Brand defini*ons

Three different defini,ons adop,ng three different perspec,ves on brand

- Defini,on 1: A brand is a “name, term, sign, symbol, or design, or a combina,on of them, intended to
iden*fy the goods and services of one seller or group of sellers and to differen,ate them from those of
the compe,tors” (American Marke.ng Associa.on)
- Defini,on 2: A brand is the result of a brand strategy and the set of marke*ng programmes and ac*ons
that create a certain amount of awareness, reputa,on, prominence in the marketplace
- Defini,on 3: A brand is a set of percep*ons that reside in the minds of consumers. It is a perceptual
en,ty “rooted in reality, but it is more than that”
What is a brand? APPLE EJEMPLO
- Defini*on 1: the aJen,on is on the brand elements (name, logo, symbol, package, design and other
characteris,cs iden,fying and dis,nguishing the product)
- Def 1 the apple, the use of colours, the graphic style, posi,on of the bite
- Defini*on 2: the aJen,on is on the price policy, product design and quality, the apple stores and retailing
strategy, the broader set of distribu,on channels ...
- Def 2 price, design and quality of products, apple stores and retailing strategies producing awareness
and reputa,on
- Defini*on 3: the aJen,on is on the brand projec,on capacity in customers’ minds
- Def 3 set of associa,ons in people’s minds
Brand vs. Product
- “Product” in the handbook language: anything we can offer to a market for aJen,on, acquisi,on, use, or
consump,on that might sa,sfy a need or want
- a physical good
- a service
- a retail outlet (department store, supermarket ...)
- a person (poli,cian, ar,st…)
- a non-profit, cultural ins,tu,on
- a place: a city, state, or country
- Brand: it is ”more than a product, because it can have dimensions that differen*ate [the product] in
some way from other products that are designed to sa,sfy the same need” (reputa,on/set of
percep,ons)
A broad defini,on of product... A ”branded object”Can everything be a brand?
Brand func*ons
One overall func,on: brand’s contribu,on to crea,ng and signalling the compe..ve advantage

• Based on product performance, also through the adop,on of new technologies (addressing the
same need but the ability to sa,sfy ”more and beJer” is at the core of the brand)

• Based on non-product-related means by crea,ng appealing intangible images

• Intangible assets may result the most valuable assets for the firm (brands as well as managerial
skills, marke,ng, finance...)
 • “Symbolic consump,on” and consumers’ iden,ty building (Arnoud & Thompson, 2005)
Compe**ve Advantage: differen*al advantage over compe*tors such that greater profitability and/or
larger market share is achieved ->The compe**ve advantage resides in crea*ng perceived differences
among products.

