Brand definitions

u Three different definitions adopting three different perspectives on brand

u Definition 1: A brand is a “name, term, sign, symbol, or design, or a combination of
them, intended to identify the goods and services of one seller or group of sellers
and to differentiate them from those of the competitors” (American Marketing
Association)
u Definition 2: A brand is the result of a brand strategy and the set of marketing
programmes and actions that create a certain amount of awareness, reputation,
prominence in the marketplace
u Definition 3: A brand is a set of perceptions that reside in the minds of consumers.
It is a perceptual entity “rooted in reality, but it is more than that”
What is a brand?
Definition 1: the attention is on the brand
elements (name, logo, symbol, package,
design and other characteristics identifying
and distinguishing the product)
Definition 2: the attention is on the price
policy, product design and quality, the apple
stores and retailing strategy, the broader set
of distribution channels …
Definition 3: the attention is on the brand
projection capacity in customers’ minds
What is a brand?
Def 1 à the apple, the use
of colours, the graphic
u Definition 1: the attention is on style, position of the bite
the brand elements (name, logo,
symbol, package, design and other
characteristics identifying and distinguishing
the product) Def 2 à price, design and
u Definition 2: the attention is on quality of products, apple
the price policy, product design stores and retailing
and quality, distribution channels strategies producing
boosting awareness and awareness and reputation
prominence
u Definition 3: the attention is on
the brand projection capacity in Def 3 à a set of
customers’ minds associations in
people’s minds
Brand vs. Product

u “Product” in the handbook language: anything we can offer to a market for

attention, acquisition, use, or consumption that might satisfy a need or want
u a physical good
u a service
A broad definition of
u a retail outlet (department store, supermarket ...) product... A ”branded
u a person (politician, artist...) object”
u a non-profit, cultural institution
Can everything be a
brand?
u a place: a city, state, or country
u Brand: it is ”more than a product, because it can have dimensions that
differentiate [the product] in some way from other products that are
designed to satisfy the same need” (reputation/set of perceptions)
Brand functions
One overall function: brand’s contribution to
creating and signalling the competitive advantage

Competitive Advantage:
A. Based on product performance, also through the adoption differential advantage
of new technologies (addressing the same need but the over competitors such
ability to satisfy ”more and better” is at the core of the that greater profitability
brand) and/or larger market
share is achieved
B. Based on non-product-related means by creating appealing
intangible images
u Intangible assets may result the most valuable assets for the firm
(brands as well as managerial skills, marketing, finance...)
u “Symbolic consumption” and consumers’ identity building (Arnoud
& Thompson, 2005) The competitive
advantage resides in
creating perceived
differences among
products.
“Our strength is the price”
(Cost leadership) DIY and “affordable design” “The most loved by Italians”
(Hybrid strategy) (Differentiation)
How is the competitive advantage
communicated?
u https://www.youtube.com/watch?v=_p-jf0Y_dCA
u https://www.youtube.com/watch?v=d-gcLSoJlEM
u https://www.youtube.com/watch?v=Vl79rtxBrP0
u https://www.youtube.com/watch?v=MHx_fNNLTQE

“even for today “cracco” goes home

this special perfume comes to me
And I get back to be simply myself Carlo
I find this perfect place again
where things that matter maybe are already
sleeping
and where I finally feel at home
scavolini my bathroom
my living room
my kitchen”
The competitive advantage according to the
“projection capacity” of these brands

“Our strength is the price”

(Cost leadership) DIY and “affordable design” “The most loved by Italians”
(Hybrid strategy) (Differentiation)

The lowest price, easy, You make it by Authentic quality,

functional yourself, cultural heritage,
affordable and cultural values,
“with a style”, Italianness, ”you”
”you” as a person as a person
Brand functions in details

u B2C brands
u B2B brands
Brand functions: B2C

1. Identify source/maker of products and assign responsibility on quality

(Guarantee)
2. Sense of orientation (a list of tangible and intangible elements) and
simplification of decision-making (Orientation)
3. Recognition of the brand and connection to previous knowledge, reducing
the search costs: costs of time and effort in collecting information
(Efficiency)
4. Relationship and bonds between consumer and the maker of products based
on the brand expectations (Trust)
5. Symbolic device allowing self-identity formation (Self-identity building)
6. Risk perception reducer
Perceived risk: What risk?

u Functional risk (about actual performance)

u Physical and psychological risk (hampering mental and physical
health/wellbeing of consumer)
u Financial risk (worth the price paid or not)
u Social risk (not recognized as good by the collective or creating
embarrassment)
u Time risk (opportunity cost in terms of time in finding another satisfactory
option, “risk of wasting time”)
Perceived risk: the role of brands

u The less we understand, the bigger the role of brands as reducing our
perception of risk in the purchase
u 3 categories of products based on easiness (and real chance) to really
understand product attributes:
u Search goods: products that easily can be evaluated for their characteristics (size,
colour ...) (e.g. food)
u Experience goods: inspection is not enough for understanding product quality,
there is a need for trying and experience (e.g. automobile tires, mobile phone)
u Credence goods: hard to learn the product attributes, need for very technical
knowledge (e.g., medical procedures and equipment, automobile repairs, filters of
air conditioned machinery)
Consumer product typologies

u Product typologies based on the customers’ need for information

before deciding to buy and the perceived risk related to the decision
u Convenience goods: bought frequently, quickly and with a minimum of
emotional involvement, relatively low price, low risk perception, limited
time dedicated to buy
u Preference goods: bought frequently, quickly , relatively low price, with a
role of the brand in differentiation, reduced perceived risk, limited
amount of time to buy Brand
u Shopping goods: less frequent purchase, more significant expenditure and management
symbolic value, time-consuming process of decision (customer typically implications
compares for suitability, quality, price, features, etc. before selection and
purchase)
u Speciality goods: consumer goods for which the customer has strong
preference and is prepared to search extensively to select and purchase
the most suitable. Maximum perceived risk and information search effort is
maximum. Unique and sometimes not repeatable purchase (e.g. luxury
goods, real estates)
Does b2b branding make sense?
Business-to-business

u B2B decisions are:

u Extremely complex and technical
u In many cases highly risky
Brand function: B2B
1. Identification and positioning compared to competitors
2. Legal protection: intellectual property rights allowing to
invest safely in brands against imitation and counterfeiting;
guaranteeing clients of traceability of the supplied branded
product and identification of the responsible firm
3. Signalling quality, predictability and security (capitalising on
the past)
4. Relationship with the client (loyalty)
5. Barriers to entry to other firms: the brand is not easily
replicable, the product might be (brand securing the
competitive advantage)
 Additional increasingly important function: Communication function
Ingredient brand (à ingredient branding) directly communicates to final
customers (e.g., Android by Google; “Made in Italy” leather for Louis Vuitton
bags), an advantage for the supplied firm whose commercial performance
gets improved
Examples of b2b branding relevance
Business
professional
services
Invetors
The case of sustainable fashion
u Sustainability in the network of suppliers and partners: Can we be sustainable
alone? Sustainability is a matter of multiple stakeholder engagement
u The first B Corp (benefit corporation) in Italy in shoes sector (certification on
environmental and social performance)

”Sustainability as a service”
to support other companies
to measure their carbon
footprint, towards
environmentally friendly
performance in a highly
polluting industry

Acbc currently has 13 single-

brand stores in 9 countries and
boasts collaborations with
famous brands
including Moschino, Armani, and
Philippe Model
B2B branding: Keller’s guidelines (and
important concepts to remember...)
u How to brand for B2B?
1. Ensure the entire organization understands and supports branding and brand
management (the crucial role of employees: internal branding)
2. Adopt a corporate branding strategy if possible
3. Frame value perceptions: understanding very well how customers think of the brand
and determining how they should ideally think and choose
4. Link relevant non-product-related brand associations (beyond the product: customer
service, size of the firm, image of innovativeness, size of overall market share...)
5. Find relevant emotional associations for the b2b brand: emotional associations
related to a sense of security, social or peer approval, and self respect can also
be linked to the brand and serve as key sources of brand equity
6. Segment customers carefully both within and across companies
B2B customer segmentation
(B2B branding)
u 2 criteria:
u Company: industry and company size,
technologies used and other capabilities,
purchasing policies, and even risk and loyalty B2B brands too deal
profiles
with people (decision-
u Decision-makers: segmenting the different makers/managers)!
individuals playing a role in the decision
(Initiator, user, influencer, decider, approver,
buyer and gatekeeper)
What’s branding?
Branding: one possible definition

u Branding means giving a label (identification) and meaning (explain why

consumer should care), thus giving structure to knowledge an individual has
on that brand and helping perceive difference among brands in a product
category: the creation of a “supporting device” for customers in front of
choice situation
u A process aimed at creating “strong” brands
u What does “strong” mean?
u Brand delivering a clear and valuable promise
u Able to maintain and enhance such “strength” over time

u Planning, implementing, evaluating brand strategies

 Branding or, even better, brand
management for constantly boosting
brand equity building
Customer-Based Brand Equity (CBBE)

u Adopting the perspective of the customer (individual or organisation)

u Reflecting on how the brand satisfies customers’ needs and wants
u Posing two questions:
u What does the brand mean to customers?
u How the brand knowledge of customers affect their response to marketing activity?

The power of brands lies in what resides in the

minds and ”hearths” of customers
CBBE definition

u the differential effect that brand knowledge has on consumer response to

the marketing of that brand
u A brand has positive CBBE when consumers react more favourably to a product and
to the way it is marketed when the brand is identified than when it is not
u Three components of this definition:
u Differential effect (no differential effect, no brand)
u Brand knowledge (what is learnt, felt, perceived, heard about the brand)
u Consumer response to marketing (perception, preference, behaviours)
Brand dynamic reading

Brand as Guiding &

supportin
strategic Marketing mix
g actions
positioning

t c
pa
Im
Brand
Equity
Experiment: Product sampling or
comparison test
u Two groups sampling a product
u One group knows the brand
u One group does not know the brand
u Write down your opinion: quality, feeling, experience...
Your opinion...

u Bad taste/good/very good/the best

u Healthy/unhealthy
u Memories: Nothing/When I was a kid/when I was preparing exams/a specific
episode...
u Feeling: Sad/happy/fun/surprise...
u Music: Nothing/a specific song
u People: Nobody/friends/parents/cousins....
Write down your
opinion: quality,
feeling,
experience...
Any difference between
the two groups?
Yes, that’s Nutella’s
brand equity...
Is there a difference in perception?

u If there is, knowledge about the brand (past experience, word of mouth,
marketing activity) is the responsible!
u Past investments in marketing and branding
u Investments in creating knowledge structures in people’s minds
u Future direction and creating knowledge on the brand as long-term trajectory
No “differential effect”?

