Microsoft Word F69703117 doc 3 Chapter 2 Literature Review 2 1 Brand Overview 2 1 1 What is brand? Branding has been around for centuries as a means to distinguish the goods of one producer from those of another In fact, the word “brand” is derived from the Old Norse “brandr” which means “to burn” as brands were and still are the means by which owners of livestock mark their animals to identify them According to the American Marketing Association, abrand is a “name, term, sign, symbol, or design.
Chapter Literature Review 2.1 Brand Overview 2.1.1 What is brand? Branding has been around for centuries as a means to distinguish the goods of one producer from those of another In fact, the word “brand” is derived from the Old Norse “brandr” which means “to burn” as brands were and still are the means by which owners of livestock mark their animals to identify them According to the American Marketing Association, abrand is a “name, term, sign, symbol, or design, or 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.” Thus, the key to creating a brand, according to this definition, is to choose a name, logo, symbol, package design, or other attribute that identifies a product and distinguishes it from others We can call these different components of a brand, which identify and differential it brand elements (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 2) 2.1.2 Brands versus products It is important to contrast a brand and a product According to Phillip Kotler, a well-regarded marketing academic, a product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want Thus, a product may be a physical good (e.g., a cereal, tennis racquet, or automobile), service (e.g., an airline, bank, or insurance company), retail store (e.g., a department store, specialty store, or supermarket), person (e.g., a political figure, entertainer, or professional athlete), organization (e.g., a nonprofit, trade organization, or arts group), place (e.g., a city, state, or country), or idea (e.g., political or social cause) Kotler defines five levels of a product: (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 3) The core benefit level is the fundamental need or want that consumers satisfy by consuming the product or service The generic product level is a basic version of the product containing only attributes or characteristics a absolutely necessary for its functioning but with no distinguishing features This is basically a stripped-down, “no ftrills” version of the product that adequately performs the product function 3 The expected product level is a set of attribute or characteristics that buyers normally expect and agree to when they purchase a product The augmented product level includes additional product attribute, benefits, or related services that distinguish the product from competitors The potential product level includes all of the augmentations and transformations that a product might ultimately undergo in the future More specifically, what didtinguishes a brand from its unbranded commodity counterpart and gives it equity is the sum toal of consumers’ perceptions and feelings about the product’ attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 5) Creating a successful brand entails blending all these various elements together in a unique way-the product or service has to be of high quality and appropriate to consumer needs, the brand name must be appealing and in tune with the consumers’ perceptions of the product, the packaging, promotion, pricing, and all other elements must similarly meet the tests of appropriateness, appeal, and differentiation (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 5) By creating perceived differences among products through branding and developing loyal consumer franchises, marketers create value, which can translate to financial profits for the firm The reality is that the most valuable assets that many firms have not be tangible, such as plants, equipment, and real estate, but intangible assets such as management skills, marketing, financial, and operations expertise; and most importantly, the brands themselves Thus, a brand is value intangible asset thet need to be handled carefully (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 5) 2.2 Brand Equity The set of associations and behaviors on the part of the brand’s customers, channel members, and parents corporations that permits the brand to earn greater volume or greater margins than it could without the brand name and that gives the brand a strong, sustainable, and differentiated advantage over competitors (Marketing Science Institute) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 43) The added value to the firm, the trade, or the consumer with a given brand endows a product (Peter Farquhar, Claremont Graduate School) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 43) A set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or services to a firm and/or to that firm’ customers (David Aaker, University of California at Berkeley) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 43) The sale and profit impact enjoyed as a result of prior years’ marketing efforts versus a comparable new brand (Jonh Brodsky, NPD Group) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 43) Brand equity subsumes brand strength and brand value Brand strength is the set of associations and behaviors on the part of a brand’ customers, channel members, and parent corporation that permits the brand to enjoy sustainable and differentiated competitive advantages Brand value is the financial outcome of management’ ability to leverage brand strength via tactical and strategic actions in providing superior current and future profits and lowered risksd (Raj Srivastava, University of