kellogg on branding the marketing faculty of the kellogg school of management

ffirs.qxd 8/16/05 2:43 PM Page iii Kellogg on Branding The Marketing Faculty of The Kellogg School of Management EDITED BY ALICE M TYBOUT AND TIM CALKINS FOREWORD BY PHILIP KOTLER John Wiley & Sons, Inc ffirs.qxd 8/16/05 2:43 PM Page ii ffirs.qxd 8/16/05 2:43 PM Page i Kellogg on Branding ffirs.qxd 8/16/05 2:43 PM Page ii ffirs.qxd 8/16/05 2:43 PM Page iii Kellogg on Branding The Marketing Faculty of The Kellogg School of Management EDITED BY ALICE M TYBOUT AND TIM CALKINS FOREWORD BY PHILIP KOTLER John Wiley & Sons, Inc ffirs.qxd 8/16/05 2:43 PM Page iv Copyright © 2005 by Alice M.Tybout and Tim Calkins.All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty:While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials.The advice and strategies contained herein may not be suitable for your situation.The publisher is not engaged in rendering professional services, and you should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Designations used by companies to distinguish their products are often claimed by trademarks In all instances where the author or publisher is aware of a claim, the product names appear in Initial Capital letters Readers, however, should contact the appropriate companies for more complete information regarding trademarks and registration Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our web site at www.Wiley.com Library of Congress Cataloging-in-Publication Data: Kellogg on branding : the marketing faculty of the Kellogg School of Management / edited by Alice Tybout and Tim Calkins ; foreword by Philip Kotler p cm ISBN-13 978–0–471–69016-0 (cloth) ISBN-10 0-471-69016-3 (cloth) Brand name products Brand name products—Marketing Brand name products—Management Customer relations—Management I Tybout,Alice M II Calkins,Tim III Kellogg School of Management HD69.B7K46 2005 658.8'27—dc22 2005007457 Printed in the United States of America 10 ftoc.qxd 8/16/05 2:43 PM Page v Contents ix Foreword by Philip Kotler Preface xi Alice M.Tybout and Tim Calkins xvii Acknowledgments Introduction The Challenge of Branding Tim Calkins Section I Key Branding Concepts Chapter Brand Positioning 11 Alice M.Tybout and Brian Sternthal Chapter Designing Brands 27 Bobby J Calder Chapter Brand Meaning 40 John F Sherry, Jr Section II Strategies for Building and Leveraging Brands Chapter Competitive Brand Strategies 73 Gregory S Carpenter and Kent Nakamoto v ftoc.qxd 8/16/05 2:43 PM Page vi vi Contents Chapter Brand Extensions 91 Bridgette M Braig and Alice M.Tybout Chapter Brand Portfolio Strategy 104 Tim Calkins Section III From Strategy to Implementation Chapter Building Brands through Effective Advertising Brian Sternthal and Angela Y Lee Chapter Relationship Branding and CRM 150 Edward C Malthouse and Bobby J Calder Chapter Brand Strategy for Business Markets 169 James C.Anderson and Gregory S Carpenter Chapter 10 Services Branding 186 Amy L Ostrum, Dawn Iacobucci, and Felicia N Morgan Chapter 11 Branding in Technology Markets 201 Mohanbir Sawhney Chapter 12 Building a Brand-Driven Organization Scott Davis Chapter 13 Measuring Brand Value 244 Don E Schultz and Heidi F Schultz 226 129 ftoc.qxd 8/16/05 2:43 PM Page vii vii Contents Section IV Branding Insights from Senior Managers Chapter 14 Using Positioning to Build a Megabrand 275 Mark R Goldston Chairman, CEO, and President, United Online Chapter 15 Marketing Leverage in the Frame of Reference 283 Mark Shapiro Principal, New England Consulting Group Chapter 16 Finding the Right Brand Name 289 Carol L Bernick Chairman,Alberto-Culver Company Chapter 17 Building Global Brands 297 Betsy Holden President, Global Marketing and Category Development, Kraft Foods Chapter 18 Branding and Organizational Culture 304 Gary A Mecklenburg President and CEO, Northwestern Memorial HealthCare Chapter 19 Branding and the Organization 312 E David Coolidge III Vice Chairman,William Blair & Company Chapter 20 Internal Branding 320 Ed Buckley Vice President, UPS Matt Williams Senior Vice President, Martin Agency Index 327 ftoc.qxd 8/16/05 2:43 PM Page viii ccc_tybout_ch20_320-326.qxd 8/10/05 1:22 PM Page 320 CHAPTER 20 Internal Branding ED BUCKLEY Vice President, UPS and MATT WILLIAMS Senior Vice President, Martin Agency At its most basic level, a brand is simply a promise a company makes to the market But when building their brands, too often companies overlook the audience most vital to the successful delivery of that promise—their employees In most cases, branding