u If the groups respond very similarly:

u HP: the consumers perceive the brand “Nutella” as the representative of the
product category so that they responded as the product was unbranded (actually
the branding investment was high and successful – high CBBE!)
u brand awareness (particularly, “brand recall”) was “enough” to lead the two
groups’ responses
Brand dynamic reading

Brand as Guiding &

supportin
strategic Marketing mix
g actions
positioning

t c
pa
Im
Brand
Equity
Marketing decision making

I. Definition of the reference market

(macrosegmentation) The strategic role of the
brand: the brand value
II. Market segmentation Strategic proposition for the
(microsegmentation) marketing customer (satisfying
III. Selection of the target segment needs in a different way
compared to
IV. Positioning competitors, boosting
V. Planning and action implementation image in a way to be
(Marketing mix) Operative visible, recognizable,
marketing relevant, easy to remind
to boost behaviours)
 Decisions about the
product characteristics,
Positioning price, distribution
(brand value proposition)
channels, communication
(implementing the brand)

The brand guides and shapes

the marketing programmes
and, in turn, is implemented
by these

The brand integrates the

marketing leverages
configuration and support
their effectiveness, also in
case of policy change
Marketing mix
The set of policies the firm blends to produce the desired market response (4Ps)

Product

Place

Brand
Promotion

Price

time
(throughout implementing and, if necessary, changing policies of price,
distribution, promotion and product)
 Product
u Beyond the set of physical characteristics of the product,
the product policy concerns the capacity of the set of
product features and attributes to generate value for the
target
u A set of tangible and intangible attributes...
u ... The definition of this “set” is based on the market
analysis, not only on the managerial perspective on what
can be offered (to avoid the “marketing myopia”,
Theodore Levitt in 1960)
u The relationship between product design and brand design
Brand
Marketing myopia is the failure of the management in the
decision-making process, not adequately defining the scope of
their business for a poor and limited insight into the market
and consumers’ needs and preferences
Price
u Price going from the lower extreme (represented
by the sum of the direct and indirect costs relate
to the product) to the upper extreme represented
by the monetary quantification of the value that
the target segment assigns to the firm’s offering
u Price is a crucial variable in purchase decisions:
u Inferring quality from price: price highly influences
the positioning in the market
u Price highly influences the opportunity to have access
to a given target segment (e.g., luxury goods whose
exclusivity and status dimensions are mirrored by the
price)
u The basis for consumers’ product comparisons
u Critical marketing decision: Entry Price Strategy
u Penetration strategy: pursuing high sales volume in a
limited time by offering a low price. Need to reflect
on the opportunity to increase the price later (high
price elasticity)
u Skimming strategy: premium price to optimize short-
term profit by targeting the cutting-edge customers
looking for the latest (most innovative) and best
offering regardless price (“pioneer customers”). In a
second stage, the price becomes lower to widen the
market. Typical of products with high technological
content
Price Elasticity: % variation of the quantity of
the demand (sales) determined by 1% price Brand
variation.
It is a measure of customers’ sensitivity to the
price as variable for purchase decision-making.

E= % Sales variation / % price variation The price-brand

relationship is evident
How change in the product price affects the in times of price policy
change in the demand for that product? change: price elasticity
can be one possible
Usually negative value: if price rises, demand measure of such
decreases ( |E|>1 elastic demand). If E is close relationship (the
to zero (|E|<1), it means the demand is hypothesis of the brand
inelastic influence)

Time Price of Quantity Price of Quantity

Product 1 of Product 2 of
(Euro) Product 1 (Euro) Product 2 E= (qt2-qt1)/qt1 * 100 /
(pt2- pt1)/pt1 *100
t1 1.10 45 1.10 45
t2 1.25 36 1.25 41
 Price Elasticity: % variation of the quantity of the demand (sales) E= (qt2-qt1)/qt1 * 100 /
determined by 1% price variation.
It is a measure of customers’ sensitivity to the price as variable for (pt2- pt1)/pt1 *100
purchase decision-making.

E= % Sales variation / % price variation 1) E= (36-45)/45*100 /

How change in the product price affects the change in the demand for
(1.25-1.10)/1.10
that product? *100 = -1.46
Usually negative value: if price rises, demand decreases (|E|>1 elastic
2) E=(41-45)/45*100 /
demand). If E is close to zero (|E|<1), it means the demand is inelastic (1.25-1.10)/1.10
*100 = -0.65
Time Price P1 Quantity Price P2 Quantity
(Euro) P1 (Euro) P2
t1 1.10 45 1.10 45
t2 1.25 36 1.25 41

50
(q)
45
2) The more
horizontal the
40
more inelastic (2)
1)
35

30

25

20
1,08 1,1 1,12 1,14 1,16 1,18 1,2 1,22 1,24 1,26 (p)
Place
u Distribution strategy: decisions on the length
of distribution channels and
intensity/distribution pressure in the selected
market
u Channel: all the steps from the firm to the
consumer
u Key variables to be considered when
structuring channels: product type and its
perishability; complexity; price; symbolic
value; human and financial resources; role of
intermediaries in the field; competitors; need
for post-sale assistance; need for
customization; opportunity for territorial
presence and typology of geographical market
u Information flow (fundamental importance):
from the firm to the customer, but also from the
customer to the firm
u What value the direct contact with consumer
gives compared to the related costs?
In relation to the channel length:
u Channel length: defining the number of levels
of intermediation between the firm and the
customer
u ”Indirect long” channel: warehouses, shipping
centres, stores in a complex multi-level network
u Costs (each intermediation level’s
margins)/benefits (extensive network, reaching
several different geographical spots)
u E.g. convenience products
u “Indirect short” channel: one level of
intermediation (stores)
u The firm has to invest on reaching directly a high
number of intermediaries (single stores)
u Costs derived from a logistic infrastructure to reach
the network of stores
u Costs related to the distributors’ margins
u E.g. perishable products (fresh food) and shopping
goods when the final distributors need to receive
accurate and detailed information to handle the
products and transferred it to customers
 u Direct channel: no intermediary
In relation to distribution intensity:
u B2B sectors and service firms, but also in the
u Intensity: defining the number of outlets
consumer products business
u Direct contact is key to the competitive
advantage
u Multi-channel strategies: A mix of channels
(direct and indirect) depending on the
different markets in which the firm
competes
dealing with the same product category (of
relevance for the indirect distribution)
u Intensive distribution: high coverage in a
given market; presence in most distribution
outlets dealing with the same product
category (e.g. convenience and preference
goods) – no need of particular information
provision
u Selective distribution: a limited number of
distribution outlets to have deeper control
over the channel (e.g. shopping goods)
u Exclusive distribution: few stores in a
geographic area are exclusive outlets for
purchasing the product (e.g. franchising, e.g.
car sectors)
Brand knowledge
u Associative network memory model as tool to investigate the knowledge structure in
consumers’ minds (nodes and links)

Strength of association

Stored information or
concept
brand
 Design

What comes 4
to mind
when you
Apple iPhone
think of
Apple 10
computers?
Source: Keller, 2013, p. 73
Brand knowledge components

u Brand awareness: related to the strength of the brand

node or trace in memory (familiarity), which we can
measure as the consumer’s ability to identify the brand
under different conditions. It is a necessary, but not
always a sufficient, step in building brand equity (in
some low-involvement decisions it may be enough to
boost response!)
brand
u Brand image: brand image is consumers’ perceptions
about a brand, as reflected by the set of brand
associations held in consumer memory. In other words,
brand associations are the other informational nodes
linked to the brand node in memory and contain the
meaning of the brand for consumers. Associations come
in all forms and may reflect characteristics of the
product or aspects independent of the product.
Sources of brand equity

Brand
awareness

Brand knowledge Brand Equity

Brand image
Brand awareness
Yes, I know it...
u Brand recognition: consumers’ ability
to confirm prior exposure to the brand
when given the brand as a cue
(important for purchase in store)
u Brand recall: consumers’ ability to
retrieve the brand from memory when
given the product category, the needs
fulfilled by the category, or a purchase
or usage situation as a cue (important
for purchase on line)
This is Nutella.
How the brand knowledge is organised in
memory and what kinds of cues and
reminders may be necessary for
consumers to be able to retrieve brand
from memory?

Important implications for

communication, advertising, choice of
brand elements...
How to analyse brand awareness and image?
Recognition tests

u To recognize a brand under various circumstances (amongst many different

items, brand logo or name masked or distorted)
u Important also for the visual identity (packaging, logo, font, name, shape, colours)
u Given a brand element (packaging, logo or even distorted element), does the
consumer recognize the brand?
u Eye tracking techniques to test the effectiveness of packaging design:
u Degree of shelf impact
u Impact of specific design elements
u Perceived package size
u Distance at which the package can be identified
u Speed at which the package can be identified
 What’s
correct?

?
Do you
recognize any
brand?

Source: http://petersonteixeira.com/internet-marketing/psychological-hook-colors-in-marketing
Recall tests

u Consumers must retrieve the actual brand element from memory when given some related probe or
cue
u Unaided recall: recall amongst ”all brands” (only the strongest brands are recalled) (e.g. recall Porsche 911
amongst ”all cars”, Keller, 2013, p. 341)
u Aided recall: giving different cues, progressively narrowing down the set of brands amongst which to recall the
brand (e.g. recall Porsche 911 amongst German car, luxury car, etc.)
u The cue for recall can be of various types:
u Product attributes
u Usage goals
u Context of usage

When you think of chocolate, which brands come to mind?

If you were thinking of having a healthy snack, which brand comes to mind?
When you think of making a present with some sweets/chocolate, what comes to mind?
...
Issues and limits of the use of these
tests
u Guessing: the consumer guesses but he/she does not recall the brand
u Spurious awareness: the consumer makes a mistake and affirms he/she
recalls the brand but it is not true or the product does not even exist
Brand awareness is important because...