Texas & All Shocker, University of Minnesota) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 43) The measurable financial value in transactions that accrues to a product or service from successful programs and activities e (J Walker Smith, Yankelovich Clancy Schulman) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 43) Brand equity is the willingness for someone to continue to purchase your brand or not Thus, the measure of brand equity is strongly related to loyalty and measures segments on a continuum from entrenched users of the brand to convertible users (Market Facts) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 43) Brand with equity provide “an ownable, trustworthy, relevant, distinctive promise to consumers.” (Brand Equity Board) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 43) 2.3 Brand Knowledge Structure Brand knowledge can be conceptualized in terms of a brand node in memory with brand associations; varying in strength, connected Brand equity is then a function of the level, or depth and breadth, of brand awareness and the strength, favorability, and uniqueness of brand associations (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 87) 2.3.1 Brand awareness Brand awareness is related to the strength of the resulting brand node, or trace in memory, reflected by consumers’ ability to identify the brand under different conditions (Keller, 1998) Strategic brand management: building, measuring, and managing brand equity, (page 87) Brand awareness consists of brand recognition and brand recall oerformance (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 88) Brand awareness can be characterized according to depth and breadth (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 88) 2.3.2 Brand image Brand image can be defined as perceptions about a brand as reflected by the brand associations held in consumer memory Brand associations are the other informational nodes linked to the brand node in memory and contain the meaning of tions play an important role in determining the differential response that make up brand equity, especially in high involvement decision where consumer motivation and ability are sufficiently present Before considering these three dimensions in more detail, it is useful to fisrt describe the different types of brand associations that may exist in consumer memory (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 93) According to Herzog (1963) brand image can be defined as perceptions about a brand as reflected by the brand associations held in consumer memory 2.3.3 Determining the desired brand knowledge structures Determining the desired brand knowledge structures involves positioning a brand Brand positioning has been defined as the “act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds.” Thus, positioning, as the name implies, involves finding the proper location in the minds of a certain markrt segment so that they think about the product in the “right” or desired way According to the customer-based brand equity model, deciding on a positioning requires determining a frame of reference by identifying the target market and nature of competition and the ideal point of parity and point of difference brand association In the words, it is necessary to decide: (1) who the target consumer is, (2) who the main competitions are, (3) how the brand is similar to these competitors, and (4) how the brand is different from these comoetitors (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 109) 2.4 Brand Element Choice Criteria 2.4.1 Memorability A necessary condition for building brand equity is achieving a high level of brand awareness Towards that goal, brand elements can be chosen that are inherently memorable and therefore facilitate recall and/or recognition in purchase and/or consumption In other words, the intrinsic nature of certain names, symbols, logos, and the like their semantic content, visual look and so on may take them more memorable and therefore contribute to brand equity (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 132) 2.4.2 Meaningfulness Besides choosing brand elements to building awareness, brand elements can also be chosen whose inherent meaning enhances the formation of brand associations Brand elements may take on all kinds of meaning, varying in descriptive, as well as persuasive content Two particularly important dimensions or aspects of the meaning of a brand element are the extent to which it conveys general information about the nature of product category and/or specific information about particular attributes and benefits of the brand (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 132) First, in terms of descriptive meaning, to what extent does the brand element suggest something about the product category? How likey would it be that a consumer could correctly identify the corresponding product category or categories for the brand based on any one particular brand element? Relatedly, does the brand element seem credible in product category? In other words, is the content of a brand element consisten with what consumers would expect to see from a brand in that product category? Second, in terms of persuasive meaning, to what extent does the brand element suggest something about the particular kid of product that the brand would likey be (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 132) 2.4.3 Transferability The third general criterion concerns the transferability of the brand element, both in a product category and geographic sense First, to what extent can be the brand elements add to brand equity of new products sharing that element introduced either within the product class or across product classes? In other words, how useful is the brand