is viewed only from a market-facing perspective and often is too narrowly focused on advertising, packaging, logos, and colors.The result: millions spent defining and making the promise, only to have it broken by a disappointing experience delivered by uninformed employees Capturing the true business-building power of a brand by engaging employees may be the biggest missed opportunity in branding today If employees understand and internalize the objectives established for the brand, they can become an army of brand ambassadors, as opposed to inadvertent brand saboteurs Creating brand ambassadors means marketers must keep employees in mind as they develop their brands This is the perspective we took when we redefined the UPS brand in 2003 Brand Building at UPS For almost 100 years the UPS brand has been synonymous with reliable package delivery And our expertise has made us the world leader But as our customers’ businesses evolved to be increasingly interconnected and complex, UPS focused on targeting a bigger opportunity: to establish a deep portfolio of transportation and supply chain services that can be efficiently and seamlessly combined into service bundles based on the needs of individual customers.Today, 320 ccc_tybout_ch20_320-326.qxd 8/10/05 1:22 PM Page 321 Internal Branding 321 our services range from global package delivery, service parts logistics, international air freight, and customs brokerage to managing customers’ entire inventory and distribution systems The goal is to enhance our customers’ supply chains so that they can focus their attention on other things that will make them more successful, rather than spending time stitching together the services they need from multiple logistics providers Built on the foundation of this business strategy, we called the new brand promise “Synchronized Commerce.” In 2002, when the marketing team at UPS began the process of more thoroughly developing the company’s brand, we believed that the company’s strategy was sound, but that the vision, the message, and, most importantly, the array of benefits offered by the company were not fully recognized or understood by the market Customers had heard us talking about things beyond package delivery, but they didn’t understand what we were saying To them, UPS still seemed like the traditional package delivery firm they’d relied on for years They didn’t understand what else UPS could To expand their view of UPS’s capabilities, we introduced advertising built around the tag line “What can Brown for you?” Additionally, although UPS employees were loyal, hardworking, and experienced, many of them lacked a clear understanding of the corporate strategy While UPS people had a deep knowledge of their business units and jobs, they were relatively unfamiliar with the newer capabilities of the firm As a result, it was difficult for employees in one part of the business to fully appreciate what their counterparts in other areas of the company did or how their roles could relate to one another So, when managers heard UPS’s strategy of enabling global commerce, they rarely understood how that vision came to life in the unique combination of capabilities across the company Ironically, due to an incomplete understanding of the company’s capabilities, employees’ response to the strategy mirrored the response of the market Changing that situation became a key focal point of UPS’s internal brand repositioning and education process Marketing the Brand Promise to Employees From the beginning, the marketing team set out to engage all 360,000 UPS employees as it launched the brand development program Many of the company’s managers and employees still viewed brand building as something that only consumer product companies needed to worry about We had to change their thinking and help them understand that brand building was a discipline central to achieving success at UPS The key was elevating the ccc_tybout_ch20_320-326.qxd 322 8/10/05 1:22 PM Page 322 Kellogg on Branding brand to become a core pillar of the company’s culture UPS always had a strong corporate culture, so incorporating the brand as a vital element of the organizational identity was a logical path As the marketing staff worked through issues such as brand positioning, brand architecture, and the development of a new identity system, we treated the creation of a brand education program for employees as an equal priority We knew that it was never a good idea to use a firm’s strategy statements as external marketing messages, and