1. Without brand awareness (the brand node in mind) you cannot build a
brand image (associations)
2. It allows the brand to be included in the consideration set (the set of
brands that are considered seriously for purchase)
3. In some case the mere familiarity and the fact of being perceived as
well-established motivate the purchase, with no needs of creating
brand associations. Mostly in two cases:
u Convenience products/low-involvement purchase when the decision is not
Convenience products
critical refer to those types of
consumer products and
u When consumers have no ability to judge quality (technology or simply out
services that consumers
of their interest) so that any means (familiarity with the brand) is used to
buy more frequently with
decide
minimum buying efforts
and comparisons.
Recogn
i tion
Brand
awareness

ll
Reca Brand
Brand
knowledge Equity
Brand
image
Brand image

Once a sufficient level of brand awareness is created, an effort to craft (and measure) the brand
image has to be made

Marketing programmes need to create:

u strong, favourable (desirable for the consumer), unique associations to the brand in memory
Brand associations need to be:

u Strong (Strength): strength depends upon personal relevance and consistency

over time. Direct experience and word of mouth are particularly effective,
even in lack of intense advertising (advertising may create very weak
associations...)
u Favourable (Positivity/Favourability): convincing about relevant
attributes/benefits towards overall positive brand judgement. Brand
associations are context - and situation-dependent
u Unique (Uniqueness): “unique selling proposition” which is a sustainable
competitive advantage...
u Uniqueness vs. Sameness: shared associations (sameness) to acquire category
membership; shared associations for prototypical and essential attributes to the
category (sameness); category associations (sameness)...
Brand associations are:

u Brand attributes: those descriptive features that characterize a product or service and
its performance
u Brand benefits: functional and/or psychological, emotional...
u Brand values: the personal value and meaning that consumers attach to the product or
specific attributes (related to how the brand satisfies psychological and social needs).
They are related to:
u The typical user’s profile associated with the product in customer’s mind (demographic-
descriptive and abstract-psychographic e.g. attitude to life, to work, to family...)
u Purchase and consumption situation (e.g. typology of store, easiness to buy, web; moment of
day or week when the product is used; formal or informal context...)
u Personality and value related to product/firm: human values embodied by the brand (e.g.
spirited, modern, contemporary, old-style, intellectual...) à brand personality (see later in
the course)
u History, traditions and experiences (of the consumer): associations related to the consumer
individual history and experiences (there may be common traits across individual experiences)
 Strong, favourable and unique
associations depend on the context
(Time and Geography matter)
and situation (For whom? When?)
Recogn
i tion
Brand
awareness

ll
Reca Brand
Brand
knowledge Equity
Brand
image
Class discussion on the 3 Nutella videos
(brand associations)
Belgium 80
- Kids, playing and snack
(benefit)
- Health (benefit)
- Nutrients and proteins
(attributes)
- Mother’s care (emotional
benefit)
- Fairy tale/perfection
(emotional benefit)
- Product perspective
(attributes)
Northern EU-US 2011
- Funny breakfast (attributes
/ benefit)
- Break from frenzy life
(benefit)
- Family (value)
- Sharing moment (value)
- Trust (benefit)
- Time saving (benefit)
- Motherhood (value)
US 2018
- Happy (emotional benefit)
- Community (value)
- Inclusion (value)
- Peers groups (value)
- Traditions (value)
- Diversity (value)

What protagonists in the video? What kind of advertising?

- Kids and one mum - Family (mum and kids) - Adults with many different
characteristics and in many
different contexts

- Spot - Spot - Episode of a mini-series

Maslow’s Hierarchy of Needs

Means-End Chain (MEC): Attribute,

Benefits (direct Consequence), Values
(indirect effect)
(Source: den Ujil et al. 2015)
Brand image

u Brand image: brand image is consumers’ perceptions about a brand, as reflected by the set of
brand associations held in consumer memory. In other words, brand associations are the other
informational nodes linked to the brand node in memory and contain the meaning of the brand
for consumers. Associations come in all forms and may reflect characteristics of the product or
aspects independent of the product.
u Marketing programmes need to create:
u Strong, favourable (desirable for the consumer), unique associations to the brand in memory
u Brand associations are:
u Brand attributes
u Brand benefits
u Brand values
Measuring the brand image
u Assessing the strength, the favourability and
uniqueness of the associations with qualitative
(in-depth interviews) and quantitative methods
(based on surveys and statistical analysis)
u What do you associate to the brand strongly?
When thinking of this brand, what comes to
mind?
u What is good in this brand? What strengths?
What are the negative sides of this brand?
What weaknesses?
u What is unique about this brand to you? What
has this brand in common with other brands?
u Qualitative methods: collecting and analysing
beliefs (descriptive thoughts that a person holds
about the brand)
u Quantitative methods: Ratings and Likert scales
(1 to 5; 1 to 7)
Brand Association Rating
(Likert scale from 1 to 7),
Keller, 2013, p. 344
 Unveiling the brand image (strength, favourability and
uniqueness of the associations) by comparing the brand
with other competing brands.

Quantitative technique: Multidimensional scaling and

Perceptual mapping

Multidimensional scaling transforms

consumers’ assessment of similarity
and preference of a set of brands into
distances in a perceptual multi-
dimensional space

Perceptual map built on 2 most relevant associations used to position Brand

A, Brand B and brand C.
Segment 1 and 2 are the ideal segments: 1 is more concerned with healthy
and 2 with taste and is not very concerned with healthy food. A sample of
customers is asked to assess the 3 brands based on these two associations.
E.g. How health is food in Restaurant A? (1=no healthy; 5=very healthy)
Results:
- Restaurant A: (Healthy=2.3; Flavourful= 2.8)
- Restaurant B: (Healthy=4; Flavourful=2.5)
- Restaurant C: (Healthy=1; Flavourful=4)
Segment 1 is better addressed by B; Segment 2 is better addressed by C;
while A remains quite in the middle.. What to do? (One option: make actions
to be and be perceived more healthy and reach segment 1! Source: https://slideplayer.com/slide/5049532/
Brand 1

Brand 2

Brand 3

Segment 1

Segment 2
Issues to be considered

Product category cognitive

u Brand image can be confused with the structure (Keller, 2012: p. 110)
knowledge structure of the product
category (brands are grouped in the minds of Product class
consumers by categories):
u An important information is to know the exact
position of the brand in the mind and the relation Product Category
with/position in the category

Product
Typology

Brands
Creating brand associations
 Experiential marketing
Marketing tactic
based on the design
of activities that
are experiential in
nature (Same &
Larimo, 2012)

“Process of
identifying and
satisfying customer
needs and
aspirations
profitably, engaging
them through two-
way communications
that bring
brand personalities
to life and add value Emotions, feelings and senses,
to the target less intellectual mediation
audience”
(Smilansky, 2009) Direct experience of products in a
«unique» way, by staging the entire
physical environment, usage and
consumption processes for the customer
Experiential marketing
Guerrilla marketing: shocking and
surprising
Guerrilla marketing is a “method of
warfare that builds on raids and ambush
attacks” (Hutter & Hoffmann, 2011).
Alternative advertising originally utilized
by small and start-up businesses to obtain
increased sales by using tactics that rely
on originality, good relationships, and
unconventional methods to grab
consumers' attention and combat larger
competitors (Levinson, 1984). From these
origins, it has grown into a strategy
increasingly embraced by larger companies
with high-reputation brands (e.g. Hyundai
installing ecological-friendly automated
parking payment devices where parking
time was paid for by recycling plastic
bottles) (Roux, 2020)
(UNICEF)
 Brand recognition:
consumers’ ability to
Sources of brand equity
confirm prior
exposure to the
brand when given
the brand as a cue
Rec
(important for o gn i
purchase in store) tion

Brand recall: consumers’

Brand
ability to retrieve the brand
from memory when given awareness
the product category, the Recall
needs fulfilled by the
category, or a purchase or Brand Brand
usage situation as a cue knowledge Equity
(important for purchase on
line) Brand
image
Brand attributes: those
descriptive features that
ti o ns
characterize a product or
oci a
service; Ass
Brand benefits and values:
the personal value and
meaning that consumers
attach to the product or
specific attributes
Brand Management Models

Three interconnected models supporting brand strategy making:

1. Brand positioning (how to establish a competitive brand)
2. Brand resonance (how to create intense and loyal relationships with
customers)
3. Brand value chain (based on the actions undertaken, the tracing of value
creation activities to understand the financial impact of marketing
investments)
 Identification and
establishing of
brand positioning Brand positioning model
and values

Strategic Brand Plan and

Grow and Sustain Management implementation of
Brand Equity Process brand marketing
programs

Measure and
Interpret Brand
Performance Brand resonance model
Source: Keller 2012
 Brand positioning
A Brand Planning Model supporting the development of a brand strategy:
A first fundamental step of the brand plan
Brand positioning

u The first step in the process of brand management aimed at define the desired and ideal
positioning, the desired and ideal cognitive structures of the brand positioning the brand in the
target consumers’ minds
u Positioning is at the hearth of any marketing strategy: positioning is an “act of designing the
company’s offer and image so that it occupies a distinct and valued place in the target customer’s
minds” (Keller, 2013, p. 79).
u Finding the appropriate “location” in the mind of a selected group of consumers (market segment)
u It is the “guide” of the marketing strategy and marketing actions as stating:
u what a brand is all about
u how it is unique
u how it is similar to and different from competitive brands
u why consumers should purchase and use it (why the brand is relevant to customers)
u Brand positioning implies the identification of the main components of the brand including a
limited set of points of parity and points of differentiation creating an adequate image in customers’
minds
 • It is a sequence of steps of a strategic nature
(different strategic decisions have to be made
alongside the process)

Competitive Frame
(3) Points of
of Reference:
Difference
(1) Target
(2) Competition
(4) Points of
(who are the Parity
competitors?)

Brand Positioning Model

Defining the Competitive Frame of Reference:
(1) Target
(2) Competitors
(1) Target market

u Market: set of actual and potential buyers, having interest, income and access to the
product; the whole of the market with motivations and possibility to buy
u Market (micro)segmentation: the division of the market in homogenous groups of customers
having similar needs and wants (and so potentially addressed with the same marketing mix!)
u Once we have the segments, we may chose one or more segments and define marketing
actions addressing them
u The definition of a segmentation plan needs to consider:
u A trade off between costs and benefits: most finely segmented market is more expensive
and requires high degrees of customization (marketing actions and products) compared to
standardization, but it implies higher chances to succeed in supporting customers’
satisfaction
u The result of subjective choices about how to segment the market (criteria selection)
Segmentation criteria

u Descriptive segmentation (customer oriented):

socio-demographic, economic, geographic,
psychographic

u Behavioural segmentation (in relation to brand-

customer relation): purchase modality, usage and
consumption modality, brand loyalty
(e.g. Non-user, prospect, first-time
user, regular user, defector)
u Benefit segmentation (sought benefit, purchase
motivation)

Benefit segmentation bases are particularly strategic to Consumer segmentation

branding: what do customers seek? basis, Keller, 2013, p. 80
A combination of descriptive and behavioural
segmentation can be used: for instance, a
segment by age and gender (Female 19-25)
may include different behavioural segments
(e.g. in terms of usage context)
Segmenting ... A matter of subjective choice!

u Requirements guiding an effective segmentation:

u Identifiability: Can we easily identify the segment?
(opportunity/measurability; the criteria for segmentation need to be
not too abstract and complex)
u Differential response of the customers in the segments to the
marketing actions (max difference across segments is sought) Is segmentation
u Size: Is there adequate sales potential in the segment? (adequate profitable?
dimension of the segments in terms of potential income from targeting Is it feasible?
them)
u Accessibility: Are specialized distribution outlets and communication
media available to reach the segment?
u Responsiveness: How favourably will the segment respond to a tailored
marketing program? (the possibility to address them with adequate
offering and stimuli so that favourable responses to customized
marketing programmes are triggered)
Toothpaste users: From addressing
• “Sensing”: interest for taste and how the product specific segments to
looks like mixing brand
• “Social”: interest for white teeth attributes and
• “Anxious”: high attention to dental care benefits for
• ”Independent”: looking for low prices addressing all them

