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Brand authenticity and strategic brand management

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What is an authentic brand? Aspects of brand authenticity play a minor role in academic research so far, although there is no doubt concerning the relevance of the concept for strategic brand manage-ment. Especially growing brand parity and market transparency caused by new internet-based communication devices will place more importance on the authenticity of brands for their future success. This presentation is about the concept of brand authenticity, grounding on the identity based brand management approach. Brand authenticitiy is de-fined as the degree to which brand identity is causally linked to brand behaviour. Brand authenticity is perceived, when a brand fulfils its brand promise in a unique, consistent and continuous way. A positive outcome of brand authenticity is brand trust.

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Brand authenticity and strategic brand management

  1. 1. Presentation Strategic Brand Management and the concept of brand authenticity © Dr. Mike Schallehn (When content of this presentation is used you have to cite the original source „Schallehn (2012)“!) For further information about the brand authenticity construct visit as well www.brandauthenticity.org© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 1
  2. 2. Professional background • Founder and managing director of ALANDIA GmbH & Co KG – http://www.alandia.de / ALANDIA Absinthe Shop / Absinth Shop© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 2
  3. 3. Agenda1 Definition of a brand2 Strategic concept of identity-based brand management3 Brand-authenticity as a success factor of branding© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 3
  4. 4. What is a brand?© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 4
  5. 5. Historical concept of a brand: Brand as a property sign “The word “brand” derives from the Old Norse word “brandr”, which means “to burn”, as brands were and still are the means by which owners of livestock mark their animals to identify them.” (Keller 2002)© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 5
  6. 6. Today´s concept of a brand: Brand as a bundle of benefits …a bundle of benefits with A brand is… sustainable differentiation potential. (Burmann/Meffert 2005) Functional benefits: The bundle consists of: - Fast and safe, sports car Symbolic benefits: - Driving pleasure, fun© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 6
  7. 7. Importance and challenges of branding 1. Increasing functional parity of 2. Increasing awareness for brand products authenticity in society- Saturated markets - Increased market transparency and- Outsourcing activities customer power through internet 1. Brands serve as an important (the only) differentiator. 2. Branding needs (more than ever) strategic management.© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 7
  8. 8. Question What are the functions of brands for consumers?© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 8
  9. 9. Functions of brands: Consumer perspective1. Brands give orientation: 2. Brands minimize risk: • Help to (re)identify • Build trust and a product/service. reduce the risk • Bundle information of a wrong and thereby purchase facilitate buying decision. decisions.3. Brands add (symbolic) value to the • Prestige, Self-Fulfillment, Group product: Membership, Social acceptance etc.© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 9
  10. 10. Functions of brands: Company perspectivePrice level [€] Apple iPhone iPhones sold in 2011:1000 72 million 900 800 700 Price Other Smartphones 600 Premium 500 400 2007 2008 2009 2010 2011 Source: Apple© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 10
  11. 11. Strategic brand management: Identity-based brand management • State of the art in terms of strategic brand management is the Identity-based brand management approach (Aaker 1996, Meffert/Burmann 1996) • Derived from social-psychology© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 11
  12. 12. Model of the identity-based brand management approach Brand Promise Brand (Positioning) Expectations Brand Identity Brand Image Strong Brand (Internal Perspective) (External Perspective) Brand Brand Behavior Experiences Individual, continuous and consistent behavior leads to strong perceptions about the brand! Source: Burmann/Meffert (2005)© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 12
  13. 13. Individual, continuous and consistent brand behavior: Positive example Porsche© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 13
  14. 14. Individual, continuous and consistent brand behavior: Negative example Aston Martin© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 14
  15. 15. Individual, continuous and consistent brand behavior: Negative example Aston Martin • Aston Martin Cygnet: • 98 PS • 5.5 l/100Km • 38.000 Euro • Based on the technique of Toyota iQ© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 15
  16. 16. Individual, continuous and consistent brand behavior: Negative example Aston Martin© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 16
  17. 17. Brand authenticity as success factor Definition: „The degree to which brand identity is causally linked to brand behaviour.“ (Schallehn 2012) 0% Authenticity 100% Authenticity Personal Identity is causally linked to behavior External forces are causally linked to behavior Source: Schallehn (2012)© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 17
  18. 18. Identity and authenticity ? Identity Self- Presentation Attribute related concept Self-presentation related concept Do I externally present myself Who am I? accordingly to my identity? Identity Authenticity Source: Schallehn (2012)© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 18
  19. 19. Concept of brand authenticity Should not be corrupted by external forces (Only promise what you are) Perceived brand authenticity: Identity Is the brand promise Brand Promise consistent (Positioning) with the identity of the brand? Brand Behavior Source: Schallehn (2012)© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 19
  20. 20. Antecedents of brand authenticity Continuity + of the brand Consistency + Perceived of the Brand authenticity brand + Individuality of the brand Continuity: Fit of the brand promise with historical brand behavior Consistency: Fit of the brand promise with current brand behavior Individuality: Level of uniqueness in brand behavior Source: Schallehn (2012)© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 20
  21. 21. Brand authenticity and its effects Brand Brand Brand Authenticity Credibility Trust Source: Schallehn (2012)© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 21
  22. 22. Bibliography Aaker, D. (1996): Building strong brands, New York: Free Press. Schallehn, M. (2012): Marken-Authentizität. Konstrukt, Determinanten und Wirkungen aus Sicht der identitätsbasierten Markenführung, Wiesbaden: Gabler. Burmann/Meffert (2005): Markenmanagement: Identitätsorientierte Markenführung und praktische Umsetzung, Wiesbaden: Gabler. Burmann, C./Schallehn, M. (2012): Sein oder nicht Sein, das ist hier die Frage: Konzeptualisierung und empirische Analyse von Marken-Authentizität, in: Marketing ZFP, Heft (4), Jg. 34. Burmann, C./Schallehn, M. (2010): Konzeptualisierung von Marken-Authentizität, LiM Arbeitspapiere Nr. 44, Burmann, C. (Hrsg.), Universität Bremen: Bremen.© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 22

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