always seem to understand how branding works or apply branding concepts correctly. For branding success, an apprecia- tion of and aptitude for using appropriate branding concepts—
a focus of this book—is critical.
33. Ben Sisario, “Looking to a Sneaker for a Band’s Big Break,” New York Times, 6 October 2010; Rebecca Cullers, “Stepping Up,” Brandweek, 13 Septem- ber 2010; Eleftheria Parpis, “Converse Turns Up the Noise,” Adweek, 14 July 2008; Erin Ailworth, “Pros and Cons,” Boston Globe, 2 March 2008.
34. Betsy Bohlen, Steve Carlotti, and Liz Mihas, “How the Recession Has Changed U.S. Consumer Behavior,”
McKinsey Quarterly, December 2009.
35. John Gerzema and Ed Lebar, The Brand Bubble (San Francisco, CA: Jossey-Bass, 2008).
36. “Nielsen: Global Consumers’ Trust in Earned Adver- tising Grows in Importance,” www.nielsen.com; “How
‘Hunger Games’ Built Up Must-See Fever,” www .nytimes.com, 18 March 2012; “Inside ‘The Hunger Games’ Social Media Machine,” www.fastcocreate .com, 4 April 2012; “The Hunger Games Uncom- fortably Thrilling,” The Economist, 26 March 2012;
“Hunger Games Success Through Social Media,”
www.calgaryherald.com, 4 May 2012; “How a Startup Powered Hunger Games into a Global Social Phe- nomenon,” www.forbes.com, 25 March 2012; “Lenny Kravitz Talks Hunger Games, Bond with Star Jennifer Lawrence,” 19 March 2012, www.eurweb.com.
37. www.bases.com/news/news03052001.html; “New Products Generate $21 Billion in Sales in 2008,”
NielsenWire, 30 January 2009.
38. Frederick E. Allen, “CMOs Are Staying on the Job Longer Than Ever,” Forbes, 24 March 2011.
39. Jem Aswad, “Single Michael Jackson Glove Sold for over $300K,” Rolling Stone, 6 December 2010; Jerry Garrett, “Putting a Price on Star Power,” New York Times, 28 January 2011; www.christies.com. For an academic treatment of the topic, see George E.
Newman, Gil Diesendruck, and Paul Bloom, “Celeb- rity Contagion and the Value of Objects,” Journal of Consumer Research, 38 (August 2011): 215–228.
40. For discussion of some other approaches to branding, see David A. Aaker, Managing Brand Equity (New York: Free Press, 1991); David A. Aaker, Building Strong Brands (New York: Free Press, 1996); David A. Aaker and Erich Joachimsthaler, Brand Lead- ership (New York: Free Press, 2000); Jean-Noel Kapferer, Strategic Brand Management, 2nd ed.
(New York: Free Press, 2005); Scott M. Davis, Brand Asset Management (New York: Free Press, 2000);
Giep Franzen and Sandra Moriarty, The Science and Art of Branding (Armonk, NY: M. E. Sharpe, 2009). For an overview of current research findings, see Brands and Brand Management: Contemporary Research Perspectives, eds. Barbara Loken, Rohini Ahluwalia, and Michael J. Houston (New York: Taylor and Francis, 2010) and Kellogg on Branding, eds.
Alice M. Tybout and Tim Calkins (Hoboken, NJ:
John Wiley & Sons, 2005).
41. For a very practical brand building guide, see David Taylor and David Nichols, The Brand Gym, 2nd ed.
(West Sussex, UK: John Wiley & Sons, 2010).
42. Much of this section is adapted in part from an excel- lent article by George S. Low and Ronald A. Fullerton,
“Brands, Brand Management, and the Brand Manager System: A Critical-Historical Evaluation,” Journal of 21. “A HanZpad for Every Student,” The Sunday Times,
8 April 2012, 30; “Creative Launches New HanZ- pad Platform,” http://www.creative.com/corporate/
pressroom/releases/welcome.asp?pid=13267, accessed May 30, 2012; “Sim Wong Hoo Sets His Sights on China,” http://entrepid.sg/sim-wong-hoo-sets-his- sights-on-china/, accessed May 29, 2012.
22. “As Consumers Seek Savings, Private Label Sales Up 7.4 Percent,” NielsenWire, 13 August 2009.
23. Brad Stone, “I’ll Take It from Here,” Bloomberg Busi- nessWeek, 6 February 2011, 50–56; Michael V. Co- peland, “Google: The Search Party Is Over,” Fortune, 16 August 2010, 58–67; Helen Walters, “How Google Got Its New Look,” Bloomberg BusinessWeek, 5 May 2010; Andrei Hagiu and David B. Yoffie, “What’s Your Google Strategy?,” Harvard Business Review (April 2009).
24. Nigella Lawson, “How to Eat,” http://www.nigella.com/
books/view/how-to-eat-13; Joe Dolce, “England’s It Girl,”
http://www.gourmet.com/magazine/2000s/2001/04/
englandsitgirl.
25. David Lidsky, “Me Inc.: the Rethink,” Fast Company, March 2005, 16.
26. University professors are certainly aware of the power of the name as a brand. In fact, one reason many pro- fessors choose to have students identify themselves on exams by numbers of some type instead of by name is so they will not be biased in grading by their knowl- edge of which student’s exam they are reading. Other- wise, it may be too easy to give higher grades to those students the professor likes or, for whatever reason, ex- pects to have done well on the exam.
