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.

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. 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. Agenda
1
Definition of a brand
2
Strategic concept of identity-based brand management
3
Brand-authenticity as a success factor of branding
© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 3

4. What is a brand?
© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 4

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. 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. 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. Question
What are the functions of brands for consumers?
© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 8

9. Functions of brands: Consumer perspective
1. 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. Functions of brands: Company perspective
Price 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. 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. 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. Individual, continuous and consistent
brand behavior: Positive example Porsche
© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 13

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. 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. Individual, continuous and consistent
brand behavior: Negative example Aston Martin
© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 16

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. 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. 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. 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. 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. 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