5/20/2021 IGN ITOR Student

Leveraging Associations from Things Other forms of leveraging include associating Marketing
a brand with things such as events (e.g., sponsorship of the World Cup soccer champiOnship) Commuflimfiom
and causes (ag., sponsorship of a save-Darfur rally). Again, no further discussion is devoted wg“
to these topics at this point. NOTFS

Leveraging Associations from Places Finally, a brand’s equity can be leveraged by

being associated with places such as the channel in which a brand is distributed or a coun-
try image (labeled country of origin in Figure 2.3). Imagine, for example, the difference in a
brand’s image—holding everything else constant, such as product quality and price—if a
brand were carried in a mass merchandise store, such as Wal-Mart, compared to being dis-
tributed in a high-end department store. In which store would the brand be regarded more
positively?
Leveraging a brand by emphasizing its country of origin is a potentially effective way to
enhance the brand’s equity."m For example, brands with German and Swiss heritage often are
perceived around the globe as being high in craftsmanship. ]apanese electronic products are
regarded as unparalleled in innovativeness, quality, and dependability.
How important is a brand’s country of origin in affecting its brand equity and determining
its commercial success? Frankly, there is no simple answer and the research on this issue is
mixed.” No doubt, some consumer segments place greater importance on a brand’s country
of origin than do others. Older consumers, for example, are generally more concerned with
where a brand comes from than are their more youthful counterparts, who are more comfort-
able living in a global world and buying products based on considerations other than where
they are made. In fact, research has shown that American college students are somewhat
clueless as to where the brands they consume originate.”- For example, just 4.4 percent of
1,000 students knew that Nokia cell phones are made in Finland (53 percent thought Nokia
to be ]apanese), and just 8.9 percent knew LG cell phones are from Korea. Nearly 50 percent
thought that Adidas clothing is from the United States rather than its true home country,
Germany. Motorola, a long-established American brand, was misperceived to be ]apanese by
more than 40 percent of respondents.
When a brand leverages its country of origin, the potential exists for the brand to ben-
efit from this association or possibly to suffer if the country is perceived in a less than posi-
tive light. It obviously is in brand marketers’ best interest that their countries of origin are
perceived favorably. The Global Focus insert provides a look at how the world perceives the
United States.

What Benefits Result from Enhancing Brand Equity?

One major by-product of efforts to increase a brand’s equity is that consumer brand loyalty
might also increase.23 Indeed, long-term growth and profitability are largely dependent on
creating and reinforcing brand loyalty. The following quote from two respected marketing
practitioners sums up the nature and importance of brand loyalty:

While marketers have long viewed brands as assets, the real asset is brand loyalty. A brand is
not an asset. Brand loyalty is the asset. Without the loyalty of its customers, a brand is merely‘
a trademark, an ownable, identifiable symbol with little value. With the loyalty of its customers,
a brand is more than a trademark. A trademark identifies a product, a service, a corporation. A
brand identifies a promise. A strong brand is a trustworthy, relevant, distinctive promise. It is
more than a trademark. It is a trastmark of enormous value. Creating and increasing brand loy—
alty results in a corresponding increase in the value of the trustmarki"

Research has shown that when firms communicate unique and positive messages via ad-
vertising, personal selling, promotions, events, and other means, they are able to differentiate
their brands effectively from competitive offerings and insulate themselves from future price
competition?5
Marketing communications plays an essential role in creating positive brand equity and
building strong brand loyalty. However, this is not always accomplished with traditional sarl…
advertising or other conventional forms of marketing communications. For example, Star- Maw 33

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