Integrated Advertising, Promotion,

and Marketing Communications

Eighth Edition, Global Edition

Chapter 2
Brand
Management

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Chapter Objectives (1 of 2)
1. How does a brand’s image affect consumers, other
businesses, and the company itself?
2. What are the different types of brands and brand
names?
3. What are the characteristics of effective logos?
4. What elements are involved in identifying, creating,
rejuvenating, or changing a brand’s image?

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Chapter Objectives (2 of 2)
5. How are brands developed, built, and sustained in
order to build brand equity and fend off perceptions
of brand parity?
6. What current trends affect private brands?
7. How can packages and labels support an IMC
program domestically and in foreign settings?
8. How are brands managed in international markets?

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Almarai
• Key differentiator – pizza
pickup
• Introduced the “Light” range of
fruit juices
• Retained iconic plastic bottles
and caps
• Images of fruit, typography,
and print colors were used

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Chapter Overview
• Managing a brand image and
logo
• Develop and promote brands
• Brand equity versus brand
parity
• Importance of packaging and
labels

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Brand image advertisement for
Kraft Singles

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.1 Components of a Brand
Image
Tangible Elements Intangible Elements
• Goods or services sold • Corporate personnel
– Ideals
• Retail outlets where the
product is sold – Beliefs
– Conduct
• Advertising
• Environmental policies
• Marketing communications
• Corporate culture
• Name and logo
• Country location
• Packaging and labels
• Media reports
• Employees
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Role of Brand Image
Consumer Perspective
• Provides positive assurance
– Unfamiliar settings
– Little or no previous experience
• Reduces search time
• Provides psychological reinforcement
• Provides social acceptance

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Social acceptance
A consumer benefit

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.3 Top 10 Corporate Global
Brands
Rank Company Brand Value (Billions)
1 Apple $170.3
2 Google $120.3
3 Coca-Cola $78.4
4 Microsoft $67.7
5 IBM $65.1
6 Toyota $49.1
7 Samsung $45.3
8 General Electric $42.3
9 McDonald’s $39.8
10 Amazon $38.0

Source: Based on “Best Global Brands, 2015 Rankings,” Interbrand, http://interbrand.com/best-brands/best-global-

brands/2015/ranking/ accessed December 4, 2015.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Role of Brand Image—Company
Perspective
• Extension of feelings to new products
• Ability to charge more
• Consumer loyalty
• More frequent purchases
• Positive word-of-mouth
• Greater channel power
• Attracts higher quality employees
• More favorable ratings
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Corporate Names
• Overt names
• Implied names
• Conceptual names
• Iconoclastic names

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.6 Origins of Some Unique
Corporate Names
• Google–name started as a joke about the way search engines search for
information. Word “googol” is one followed by 100 zeros.
• Lego–combination of Danish phrase “leg godt” which means “play well” and
Latin word “lego” which means “I put together.”
• Reebok–alternative spelling of “rhebok” which is an African antelope
• Skype–original name was “sky-peer-to-peer,” which was changed to “skyper”
then to “skype.”
• Verizon–combination of Lain word “veritas” which means “truth” and “horizon”
• Volkswagen–created by Adolph Hitler as a car for the masses that could
transport 2 adults and 3 children at speeds up to 62 mph. Name means
“people’s car.”
• Yahoo–word from Jonathan Swift’s book Gulliver’s Travels, which
represented a repulsive, filthy creature that resembled a Neanderthal man.
Yahoo founders, Jerry Yang and David Filo considered themselves yahoos.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Types of Brands
• Family brands
– Multiple products under one brand
– Transfer associations
• Brand extension
– New good or service
• Flanker brand
– New brand within current category

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.8 Brands Sold by Procter &
Gamble

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.9 Forms of Co-Branding
(Alliance Branding)

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Brand Alliance

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.10 Tests of Quality Logos
and Brand Names
• Easily recognizable
• Familiar
• Consensual meaning
– Stimulus codeability
• Evokes positive feelings

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Brand Logos
• Aids in recall of specific brands
• Aids in recall of advertisements
• Reduces shopping effort
• Reduces search time and evaluation of alternatives

