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4.1 CHAPTER 4: CHAPTER 4: CHOOSING BRAND ELEMENTS TO BUILD CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY BRAND EQUITY Kevin Lane Keller Kevin Lane Keller Tuck School of Business Tuck School of Business Dartmouth College Dartmouth College

CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

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Page 1: CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

4.1

CHAPTER 4:CHAPTER 4: CHOOSING BRAND ELEMENTS TO CHOOSING BRAND ELEMENTS TO

BUILD BRAND EQUITYBUILD BRAND EQUITY

Kevin Lane KellerKevin Lane KellerTuck School of BusinessTuck School of Business

Dartmouth CollegeDartmouth College

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4.2

Building Building Customer-Based Brand EquityCustomer-Based Brand Equity

Brand knowledge structures depend on:Brand knowledge structures depend on: The initial choices for the brand The initial choices for the brand

elements elements The supporting marketing program and The supporting marketing program and

the manner by which the brand is the manner by which the brand is integrated into itintegrated into it

Other associations indirectly transferred Other associations indirectly transferred to the brand by linking it to some other to the brand by linking it to some other entitiesentities

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4.3

Criteria for Choosing Brand Criteria for Choosing Brand ElementsElements

Memorability Memorability Meaningfulness Meaningfulness Likability Likability Transferability Transferability Adaptability Adaptability Protectability Protectability

Marketer’s offensive strategy and build brand equity

Defensive role for leveraging and maintaining brand equity

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4.4

MemorabilityMemorability Brand elements should inherently be Brand elements should inherently be

memorable and attention-getting, and memorable and attention-getting, and therefore facilitate recall or therefore facilitate recall or recognition. recognition.

For example, a brand of propane gas For example, a brand of propane gas cylinders named Blue Rhino featuring cylinders named Blue Rhino featuring a powder-blue animal mascot with a a powder-blue animal mascot with a distinctive yellow flame is likely to distinctive yellow flame is likely to stick in the minds of consumers.stick in the minds of consumers.

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MeaningfulnessMeaningfulness Brand elements may take on all kinds of Brand elements may take on all kinds of

meaning, with either descriptive or persuasive meaning, with either descriptive or persuasive content. content.

Two particularly important criteria General information about the nature of the General information about the nature of the

product categoryproduct category Specific information about particular attributes Specific information about particular attributes

and benefits of the brand and benefits of the brand The first dimension is an important The first dimension is an important

determinant of brand awareness and salience; determinant of brand awareness and salience; the second, of brand image and positioning.the second, of brand image and positioning.

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4.6

LikabilityLikability Do customers find the brand element Do customers find the brand element

aesthetically appealing? aesthetically appealing? Descriptive and persuasive elements Descriptive and persuasive elements

reduce the burden on marketing reduce the burden on marketing communications to build awareness. communications to build awareness.

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4.7

TransferabilityTransferability How useful is the brand element for How useful is the brand element for

line or category extensions? line or category extensions? To what extent does the brand To what extent does the brand

element add to brand equity across element add to brand equity across geographic boundaries and market geographic boundaries and market segments? segments?

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4.8

AdaptabilityAdaptability The more adaptable and flexible the The more adaptable and flexible the

brand element, the easier it is to brand element, the easier it is to update it to changes in consumer update it to changes in consumer values and opinions. values and opinions.

For example, logos and characters For example, logos and characters can be given a new look or a new can be given a new look or a new design to make them appear more design to make them appear more modern and relevant. modern and relevant.

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4.9

ProtectabilityProtectability Marketers should:Marketers should:

1.1. Choose brand elements that can be Choose brand elements that can be legally protected internationally. legally protected internationally.

2.2. Formally register chosen brand Formally register chosen brand elements with the appropriate legal elements with the appropriate legal bodies.bodies.

3.3. Vigorously defend trademarks from Vigorously defend trademarks from unauthorized competitive unauthorized competitive infringement.infringement.