early on we received confirmation that strategy statements were equally ineffective in communicating to our own people Consequently, we focused on developing an internal messaging platform linked to UPS’s external positioning and advertising, adapting it specifically for the employee audience One result of this was the development of an internal tag line:“One Company One Vision One Brand.” Just as the advertising was designed to explain UPS’s capabilities to our external audiences, this internal tag line captured the essence of the broader story that needed to be shared with employees Firms undertaking an internal branding effort should not underestimate the value of devices such as tag lines, which are common among external marketplace branding efforts but are often overlooked when communicating to employees The value of crisply stating and reinforcing key message points is as important inside your company as it is outside Launching the Evolved Brand As planning progressed toward the launch of the evolved UPS brand, we never lost sight of the internal audience At UPS, it was clear that we needed to help employees understand the vision for the company and for the brand in a way that they could internalize it and act upon it Additionally, it was clear that we had an opportunity to orchestrate the launch itself to be inclusive, to galvanize all employees, and to reinforce the concept of synchronization—the core of the company’s evolved positioning As a result, celebratory events were scheduled for all UPS employees around the world, with preparations carried out largely in secret As business started around the globe on launch day, the level of energy indicated that this was no ordinary day Work groups covering all of UPS’s 360,000 employees were introduced to the evolved UPS brand with launch events led by senior managers Unveiling ceremonies were held at all locations Delivery centers revealed the redesigned delivery trucks and drop boxes And at our air hubs, we held ceremonial landings of aircraft bearing the new livery Employees also received a gift box containing a pin with the new logo design, a letter from the ccc_tybout_ch20_320-326.qxd 8/10/05 1:22 PM Page 323 Internal Branding 323 chairman, and a document that explained the purpose of the company’s brand transformation centered on an explanation of the business and the brand strategies.The dramatic breadth of the brand program was readily apparent to all employees at launch, and the fact that all of the elements secretly came together around the globe in support of the launch was arresting in and of itself But more importantly, the launch was used as an opportunity to reinforce the meaning of the company’s new strategy and positioning From the staging of launch events to the production, assembly, and distribution of all associated materials and gifts, the launch provided a prime example of the level of synchronization UPS aimed to provide its customers.The human resources and marketing teams also developed a host of communications for employees, which explained that while the firm was divided into separate operating units, it would go to market as a single entity Employees were asked to learn about the broader capabilities and services of the company and to find ways to collaborate with their partners in adjacent business units.The brand strategy was also clearly explained, helping employees understand that independent or endorsed brands of UPS subsidiaries would be eliminated in favor of a master brand approach Employees learned that the entire company would benefit from the strong equity that exists in the UPS brand.The internal tag line (“One Company One Vision One Brand.”) did a masterful job of reinforcing these points in a way that was easily remembered and often repeated by employees throughout the company Discussions were then held with each work group, where teams began to jointly explore how they could contribute to the successful execution of the brand strategies.These discussions were critical to helping employees understand the new brand strategies and begin to implement them in their own jobs Managers completed this process with their work groups within a week of the launch to ensure that all employees were fully engaged Immediately following the launch celebrations, the 30,000 members of the management team received additional training and a book entitled One UPS: A Roadmap for the Future The plainspoken text of the book explained the business and brand strategies in greater detail and provided the rationale