“Our strength is the price” DIY and “affordable design”. “The most loved by Italians” (Hybrid strategy)
(Cost leadership) (Differen*a*on)
How is the compe,,ve advantage communicated?
“even for today “cracco” goes home this special perfume comes to me
And I get back to be simply myself Carlo I find this perfect place again
where things that maAer maybe are already sleeping
and where I finally feel at home
scavolini my bathroom my living room my kitchen”
The compe,,ve advantage according to the “projec,on capacity” of these brands
The lowest price, easy, func,onal You make it by yourself, affordable Authen,c quality, cultural heritage,
and “with a style”, ”you” cultural values, Italianness, ”you”
as a person as a person
Brand func,ons in details: B2C AND B2B
Brand func,ons: B2C
1. Iden,fy source/maker of products and assign responsibility on quality (Guarantee)
2. Sense of orienta,on (a list of tangible and intangible elements) and simplifica*on of decision-
making (Orienta.on)
3. Recogni,on of the brand and connec,on to previous knowledge, reducing the search costs: costs of
,me and effort in collec,ng informa,on (Efficiency)
4. Rela*onship and bonds between consumer and the maker of products based on the brand
expecta*ons (Trust)
5. Symbolic device allowing self-iden*ty forma*on (Self-iden.ty building)
6. Risk percep*on reducer
Perceived risk: What risk?
- Func,onal risk (about actual performance)
- Physical and psychological risk (hampering mental and physical health/wellbeing of consumer)
- Financial risk (worth the price paid or not)
- Social risk (not recognized as good by the collec,ve or crea,ng embarrassment)
- Time risk (opportunity cost in terms of ,me in finding another sa,sfactory op,on, “risk of was,ng ,me”)
Perceived risk: the role of brands
- The less we understand, the bigger the role of brands as reducing our percep,on of risk in the purchase
- 3 categories of products based on easiness (and real chance) to really understand product aJributes:
- Search goods: products that easily can be evaluated for their characteris,cs (size, colour ...) (e.g. food)
- Experience goods: inspec,on is not enough for understanding product quality, there is a need for
trying and experience (e.g. automobile ,res, mobile phone)
- Credence goods: hard to learn the product aJributes, need for very technical knowledge (e.g., medical
procedures and equipment, automobile repairs, filters of air condi,oned machinery)
Consumer product typologies
- Product typologies based on the customers’ need for informa*on before deciding to buy and the
perceived risk related to the decision
- Convenience goods: bought frequently, quickly and with a minimum of emo,onal involvement, rela,vely
low price, low risk percep,on, limited ,me dedicated to buy
- Preference goods: bought frequently, quickly , rela,vely low price, with a role of the brand in
differen,a,on, reduced perceived risk, limited amount of ,me to buy
- Shopping goods: less frequent purchase, more significant expenditure and symbolic value, ,me-
consuming process of decision (customer typically compares for suitability, quality, price, features, etc.
before selec,on and purchase)
- Speciality goods: consumer goods for which the customer has strong preference and is prepared to
search extensively to select and purchase the most suitable. Maximum perceived risk and informa,on
search effort is maximum. Unique and some,mes not repeatable purchase (e.g. luxury goods, real
estates)
——> Brand management implica*ons
Does b2b branding make sense?
Business-to-business
- B2B decisions are:
- Extremely complex and technical
- In many cases highly risky
Brand func,on: B2B
1. Iden*fica*on and posi*oning compared to compe*tors
2. Legal protec*on: intellectual property rights allowing to invest safely in brands against imita*on
and counterfei*ng; guaranteeing clients of traceability of the supplied branded product and
iden*fica*on of the responsible firm
3. Signalling quality, predictability and security (capitalising on the past)
4. Rela*onship with the client (loyalty)
5. Barriers to entry to other firms: the brand is not easily replicable, the product might be (brand
securing the compe**ve advantage)
Addi,onal increasingly important func,on: Communica*on func*on Ingredient brand (à ingredient
branding) directly communicates to final customers (e.g., Android by Google; “Made in Italy” leather for
Louis VuiJon bags), an advantage for the supplied firm whose commercial performance gets improved
Examples of b2b branding relevance
- Business professional services MIRAR APUNTES
- Invetors
- The case of sustainable fashion
- Sustainability in the network of suppliers and partners: Can we be sustainable alone? Sustainability is a
maJer of mul,ple stakeholder engagement
- The first B Corp (benefit corpora,on) in Italy in shoes sector (cer,fica,on on environmental and social
performance)
”Sustainability as a service” to support other companies to measure their carbon footprint, towards
environmentally friendly performance in a highly pollu,ng industry
Acbc currently has 13 single- brand stores in 9 countries and boasts collabora,ons with famous brands
including Moschino, Armani, and Philippe Model
