill out the

character

3. Even superheroes have flaws

4. Don’t get rid of older

characters

5. Characters with a simple

task or purpose work best.
5. Slogans / Taglines

1. Short phrases showing descriptive or persuasive information about the

brand

2. Help consumers grasp the meaning of a brand

3. Means of summarizing and translating the intent of a marketing

program
6. Jingles

1. Musical messages written around the brand

2. Have catchy hooks and choruses that become permanently

registered in the minds of listeners

3. Enhance brand awareness by repeating the brand name in clever

and amusing ways
7. Packaging

1. Containers or wrappers

2. It helps:
1. Identify the brand

2. Convey descriptive and persuasive information

3. Facilitate product transportation and protection

4. Assist in at-home storage

5. Aid product consumption

The psychology of packaging…It can:
1. Influence Taste…lead us to taste what we think we are going to taste.

2. Influence Value…the bigger the package, the better the price per ounce.

3. Influence Consumption…consume 18–32% more of

a product as the size of the container doubles.

4. Influence How a Person Uses a Product…

on-package suggestions are effective
Entire set of brand elements

Brand Identity
3 & 4.
CHAPTER 5:

Designing marketing programs to build brand equity

4Ps Brand Value Chain
Personalizing Marketing

1. Experiential Marketing (connecting customers with unique & interesting

experience; customer/user experience)

2. Relationship Marketing (current customers are key to long-term success;

retaining existing customers is important)
 more holistic, personalized brand experience  create stronger consumer ties
1. Experiential Marketing

1. Sense marketing: appeal to five senses

2. Feel marketing: positive mood, joy

3. Think marketing: problem-solving

4. Act marketing: physical behaviors, lifestyles

5. Relate marketing: part of a social group

 The Sonic Block Party – a food truck tour…

https://alliedexperiential.com/portfolio/sonic-coldchella/
Making Sense out of Scents…
…deciding on what mood you want customers
to experience, and tailoring a scent that will
have this effect.

1. Perceive a room as bigger: apple, cucumber

2. Browse longer and spend more: Tailored

floral/citrus scents
https://rabidofficemonkey.com/scent-marketing-what-does-your-brand-smell-like/
2. Relationship Marketing

1. Mass Customization [customize products/services for the mass market]

2. One-to-One Marketing [customer-marketer interactivity; direct marketing]

3. Permission Marketing [marketing to

customers after gaining their
expressed permission]
Mass Customization…
“turn customers’ heterogeneous
needs into an opportunity to create
value

…challenge the “one size fits all”

assumption of traditional mass
production.

…e.g. Dell: different computer

configurations for your choice!
Reconciling Marketing Approaches

1. Different approaches emphasize different aspects of brand equity.

e.g., mass customization, one-to-one, and permission marketing
 greater relevance, behavioural loyalty, attitudinal attachment
e.g. experiential marketing
brand imagery, feelings, community

2. They are all potentially effective means of getting consumers more actively
engaged with a brand
Reconciling Marketing Approaches

3. These approaches can build stronger consumer–brand bonds

4. Firms must still devise product, pricing, and distribution strategies as part
of their marketing programs (4 Ps)
 3 & 4.
CHAPTER 6:

Integrating marketing communications to build brand equity

Marketing Communication Options

1. Advertising (tv, mobile, digital, printed, radio  media)

2. Sales Promotion

3. Online Marketing Communication

4. Events and Experiences

5. Mobile Marketing
3. Online Marketing Communication

1. Web Sites

2. Online Ads and Videos

3. Social Media [forums, chat rooms, blogs, Facebook, YouTube…]

4. Will have detailed discussion in Chapter 7

4. Events (physical, virtual) and experiences

1. Public sponsorship of events or activities

related to sports, art, entertainment, or
social causes

2. Focus on engaging the consumers’ senses

and imagination as a part of brand building
(customer participation and engagement)
5. Mobile Marketing

1. Product advertising on various mobile platforms

2. Geo-targeting (location-based marketing): Marketers send messages to

consumers based on their location (e.g., at a shopping mall) and the
activities they are engaging in (e.g., sales promotion)

3. Opt-in advertising (permission marketing)

3 & 4.
CHAPTER 7:

Branding in the Digital Era

Digital Communications

1. Paid channel (e.g., paid advertising on social media such as Facebook,

search ad. as in Google AdWords, banner ad.,…etc.)