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4.10

Tactics for Brand ElementsTactics for Brand Elements A variety of brand elements can be chosen that A variety of brand elements can be chosen that

inherently enhance brand awareness or inherently enhance brand awareness or facilitate the formation of strong, favorable, and facilitate the formation of strong, favorable, and unique brand associations.unique brand associations. Brand namesBrand names URLsURLs Logos and symbolsLogos and symbols CharactersCharacters SlogansSlogans PackagingPackaging

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4.11

Brand NamesBrand Names Like any brand element, brand Like any brand element, brand

names must be chosen with the names must be chosen with the six general criteria of memorability, six general criteria of memorability, meaningfulness, likability, meaningfulness, likability, transferability, adaptability, and transferability, adaptability, and protectability in mind. protectability in mind.

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4.12

Brand Brand Naming Naming GuidelinesGuidelines

Brand awarenessBrand awareness   Simplicity and ease of pronunciation and Simplicity and ease of pronunciation and

spelling spelling Familiarity and meaningfulness Familiarity and meaningfulness Differentiated, distinctive, and uniquenessDifferentiated, distinctive, and uniqueness

Brand associationsBrand associations The explicit and implicit meanings consumers The explicit and implicit meanings consumers

extract from it are important. In particular, the extract from it are important. In particular, the brand name can reinforce an important brand name can reinforce an important attribute or benefit association that makes up its attribute or benefit association that makes up its product positioning. product positioning.

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4.13

Brand Brand Naming Naming ProceduresProcedures

Define objectives Define objectives Generate names Generate names Screen initial candidates Screen initial candidates Study candidate names Study candidate names Research the final candidates Research the final candidates Select the final name Select the final name

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4.14

URLsURLs

URLs (uniform resource locators) specify URLs (uniform resource locators) specify locations of pages on the web and are locations of pages on the web and are also commonly referred to as also commonly referred to as domain domain names.names.

A company can either sue the current A company can either sue the current owner of the URL for copyright owner of the URL for copyright infringement, buy the name from the infringement, buy the name from the current owner, or register all conceivable current owner, or register all conceivable variations of its brand as domain names variations of its brand as domain names ahead of time.ahead of time.

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4.15

Logos and SymbolsLogos and Symbols Play a critical role in building brand Play a critical role in building brand

equity and especially brand awareness equity and especially brand awareness Logos range from corporate names or Logos range from corporate names or

trademarks (word marks with text trademarks (word marks with text only) written in a distinctive form, to only) written in a distinctive form, to entirely abstract designs that may be entirely abstract designs that may be completely unrelated to the word completely unrelated to the word mark, corporate name, or corporate mark, corporate name, or corporate activities activities

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CharactersCharacters A special type of brand symbol—one that A special type of brand symbol—one that

takes on human or real-life characteristics takes on human or real-life characteristics Some are animated like Pillsbury’s Poppin’ Some are animated like Pillsbury’s Poppin’

Fresh Doughboy, Peter Pan peanut butter’s Fresh Doughboy, Peter Pan peanut butter’s character, and numerous cereal characters character, and numerous cereal characters such as Tony the Tiger, Cap’n Crunch, and such as Tony the Tiger, Cap’n Crunch, and Snap, Crackle & Pop. Snap, Crackle & Pop.

Others are live-action figures like Juan Valdez Others are live-action figures like Juan Valdez (Colombian coffee), the Maytag repairman, (Colombian coffee), the Maytag repairman, and Ronald McDonald. Notable newcomers and Ronald McDonald. Notable newcomers include the AOL running man, the Budweiser include the AOL running man, the Budweiser frogs, and the AFLAC duck. frogs, and the AFLAC duck.

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SlogansSlogans Slogans are short phrases that Slogans are short phrases that

communicate descriptive or communicate descriptive or persuasive information about the persuasive information about the brand. brand.