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.11 Some of the Oldest Logos
Year Company
Company/Brand Founded Year Logo First Used
John Deere 1837 1876
Coca-Cola 1886 1886
Johnson & Johnson 1886 1886
Union Pacific Railroad 1862 1888
Prudential Life Insurance 1875 1896
Campbell’s Soup 1869 1898
General Electric 1892 1900
Goodyear 1898 1901
Sherwin-Williams 1866 1905
DuPont 1802 1907

Source: Based on Samuel Weigley, Alexander Hess, and Paul Ausick, “The Oldest Company Logos in America,”
http://247wallst.com/special-report/2013/06/18/the-oldest-company-logos-in-america, June 18, 2013.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.12 Tips on Creating or
Changing Logos
• The logo is a reflection of the brand
• Creating logos requires knowledge and expertise
• Use professional designers
• Make the logo simple
• Make the logo media transferrable
• Refer to p# 53 in the Textbook

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 What colors should you use in your
logo? (1 of 2)
• Black – seriousness, distinctiveness, boldness, power, sophistication,
and tradition
• Blue – authority, dignity, security, faithfulness, heritage, corporate
stability, and trust
• Brown/gold – history, utility, earthiness, richness, tradition, and
conservative
• Gray/silver – somberness, authority, practicality, corporate mentality,
and trust
• Green – tranquility, health, freshness, stability, and appetite
• Orange – fun, cheerfulness, warmth, exuberance, health, and youth

Bonus Source: Adapted from “Jared McCarthy, “Logos: What Makes Them Work (Part
Slide 1 of 2),” (http://www.marketingprofs.com/5/mccarthy4.asp), February 22, 2005.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 What colors should you use in your
logo? (2 of 2)
• Pink – femininity, innocence, softness, health, and youth
• Purple – sophistication, spirituality, wealth, royalty, youth, and mystery
• Red – aggressiveness, passion, strength, vitality, fear, speed, and
appetite
• White/silver – purity, truthfulness, faith, contemporary, refined, and
wealth
• Yellow – youth, positive feelings, sunshine, cowardice, refinement,
caution, and appetite

Bonus Source: Adapted from “Jared McCarthy, “Logos: What Makes Them Work (Part
Slide 1 of 2),” (http://www.marketingprofs.com/5/mccarthy4.asp), February 22, 2005.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Identifying the Desired Image
• Evaluate current image
– Ask customers
– Ask non-customers
• Can be strategic advantage

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Creating the Right Image
• Sends clear message
• Portrays what the firm sells
• Business-to-business may be challenging

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Rejuvenating an Image
• Sells new products
• Attracts new customers
• Retains current customers
• Key – Remain consistent with old and new
• Takes time and effort

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.13 Keys to Successful Image
Rejuvenation
• Help former customers rediscover the brand
• Offer timeless consumer value
• Stay true to original, but contemporize
• Build a community
• Refer to p# 55 in the Textbook

Source: Based on “Comeback Kids: Haggar, Keds Stage Brand Revival,” Advertising Age,
October 30,2011, http://adage.com/print/230721.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Changing an Image
• Extremely difficult
• Necessary when target market declines or product no
longer matches industry trends
• Requires more than advertising
• Begins internally – then moves outward

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Developing Strong Brands
Begins with understanding why consumers buy a
brand.
• Where does your brand stand now?
• What are your objectives?
• What are you doing in terms of building your brand
and business?
• What are your brand’s strengths? Weaknesses?
• Which opportunities should be pursued first?
• Where are the pitfalls?
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Figure 2.14 Building Powerful
Brands (1 of 2)
• Invest in the brand
• Create awareness
• Offer authenticity or uniqueness
• Build trust
• Deliver an experience
• Offer value
• Utilize social media
• Utilize mobile phones
• Act responsibly
Copyright © 2018 Pearson Education Ltd. All Rights Reserved
 Figure 2.14 Building Powerful
Brands (2 of 2)
Skyjacker has built a powerful brand by providing
customers with a good experience and delivering value.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Brand Loyalty
• Ultimate objective
• Only brand that customers
purchase
• Drivers of brand loyalty
– Emotion
– Value
• Consumer experience

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.15 Top Vehicle Models and
Brand Imagery
Vehicle Model Percent Loyal Imagery
Ford F-150 45% Functional, reliable, leader
Honda Civic 40% Sensible, safe, smart
Toyota Camry 49% Economical, reliable, conservative
Honda Accord 44% Reliable, safe, honest
Honda CR-V 44% Sensible, economical, reliable
Chevrolet Silverado 62% Safe, honest, functional
1500
Toyota Corolla 42% Reliable, safe, functional
Ford Escape 54% Technological, sporty, powerful
Ram 1500 46% Powerful, sporty, bold