2. Owned channel (e.g., company’s website, YouTube channel…etc. - sources

of information for consumers about a company’s offerings)

3. Earned channel (e.g., review sites and reviews posted online, “like”,
“comment”, and “share” on social media or blog posts, media mentions…
typically at no expense by the company  buzz and publicity )
Summary of Digital Marketing Communication Channels
Roles of social media

1. Establishing a public voice and online presence

2. Amplifying marketing message

3. Helping monitor and obtain feedback from consumers

4. Promoting customer engagement

Mobile Marketing

1. Messaging services: Short messaging service (SMS) and multimedia

messaging service (MMS) which offer customers unique offers based on
time and location

2. In-app advertising…way by which mobile marketing can help brands touch

customers (e.g. stockbroker’s ad in AAStocks app)

3. Proximity systems marketing, or geo-fencing, which involves particular

advertising messages delivered to mobile users within a defined
geographic area (location-based marketing)
Influencer Marketing

Influencer marketing involves utilizing key influencers to spread positive

word-of-mouth:

1. Sponsored bloggers (experts)

2. Celebrity influencers

3. KOL (key opinion leaders; experts)

Content Marketing

It is a strategic marketing approach focused on creating and distributing

valuable, relevant, and consistent content to attract and retain a clearly
defined audience—and, ultimately, to drive profitable customer action.

e.g. fashion & beauty tips, travel vlogs …

Content Marketing

A key difference between content marketing and traditional marketing:

Consumers typically want to consume the posts that form part of a content
marketing campaign
Guidelines for Good Content Marketing

 The goal is to engage an audience in topics of interest to them (not selling

products and services).
 Understanding buyer needs must always be a starting point for generating
good content.
 Address the information needs of different types of consumers at each of the
buyer decision stages.
 Excellent storytelling is another key to success.
 3 & 4.
CHAPTER 8:

Leveraging secondary brand associations to build brand equity

Leveraging Process

Linking the brand to another entity may:

1. Create a new set of associations between the brand and the entity (e.g.,
between Broadway and Joey Yung)

2. Affect the existing brand associations

Sources of secondary associations

1. Companies
2. Place (countries or geographical areas)
3. Channels of distribution
4. Other brands (co-branding)
5. Characters (licensing)
6. Spokespersons (celebrity endorsement)
7. Events (sponsorship)
8. Other 3rd party sources (awards, reviews)
1. Company

1. Existing brands can be related to a corporate or family brand

2. A corporate or family brand can be a source of brand equity

3. Leveraging a corporate brand may or may not be useful

2. Place

1. Country of Origin (e.g. Made in Italy) or Geographic Location

2. Consumers choose brands based on:

1. Their beliefs about the quality of certain types of products from certain
countries

2. The image that these brands or products communicate

Menu Description
Matters…

Steak

vs

New Zealand Steak

3. Channels of Distribution

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

2. Retailers have their own brand images in consumers’ minds about product
variety, pricing, and service quality…

3. Customer base can be expanded by tapping into new channels of

distribution
e.g. to expand customer base…

1. Laneige  HKTVmall
Dimensions of a Retailer’s Brand
Image…

1. Access (location)

2. Store Atmosphere

3. Price and Promotion

4. Cross-Category Assortment (breadth)

5. Within-Category Assortment (depth)

4. Co-branding

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

e.g., Hang Seng Bank paired with a few universities to market

their co-branded credit cards.
4. Co-branding

Guidelines
 To create a strong co-brand, both brands should have:

 Adequate brand awareness

 Sufficiently strong, favorable, and unique associations

 Positive consumer judgments and feelings

 There must be a logical fit between the two brands.

5. Licensing

1. Creates contractual arrangements whereby firms can use names, logos, and
characters of other brands to market their own brands for some fixed fee

2. Can also provide legal protection for trademarks

3. Risk: a trademark may become overexposed if marketers adopt a

saturation policy
Uniqlo & Disney
6. Celebrity Endorsement

1. A famous person can draw attention to a brand and shape brand

perceptions

2. Celebrity endorsers should have:

1. a high level of visibility

2. a rich set of potentially useful associations, judgments, and feelings

6. Celebrity Endorsement

Guidelines
1. Choose a well-known and well-defined celebrity whose associations are
relevant to the brand and likely to be transferable.
2. The advertising and communication program should use the celebrity in
a creative fashion that highlights the relevant associations and
encourages their transfer.
https://www.youtube.com/watch?v=Igm9NpmRiq8
7. Sporting, Cultural or Events

Sponsorship contributes to brand equity by:

1. Becoming associated to the brand and improving brand awareness

2. Adding new associations

3. Improving the strength, favourability, and uniqueness of existing

associations
Hong Kong Rugby Seven…
8. Third Party Sources

1. Involves linking the brand to various third party sources, like:

1. leading magazines (Times, VOGUE)

2. professional organizations (HK Medical Council)

3. experts (film critic, professors)

 3 & 4.
CHAPTERS 9-11:

Developing a brand equity measurement and management system

Measuring sources of brand equity: capturing customer mindset
Measuring Outcomes of Brand Equity: Capturing Market Performance
Qualitative Research Techniques

1. Free Associations
2. Projective Techniques
3. Neural Research Method
4. Brand Personality and Value
5. Ethnographic and Experiential Methods
1. Free Associations

1. Consumers narrate what comes to their mind

2. Used to profile brand associations

3. Help form a rough mental map for the brand

4. Indicate the relative strength, favorability, and uniqueness of brand

associations (brand image)
Free Association…

1. “what does McDonald’s mean

to you?”