(Source: Keller et al., 2005)

(Source: Fair Trade Tourism 2014)

Source: https://www.bbc.co.uk/bitesize/articles/zf8j92p

Generation-based segmentation:
• Silent generation (1926-1945): disciplined, value-
oriented,loyal, direct in-person communication)
• Baby boomers (1946-1964): committed, self-
sufficient, competitive
• Generation X (1965-1980): resourceful, logical,
problem-solvers Source: https://www.forbes.com/sites/kianbakhtiari/2019/12/13/stop-
marketing-to-millennials-or-gen-z-and-start-marketing-to-
• Millennials or Gen Y (1980-1995): confident, tribes/?sh=683fa3632c17
curious, questioning authority
• Generation Z (about 1997-2009): ambitious,
digital-natives, confident
• Generation Alpha (2010-up to date): mobility,
change experience, cultural diversity, limited
family life (Huffpost, 2019) “Avoiding a stereotypical view of
consumers”, Deloitte 2018
Segmentation methods

u A priori segmentation:
u Defining homogeneous groups based on predefined criteria based on the knowledge
of the market/business/product
u A posteriori segmentation
u Leaving data (and big data!) speak... Data analysis techniques to go from data to
clusters of homogenous customers whose characteristics are then analysed in
details
International segmentation

u Aim: to find, in the different countries, groups of consumers with same needs
and expectations, despite of national and cultural differences
u Within the specific country/region, the relevant segments may be of a relatively
small size, but the global span makes the international business significant
u Local differences: product and brand adaptation (see later in the course)
(Source: Steenkamp and Hofstede, 2002)
Transnational segments

u Groups of consumers with same needs and

expectations, although living in different countries Global brands extending
lifestyles and values but to a
u Similar consumers’ profile across countries, although certain extent: important
lifestyle remains different cultural differences remain
u Similar marketing mix including similar
communication techniques can be used Gobalization not necessarily
means standardization
u Mass customization strategy when degrees of Different cultures, ethnic and
individualism in society makes collective identities linguistic groups want to
(national, religious, ethnic ) weaken in some defend their diversity
circumstances
u International markets gives the opportunity to steer
international demand for «universal products»
The case of Kit Kat in international markets
Global target
“Kit Kat’s target market is both men and women
belonging to all age groups. The brand displays itself as
“youthful” in nature, and focuses on that segment of
consumers who are fond of chocolates, and are willing to
indulge themselves in chocolaty snacks. Due to its tagline,
“Have a break, have a KitKat”, the consumers are drawn
to this brand due to its association with “breaks”. Its low
prices, which have been constant over the past years, allow
it to target the mass consumer market, as opposed to other
premium chocolate brands like Ferrero-Rocher”
Unique selling proposition:
• Making it widely available along with affordability factor
• Different Varieties & Limited Editions – flavour, forms,
and shapes
Kit Kat, Nestlè in India (Rastogi, 2018)
Segmentation criteria & Target:
• Demographic:
• Age Group: 18-30; 30-40
• Psychographic: “Good things happen when you
take a Kit Kat break”
• Attitude: thankful, kindness, spontaneity,
joy, refreshing
• Personality/Values: Taking time for
yourself, looking for enriching time
• Activities/Life stage: college youth and
working individuals (long hours working)
 Kit Kat in Japan

Premium product based on

exclusivity and rarity:
skimming strategy
Brand Management
Lecturer: Cecilia Pasquinelli
MSc International Marketing & Management
Competitive Frame
(3) Points of
of Reference:
Difference
(1) Target
(2) Competition
(4) Points of
(who are the Parity
competitors?)

Brand Positioning Model

 Identifying the market and competition
avoiding myopia! (based on Abell Model)

(2) Competition Functions

u Targeting implies the definition of the nature of Groups of

competition and the set of competitors: customers

u What companies made the same target choice or

may be about to do the same choice? (Direct
competitors and New entrants) Technology Source: Sancetta, 2018

u What other competing brands are considered by Product category cognitive

potential customers (including substitute brands!)? structure (Keller, 2012: p. 110)
(Substitutes)
u Abell Model: customer needs, customer groups, Product class
technology to identify competitors
u Competitors have to be identified in light of
Product Category
customers’ mental hierarchy in which the brand
is positioned Product
u Multiple levels of competition to consider when Typology
tailoring brand associations

Brands
 Target
Competitive
Frame of
Reference
Competition
Target and needs may change (who will Technology (how a need starts
buy and why, for what purpose?) being satisfied? On-demand tv)

The competitive The competitive

frame of frame of
reference can reference can
change in space change over time
(in different (e.g., following
geographic technological
markets!) evolution)
“Chocolate as a gift”
(from everyday snack to special gift) “TV as digital contents on-demand provider”
 Rental

Multiple frames of reference agencies

Rental
agencies

Not uncommon to identify more People seeking

than one frame of references where People willing to
rent their home easy and cheap
targets are different and temporary rentals
easily
competitors are different
Professional
organisation
running hospitality
properties

Tour People seeking a

operatos/ travel experience
DMO
(portals) People seeking a
travel experience
in touch with
locals
People seeking
creating self—
employment
Job/Trainin opportunities
g agencies Travel
(host/local guides)
agencies/ Web
Influencers/To
Target Comp
etitor
urs & Activity
platforms
How has communication been delivering the Airbnb over time?

https://www.youtube.com/watch?v=_yfXzD7tnbM 2008

https://www.youtube.com/watch?v=0U1GKyyX5QI 2023
Communicating the Competitive Frame of
Reference
u Not only defining the competitive frame of reference (identifying competitors) to make strategic
branding decisions, but also to communicate it (remind the brand function and the simplification
of consumers’ decision to purchase)
u Communicating the product category to the customers helps them to understand why
considering the brand (before the connection to the category is built, second the elements of
differentiation are affirmed)
u For consolidated products, this may be irrelevant: e.g., Nutella “Spread the Happy”
(2018 campaign)
u For new products and particularly innovative products (e.g., high tech products), this
may be fundamental (what category of product does the brand belong to? What
connection to a certain category?): however, in case of radical innovation, fitting a
product category may be even difficult
u Communicating the brand placement within the competitive arena (what are the competitors
beyond the product category? à based on the Abell model) can be very important

• Defining the CFR as necessary background for positioning

• Communicating the CFR for positioning
Smart speaker,
Intelligent
assistant,
cloud-based
voice

Fitting one or
more category
or leading the
establishment
of a new
category?

Source:
https://voic
ebot.ai/ama
zon-echo-
alexa-stats/
How to communicate the category in brand
communication?
u Informing about the typical benefits of the category and how the
brand fits them (tailoring POPs, see later about the positioning
model)
u Comparing the brand with other brands in the category
u Include a descriptor in the brand name
Once the competitive frame of reference is built,
POPs and PODs can be defined/identified/designed

Competitive Frame
(3) Points of
of Reference:
Difference
(1) Target
(2) Competition
(4) Points of
(who are the Parity
competitors?)

Brand Positioning Model

 PODs mirror the
competitive strategy
(3) Points of Difference (POD) undertaken by the company
(what’s the competitive
advantage?)

u “attributes or benefits that consumers Competitive PODs

strongly associate with a brand, positively strategy
evaluate, and believe they could not find to
the same extent with a competitive brand” Brand 1 Cost leadership ”the low-cost
(Keller, 2013, p. 83) provider”
u POD associations can be classified as: Brand 2 Differentiation “overall
u Functional attributes and benefits superior
(performance-related) quality”
u Abstract values (imagery-related)
u PODs to frame:
The brand is
u The unique selling proposition rooted in the
u Sustainable competitive advantage firm «reality»
(sustainable in time! Durable and
defensible)
Porter’s Value Chain: An analysis of the
firm’s competitive advantage
 ”Our strength is the price” ”The most loved by Italians”

• Affordability • Style and history superior

• Good quality standards • Personalisation
• Easiness • High services
For any POD, brand managers need to
think of Reasons to Believe…It is not
easy to sustain, prove and persuade
about PODs
• Corporate brand equity (if it exists,
can help)
• Well established product brands in
the portfolio may help: brand
managers should think carefully
about the brand architecture (we
will speak about this at a later stage
of the course…)
• Omnichannel strategy searching for
high level of consistency across all
forms of communication by the
company might help
 What about influencer
Proof points or Reasons to Believe (RDB, a technique to
marketing?
prove the benefit, supporting the establishment of POD
associations):
• Key functions, attributes and ingredients (also
backed by science, tests, studies)
• Key endorsement (recommended by...), reviews
and testimonials
• Longevity and expertise of the company

X
Reputation and relevance of
certification is growing but not
high in all sectors (e.g. tourism
services, low awareness of their
existence)
Criteria for selecting PODs

u Desirability: composed of three dimensions

u Relevance: PODs need to be relevant to the customer
u Distinctiveness: affirming superiority (a relevant superiority!)
u Credibility: convincing PODs
u Deliverability:
u Feasibility: firm’s capability to produce/deliver the product/service and the
promised attributes
u Communicability: firm’s ability to convince customers this can be done (the
importance of “Reasons to Believe”) and to give the necessary information
u Sustainability: sustainability in time (over years!) and so PODs that can be
defended by competitors and not easily replicable
IKEA’s PODs….
Affordable Design
Designed in Sweden
Comfort, cosy and well-
built things for the whole
family
Swedish wellbeing
What Reasons to Believe?
Reasons to Believe?

