Kevin Lane Keller

1. CHAPTER:7
LEVERAGING
SECONDARYBRAND
ASSOCIATIONSTOBUILD
BRANDEQUITY
Copyright © 2013 Pearson Education

2. Learning Objectives
Copyright © 2013 Pearson Education
 Outline the eight mainwaysto leverage secondary
associations
 Explain the processby whicha brand canleverage
secondary associations
 Describesomeof the key tactical issuesin
leveraging secondaryassociationsfrom different
entities

3. Conceptualizing the Leveraging
Process
Copyright © 2013 Pearson Education
 Linkingthe brand to someother entity may:
Create a newsetof associationsfrom the brand to the
entity
Affect the existing brand associations

4. Creation of New Brand Associations
Copyright © 2013 Pearson Education
 Secondary brand associationsare mostlikely to
affect evaluations of a newproduct when:
Consumerslack either the motivation or the ability to
judge product-related concerns

5. EffectsonExistingBrand Knowledge
Copyright © 2013 Pearson Education
 Cognitive consistency- What istrue for the new
associationmustbe true for the brand

6. Figure 7.2- Understanding Transfer of
Brand Knowledge
Copyright © 2013 Pearson Education

7. Company
Copyright © 2013 Pearson Education
 Existingbrands canbe related to a corporate or
family brand
 Acorporate or family brand canbe a sourceof
brand equity
 Leveraging a corporate brand mayor maynot be
useful

8. Country of Origin or Geographic
Location
Copyright © 2013 Pearson Education
 Canbe linked to the brand to generate secondary
associations
 Consumerschoosebrands originating in different
countriesbased on:
Theirbeliefs about the quality of certain types of
productsfrom certain countries
Theimage that thesebrands or products communicate
 Cancreate strongpoints-of-difference

9. Channelsof Distribution
Copyright © 2013 Pearson Education
 Retail storescanindirectly affect brand equity
throughan “image transfer” process
 Retailershavetheir ownbrand imagesin consumers’
mindsdue to the following associations
Product assortment
Pricing
Credit policy
Quality of service
 Customerbase canbe expanded by tapping into
newchannelsof distribution

10. Co-branding
Copyright © 2013 Pearson Education
 When two or moreexisting brands are combined
into a joint product or are marketed together in
somefashion
 Example- Betty Crockerpaired with Sunkist
Growersto market a lemonchiffon cake mix

11. Ingredient Branding
Copyright © 2013 Pearson Education
 Createsbrand equity for materials, components,or
parts that are contained within other branded
products
 Branded ingredients are often a signal of quality
 Uniformity and predictability of ingredient brands
canreducerisksand reassure consumers

12. Licensing
Copyright © 2013 Pearson Education
 Createscontractual arrangementswhereby firms
can use:
Names,logos,and characters of other brands to
market their ownbrands for somefixed fee
 Canalso provide legal protection for trademarks
 Risk- Atrademark maybecomeoverexposed if
marketersadopt a saturation policy

13. Corporate trademark licensing
Copyright © 2013 Pearson Education
 Licensingof companynames,logos,or brands for
useonvarious,often unrelatedproducts
 Firmsmaylicensecorporate trademarksto:
Generate extra revenueand profits
Protecttheir trademarks
Increasetheir brand exposure
Enhancetheir image
 Risk- Productmaynot live up-to the image
established by the brand

14. Celebrity Endorsement
Copyright © 2013 Pearson Education
 Rationale
Afamousperson can:
 Draw attention to a brand
Shapebrand perceptions, by virtue of consumers
perceptions of the famousperson
 Celebrity endorsersshouldhave:
Ahighlevel of visibility
Arich setof potentially useful associations,judgments,
and feelings

15. Sporting Cultural or Other Events
Copyright © 2013 Pearson Education
 Havetheir ownsetof associationsthat maybecome
linked to a sponsoringbrand under certain
conditions
 Contribute to brand equity by:
Becomingassociated to the brand and improving brand
awareness
Adding new associations
Improving the strength, favorability, and uniquenessof
existing associations

16. Third Party Sources
Copyright © 2013 Pearson Education
 Involveslinking the brand to variousthird party
sources
 Example- Grey Goose'seventual successwasa
taste-test resultfrom the BeverageTestingInstitute
that ranked Grey Gooseasthe number-one
imported vodka

17. ToSumUp...
Copyright © 2013 Pearson Education
 Other entities include:
Thecompanythat makestheproduct
Where the product is made
Where the product is purchased
Related people, places,or things
 Theextent to whichanentity canbe leveraged asa
sourceof equity dependson:
Consumerknowledge of the entity
Howeasily the appropriate associationsor responsesto
the entity transfer to the brand

18. All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2013 Pearson Education