element for line or category extentions, such as when the brand is used to introduce new products in the same or different categories? Second, to what extent does the brand element add to brand equity across geographical boundaries and market names? To a large extent this depends on the cultural content and linguistic qualities of the brand element (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 133) 2.4.4 Adaptability The fourth consideration concerns the adaptability of the brand element over time Because of changes in consumer values and opinions, or just because of a need to remain up to date or contemporary, brand elements often must be updated over time The more adaptable and flexible the brand element, the easier it is to update it (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 133) 2.4.5 Protectability The fifth and final general consideration concerns the extent to which the brand element is protectable both in a legal and competitive sense In terms of legal considerations, it is important to: (1) choose brand elements that can be legally protectable on an international basis, (2) formally register them with the appropriate legal bodies, and (3) vigorously defend trademarks from unauthorized competitive infringement The necessity of legally protecting the brand is dramatized by seeing the billion of dollars in losses in the United States alone from unauthorized use of patents, trademarks, and copyrights A closely related consideration is the extent to which the brand element is competitively protectable Even if a brand element can be protect legally, it still may be the case that competitive actions can take away much of the brand equity provide by the brand elements themselves (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 134) 2.5 Brand Element Options and Tactics It is difficult to choose a brand name or any brand element for the matter that would satisfy all of these different criteria Moreover, brand names are generally less adaptable over time Because of the fact that it is virtually impossible to find one brand element that satisfy all the choice criteria, multiple brand elements are typically employed (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 135) 2.5.1 Protectability The brand name is a fundamentally important choice as it often captures the central theme or key associations of a product in a very compact and economical fashion Brand names can be an extremely effective “shorthand” means of communications Whereas the time it takes consumers to comprehend marketing communications can range from a half a minute (for an advertisement) to potentially hours (for a sales call), the brand name can be noticed and its meaning registered or activated in memory within just a few seconds Because the brand name becomes so closely tied to the product in the minds of consumers, however, it is also the most difficult brand element for marketers to subsequently change Consequently, brand names are often systematically researched before being chosen (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 135) In general, it is believed that brand awareness is improved the extent to which brand names are chosen that are simple and easy to pronounce or spell; familiar and meaningful; and different, distinctive, and unusual (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 136) 2.5.2 Logos and symbols Many logos are between these two extremes Often logos are devised as symbols to reinforce or embellish the brand meaning in some way Some logos are literal representations of brand name, enhancing brand awareness (e.g., the Arm and Hammer, American Red Cross, and Apples Logos) Logos can be quite concrete or pictorial in nature (e.g., the American Express centurion, Land o’ Lakes butter Native American, the Morton salt girl with umbrella, and Ralph Lauren’ polo player) Certain elements of product or company can become a symbol (e.g., the Goodyear blimp, McDonald’ golden arches, and Playboy bunny) (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 143) 2.5.3 Characters Characters represent a special type of brand symbol one that takes on human or real-life characteristics Brand characters typically are introduced through advertising and can play a central role in these and subsequent ad campaigns and package design Like other brand elements, brand characters come in many different forms Some brand characters are animated (e.g., Pillsbury’ Poppin’ Fresh Douhgboy, the Keebler Elves, and numerous cereal characters such as Tony the Tiger, Toucan Sam, and Cap’n Crunch) whereas others are live action figures (e.g., Marboro cowboy, Mr Whipple, or Ronald McDonald) In general, animated characters are more likely than live action characters to actually have a visible presence on packages Brand characters can provide a number of brand equity benefits Because they are often colorful and rich in imagery, they tend to be attention getting Consequently, brand characters can be quite useful for creating brand awareness Brand characters can also help to communicate a key product benefit There are some cautions and draw backs to using brand characters Brand characters can be so attention getting and well like that they dominate other brand elements and actually dampen brand awareness In addition, brand characters continue to be introduced to help brand break through the marketplace clutter and create a point of difference (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 146 & 147) 2.5.4 Slogans Slogans are short phrases that communicate descriptive or persuasive information about the brand Slogans typically appear in advertising but can play an important role on packaging and in other aspects of the marketing program Slogans are powerful branding devices