for why they would be successful Platitudes and marketing-speak were pointedly avoided (something all companies should keep in mind when launching a brand initiative to employees) Launch Results This high-energy internal brand launch helped employees immediately understand that the new brand strategy was much more than a new logo and ccc_tybout_ch20_320-326.qxd 324 8/10/05 1:22 PM Page 324 Kellogg on Branding paint job It meant nothing less than a company-wide change in perspective In addition to engaging and educating employees throughout the corporation, the launch activities elevated the UPS brand from the limited domain of the brand communications department to center stage in the company The brand was recognized as an essential asset that needed to be built, protected, and leveraged to achieve organizational success Along with this realization came the recognition that the value of the brand is either enhanced or diminished each time a customer interacts with a UPS employee.As a result, everyone at UPS began to understand that they played an essential part in shaping and building the brand, and more importantly, that they were responsible for delivering on the brand promise Admittedly, it isn’t easy to find ways to engage hundreds of thousands of people and prompt them to reflect on a specific topic, especially one as foreign to many of them as branding While these launch efforts and materials effectively supported the effort at UPS, other companies must find their own appropriate mechanisms to accomplish their internal communications objectives Obviously, the methods must fit the company’s culture Whatever the method, the common goal is to create a constructive disruption that causes people to pause, think, and absorb the brand message—and then to begin to think differently about the brand Post-Launch Strategies To replicate the level of understanding that was established among existing employees through these initial launch efforts, it became standard practice to deliver brand materials and training at all new-management orientations In addition, to sustain the brand’s new position of prominence among employees, all internal materials and communications were uniformly and simultaneously rebranded These materials included newsletters, training materials, benefit brochures, PowerPoint templates, posters, and paychecks By consistently applying the brand design system as rigorously to internal materials as it was applied to external communications, the linkage between our people and the brand was continually reinforced Clearly, advertising also is a central component of the brand development process, and this, too, can be leveraged with employees In the past, UPS employees would generally see new company advertising at home while watching television—right along with the rest of the viewing public We recognized that as stewards of the brand, our people wanted and needed to understand our brand messages prior to release So, now we routinely preview all new advertising with employees, explaining the strategy behind the ads ccc_tybout_ch20_320-326.qxd 8/10/05 1:22 PM Page 325 Internal Branding 325 while relating it back to the broader corporate strategy.As a result, employees began to take great pride in the company’s advertising and are now prepared to discuss it with customers, friends, and families.This has had an enormous impact on sustaining and building employee engagement with the brand There is an additional benefit to engaging employees in the advertising process Because employees have a better understanding of the UPS business and brand strategy, each time they view a UPS ad it becomes a reminder of what UPS is promising to for our customers—and their role in keeping that promise The prominent question asked in the UPS advertising campaign, “What can Brown for you?” reminds employees that they need to serve our customers in unique and effective ways From an employee and customer perspective, this is a vastly different message than the one the company was sending years ago with our old tag line:“The tightest ship in the shipping business.” Results Many things have been accomplished as a result of these brand building efforts among employees, but none more important than the understanding and resolve that is routinely demonstrated by our people at every level of the organization Moreover, the “One Company One Vision One Brand.” internal tag line created an atmosphere focused on organizational success rather than divisional wins.This focus is essential, since effective