The Apple Store

High quality
Design
Status symbol (at first product
for expert, designers, for few
people)
No virus
User experience
The community...
«The challenge of differentiation
in our culture today»
• In business differentiation is everything but we
are forgetting what it means to be different
• «we continue to produce brands that are
notable, not for the difference, but for their
sameness» (p. 210)
• Sameness is the result of competition: it’s «too
much about competitors»
• A competitive myopia: too much effort to
understand what competitors are doing (and
the number of competitors certainly keeps
growing)
• Comparative metrics create conformity
• Of course, this does not mean to ignore
competition!
• Being different means standing out of the
competitive blur
«The competitive herd»
The minute we choose to measure something, we are
essentially choosing to aspire to it ... A metric creates
a pointer in a particular direction. And once the
pointer is created, it is only a matter of time before
competitors herd in the direction of that pointer
(Moon, 2010, p. 29)

Jeep (inventor of the

SUV and heritage in
sport utility cars) vs.
Nissan: an evolutionary
perspective

Rugdness and Reliability have become

standard metrics against which car
companies measure themselves in the
SUV category à homogeneization of the
offerings within the category over time
A competitive trend in all car categories (and
beyond)... «Once everyone starts doing it, no one
stands out» (p. 33)

The limitations
of “user-driven
innovation”
u Competitive herd: prevailing innovation model of the «augmentation-
by-addition» (new product attributes, new product lines to satisfy
additional customer) which is easily replicable
u Reverse-positioned branding: differentiating by innovating (not just
adding)

Reverse-positioned brand: IKEA

Brands that were able to take a category
Design but affordable
value proposition to create difference by So simple and minimal No customization
stripping away the superfluous. you can do it yourself based on customers’
Well-built perferences; No
Differentiating through the removal of Home like family
assembling service
(unless required)
benefits, if the removal is thoughtfully Swedish wellbeing
executed.
(4) Points of Parity (POP)
u Not unique to the brand, shared with other brands need to be aware and
u Necessary but in most case (!) not sufficient condition invest to hold together
u POPs may changing depending on the evolution of the market, laws, “tasty” and ”healthy” for
technology... food brands
u Different types:
u Category points-of-parity: necessary (yet not sufficient) conditions
for purchase, minimal generic associations connected to expected
attributes (see earlier the importance of communicating the
Competitive Frame of Reference)
u Competitive points-of-parity: aimed to negate points of difference
of other brands (e.g., the SUV market)
u Correlational points-of-parity: deriving (not shaped or constructed)
from the existence of other points of difference (or parity) – they can
also be negative! One POD can create negative correlational POPs
(inverse relation)... E Examples of negatively correlated
u E.g. If you create the association “tasty”, the correlation POP is attributes/benefit (Keller, 2013, p.
“not healthy” (following the general knowledge of the tasty food 84)
category)
Ralph Lauren’s brand extension: need
for category point-of-parity
u Brand extension: couture line
and luxury leather
accessories
u POP: Made in Italy to draw
the brand upwards and fit
the category of luxury
couture line and leather
accessories (Kapferer &
Bastien, 2009)
u Made in Italy as ingredient
branding also providing the
Reason to Believe
Correlational POPs: How to handle
negatively correlated POP-POD?
Tasty vs. Healthy (food)
u Customers may find both points relevant
The credible story of the Italian food
u Competitors will attempt to build their heritage and lifestyle standing for
PODs on your negatively correlated POP Slow Food, Healthy lifestyle

• Possible tactics:
• Two different marketing campaigns
treating separately the two points (high
costs)
• Linking to some other brand/entity that
may support in affirming the correlational
point (person brand, endorsement...)
• Finding way to redefine the relation
between POP and POD convincing
customer it is not a negative relation
(what credible story can enable this?)
To recap: positioning frames some key
points for the firm

1. Who is the target

2. Who are the competitors
3. How similar to the competitor the firms’ brand value proposition is
4. How different from the competitor the firm’s brand value proposition is
Positioning & Brand Management
(Brand maintenance and development)
Updating positioning

u Positioning evolves over time to exploit opportunities and face new challenges
posed by the competitive forces in the market
u However, it should be changed “very infrequently”, only when circumstance
significantly reduce the effectiveness of POPs/PODs
u Two circumstances:
1. Catching market opportunity: a) adding new brand attributes, benefits and
values; b) laddering technique to unveil additional values
2. Facing competitive market challenges: Reacting
1. Laddering

A process of upgrading, leading from

creating associations with attributes, to
associations with benefits, and then with
values through an exploration of deeper
associated meanings and motivations
underlying customers’ choice

The brand becomes more and more

abstract: this implies an enlargement of
the set of viable brand strategies

Laddering techniques as
method to explore customers’ (Source: marketoonist, 2012)
brand perception.
 Spread happiness, engagement with the
community, making an impact

Energy for modern/dynamic

families

Healthy snack for kids

 “‘Spread the Happy’ isn’t just a phrase,
it’s a way of life. Meet four groups of
people whose mission is to make the
world a happier place”

Nutella “Spread the Happy”

“If mum has her recipes, I have
mine: bread and nutella”
Laddering in international marketing

A special way to be
thankful

Quick tasty
snack
2. Reacting

u Competitive advantage may exist for a short or limited time

u Erosion of a POD by (new) competitors (thus becoming a POP!)
u Possible reaction:
u “Do nothing”: keep on the same brand building line (the competitor’s effort might
result ineffective)
u Defensive: defending the position by reassuring the customers and strengthen the
identified POPs and PODs
u Offensive: repositioning to address the threat
 (Source: Fleming, 2019)

2015 Brand repositioning

 The work to get the VW
The “New Volkswagen” sees the car company “mark the start of a new brand back to where it
era” with a new logo and brand design that it promises will “not show a was, in terms of consumer
perfect advertising world”.
perception, appears to be
Jochen Sengpiehl, CMO of Volkswagen, says: “We have created a new
holistic global brand experience on all channels and across all working. In the
touchpoints. immediate aftermath of
“As a general principle, the aim in future will not be to show a perfect the scandal, VW halted
advertising world. In our presentation, we want to become more human advertising, then in
and more lively, to adopt the customer’s perspective to a greater extent December ran a series of
and to tell authentic stories.” print ads apologising and
The brand’s “no filter” digital-first approach was developed by 19 reassuring customers.
internal design and marketing teams, and 17 external agencies.
VW’s visuals will be bolder and more colourful, and come with a
It has since overhauled its
promise to focus more on people than products. According to the brand, advertising, getting rid of
this means “the main objective will be to present realistic situations its ‘Das Auto’ slogan
that customers can identify with”.
https://www.youtube.com/watch?v=2wBUYG6_YMI
https://www.youtube.com/watch?v=XuDAD1cMTnM

https://www.youtube.com/watch?v=ROisF6f7KpY
Many kids dreams of cars. Not all dream of Volkswagen.
Fortunately, we think of all when building a Volkswagen.
Brand mantra: on top of positioning

u It reflects the “essential ‘heart and soul’ of the brand” (Keller, 2013, p. 93): “brand essence” or
“core brand promise”
u It is important especially when the brand span multiple product categories and therefore
may have multiple – yet related – positionings
u It explains to employees, partners, customers the spirit/essence of the brand positioning:
driving/guiding behaviours/attitude in line with the mantra (a sort of guidelines, internal
branding directed to the diverse corporate stakeholders)
u E.g., front office of service provider
u E.g., retailers
u E.g., designers of the retail layout
u Usually focused on PODs (also POPs may be important)
u A short, simple and inspiring phrase: 3 to 5-words phrase
The design of the Brand function Descriptive modifier Emotional modifier
brand mantra: three
possible components
Describing the nature Specifying and Additional qualifier
of product/service, further outlining the specifying how
type of experience, product/service benefits are released
benefit (experiential-
emotional qualifier)
(A guideline, not always these are all present)
 Gucci brand
mantra?

• Brand function
• Descriptive modifier
• Emotional modifier

The design of the brand Brand function Descriptive modifier Emotional modifier
mantra: three possible
(Source: Burzynski, 2018) components
Describing the nature of Specifying and further outlining Additional qualifier specifying
product/service, type of the product/service how benefits are released
 Sophisticate/glamour Italian craftmanship

Brand function
Emotional modifier

Descriptive
modifier
Employees on board to outline the brand
mantra and to make it sustainable

u The brand mantra stressing the importance of internal branding, making all parts of the
organization align to the brand and its values
u Particularly important in service firms!
u B2E (business-to-employees) brand perspective
u How to define a brand mantra?
u Participation, collective brainstorming and discussion to get to the key points and inspire evolution
u The customer/external focused-perspective remains.
From brand positioning
to the brand identity
Brand identity:
The set of Brand Elements
u Brand elements: brand name, URLs, logo, symbols,
spokespeople, slogans, jingles, packages, signage...
u Trademarkable (not always) devices that serve to identify
and differentiate the brand

How easy is to
imitate the name?
Can I legally protect For instance by
the brand elements adding some prefix
in a given market? or suffix?
Vitz Toyota Yaris in
Europe
Packaging

Choice of aesthetic and

functional characteristics of
the packaging

• Identifying the brand

• Communicating descriptive and
persuasive information
• Facilitating transport and conservation
of the product
• Facilitating consumption of the product

Powerful device to boost brand awareness

and to create the brand image (e.g.
exclusivity, sustainability, innovation)
Models to support brand development

ü Brand positioning: this model describes how to identify a competitive

advantage
u Brand resonance: how to build intense and loyal relationships with
customers, based on the identified competitive advantage
u Brand value chain: tracing the value creation process to better understand
the financial impact of marketing investments and expenditure
 Brand resonance
A model helping understand how brand positioning
affects what consumers think, feel, and do and the
extent to which they connect with the brand, thus
providing important information for brand planning
Brand resonance model

u This model supports and gives a sense of direction to brand building

and the needed actions. The model is a guideline and measurement
platform for assessing marketing actions and decisions
effectiveness:
u Are our actions affecting customer loyalty, community and
engagement?
u Are our actions boosting the brand performance and imagery
associations?
u It guides and frames marketing research to assess the progresses of
the brand along the pyramid steps
u It allows the assessment of what the brand has become and what
block of the brand pyramid is problematic in order to intervene
u Customers are central to the building of brand equity (customer- Keller’s brand resonance model
centricity: knowing, taking care of, being accountable for, learning
from customers)
u Time is needed to get through the different steps and building
blocks
The model structure “rational route”
“emotional route”

High brand equity,

u The resonance pyramid states that brand strong brands
building has a rational and an emotional side.
Accordingly, brand building requires customers’
rational and emotional involvement
u The strength (equity) of the brand depends upon
what customers have learnt and
experienced/experimented (brand knowledge)
over time about that brand
u The model is composed of sequential steps (the
success of one step is based on the effectiveness
of the previous step)

CBBE: the differential effect that brand

knowledge has on consumer response to
the marketing of that brand
Sequential steps (the success of one step is based on
the effectiveness of the previous step):
1. ensure identification of the brand and its
association to a product category or class of
needs
2. develop total brand meaning establishing key
tangible and intangible associations in
customers’ minds
3. elicit customer response when he/she identifies
the brand and bears in minds certain
associations
4. based on the response, the building of a brand-
customer relationship
 Resonance

Loyalty
Attachment
Community
Engagement

Judgement Quality Warm; Fun Feeling

Credibility Excitement
Consideration Security
Social approval
Superiority
Self-respect
Primary and supplementary features
Reliability, durability User profile/usage imagery
and serviceability Usage and consumption context/usage Imagery
Performance
Service effectiveness, efficiency and imagery
empathy Personality and values
Style and design History, heritage and experiences
Price

Salience Category identification

Satisfied needs
Milestone of the Pyramid Dimensions Branding objectives Achievement in brand
at this stage development

Brand salience Depth (of awareness) Brand Brand identity

How likely and easily brand awareness (Who are you?)
elements come to mind (high (recognition and
likelihood, high depth) recall)

Breath (of awareness)