Source: Based on “Consumers on the Go: Top 10 Models in 2016,” Advertising Age’s Consumers on the
Go Fact Pack, September 28, 2015, page 20.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.16 Top Brands on CLEI
Category Top Brand CLEI Emotional Engagement
Athletic Footwear Sketchers 86%
Bank JP Morgan Chase 79%
Car Insurance State Farm 82%
Casual Dining Applebee’s 82%
Cosmetics Clinique 93%
Gasoline Shell 80%
Major League Sports NFL 86%
Pizza Domino’s 84%
Quick Service Restaurant Subway 95%
Soft Drinks (Diet) Diet Coke 89%

Source: Based on “Brand Keys 2013 Customer Loyalty Index Finds Seismic Shift I How Consumers Emotionally Engage
with Products, Services,” Press Release, http://brandkeys.com/wp-content/uploads/2013/02/2013-CLEI-Press-Release-
FINAL-Overall.pdf

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Brand Equity
• Brand parity
• Brand equity
– Set of characteristics makes brand unique
– Helps fight brand parity
– Perceived better

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.18 Methods of Measuring
Brand Equity
• Financial value
• Stock market value
• Revenue premium
• Consumer value
• Refer to page#61 in the Textbook

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Top 10 most valuable brands in the
world

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.18 Top Ten Most Loved
Brands
Rank Company Emotional Index
1 Disney 74.7
2 Yahoo! 74.3
3 Google 74.2
4 Sony 74.1
5 Nestle 73.3
6 Auchan 72.9
7 Netflix 72.8
8 Whole Foods 72.7
9 Apple 72.7
10 Lowe’s 72.5
Source: Based on Christopher Heine, “Check Out the Top 100 Beloved Brands,” Adweek,
http://www.adweek.com/news/advertising-branding/check-out-top-100-beloved-brands-last-decade-
153026, October 10, 2013.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Private Brands
• Popularity has fluctuated
• Connotation of low price, low quality
• Historically → price-sensitive consumers
• Retailers investing in private brands
• Consumers see few differences

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.19 Changes in Private Labels
• Improved quality
• Perceived as a value purchase
• Higher loyalty towards retail outlets and lower loyalty
towards specific brands
• Used to differentiate retail outlets
• Increased advertising of private brands
• Increased quality of in-store displays and packaging of
private brands

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Advantages to Retailers
Private Labels
• Higher gross margins
• Lower prices
• Greater loyalty to stores and brands within a store
• Differentiates stores from national brands
• J.C. Penney – private labels

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.20 Tactics Used by Manufacturers
to Combat Private Labels
• Focus on core brands
• Increase advertising
• Introduce new products
• Focus on in-store selling, packaging
• Use alternative methods of marketing

Source: Adapted from Vanessa L. Facenda, “A Swift Kick to the Privates,” Brandweek, Vol.
48, No. 31 (September 3, 2007), pp. 24-28.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Packaging
• Final opportunity to make impression
• 69% of purchase decisions made in-store
• Have three seconds to catch attention
• Must stand out
• Tell customers what is inside

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Figure 2.21 Primary Purposes of
Packaging
• Protect product
• Provide for ease of shipping and handling
• Provide for easy placement on shelves
• Prevent or reduce theft
• Prevent tampering (drugs and food)
• Meet consumer needs for speed, convenience, and
portability
• Communicate marketing message

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Labels
• Must meet legal requirements
• Provide marketing opportunity

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 QR Code for More Information

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Ethical Issues
• Brand infringement
• Brand name becomes a generic term
• Domain or cyber squatting

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 International Implications
• Adaptation vs. standardization
• Standardization reduces costs
• Shrinking world → standardization
• High-profile, high-involvement – global brand
• Low-involvement products – local brand
• Packaging and labeling
• Image and positioning issues

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Blog Exercises
• Sears
• Target
• Branding

Copyright © 2018 Pearson Education Ltd. All Rights Reserved

 Copyright

Copyright © 2018 Pearson Education Ltd. All Rights Reserved