BUSS454

Product and Brand Management

Leveraging Secondary Brand Knowledge

to Build Brand Equity (Chapter 8)

BUSS454 Spring 2021 Tony Garrett

Learning Objectives

• Outline the eight main ways to leverage secondary

associations
• Explain the process by which a brand can leverage
secondary associations
• Describe some of the key tactical issues in leveraging
secondary associations from different entities

BUSS454 Spring 2021 Tony Garrett

Conceptualizing the Leveraging Process

• Linking the brand to some other entity may:

• Create a new set of associations from the brand to the entity
• Affect the existing brand associations

BUSS454 Spring 2021 Tony Garrett

Leveraging Secondary Associations

BUSS454 Spring 2021 Tony Garrett

Leveraging Secondary Associations

• Brand associations may themselves be linked to other entities, creating

secondary associations:
• Company (through branding strategies)
• Country of origin (through identification of product origin)
• Channels of distribution (through channels strategy)
• Other brands (through co-branding)
• Special case of co-branding is ingredient branding

• Characters (through licensing)

• Celebrity spokesperson (through endorsement advertising)
• Events (through sponsorship)
• Other third-party sources (through awards and reviews)

BUSS454 Spring 2021 Tony Garrett

Leveraging secondary brand associations

• Two outcomes:
1. May create a new set of associations
• Consumers may form a mental association from the brand to this
other entity and the associations that link that entity
• More likely when consumers lack ability or motivation to judge
product-related concerns
2. Effect existing brand associations
• Awareness and knowledge of the entity
• Meaningfulness of the knowledge of the entity
• Transferability of the knowledge of the entity

BUSS454 Spring 2021 Tony Garrett

Leveraging Secondary Associations

• These secondary associations may lead to a transfer of:

• Response-type associations
• Judgments (especially credibility)
• Feelings
• Meaning-type associations
• Product or service performance
• Product or service imagery

BUSS454 Spring 2021 Tony Garrett

Understanding Transfer of Brand Knowledge

BUSS454 Spring 2021 Tony Garrett

Guidelines

• Commonality
• When consumers have associations to another entity that are
congruent with desired brand associations
• Complementarity
• Represent a departure for the brand if there if there are few or
any associations
• Must ensure that the less congruent knowledge for the entity has
either a direct or indirect effect on existing brand knowledge

BUSS454 Spring 2021 Tony Garrett

Company

• Create a new brand

• Adopt or modify an existing brand
• Combine an existing and a new brand

BUSS454 Spring 2021 Tony Garrett

Country of Origin or Geographic Location

• Can be linked to the brand to generate secondary

associations
• Consumers choose brands originating in different
countries based on:
• Their beliefs about the quality of certain types of products from
certain countries
• The image that these brands or products communicate
• Can create strong points-of-difference

BUSS454 Spring 2021 Tony Garrett

 Aiello et al. 2009

BUSS454 Spring 2021 Tony Garrett

 Aiello et al. 2009

BUSS454 Spring 2021 Tony Garrett

Channels of Distribution
• Retail stores can indirectly affect brand equity through an
“image transfer” process
• Retailers have their own brand images in consumers’
minds due to the following associations
• Product assortment
• Pricing
• Credit policy
• Quality of service
• Customer base can be expanded by tapping into new
channels of distribution
BUSS454 Spring 2021 Tony Garrett
Co-Branding

• Occurs when two or more existing brands are

combined into a joint product or are
marketed together in some fashion

BUSS454 Spring 2021 Tony Garrett

Advantages of Co-Branding

• Borrow needed expertise

• Leverage equity you don’t have
• Reduce cost of product introduction
• Expand brand meaning into related categories
• Broaden meaning
• Increase access points
• Source of additional revenue

BUSS454 Spring 2021 Tony Garrett

Disadvantages of Co-Branding

• Loss of control
• Risk of brand equity dilution
• Negative feedback effects
• Lack of brand focus and clarity
• Organizational distractions

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Ingredient Branding

• A special case of co-branding that involves creating

brand equity for materials, components, or parts that
are necessarily contained within other branded
products
• Branded ingredients are often a signal of quality
• Uniformity and predictability of ingredient brands can
reduce risk and reassure consumers
• Examples:
• Intel inside

BUSS454 Spring 2021 Tony Garrett

Licensing

• Involves contractual arrangements whereby firms can use

the names, logos, characters, and so forth of other brands
for some fixed fee
• Examples:
• Entertainment (Star Wars, Jurassic Park, etc.)
• Television and cartoon characters (The Simpsons)
• Designer apparel and accessories (Calvin Klein, Pierre Cardin, etc.)