In how many situations brand
elements come to mind (range
of purchase and usage contexts Brand recall: consumers’ ability to retrieve the
in which the brand elements brand from memory when given the product
come to mind) category, the needs fulfilled by the category, or a
purchase or usage situation as a cue
”Positioning” in Product
Category Cognitive Structure
(hierarchy of the product
category) in customers’ mind:
product class, category, type, Brand recognition: consumers’ ability to confirm
brand (perceived satisfied prior exposure to the brand when given the
needs) brand as a cue
Keller, 2013, p. 123
Pisa, a city brand

What brand elements?
What brand awareness?
A place for tourism?
A place where to live and work?
A place for high-tech companies and jobs?
• High brand awareness
• A problem with breadth and with positioning in
the product category cognitive structure
Depth
How likely and easily brand (elements) come
to mind
Breath
in how many situations brand (elements)
come to mind (range of purchase and usage
context);
”positioning” in Product Category Structure
(hierarchy) in customers’ mind (perceived
satisfied needs)
Milestone of the Pyramid Dimensions Branding objectives Achievement in brand
at this stage development

Brand salience Depth (of awareness) HIGH Brand Brand identity

How likely and easily brand awareness (Who are you?)
elements come to mind (high (recognition and
likelihood, high depth) recall)
Partially developed Strong landmark
Breath (of awareness) LIMITED Brand elements (the Leaning
In how many situations brand recognition and
recall:
Tower)
elements come to mind (range
of purchase and usage contexts • Leaning Tower
• Galileo Galilei
in which the brand elements
• University for
come to mind) higher education
• Hospitals
”Positioning” in Product
Category Cognitive Structure
PARTIAL (hierarchy of the
product category) in customers’
mind: product class, category,
type, brand (perceived satisfied
needs)
Milestone of the Pyramid Dimensions Branding Achievement in
objectives at this brand
stage development
Brand performance The product: intrinsic characteristics and Point-of-Parity Brand meaning
properties of a functional nature & Point-of- (“rational route”)
(related to the intrinsic (primary and supplementary features and Difference (What are you?)
product features and ingredients) concerning product’s
properties) objective
Product reliability, durability and serviceability characteristics
(consistency of performance, expected satisfying customers’
functional needs
economic life, ease of repairing and all pre-
and after-sale services)

Service effectiveness, efficiency and empathy

(typical of service)

Style and design

with functional and sensory aspect (aesthetics,
shape, colour, size, etc.)

Price
Pricing policy creates significant performance
associations (high price vs. low price; price
changes over time and discounts)
What do you analyse to assess
the Brand Performance? What
key associations?
The product: oil consumption, optional
features, integrated oil/gas system

Product reliability, durability and

serviceability: engine lifetime,
electronic system reliability

Service effectiveness, efficiency and

empathy: assistance quality, capillarity
of retails and repair services

Style and design: comfort, ergonomic,

trendy lines, quality interior

Price: price/quality balance, discounts,

old car valuing scheme
Milestone of the Pyramid Dimensions Branding Achievement in
objectives at brand
this stage development
Brand imagery User imagery Point-of-Parity Brand meaning
(abstract associations based on intangible as the idealized user identified by and Point-of- (“emotional
aspects) descriptive demographic factors or Difference route”)
abstract psychographic ones (gender, concerning the (What are you?)
age, income, attitude to life, social satisfaction of
psychological and
status, career expectations...) and
social needs
that customers associate to the brand

Purchase and Usage imagery

associations concerning under what
conditions/situation to buy/use

Brand Personality and Values

the brand acquiring personality traits
or human values, “like a person”
(modern, old-fashioned, sincere,
cosmopolitan...) – inferred values by
consumers

Brand history, heritage and

experiences
associations to the past, brand
history, entrepreneur/family
 Aaker’s brand personality concept: the “set of
human characteristics associated with the
brand” (1997: 347)

https://digitalnewscoventry.wordpress.com/2015/02/03/dimensions-of-brand-personality/

The brand personality provides a conceptualisation of the Modalities of representation

affective component of the brand. This is the whole of of the brand through the
human characteristics embodied by the brand (Aaker, 1997),
a form of anthropomorphism helping people feel in line with
person using it
the brand (Haigood, 1999 cited in Kaplan et al., 2010). The • Advertising
brand personality turns human values into brand • Endorsement
components, allowing individuals to find a match between • Placement in movies,
their values and the brand, inducing them to choose it. games, TV series, books...
(Pasquinelli et al., 2022, p.3) • ...
 The basis for
purchasing behaviour:
positive reactions to
the encounter with the
brand may boost
purchase
Milestone of the Pyramid Types of customer’s judgements and opinions Branding Achievemen
objectives at t in brand
this stage development
Brand Judgement Brand Quality Reaction Brand
(opinion and evaluation) The brand attitude highly depends on overall perceived response
quality which is often the basis for customer’s choice (“rational
and repeat purchase. Brand quality based on attributes route”)
(What about
and benefits you?)
Brand Credibility
Mostly referring to the company (rather than the single
product). Based on: 1) perceived expertise (competent,
innovative, leader), 2) trustworthiness (keeping in mind
customers’ interest), 3) likability (fun, interesting,
worth spending time with)
Brand Consideration
When the customer takes into account the brand as
possible purchase. Beyond quality and credibility, the
brand needs to be judged as concrete alternative for
purchase, as relevant for the individual customer (an
important step toward brand equity!)
Brand Superiority
Consumers see unique associations, evaluate the brand
better than the competitors, they see the advantages
very clearly (significant unique associations)
What is the attitude to the brand?
What is the reaction to it?
 What is the attitude to the brand?
What is the reaction to it?

• Good search engine? Quick? Good

result rankings? Good features such
as language option, etc? Good
filters and labels to manage mails?
• Is it the leader in search engine and
And after the launch of ChatGPT? internet based services?
• Do you consider it as a concrete
"While Google has been a leader in AI innovation over alternative? Yes/No
the last several years, they seemed to have fallen asleep • Is it better than Yahoo? And the
on implementing this technology into their search others? Why?
product," said Gil Luria, senior software analyst at D.A.
Davidson. "Google has been scrambling over the last few
weeks to catch up on Search and that caused the
announcement yesterday (Tuesday) to be rushed and the
embarrassing mess up of posting a wrong answer during What judgement?
their demo." Positive/negative?
https://www.reuters.com/technology/google-ai-chatbot-bard-offers-inaccurate- Strong/weak/not clear?
information-company-ad-2023-02-08/
Milestone of the Pyramid Typologies of feelings Branding Achievement in
objectives at brand
this stage development
Brand Feeling Warmth Reaction Brand response
sense of calm and peacefulness, (emotional (“emotional
feeling “home”, familiarity, closeness reaction, route”)
(e.g., heritage brands) affection, which (What about you?)
may be
Fun positive/negative,
amusement, feel joy, playfulness more intense/less
Excitement intense)
energizing, experiencing something
special, sense of being alive,
fascinating
Security
sense of health, wellbeing, security
and safety, free from anxiety
Social approval
sense of being accepted by others
Self-respect
feeling better about yourself,
accomplishment, fulfilment, pride
Looking at communication to have a sense of how brand tried to be “resonant”
during the pandemic

https://www.efma.com/article/detail/32786

Messages of reassurance and resilience in Covid-19 emergency: Attempting to

trigger Brand Feeling more than Brand Judgement
 We will hug again
(Zalando, 2020)

https://www.youtube.com/watch?v=69gRJ1po4mY
Milestone of the Pyramid Dimensions of Resonance Branding Achieveme
objectives at this nt in brand
stage developme
nt
Brand Resonance Loyalty (loyal behaviour) Loyalty and “being Brand
(customers feel they are ‘in sync’ Defined by the repeat purchase and the amount or in sync with the relationship
with the brand) share of category volume (share of category brand” (What about
requirement, SCR) 1. Repeat purchase you and me?)
2. Intensity and
depth of the
Attachment
customer-brand
Personal attachment (beyond satisfaction, beyond psychological
respect of the brand) bond
3. Brand seeking,
Sense of community information
Identification with a brand community as social exchange and
phenomenon (sense of affiliation; online/offline), collaboration
brand ”followers” as part of a family (customer-brand)
(events,
information,
Active engagement community)
Customers are engaged when willing to invest time,
energy, money beyond purchase (e.g., joining a
brand club, brand merchandise helps the expression
of this engagement and membership, brand
evangelists and ambassadors)
 Relationship is entangled by two
dimensions:
- Intensity (Attachment and Sense of
Community)
- Activity as active behaviour (Loyalty
and Engagement)
 Engagement measurement
Loyalty measurement:
(digital marketing)
• Repeat purchase (e.g. number of
customers buying two or more times
a year)
• Incidence of 100%-loyal buyers of
the variant (Solo Usage Percentage)
• Share of category requirements (or
share of wallet) - SCR (volume or
revenue): a given brand’s % share of
purchases in its category by brand
buyers

Unit Share of Requirements (%) =

Brand Purchases (units) /Total Category
Purchases by Brand Buyers (units)
Revenue Share of Requirements (%) =
Some example of metrics:
Brand Purchases ($)/Total Category https://digitalbrandinginstitute.
Purchases by Brand Buyers ($) com/10-engagement-metrics-
tracking/

IF = 1, highest loyalty Source: Eigenraam et al., 2018, p. 109

To sum up the Brand Resonance model
(I)
u What’s its function? What is it for?
u It supports and gives a sense of direction to brand building and the actions that are
needed primarily depending on the evolution step the brand has achieved
u It guides and frames marketing research to assess the progresses of the brand along
the pyramid
u It allows to assess what the brand has become and what block of the brand
pyramid is problematic in order to intervene
If you should assess the progresses of the brand along
the pyramid, what would you ask to a sample of
customers?
u Salience:
u Performance:
u Imagery:
u Judgement:
u Feeling:
u Resonance:
Keller, 2013, p. 123
To sum up the Brand Resonance
model (II)
u Customer are central to the building of brand equity (customer-centricity: knowing, taking care
of, being accountable for, learning from customers)
u Time: “Rome wasn’t built in a day”...time to get through the different steps and building blocks
(awareness may be achieved in a short time, but risks if this passage is overlooked or skipped by
brand managers)
u Brand building has a rational and emotional dimensions
u Resonance as guideline and measurement platform for assessing marketing actions and
decisions effectiveness:
u Are they affecting customer loyalty, community, engagement?
u Are they creating brand performance and imagery associations?
u ...
Brand Management
Lecturer: Cecilia Pasquinelli
MSc International Marketing & Management
Models to support brand development