27. www.unicef.org; Ariel Schwartz, “The UNICEF TAP Project Charges Cash for Tap Water to Raise Funds, Awareness,” Fast Company, 22 March 2011;
“UNICEF Aims to ‘Put It Right’ with a Five-Year Plan to Raise £55m,” Mail Media Centre, 6 February 2010; Rosie Baker, “UNICEF Brings Campaign to London Streets,” Marketing Week, 15 February 2010;
www.ikea.com.
28. Joel Hochberg, “Package Goods Marketing vs. Holly- wood,” Advertising Age, 20 January 1992.
29. “ H a r r y P o t t e r a n d t h e E n d l e s s C a s h S a g a ,”
www.news.sky.com, 7 July 2011; “The Harry Pot- ter Economy,” The Economist, 17 December 2009;
Susan Gunelius, “The Marketing Magic Behind Harry Potter,” Entrepreneur, 22 November 2010; Beth Sny- der Bulik, “Harry Potter: The $15 Billion Man,” Ad- vertising Age, 16 July 2007; “Harry Potter Casts the Superpowerful Moneymaking Spell,” Entertainment Weekly, December 23/30, 2011, 26.
30. For an illuminating analysis of top brands, see Francis J. Kelley III and Barry Silverstein, The Breakaway Brand: How Great Brands Stand Out (New York, McGraw-Hill, 2005).
31. Jack Trout, “Branding Can’t Exist Without Position- ing,” Advertising Age, 14 March 2005, 28.
32. Allan D. Shocker, Rajendra Srivastava, and Robert Ruekert, “Challenges and Opportunities Facing Brand Management: An Introduction to the Special Is- sue,” Journal of Marketing Research 31 (May 1994):
149–158.
Marketing Research 31 (May 1994): 173–190; and an excellent book by Hal Morgan, Symbols of America (Steam Press, 1986).
43. Carl Elliott, “How to Brand a Disease—and Sell a Cure,” www.cnn.com, 11 October 2010; Keith J.
Winstein and Suzanne Vranica, “Drug Firms’ Spending
on Consumer Ads Fell 8% in ‘08, a Rare Marketing Pullback,” Wall Street Journal, 16 April 2009; Mat- thew Arnold, “Flat Is the New Up,” Medical Marketing
& Media (April 2010); Yumiko Ono, “Prescription- Drug Makers Heighten Hard-Sell Tactics,” Wall Street Journal, 29 August 1994, B-1
67
Learning Objectives
After reading this chapter, you should be able to
1. Define customer-based brand equity.
2. Outline the sources and outcomes of customer- based brand equity.
3. Identify the four components of brand positioning.
4. Describe the guidelines in developing a good brand positioning.
5. Explain brand mantra and how it should be developed.
Customer-Based Brand Equity and Brand
Positioning 2
Starbucks’ unique brand positioning helped to fuel its phenomenal growth.
Source: AP Photo/Ted S.
Warren
Preview
Chapter 1 introduced some basic notions about brands, particularly brand equity, and the roles they have played and are playing in marketing strategies. Part II of the text explores how to de- velop brand strategies. Great brands are not accidents. They are a result of thoughtful and imagi- native planning. Anyone building or managing a brand must carefully develop and implement creative brand strategies.
To aid in that planning, three tools or models are helpful. Like the famous Russian nesting matryoshka dolls, the three models are interconnected and in turn become larger in scope: the first model is a component in the second model; the second model, in turn, is a component in the third. Combined, the three models provide crucial micro and macro perspectives on successful brand building. These are the three models:
1. Brand positioning model describes how to establish competitive advantages in the minds of customers in the marketplace;
2. Brand resonance model describes how to take these competitive advantages and create intense, active loyalty relationships with customers for brands; and
3. Brand value chain model describes how to trace the value creation process to better under- stand the financial impact of marketing expenditures and investments to create loyal cus- tomers and strong brands.
Collectively, these three models help marketers devise branding strategies and tactics to maximize profits and long-term brand equity and track their progress along the way. Chapter 2 develops the brand positioning model; Chapter 3 reviews the brand resonance and brand value chain models.
This chapter begins, however, by more formally examining the brand equity concept, introducing one particular view—the concept of customer-based brand equity—that will serve as a useful organizing framework for the rest of the book.1 We’ll consider the sources of customer-based brand equity to provide the groundwork for our discussion of brand positioning.
Positioning requires defining our desired or ideal brand knowledge structures and estab- lishing points-of-parity and points-of-difference to establish the right brand identity and brand image. Unique, meaningful points-of-difference (PODs) provide a competitive advantage and the “reason why” consumers should buy the brand. On the other hand, some brand associa- tions can be roughly as favorable as those of competing brands, so they function as points-of- parity (POPs) in consumers’ minds—and negate potential points-of-difference for competitors.
In other words, these associations are designed to provide “no reason why not” for consumers to choose the brand.
The chapter then reviews how to identify and establish brand positioning and create a brand mantra, a shorthand expression of the positioning.2 We conclude with Brand Focus 2.0 and an examination of the many benefits of creating a strong brand.