BUSS454 Spring 2021 Tony Garrett

Corporate trademark licensing

• Licensing of company names, logos, or brands for use on

various, often unrelated products
• Firms may license corporate trademarks to:
• Generate extra revenue and profits
• Protect their trademarks
• Increase their brand exposure
• Enhance their image
• Risk - Product may not live up-to the image established by
the brand
BUSS454 Spring 2021 Tony Garrett
Celebrity Endorsement

• Draws attention to the brand

• Shapes the perceptions of the brand
• Celebrity should have a high level of visibility and a rich set of
useful associations, judgments, and feelings

BUSS454 Spring 2021 Tony Garrett

Performer Q Scores 2010

Top 10 Performers
FAMILIARITY % Q SCORE
1 TOM HANKS 88 50
2 MORGAN FREEMAN 82 50
3 PAULEY PERRETTE 42 50
------------------------------------------------------------------------------------------
4 ROBIN WILLIAMS 84 48
5 CLINT EASTWOOD 85 46
6 MIKE ROWE* 57 45
7 WILL SMITH 90 44
8 JOHNNY DEPP 91 43
9 BILL COSBY 91 43
10 HARRISON FORD 83 43
*Host on Dirty Jobs
http://www.qscores.com/pages/Template1/site11
/47/default.aspx?ItemID=10
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https://variety.com/201
6/digital/news/youtube-
stars-traditional-
celebrities-data-
1201799487/

BUSS454 Spring 2021 Tony Garrett

Celebrity Endorsement: Potential Problems

• Celebrity endorsers can be overused by endorsing many products that

are too varied.
• There must be a reasonable match between the celebrity and the
product.
• Celebrity endorsers can get in trouble or lose popularity.
• Many consumers feel that celebrities are doing the endorsement for
money and do not necessarily believe in the endorsed brand.
• Celebrities may distract attention from the brand.

BUSS454 Spring 2021 Tony Garrett

Social Influencers as the New Celebrities

• Rapid growth in the use of social media celebrities for

advertising brands
• Also noncelebrity or micro-influencers who have
considerable sway on social media

BUSS454 Spring 2021 Tony Garrett

Sporting, Cultural, or Other Events

• Sponsored events can contribute to brand equity by

becoming associated to the brand and improving brand
awareness, adding new associations, or improving the
strength, favorability, and uniqueness of existing
associations.
• Contribute to brand equity by:
• Becoming associated to the brand and improving brand
awareness
• Adding new associations
• Improving the strength, favorability, and uniqueness of existing
associations
BUSS454 Spring 2021 Tony Garrett
Third-Party Sources

• Marketers can create secondary associations in a number

of different ways by linking the brand to various third-
party sources.
• Third-party sources can be especially credible sources.
• Marketers often feature them in advertising campaigns
and selling efforts .
• Example:

BUSS454 Spring 2021 Tony Garrett

To Sum Up...

• Other entities include:

• The company that makes the product
• Where the product is made
• Where the product is purchased
• Related people, places, or things
• The extent to which an entity can be leveraged as a
source of equity depends on:
• Consumer knowledge of the entity
• How easily the appropriate associations or responses to the
entity transfer to the brand
BUSS454 Spring 2021 Tony Garrett
Figure Building Customer-Based Brand Equity
BRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS

Choosing Brand Elements

Brand name Memorability Brand Awareness Possible Outcomes

Logo Meaningfulness
Symbol Appeal Greater loyalty
Depth Recall
Character Transferability
Recognition Less vulnerability to competitive
Packaging Adaptability
Slogan Protectability marketing actions and crises

Breadth Purchase Larger margins

Consumption
Developing Marketing Programs More elastic response to price decreases

Product Tangible and intangible benefits More inelastic response to price

Price Value perceptions increases
Distribution channels Integrate”push” and “pull”
Communications Mix and match options Greater trade cooperation and support
Brand Associations
Increased marketing communication
efficiency and effectiveness
Strong Relevance
Leverage of Secondary Associations Consistency
Possible licensing opportunities
Company Desirable
Favorable More favorable brand extension
Country of origin Deliverable
Awareness evaluations
Channel of distribution
Other brands Meaningfulness Point-of-parity
Transferability Unique
Endorsor Point-of-difference
Event

BUSS454 Spring 2021 Tony Garrett