ü Brand positioning: this model describes how to identify a competitive

advantage
ü Brand resonance: how to build intense and loyal relationship with customers,
based on the identified competitive advantage
u Brand value chain: tracing the brand value creation process to better
understand the impacts of marketing investments and expenditure
 Brand Value Chain
Measuring and managing the brand value:
a model to assess the return on investment of marketing
Brand value chain (BVC) A sequence of stages at which value is
created. A rational representation of the
branding process allowing a diagnostic view
on brand management:
u A model to assess the sources of brand value creation What stage is not performing well in terms of
and the outcomes of brand equity brand value creation? What to do?
u Many different stakeholders participate in brand A tool to isolate the problem and making the
value creation and need to receive information on process and its actors accountable.
the effects of brand management If I map what/who is part of the branding
u The BVC has to support brand managers, marketing process, I know how much brand
director, CEO, general manager in carrying out their management costs
roles
u The model rationale (a chain of brand value creation
and assessment):
u Brand equity resides in customers (actual and
potential): the model starts from here (investments
in marketing programs targeting customers): the
shaping of customers’ brand knowledge and the
triggering of customers’ response translate into the
brand performance in the market
u This is translated into financial actors’ assessment of
the brand value (brand value for shareholders)
Structure:
• Stages: phases of brand value creation
process from the first investment in Stage
brand value creation to the formation
Activated
of shareholder value value
• Activated value sources: bases for sources
measuring the created brand value
(brand metrics) Linking
• Multipliers: moderators and booster of factors
value transfer from one stage to
another, which means linking factors
connecting one stage to another
determining how and how much value
created at one stage is transferred to
or “multiplied” for the next stage A chain of actors and activities that create the brand
value: Who participate in the chain?
Not just brand managers are brand value creators!
(customers, shareholders, competitors, employees...)
 For a given
investment in

The model: Stage and Multiplier

marketing
programmes we will
have different market
performances
depending on how the
marketing
programmes are
implemented

u Stage 1: Marketing programmes investment u Multiplier 1: Program Quality Multiplier

u Activated value sources:
u Advertising, online marketing communication,
sponsorship, public relations, distribution network,
etc.
u Any action that, intentionally or not, contribute to
brand value development (e.g., product R&D and
design; employee training...)
u Not all the financial investment in marketing
programmes will be transformed into brand
value: this will depend upon the qualitative
aspects of the marketing programmes and so
upon the programme multiplier
(dimensions of the quality of the marketing program
implementation to be assessed)
u Distinctiveness: elements of uniqueness compared
to competitors, effective differentiation
u Relevance: relevant to the target customers so
that they pay attention to the brand and include it
into their consideration set
u Integration (over all actions; over time):
consistency in all the aspects of the programme
and consistency over time (with the past
programmes)
u Value: clear value proposition for customers
u Excellence: highest standards in execution, state
of the art
 At this stage, customers are
brand “value creators”
• Stage 2: Customer Mind-Set
Anything present in customers’ mind, such as
thoughts, feelings, experiences, perceptions,
attitudes related to the brand: the 5As from the
resonance model (to be read as a sequence of
steps, one as the basis for the following step)
1. Awareness: recall/recognition
2. Associations: strength, favourability and
uniqueness of perceived attributes and
benefits
3. Attitudes: overall evaluation of the brand in
relation to quality and satisfaction
4. Attachment: loyalty as bonding and low
propensity to change (capacity to stand
negative events, e.g. defective product)
5. Activity: loyalty as seeking information,
buying, talking about the brand
• Multiplier 2: Marketplace
Conditions
• Competitive superiority (or inferiority):
effectiveness of competitor brands’ marketing
investments (are competitor a real threat?)
• Channel and intermediaries support: partners’
effort in supporting the brand and the
relative sales
• Customer size and profile: how many and how
‘profitable’ the customers attracted by the
brand are in concrete
If the customer mind-set creates
The brand value in the following step
value is (Market Performance) also
created when depends upon factors external to
all the 5 steps
the single customer’s mind set
are
(multiplier)
accomplished
 • Stage 3: Market Performance
Impact on customers’ behaviour and so on sales
volume
1. Price premiums: willing to pay “extra” money
(premium price) compared to the average price in
the market (or compared to the price of the key
1+2+3 =
direct competitors)
revenue
stream
2. Price elasticity: inelastic demand to price increase
(how demand varies with price variations)
3. Market share: (see next slide)
4. Brand expansion: the capacity of the brand to
support line/category extension and new product
launch will enhance future revenue
5. Cost structure: the possibility to reduce marketing
expenditures thanks to the positive customers
mind-sets (opportunity to lower the costs)
6. Brand profitability: this six dimension is the result of
the former five dimensions
• Multiplier 3: Investor Sentiment
Multiplier
On top of market performance, investors (and
financial advisors who are relevant in the financial
market) consider a set of factors for brand valuation
which are:
• Financial market dynamics: interest rates,
confidence in the market...
• Growth potential: growth potential of the brand
and of the sector
• Risk profile of the brand: risk profile and
vulnerability of the brand to the external context
• Brand contribution: the importance of the brand in
the firms’ brand portfolio
If this brand value reaches the final step (financial market) also
depends upon factors that are external to the brand (the
multiplier)
Market share

u Absolute market share: company’s (brand) sales over a specified period of

time (year or quarter) / total sales in the (brand) market *100
u Relative market share: company’s (brand) sales over a specified period of
time (year or quarter)/ sales by the leading competitor *100
u Or % Market share of the firm’s brand/% market share of their largest competitive
brand in the market
u Two possible units of measurement: volume/quantity (n. products, kg, unit
market share) or revenue/$ (revenue market share)
 At this stage, financial investors are
brand “value creators”

Partially out of

• Stage 4: Shareholder value Designed/

planned,
control/reach

under
In light of all stages and information/data available control
(measured and estimated), the financial
marketplace identify and assign the brand’s market
value (e.g., brand or company sale). Indicators used
for the financial assessment of the brand:
1. Stock price
2. Price/earnings ratio: ratio that measures its
current share price relative to its earnings per Partially
share for valuing the company (is the company out of
marketers’
able to remunerate more, equal or less than the control
price of the stock in the market?)
3. Market capitalization: multiplying the total number
of a company's shares by the
current market price of one share to see if the
value of the company has been growing,
decreasing or stable.
 How to create the brand value?
Investing in
”good”
marketing
programmes

Where shall I
Chief intervene to boost
Maximizing the Brand
multipliers marketing The CEO’s value along the value
marketing
(program and director chain? At what stage
managers’
(CMO)’s main main focus
marketplace) main focus of the chain are there
focus
critical issues?
 How can we investigate the brand
value chain and its steps?

Chief
Qualitative
marketing and Market Financial
Budget and quantitative The CEO’s
director
research involving analysis and market
marketing plan
(CMO)’s main main focus
customers Accounting surveys
focus
How the 3
analysed models
combine?

Brand Meaning
(what are you?)
Brand Management
Lecturer: Cecilia Pasquinelli
MSc International Marketing & Management
How the 3
analysed models
combine?

Brand Meaning
(what are you?)
 Identification and
establishing of
brand positioning
and values Brand Positioning model

Strategic Brand Plan and

Grow and Sustain Management implementation of
Brand Equity Process brand marketing
programs

Measure and
Interpret Brand Brand Resonance model
Performance
Source: Keller 2012
Brand Value Chain
Tools to design brand management
strategies in multi-brand companies
u Brand-product matrix
u Brand hierarchy
 Brand-Product Matrix: A tool to design brand
management strategies
The tool highlights the brand mix and
product mix: towards the design of the
relationships amongst brands
Brand-Product Matrix
(Source: Keller, 2013, p. 387)
Product line: the set of product in the same
category, offering similar benefits, sold to the
same segments (similar prices, same channels). A
product line can correspond to one or more brands
(columns of the brand-product matrix)
Product mix: the whole set of products (all the
columns of the brand-product matrix)
By raw: brand-product
relationships (brand line)
telling about the set of products
(in the same or other
categories) sold under a specific
brand and so informing on brand
extension strategies (category
and line extensions)
By column: product-brand
relationships (brand portfolio
strategy) telling about the set
of brands and brand lines that
a particular firm offers for sale
to buyers in a particular
category, informing on nature
and number of brands in a
specific category (use of
different brands for addressing
different market segments à
issues of brand portfolio
management)
Key principle to structure a brand porfolio:

to maximize market coverage and minimize brand overlap

• Responding to different segments
• Responding to similar segments differently (responding
to customers that like change): a costly strategy with
risks...
• Risk of cannibalization between brands of the same
company (need for pruning?)

Overall aim: to maximize overall brand equity

• (generally) any brand in the portfolio has not to
decrease the equity of the other
• Ideally, the combination and co-presence of the brand
in the portfolio maximize the brand equity (synergy)
 • Circles = customers
Risk of cannibalization • Intersections= customers stepping
from one brand to another
• Potential market= rectangular area
• Marca X (Brand x) = the set of
(old brand)
competing brands
(Brand x) (old brand)

(Brand x)
(new brand)
(new brand)
• What is the best and
(Brand x) (old brand) (Brand x) (old brand) worst case?

(new brand)

(new brand)

The case of a new brand launch in a (Source: Lambin, 2016, p. 364)

multi-brand company
 • Circles = customers
Risk of cannibalization • Intersections= customers stepping
from one brand to another
• Potential market= rectangular area
• Marca X = the set of competing
(old brand) brands

(Brand x)
Case 1: the new brand gives no market
(new brand) advantages while sharing the same
market with the old brand

Case 2: the new brand extends the

firm’s market share without, however,
‘stealing’ customers to the competitors

Case 3: the new brand address the

market occupied by the old brand and
by the competing brand; it also expand
the market

The case of a new brand launch in a (Source: Lambin, 2016, p. 364) Case 4: the best case, no
multi-brand company cannibalization.
The case of Coca-Cola Zero and Coca-Cola Light
(Italian market): A planned cannibalisation?
u 2007 launch of Coca-Cola Zero, adding to Coca-Cola
Light as «healthy» drinks à perceived as the same by
many consumers
Why this choice? A «planned cannibalization»
Ø Different target segments: addressing men, a segment
that had remained uncovered by Coca-Cola Light;
while strengthening the female target for Coca-Cola
Light (e.g., cobranding with Maybelline New York in
2009)
Ø Different positioning
Ø Different communication policy
u A «cannibalization effect» was forecast (10% sales
from Coca-cola classic and 25% from Coca-Cola Light):
however, the overall sales would have grown
u A successfull strategy: first stage à a degree of
cannibalization; second stage à the % of light cola-
drinks doubled over the total cola sales (C-C Light
Source: Lambin, 2016, p. 365
from 6% to 5.3%; C-C Zero reached 6.5%)
 Branding strategy in multi-product and multi-
brand companies.

