This document outlines eight ways that brands can leverage secondary associations to build brand equity, including linking to other companies, countries of origin, distribution channels, co-branding, ingredients, licensing, endorsements, and events. It explains how secondary associations can generate new brand perceptions or influence existing perceptions if consumers lack ability or motivation to evaluate the brand itself. The transfer of associations depends on consumer knowledge of the external entity and how easily its attributes can be applied to the brand. Leveraging must be carefully considered as external entities may not maintain their image over time.

1. CHAPTER:7
LEVERAGING
SECONDARYBRAND
ASSOCIATIONSTOBUILD
BRANDEQUITY
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2. Learning Objectives
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 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
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 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
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 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
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 Cognitive consistency- What istrue for the new
associationmustbe true for the brand

6. Figure 7.2- Understanding Transfer of
Brand Knowledge
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7. Company
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 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
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 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
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 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
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 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
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 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
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 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
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 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
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 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
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 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
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 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...
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 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

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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.
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