cross-organizational coordination often requires managers to contribute to corporate-level solutions that may occasionally appear to generate suboptimal results at the regional or business-unit level Such situations can take a variety of shapes; one example is space allocation on a cargo flight Imagine a cargo manager is faced with the choice between machine parts or a garment shipment to fill the remaining space on an aircraft Since charges for cargo shipments are usually based on weight, the heavy machine parts would seem to be the obvious, profit-generating choice But if the manager were to base his or her decision on the revenue and profit generated by the cargo alone, he or she could actually undermine corporate results Perhaps the garment shipment was picked up at a factory, consolidated in a UPS warehouse with other merchandise for the same customer, tagged for retail sale, moved to the airport, and ultimately distributed across the destination country—all by UPS By contrast, the shipment of machine parts is simply being moved between two airports If the manager chose to fill the cargo space with the lighter garment shipment, he or she would produce a higher total return for the company He or she would be also engaging in business that more directly aligns with the ccc_tybout_ch20_320-326.qxd 326 8/10/05 1:22 PM Page 326 Kellogg on Branding company’s strategy—one that delivers more value to customers, is differentiated from competitive offerings, and is not easily imitated Encouraging this kind of decision making is what internal brand building is all about Summary Prior to the 2003 UPS brand initiative, most UPS employees were content to work hard and provide reliable service in their area of responsibility They didn’t always recognize the need to build bridges between business units or contribute to collaborative solutions for customers And if they did, they often dismissed the prospect as being too complicated.Today, in 2005, while it isn’t always obvious how to accomplish the desired outcomes, virtually all employees demonstrate a sense of personal responsibility to explore and discover new ways to develop synchronized solutions for our customers Whereas in the past dozens (or perhaps more optimistically, hundreds) of senior managers really understood the corporate vision and worked tirelessly to achieve it, the company now has thousands of employees tackling those issues every day In so doing, they are delivering on the brand promise UPS’s former chairman, Jim Kelly, summed up this process well when he said, “Living out the brand promise doesn’t come solely from mission statements Or product differentiation Or lower prices Or snappy logos It flows from the intersection of culture and people It flows from the living, breathing brand.” Ed Buckley is vice president of marketing at UPS, responsible for enterprise-wide service and product development Buckley’s experience at UPS spans virtually all areas of marketing within the firm In his prior assignment as vice president of brand management and customer communications, Buckley led the company’s brand development effort, including the introduction of the first new corporate identity and logo in over 40 years and the broadening of its global advertising He is a member of the Kellogg School of Management Alumni Advisory Board He graduated from Purdue University with a degree in industrial management and received an MBA from the Kellogg School of Management Matt Williams is senior vice president, group planning director at the Martin Agency He has managed and led strategic development for accounts including UPS, Bank One, GEICO Auto Insurance, and PING Golf Equipment Prior to joining the Martin Agency,Williams worked at Ketchum Advertising He received an undergraduate degree in marketing from the College of William & Mary and received an MBA from the Kellogg School of Management ccc_tybout_ind_327-334.qxd 8/10/05 1:22 PM Page 327 Index Aaker, David, 37, 248 Advertising, 129–149 changing climate for, 129–130 content development guidelines, 138–141 decision process’s influence on judgment and choices, 135–136 exposure and choice, 137–138 information-processing model for, 130–132 measuring effectiveness of, 144–148 media strategy for, 141–144 message content’s influence on judgment and choices, 132–135 by NetZero, 277–279 technology brands and, 213 Alberto-Culver, 18, 293–295 Altria Group, 113 Apple Computer, 207 brand extensions and, 95–96 iPod, 20, 202 vector of differentiation and, 210–212 Archetypal mythography, meaning