Slogans are powerful branding Slogans are powerful branding devices because, like brand names, devices because, like brand names, they are an extremely efficient, they are an extremely efficient, shorthand means to build brand shorthand means to build brand equity equity

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4.18

Classic Slogans ““Melts in your mouth, not in your Melts in your mouth, not in your

hands” (M&M’s)hands” (M&M’s) ““Sometimes you feel like a nut, Sometimes you feel like a nut,

sometimes you don’t” (Almond sometimes you don’t” (Almond Joy/Mounds)Joy/Mounds)

““Where’s the beef?” (Wendy’s)Where’s the beef?” (Wendy’s) ““A mind is a terrible thing to waste” A mind is a terrible thing to waste”

(United Negro College Fund)(United Negro College Fund) ““Can you hear me now?” (Verizon) Can you hear me now?” (Verizon)

Source: Monty Phan, “Celebrating Their Sweet Success,” Newsday, 21 September 2004, A43.

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JinglesJingles Jingles are musical messages written Jingles are musical messages written

around the brand. Typically around the brand. Typically composed by professional composed by professional songwriters, they often have enough songwriters, they often have enough catchy hooks and choruses to become catchy hooks and choruses to become almost permanently registered in the almost permanently registered in the minds of listeners—sometimes minds of listeners—sometimes whether they want them to or not! whether they want them to or not!

Jingles are perhaps most valuable in Jingles are perhaps most valuable in enhancing brand awareness. enhancing brand awareness.

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PackagingPackaging From the perspective of both the firm From the perspective of both the firm

and consumers, packaging must achieve and consumers, packaging must achieve a number of objectives:a number of objectives: Identify the brandIdentify the brand Convey descriptive and persuasive Convey descriptive and persuasive

informationinformation Facilitate product transportation and Facilitate product transportation and

protectionprotection Assist at-home storageAssist at-home storage Aid product consumptionAid product consumption

Susan B. Bassin, “Value-Added Packaging Cuts through Store Clutter,” Susan B. Bassin, “Value-Added Packaging Cuts through Store Clutter,” Marketing News,Marketing News, 26 September 1988, 21. 26 September 1988, 21.

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4.21

Packaging Can Influence Packaging Can Influence TasteTaste

Our sense of taste and touch is very Our sense of taste and touch is very suggestible, and what we see on a suggestible, and what we see on a package can lead us to taste what package can lead us to taste what we think we are going to taste. we think we are going to taste.

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Packaging Can Influence Packaging Can Influence ValueValue

Long after we have bought a Long after we have bought a product, a package can still lead product, a package can still lead us to believe we bought it because us to believe we bought it because it was a good value. it was a good value.

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Packaging Can Influence Packaging Can Influence ConsumptionConsumption

Studies of 48 different types of foods Studies of 48 different types of foods and personal care products have and personal care products have shown that people pour and shown that people pour and consume between 18% and 32% consume between 18% and 32% more of a product as the size of the more of a product as the size of the container doubles. container doubles.

Valerie Folkes, Ingrid Martin and Kamal Gupta, Valerie Folkes, Ingrid Martin and Kamal Gupta, ““When to Say When: Effects of Supply on Usage,”When to Say When: Effects of Supply on Usage,” Journal of Consumer ResearchJournal of Consumer Research, 20 December 1993, 467-477., 20 December 1993, 467-477.

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Packaging Can Influence Packaging Can Influence How a Person Uses a How a Person Uses a

ProductProduct One strategy to increase use of mature One strategy to increase use of mature

products has been to encourage products has been to encourage people to use the brand in new people to use the brand in new situations, like soup for breakfast, or situations, like soup for breakfast, or new uses, like baking soda as a new uses, like baking soda as a refrigerator deodorizer. refrigerator deodorizer.

An analysis of 26 products and 402 An analysis of 26 products and 402 consumers showed that twice as many consumers showed that twice as many people learned about the new use from people learned about the new use from the package than from television ads. the package than from television ads.

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Putting It All TogetherPutting It All Together The entire set of brand elements The entire set of brand elements

makes up the makes up the brand identity,brand identity, the the contribution of all brand elements to contribution of all brand elements to awareness and image. awareness and image.

The cohesiveness of the brand The cohesiveness of the brand identity depends on the extent to identity depends on the extent to which the brand elements are which the brand elements are consistent. consistent.