because, like brand names, they are a extremely efficient, shorthand means to build brand equity Slogans can fuction as useful “hook” or “handles” to help consumers grasp the meaning of a brand in terms of what the brand is and what makes it special (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 151) 2.5.5 Jingles Jingles are musical messages written around the brand Typically composed by professional songwriters, they often have enough catchy hooks and choruses to become almost permanently registered in the minds of listeners sometimes whether they want them to or not! During the first half of the twentieth century, when broadcast advertising 10 was confined primarily to radio, jingles became important branding devices (Keller, K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 157) 2.5.6 Packaging Packaging involves the activities of designing and producing containers or wrappers for a product Like other brand elements, packages have a long history Early humans used leaves and animal skin to cover and carry food and water Glass containers first appeared in Egypt as early as 2000 B.C Later, the French emperor Napoleon awarded 12,000 francs to the winner of a contest to find a better way to preserve food, leading to the first crude method of vacuum-packing From the perspective of both the firm and consumers, packaging must achieve a number of objectives: (1) indentify, (2) convey descriptive and persuasive information, (3) facilitate product transportation and protection, (4) assist at home storage, (5) aid product consumption (Keller.K.L (1998) Strategic brand management: building, measuring, and managing brand equity, page 157) 11 2.6 How to build Brand Equity Brand Vision Brand Strategy Brand Identity System Implementation Figure 2-1 Branding Process 2.6.1 Brand vision Baron Rothschild's saying that the best time to buy is when blood is on the streetscould not be more timely But this can only be happen when today's embittered investors are made to feel vindicated, not victimised The winners will be those companies which reconstruct their brands to befriend distrustful consumers [David Rosen] is managing director of Brand Vision, a UK-based communications consultancy Website: www.brandvisiongroup.com Copyright Financial Times Limited 2002.All Rights Reserved.2.5.2 Brand Strategy When companies go through periods of significant change, often the first thing to go is the sense of belonging to a shared communication There are some ways to bring new focus and needed change into a workplace while ensuring that employees are invested and engaged in that change, and committed to the new company One example is developing an internal branding campaign where a brand, vision of shared story is created around new company values or goals It addition to branding campaigns, it's also important to search out and understand what employees feel has been lost following any significant change in the organization Where appropriate, attempt to revive some of the values and activities that helped people connect with the organization, such as social, community and cultural activities that help employees bond with an organization and each other Another way to build a more collaborative workplace culture is to create a few fun events.( Kim Hanson Strategic Communication Management Chicago: Feb/Mar 2004 Vol 8, Issue 4, p 6) 12 2.6.2 Brand strategy Kaiser Permanente is the nation's largest not-for-profit integrated health care delivery system While our tagline embodies the company's commitment to its brand promise of Total Health, Thrive is far more than a tagline It's about a brand strategy supported by a well-entrenched mission and a commitment to a model of care that is centered on members and patients Our people work every day to ensure that our brand platform, known as Total Health, is extended beyond advertising to direct marketing, business marketing, Internet services, internal communications, public relations social media and issues management Here's how we it.: - Use research to learn and connect with your audience - Inspire people to say, I want that - Create enthusiasm and excitement - Support your ad campaign with public relations, including social media - Live up to your brand promise (Diane Gage Lofgren, Debbie Cantu Marketing Health Services Chicago: Summer 2010 Vol 30, Iss 3; pg 8) 2.6.3 Brand identity system Aartrijk dates back to 1999 when Peter van Aartrijk founded The van Aartrijk Group LLC The firm's specialty was public relations and editorial support for the insurance industry On the firm's 10th anniversary it rebranded itself as simply Aartrijk Now a full-service branding firm, Aartrijk offers brand auditing, marketingcommunications strategy, design, Web positioning, social media, public relations, media buying, video production and publishing Maureen Wall Bentley, EVP of brand strategy for Aartrijk, says one of the key elements of an Image Assessment, which is a component of the more comprehensive Aartrijk Brand Audit, is the brand identity itself the organization's name, its tagline, and its logo (Anonymous Rough Notes Indianapolis: Apr 2010 Vol 153, Iss 4; pg 38, pgs) 13 ... Strategic brand management: building, measuring, and managing brand equity, page 43) Brand equity subsumes brand strength and brand value Brand strength is the set of associations and behaviors... management: building, measuring, and managing brand equity, page 88) 2. 3 .2 Brand image Brand image can be defined as perceptions about a brand as reflected by the brand associations held in consumer... different conditions (Keller, 1998) Strategic brand management: building, measuring, and managing brand equity, (page 87) Brand awareness consists of brand recognition and brand recall oerformance