and, 51–52 Architecture, technology brands and, 213–215 See also Extension of brands; Portfolio strategy Awareness and recall, competitive advantage and, 77–78 Baby&Toddler Club, 155–157 BlackBerry, 31–32 Blair,William McCormick, 313, 317 Bligh, Philip, 154 BMW, 119, 284 Bounty paper towels, 94–95 Brand-driven organization, 226–243 assimilation process for, 233–235 avoiding pitfalls of, 241–242 financial services example, 312–319 guidelines for, 236–239 health care example, 304–311 internal culture and, 226–230 package delivery example, 320–326 senior management and, 230–233 services and, 194–195, 198 BrandDynamics model of valuation, 248–250 Branded business value, 245–246, 260–268 Branded house portfolio model, 111, 115–116 Brands: cluttered environment and, 7–8 consistency and, 6–7 as information, 186–188 327 ccc_tybout_ind_327-334.qxd 328 8/10/05 1:22 PM Page 328 Index Brands (Continued) perception and, 2–3 short- versus long-term financial issues and, 4–6 Brandscape, 49–51 Brandthropology, see Meaning Branson, Richard, 95, 115 Bud Light, 24–25 Bundling, business markets and, 179–180 Business markets, 169–185 bundling, 179–180 differentiation claims, 178–179 financial value of brands, 169–176 impact of brand associations, 180–184 superiority claims, 177–178 technology brands and, 217–219, 220 Buyers, see Customers Cash, short-term financial concerns and, 4–6 Category association, competitive advantage and, 77 Category extension, see Extension of brands Christensen, Clayton M., 88 Circle of Customer Experience, 221–222 Cluster analysis, 166 Clutter, of brand environment, 7–8 Co-branding: hierarchy and, 213–215 services branding and, 196, 198 technology brands and, 215–217 Coca-Cola: brand value and, 170, 171 competitive advantage and, 74, 79, 80 frame of reference and, 14, 16, 94 Coffee, brand meaning and, 59–60 Colley, Russell H., 247 Collinger,Tom, 164 Combining, of brands, 122 Company, as brand, 193, 197 branded house portfolio model, 111, 115–116 house of brands portfolio model, 111–115 technology and, 203, 206 Comparisons, frame of reference and, 285–286 Competitive strategies, 73–90 of early-entry market competitors, 74–80 of late-entry market competitors, 81–87 Competitors, as frame of reference, 15, 284–285 Complexity, service brands and, 189–190 Concepts, brands as, 27–28, 37, 38 Consideration set, competitive advantage and, 77–78 Consistency: as branding challenge, 6–7 technology brands and, 214–215, 223 Consumers, see Customers;Targeted consumers Contacts, relationship branding and, 163–165 Continental Airlines, 238 Cook, Scott, 219 Coors beer, 95 ccc_tybout_ind_327-334.qxd 8/10/05 1:22 PM Page 329 Index Core brands, 117–120 Costs of branding, short- versus long-term financial issues, 4–6 Cues, perceptual categories and, 30–35, 38 Cultural biography, meaning and, 52 Customer-based brand metrics, 245–252 Customer relationship management (CRM), 150–167 brand strength and, 165–166 defined, 152–154 market segmentation and, 154–155, 158–165 relationship branding defined, 150–152 Tesco’s use of, 155–157 Customers, see also Incremental brand sales;Targeted consumers competitive advantage and, 80 early-entry market strategies and learning, 74–80 frame of reference and goals, 16–17 late-entry market strategies and learning, 81–87 technology brands and decision making, 217–223 Dalloz Safety Products, 179 DeBeers, 47–48, 285 Dell, 115 Depends, 94 Design, 27–39 brand systems and, 37, 38 concepts and, 27–28, 37, 38 cues and, 30–35, 38 evaluation of, 35–37, 38 perceptual categories and, 28–30, 38 DeWalt power tools, 13–15, 16, 18 329 Differentiation strategy, see also Points of difference business markets and, 178–179 competitive advantage and, 81, 83–85 technology brands and, 210–212 Direct broadcast satellite (DBS) systems, 209 Dove, 24 Early-entry market strategies, 74–80, 85 eBay, 284 Emotional benefits, positioning and points of difference, 19–20 Employees, as brand, 193–195, 198 See also Brand-driven organization Endorser brand, defined, 106 Engibous,Thomas, 180 Ernst & Young, 236–237 Essence, of brand, 48–49, 299 Ethnography, meaning and, 52–53 Executive brand councils (EBCs), 232–233 Experience goods, 79 Extension of brands, 91–103, 187 customer evaluation of, 93–97 early-entry advantage and, 85 frame of reference and, 283–288 guidelines for, 100–102 by NetZero, 280–281 portfolio strategy and, 117–120 positioning and, 23–24 reasons for, 92–93 risks of, 97–100 Fast-following strategies, competitive advantage and, 81–83 Feeds-and-speeds marketing, 219–221 