Two dimensions characterising branding

strategies: We spoke
of
• Breadth: brand-product relationship in
breadth
relation to brand extension strategies (how and
much the brand is “extended” by line and depth in
by category; how many products are what
covered by a brand?) other
context?
• Depth: product-brand relationship in
Brand-Product Matrix relation to choices of portfolio structuring
(Source: Keller, 2013, p. 387)
and the brand mix (how much the company
is “deep” in filling a certain product
category with its brands; how many brands
cover one product category?)
Brand roles in the portfolio
Possible roles of brands in the brand portfolio
(Source: Keller, 2013, p. 394, p. 396)
Flagship brand: flagship brand,
representing the company to consumers
(the most recognizable and with higher
equity)
Flankers: creating POPs (competitive
POPs) with competitors to support the
advantage of the flagship brand of the
company
Cash cows: profitable and high sales,
despite no marketing
Low-end/high-end (price/quality):
brand line extremes from low-end
attracting to store to high-end giving
credibility and prestige (highly
profitable).
Brand portfolio optimization

u Two important questions for portfolio optimization (maximising

market coverage and minimizing overlaps):
u What role does the single brand play in the portfolio?
u What positioning for the single brand?
Brand hierarchy

u A tool to summarise the branding strategy of a company by looking at the

brand elements and their combinations – either distinctive or in common
across the owned products – revealing the company’s branding strategy
u What relationships (closeness) across the branded products?
u What distance is built across the branded products?
u The brand levels structuring the hierarchy:
u Company or corporate (group) brand
u Family brand
u Individual brand
u Modifier (distinguishing the specific model)
u Product descriptor (additional, not properly brand element but it helps the
positioning)
Family brand:
Buitoni
An
umbrella
for more
than one
product
category,
but it is
not the
corporat
e brand

Corporate
brand
Corporate brand

Individual brands

Family brands
Family
brand Modifier

Individual brand Product descriptor

u The potential contribution of each hierarchy level to brand value creation:
u Corporate / company brand: not necessarily both are known by the customer; it
may be crucial in the branding strategy; increasing role of some associations such
as the social responsibility (also in relation to workers treatment, human
rights) and reputation of the organization; it may be composed of a broader set (including
services)
of associations than the single products; it is created over time, by means of
the offered products, general behaviour and communication; growing
acknowledgement of the role of the corporate/company brand in highly
competitive markets
u Family brand: the company brand can not be equally effective (with its
associations) in relation to any product the company offers, so the family brand
Source: Keller, 2013
can be a good option to introduce more specific associations to the “family”
(e.g., Nestlè is the corporate brand encompassing Kit Kat and Buitoni, two very
different brands)
u Individual brand: it gives the opportunity to personalise the brand and the
marketing programme for the specific target; it may help isolate the product
brand failures (limiting the impact on the company brand)

Adding levels in the brand hierarchy:

- Gives opportunity to enriching and differentiating brand
associations (a dedicated positioning)
- Implies additional marketing expenses
- It adds specificity and sophistication but it may also result to
complex and articulated to understand for the customer
Strategic management:
Developing a Brand Architecture
 Brand architecture strategies

Source: Aaker & Joachimsthaler, 2000

u Brand architecture:
u How to sustain, nurture and maintain brand equity
u Relevant to multi-product companies
u Diverse products for different segments
u Diverse products for different (geographical)
markets
u Diverse products in the same category, segment,
(geographical) market
u Diverse products in different categories

u Aim:
u To clarify brand awareness (improving consumer Source: Douglas & Craig, 2001
understanding)
u To improve brand image (transferring or not brand
associations within the portfolio)
Designing a brand architecture

u Defining the number of brand levels in the hierarchy

u Principle of simplicity: the lowest possible number of levels
u Defining desired brand awareness and image at each level (considering trade-offs)
u Principle of relevance: creating as abstract (yet relevant) associations as possible to
be adequate to the largest possible number of products
u Principle of differentiation: to differentiate single products as much as possible
u Considering the opportunity to use a brand element for more products
u Principle of commonality: the more common elements products share, the stronger
the linkages between them
u Defining combinations of brand elements from the different levels for the individual
product
u Principle of prominence: defining what brand element should be relatively more
visible compared to the others (larger, more distinctive, appearing first)
(from Keller’s handbook)
Defining the brand architecture

u Defining the brand architecture means to specify the brand elements and
positioning associated with the specific products/services for the brand
u A strategic decision to make when launching a new product
The two possible “extreme” strateges
80 major brands with
limited link to P&G

House of Brands
Branded House strategy
strategy (a collection of
(umbrella corporate individual brands
or family brand for with different brand
all products) elements)
Source: bristolcreativeindustries.com
 Framing different
The brand relationship spectrum relationships between
parent/master brand
(corporate/company/fami
ly brand) and the
u This is a brand architecture tool to support brand
endorsed/sub-brand
strategists
(family brand, individual
u A range of strategies to: brand)
u Allow brands to stretch across products and markets
u Address conflicting brand strategy needs
u Protect brands from being diluted by over-stretching
u Signal that an offering is new and different
u A continuum that involves 4 basic strategies and 9 sub-
strategies
u In choosing the most suitable strategy one would need to
look at the specific «driver role» that each brand plays
in influencing the purchase intentions of consumers.
(Source: The Brand Relationship
u A mix of strategy can be employed Spectrum: the key to the brand
architecture challenge,
Aaker & Joachimsthaler, 2000)
 Driving role of
the individual brand

Driving role of
the corporate or
family brand
 House of brands: (individual brand is the driver) an
independent set of stand-alone brands, each maximizing
the impact on a market. This strategy renounces to the
economies of scale of marketing and synergies which come
from leveraging a brand (and its elements) across multiple
Synergies & economies of scale in marketing

businesses.
A very costly strategy overall: some brand has no
opportunity to make significant investment and risks
decline or stagnation.

Not connected - An appropriate strategy when:

• Targeting niche markets with very focused value
proposition
• Avoiding brand associations that would be incompatible
with the offering (the corporate brand and the other
related brands would hamper the niche brand)
• Signalling the advantages of new offering
• Avoiding or minimizing channel conflicts

Shadow endorser – only few consumers know there is a link

between the parent brand and the endorsed brand (not
visibly linked). The endorsed brand represents a totally
different brand but the organization is backing the brand
Source: Aaker & Joachimsthaler, 2000
Individual brand Corporate brand

Shadow
endorsers
 Driving role of
the individual brand

Driving role of
the corporate or
family brand
Endorsed brands:
Nestlè endorsing Kit-Kat when
Still the independence (individual brand is the driver, acquiring it in 1988 to establish
but...) of the house of brands but there is a visible
itself more in the UK market
endorsment by an established brand that provides
credibility and substance (strong endorser), even though it where Kit-Kat was a leading
plays a minor driver role. national brand.
This may also provide useful associations to the endorser (in
some case this prevails over supporting the endorsed
brand).

Token endorser – minimal presence of the master brand just

to give some credibility and ressurance (less visible, less
prominent). To be useful the endorser has to be highly
reputable.

Linked Name – A link provided by the presence of part of the

endorser’s name which is so strong to boost the link to the
brand in people’s minds
Sub-brands:
Brands connected to a master or parent brand and augment and modify the
associations of that master brand. The master brand is the primary frame of reference
(master as driver), which is stretched by sub-brands that add associations (functional,
symbolic...).
The sub-brand extends the master brand into a meaningful new segment.
A closer link than endorser-endorsed brands. Such stronger link can also imply risks for
the master brand.
Subbrand as co-driver – both master and sub-brand have a major driver role (e.g.
Apple-iPhone)

Branded house:
Use of a single master brand (master is the driver) to span a set of offerings that
operate with only descriptive sub-brands; a large number of products under the master
brand. The master brand becomes a dominant driver (not just primary as in the
subbrand strategy). The subbrand is a mere descriptor with little or no driver role.
There is a risk of dilution and loosing appeal as spanning several different markets and
this strategy can limit the opportunity to serve specific groups. However, this strategy
maximizes clarity, synergy and leverage.
«It should be the default brand architecture option. Any other strategy requires
compelling reasons» (Aaker & Joachimsthaler, 2000, p. 15)
International markets: Same brands with different identities – when the same brand is
used across products, segments, and countries, different brand identities (brand A popular form of
elements) may be needed under the same brand name: the same brand identiy may not
work in different contexts, at the same time too many brand identities are not brand extension
manageable and costly.
 Step 3: Branding new products and services: how to position the new product in the
brand portfolio (what strategy is the firm employing?)

Higher
Lower synergies,
synergies,
limited
capitalising on
capitalisation on
the existing
the existing brand
brand assets,
assets, higher
lower costs
costs BUT lower
BUT high risk
risk of dilution,
of dilution,
lower risk of
negative
negative effects on
effects on the
the existing
existing
brands...
brands...

A balance of brand equity and cost implications

related to the marketing programmes
 House of brands, Endorsement, Sub-brand or Branded house?
Family
brand

Endorsed brand: Token

endorser – minimal
presence of the master
brand just to give some
credibility and
ressurance (less visible,
less prominent). To be
useful the endorser has
to be highly reputable.

Corporate
brand
 House of brands, Endorsement, Sub-brand or Branded house?

Endorsed brand:
Strong endorsement
 House of brands, Endorsement, Sub-brand or Branded house?

Branded house – same

identity
 House of brands, Endorsement, Sub-brand or Branded house?

Sub-branding – sub-
brand as co-driver
Brand extension

u Brand extension strategy are considered when a new product has to be

launched
u Capitalise on existing brands (brand extension)?
u Or launch a new brand?
u From scepticism for the this strategy (following the “one brand-one product”
approach) to understanding the potential of this strategy
u A strategic option for firm’s growth
u Need to balance advantages and disadvantages
Assessing the opportunity for brand
extension
Ansoff’s Growth Matrix
(product/market expansion grid to
reflect on modalities of growth for a
firm)
Two ways to categorize growth
strategies:
• Through existing or new product
• Focusing on existing or new
market
When introducing a new product, three
strategies are possible:
1. A new brand (a very risky and costly
choice)
2. Brand extension (application of an
existing/established brand, the
parent brand) (not without risks!)
3. A combination of new and existing
brand (various options in the brand
relationship spectrum)
 Brand extension is a strategy based on
leveraging brand equity to support the new
product launch

• New product launch often fail (8 out 10!): brand

extensions increase success rate although they carry on
risks
• Brand extension for the majority of new products:
there is however a significant chance of failure
(Volkner & Sattler, 2006)
• Any sector has its characteristics: e.g., in the
technology markets there is a trend of adopting new
brands for new products (endorsement can be however
very important!)
Brand extension

u Two typologies:
u Line extension: application of parent brand to a new product that
targets a new or old market segment within a product category
the parent brand currently serves (e.g. adding different flavour,
ingredient variety, different form/size...)
u Category extension: application of the parent brand to enter a
different product category from the one it currently serves (also
addressing the same already known market)
u Vertical extension:
u Providing a version of the product in the same category but with a lower (or higher)
price (vertical extension towards higher prices is very difficult)
u Forms of sub-branding: identifying the new product at a lower price
u Risky strategy for prestigious brands (lower price policy) – loosing sense of
exclusivity?
Important question: On
what basis this
extension was possible?
What type of brand extension
in this case?

Brand extension – line

extension
What type of brand extension
in this case?

Brand extension –
Category extension