2. “Tell me what comes to your

mind when you think of
McDonald’s.”
2. Projective Techniques

1. Diagnostic tools to uncover the true opinions and feelings of consumers

when they are unwilling or unable to express themselves

2. Present consumers with ambiguous stimulus and ask them to make sense
of it
A Cartoon Test…
Bubble drawings…

Brand discussion bubble

Completion Techniques…

• A person who shops at PARKnSHOP is _______

• Disneyland is most liked by _________

• When I think of shopping in City Super, I _________________

Word Association Test…

• “Red”: Danger? Apple? Passion? Fire truck?…

• “港女”: 獨立? 自戀? 眼角高? 拜金? 公主病? 名

牌?...Independent, narcissistic, materialistic?…

• “港男”: 體貼? 御宅族? 小男人? 大男人? 動漫畫?...

 Summary of Qualitative and
Quantitative Measurement
Techniques

C.
D.
3 & 4.
CHAPTER 12:

Designing and Implementing Brand Architecture Strategies

Designing a Brand Portfolio
A brand portfolio includes all brands sold by a company in a product category.

 ability to maximize brand equity

Designing a Brand Portfolio
Basic principles:

1. Maximize market coverage so that no potential customers are being

ignored

2. Minimize brand overlap so that brands aren’t competing among themselves

to gain the same customer’s approval
By examining every “tick” and
“cross”…
Roles of Brands in the Brand Portfolio
Brand Portfolio
1. Flankers (or fighters)

2. Cash Cows

3. Low-End (Entry-Level) or High-End (Prestige Brands)

1. Flankers or Fighters
1. A new brand (often lower-priced) introduced into the market by a company
that already has an established brand in the same product category.

2. Create stronger points-of-parity (POP) with competitors’ brands.

3. They must not be so attractive that take sales away from their higher-
priced comparison brands (avoid cannibalization!)
 Air fare war…

Qantas (Jetstar) vs Virgin Atlantic (Virgin Blue)

Flagship brand Flanker/Fighter

Air fare war continues…
Cathay Pacific to buy
budget airline Hong
Kong Express

“We intend to continue to operate

Hong Kong Express as a stand-alone
airline using the low-cost carrier
business model,”

(27 March 2019, BBC)

2. Cash Cows
1. Sales may be decreasing…however they still have a considerable share
and profitability (due to their sustainability without any kind of marketing)

2. Market is not growing?!

3. Milked by capitalizing on their reservoir of existing brand equity

Should it kill the
cash cow?

an outdated model, but many

consumers still buying it
3. Low-End or High-End Brands
1. Role of a relatively low-priced brand (to attract customers to the brand
franchise)

e.g., BMW 1-series as the low-priced brand to enter BMW franchise

2. Role of a relatively high-priced brand (to add prestige and credibility to the
entire portfolio)
 3 & 4.
CHAPTER 13:

Introducing and Naming New Products and Brand Extensions

Products and Brand Extensions

Brand extension:

When a firm uses an established

brand name to introduce a new
product

Two general categories:

1. Line extension
2. Category extension
Products and Brand Extensions
Line extension:

1. Apply the parent brand to a new product that targets a new market
segment within a same product category the parent brand currently serves.

2. Adds a different variety, a different form or size, or a different application

for the brand (e.g. Head & Shoulders Dry Scalp shampoo)
Products and Brand Extensions
Category extension:

Marketers apply the parent brand to enter a different product category from
the one it currently serves.
 Line extension

Category extension
3. Vertical Brand Extensions
3. Vertical Brand Extensions
Pros and cons:

1. Improve brand image, positive association, but may confuse consumers,

cannibalize sales of parent brand

e.g., Armani, Holiday Inn…

2. Naming strategies (sub-branding strategies)…

e.g., Giorgio Armani, Emporio Armani, Armani Exchange

 3 & 4.
CHAPTERS 14-15:

Managing Brands Over Time

Managing Brands over Geographic Boundaries and Market Segments
Revitalizing Brands

1. Profile brand knowledge structures in customers’ mind

2. With an understanding of the current and desired brand knowledge, there

are two strategic options which can be used to refresh old sources of
brand equity or create new ones to achieve the intended positioning. They
are:
1

2
Revitalizing Brands

 Tactically, we can refurbish lost sources of brand equity and establish new
ones in the same three ways we create sources of brand equity to start
with:
1. By changing brand elements (e.g. logo, color, slogan)

2. By changing the supporting marketing program (e.g. advertising

campaign)

3. By leveraging new secondary associations (e.g. celebrity endorsement)

Revitalizing Brands

1. Expanding Brand Awareness (problem of breadth, not

depth!). Consumers tend to think of the brand only in
very narrow ways

a) Identifying additional or new usage opportunities

(e.g. milk: drink + cook)

b) Identifying new and completely different ways to

use the brand
Revitalizing Brands

2. Improving Brand Image:

a) Identifying the target market: 1) retaining vulnerable customers, 2)

recapturing lost customers, 3) identifying neglected customers, and 4)
attracting new customers

b) Repositioning the brand – more compelling points-of-difference may be

needed; make mature brands more contemporary (e.g. usage, user profile;
pdt, ad, packaging)

c) Changing brand elements (e.g. Fairwood)

THE END