ccc_tybout_ind_327-334.qxd 8/10/05 330 1:22 PM Index Financial services, organizational culture and, 312–319 Financial valuations, see Branded business value Fortifying strategies, positioning and, 21–23 Frame of reference, 283–288 brand extension and, 94 broadening, 23–24 positioning and, 12, 14–17, 25 Frankel,Alex, 31 Frontline employees, as brand, 193–195, 198 Functional benefits, positioning and points of difference, 18–19 Galbraith, John Kenneth, 314 Gap, 20 General Electric, 170, 171, 175–176 General Motors, 114 Gerber, 118 Gillette, 284 GlaxoSmithKline, 120 Global brands, 297–303 Golder, Peter N., 82 Goldman Sachs, 170, 171 Hallmark Cards, 26 Harley-Davidson, 93–94 HBO, 286 Health care, organizational culture and, 304–311 Heterogeneity, service brands and, 190–192 Hewlett-Packard, 170, 171, 221–223 Hierarchy of Effects model of value measurement, 247–248 Page 330 Hierarchy of products, technology brands and, 213–215 Hiring practices, brand-driven organization and, 238–239 House of brands portfolio model, 111–115 Humby, Clive, 155, 160 Hunt,Terry, 155, 160 IBM, 170, 171, 206–207 Iconography, meaning and, 54 Image, of brand, 48–49 Incentive systems, 238 Incremental brand sales, 245–246, 252–260 marketing mix modeling, 252–256 predictive modeling, 253, 256–260 Infineon, 171–172 Information-processing model for advertising, 130–132 Ingredient brand: defined, 106–107 technology and, 215–217 Innovation strategy, competitive advantage and, 81, 86–87 Intangibility, service brands and, 188–189 Intangible assets, see Branded business value Intel, 171, 208, 215–216 Internal branding, see Brand-driven organization Intuit, 219 Invisalign, 15–16 iPod, 20, 202 Itron, 239 Ivory Soap, 91–92 ccc_tybout_ind_327-334.qxd 8/10/05 1:22 PM Page 331 Index Jell-O, 292 Jobs, Steve, 96 Keller, Kevin Lane, 248 Kimberly-Clark, 94 Kirk, Brad, 117 Kraft, 285, 297–303 Laddering, positioning and, 22–23 Lambka, Derrith, 201 Lands’ End, Late-entry market strategies, 81–87 See also Extension of brands Lavidge, Robert J., 247 Leveraging strategies, see Extension of brands Levi Strauss, 74, 76 Life cycle of product, technology branding and, 207–212 Line extension, see Extension of brands Local markets, global brands and, 298–301 Lutz, Bob, 120 LVMH Group, 112 Management: brand-driven organization and, 230–233 portfolio strategy and, 114, 123–124 service brands and, 196–199 technology brands and, 212–213 Marketing mix modeling, 252–256 Mayo Clinic, 198 McDonald’s, 292 Meaning, 40–69 “audit” of, 51–60 etymology/definition/root metaphor and, 41–42 331 social/secular ritual and, 42–48 sources of, 48–51 Measurement, see also Value measurement of advertising effectiveness, 144–148 brand-driven organization and, 239–241 design evaluation and, 35–37 of subsegmentation results, 162, 165 Media, see Advertising Memory, see Information-processing model for advertising Merging, of brands, 122–123 Microsoft: brand architecture and, 215, 216, 218 brand value and, 170, 171 differentiation and, 210–211 Milk, 22 Miller Lite, 24–25 Millward Brown BrandDynamics, 248–250 Modernization of positioning, 21–22 Mondi Paper Company, 177–178 Moral geography, meaning and, 55–60 Motorola Envoy, 15, 16–17 Mrs Dash, 293–295 Naming: business brand identity and, 175–176 as cue to perceptual category, 30–32 guidelines for, 289–296 NetZero, 275–282 ccc_tybout_ind_327-334.qxd 8/10/05 332 1:22 PM Index Nike, 170, 171 Nordstrom, 236 Northwestern Memorial Hospital, 304–311 Offering concept, 173 Oracle, 207 Order of entry, see Early-entry market strategies; Late-entry market strategies Oreos, 23–24, 299 Organizational culture, see Branddriven organization Packaging, see Design Palm Pilot, 17 Pantene, 22 Partners, see Co-branding Pepsi, 108–109, 112–113, 292 Perception, 2–3 categories of, 28–35, 38 Pfizer, 170, 171 Philadelphia cream cheese, 32–35, 37, 298, 301–302 Philip Morris, 113 Pioneering advantage, see Earlyentry market strategies Points of difference: brand extension and, 94–96 business markets and, 173 leveraging and, 24 positioning and, 12, 18–20, 25 Points of parity, 15, 173 Porsche Cayenne, 30–31, 96 Porter, Michael, 154 Portfolio strategy, 104–125 branded house model, 111, 115–116 challenges of, 107–109 definitions, 105–107 Page 332 five keys to success in, 116–124 house of brands model, 111–115 importance of, 109–111 Positioning, 11–26 brand extension and, 93–97 business markets and, 172–174 changing of, 24–25 frame of reference and, 12, 14–17, 25, 283–288 fundamentals of, 12–14 life cycle of technology and, 208–212 of NetZero, 275–282 points of difference and, 12, 18–20, 25 sustaining over time, 20–24, 25 technology brands and, 213–215 Predictive modeling, 253, 256–260 Preemptive positioning, competitive advantage and, 78–79 Preference formation, competitive advantage and, 75–76 Pre-market branding, technology and, 206–207 Pret A Manger, 238–239 Previous purchase subsegmentations, 161–162 Price promotion doom loop, Price sensitivity: business markets and, 184 preemptive position and, 78–79 Primary brand, defined, 105 Processes, service brands and, 191–192, 197–198 Procter & Gamble, 112, 113–114, 287 Product features: advertising and, 132–141 frame of reference and, 14–16 technology brands and, 212–217 ccc_tybout_ind_327-334.qxd 8/10/05 1:22 PM Page 333 Index Promotion and prevention focus, 134–135, 136 Pruning, of brand portfolio, 120–123 Psychological standards, competitive advantage and, 77 Quelch, John, 120, 122 Ralph Lauren, 94 Reason to believe, brand extension and, 95 Recall and awareness, competitive advantage and, 77–78 Red Bull, 108 Redundant brands, 121 Reebok, 21 Reframing, 24–25 Reichheld, Frederick, 153–154 Relationship branding, 150–167 brand strength and, 165–166 customer relationship management (CRM) defined, 152–154 defined, 150–152 market segmentation and, 154–155, 158–165 Tesco’s use of, 155–157 Return on investment (ROI), see Incremental brand sales Rewards programs, 164–165 RFM (recency, frequency, monetary value) subsegmentations, 158–160 Rhenania, 161 Rigby, Darrell, 153–154 Risk, competitive advantage and, 79–80 Ritz-Carlton, 237–238 Rolex, 171 Royal Bank of Scotland, 114–115 333 Samsung, 116 SAP, 210, 211 Sears, 7, 286–287 Segmentation of market: designing and implementing contacts, 163–165 development and profiling, 158–162 measuring results, 165 relationship branding and, 151–152 setting measurable objectives, 162 Self-regulatory focus of consumer, advertising and, 134–135, 136 Self-service technologies, service brands and, 195–196, 198 Semiotic choreography, meaning and, 54–55 Senior management, see Management Service brand, defined, 106–107 Service networks, 198 Services, branding of, 186–200 basics of, 192–196 vs branding of goods, 188–192 as information, 186–188 tips for managers, 196–199 Sheetz, 232 Short- and long-term memory, advertising and, 130–132 Siemens, 171–172 Sociodemographic subsegmentations, 160–161 Sony Walkman, 100 South Beach Diet, 151 Southwest Airlines, 237 Special K, 21 St Joseph’s Hospital, 304–305 Starbucks, 6–7, 20, 170, 171 ccc_tybout_ind_327-334.qxd 334 8/10/05 1:22 PM Page 334 Index Steiner, Gary A., 247 Sub-brand, defined, 105–106 See also Extension of brands Subway, 14, 18 Sun Microsystems, 206–207 Superiority claims, 18–19, 177–178 Sylvia, David, 113 Systems and portfolios, of brands, 37 Targeted consumers, see also Customers brand extension and, 93–94 business markets and, 173 positioning and, 12–14 Technological standards, competitive advantage and, 77 Technology brands, 201–225 consumer packaged goods contrasted to, 204–205 customer decision making and, 217–223 life cycle of product and, 207–212 market characteristics and, 203, 206–207 product characteristics and, 212–217 Tellis, Gerard J., 82 Tesco, 155–157, 161, 162 Texas Instruments, 171, 180 Thirkell-White, Jestyn, 227 TiVo, 11–12, 17 Touchpoint wheel, 228–230 Trademarks, see Branded business value Tropicana, 286 Trout, Jack, 118 Turk, Douglas, 154 UBS, 226–227 Unilever, 121 UPS, 320–326 Utopian cartography, meaning and, 53–54 Value measurement, with threepathway model, 244–271 branded business value, 245–246, 260–268 customer-based brand metrics, 245–252 incremental brand sales, 245–246, 252–260 need for integrated approach to, 268–269 Value proposition, 173 Vaseline petroleum jelly, 76 Vectors of differentiation (VOD), in technology firms, 210–212 Virgin Group, 95, 115 Visa, 233, 285–286 Vodaphone, 217 Whirlpool, 229–230 William Blair & Company, 312–319 Wireless telephones, 209 Zane’s Cycles, 195 ... Professor of Marketing and chairperson of the Marketing Department at the Kellogg School of Management She is also co-director of the Kellogg on Branding Program and director of the Consumer Marketing. .. at the Kellogg School of Management and co-director of the Kellogg on Branding program He consults with companies around the world on marketing strategy and branding issues Prior to joining the. .. important to consider whether one target will be aware of the other target’s consumption of the brand and, if so, how feelings about the brand will be affected In fact, the introduction of the DeWalt