B2B branding: Keller’s guidelines (and important concepts to remember...)
- How to brand for B2B?
1. Ensure the en,re organiza,on understands and supports branding and brand
management (the crucial role of employees: internal branding)
2. Adopt a corporate branding strategy if possible
3. Frame value percep,ons: understanding very well how customers think of the brand and
determining how they should ideally think and choose
4. Link relevant non-product-related brand associa,ons (beyond the product: customer service, size of
the firm, image of innova,veness, size of overall market share...)
5. Find relevant emo*onal associa*ons for the b2b brand: emo,onal associa,ons related to a sense
of security, social or peer approval, and self respect can also be linked to the brand and serve as
key sources of brand equity
6. Segment customers carefully both within and across companies
MIRAR APUNTES
B2B customer segmenta,on (B2B branding)
- 2 criteria:
- Company: industry and company size, technologies used and other capabili,es, purchasing policies, and
even risk and loyalty profiles
- Decision-makers: segmen,ng the different individuals playing a role in the decision (Ini,ator, user,
influencer, decider, approver, buyer and gatekeeper)
B2B brands too deal with people (decision- makers/managers)!)!
What’s branding?
Branding: one possible defini,on
- Branding means giving a label (iden*fica*on) and meaning (explain why consumer should care), thus
giving structure to knowledge an individual has on that brand and helping perceive difference among
brands in a product category: the crea,on of a “suppor*ng device” for customers in front of choice
situa.on
- A process aimed at crea,ng “strong” brands
- What does “strong” mean?
- Brand delivering a clear and valuable promise
- Able to maintain and enhance such “strength” over *me
- Planning, implemen,ng, evalua,ng brand strategies
Branding or, even beJer, brand management for constantly boos,ng brand equity building
Customer-Based Brand Equity (CBBE)
- Adop,ng the perspec,ve of the customer (individual or organisa,on)
- Reflec,ng on how the brand sa,sfies customers’ needs and wants
- Posing two ques,ons:
- What does the brand mean to customers?
- How the brand knowledge of customers affect their response to marke,ng ac,vity?
The power of brands lies in what resides in the minds and ”hearths” of customers
CBBE defini,on
- the differen*al effect that brand knowledge has on consumer response to the marke.ng of that brand
- A brand has posi.ve CBBE when consumers react more favourably to a product and to the way it is
marketed when the brand is iden.fied than when it is not
- Three components of this defini.on:
- Differen.al effect (no differen.al effect, no brand)
- Brand knowledge (what is learnt, felt, perceived, heard about the brand)
- Consumer response to marke.ng (percep.on, preference, behaviours)
Brand dynamic reading
Brand as strategic posi,oning —>Guiding & suppor,ng ac,ons —> Marke,ng mix —> Impact —>Brand
Equity —>
Experiment: Product sampling or comparison test
- Two groups sampling a product
- One group knows the brand
- One group does not know the brand
- Write down your opinion: quality, feeling, experience...
Your opinion...
- Bad taste/good/very good/the best
- Healthy/unhealthy
- Memories: Nothing/When I was a kid/when I was preparing exams/a specific episode...
- Feeling: Sad/happy/fun/surprise…
- Music: Nothing/a specific song
- People: Nobody/friends/parents/cousins....
Is there a difference in percep,on?
- If there is, knowledge about the brand (past experience, word of mouth, marke,ng ac,vity) is the
responsible!
- Past investments in marke,ng and branding
- Investments in crea,ng knowledge structures in people’s minds
- Future direc,on and crea,ng knowledge on the brand as long-term trajectory
No “differen,al effect”?
- If the groups respond very similarly:
- HP: the consumers perceive the brand “Nutella” as the representa,ve of the product category so that
they responded as the product was unbranded (actually the branding investment was high and
successful – high CBBE!)
- brand awareness (par,cularly, “brand recall”) was “enough” to lead the two groups’ responses
Marke,ng decision making
Strategic marke*ng
1. Defini,on of the reference market (macrosegmenta.on)
2. Market segmenta,on (microsegmenta.on)
3. Selec,on of the target segment
4. Posi,oning
Opera*ve marke*ng
5. Planning and ac,on implementa,on (Marke.ng mix)
The strategic role of the brand: the brand value proposi.on for the customer (sa,sfying needs in a different
way compared to compe,tors, boos,ng image in a way to be visible, recognizable, relevant, easy to remind
to boost behaviours)
Posi,oning (brand value proposi,on) —>Decisions about the product characteris,cs, price, distribu,on
channels, communica,on (implemen,ng the brand)
The brand guides and shapes the marke,ng programmes and, in turn, is implemented by these
The brand integrates the marke,ng leverages configura,on and support their effec,veness, also in case of
policy change
Marke,ng mix
The set of policies the firm blends to produce the desired market response (4Ps)
Product —>Place —>Promo,on —>Price BRAND
,me

(throughout implemen,ng and, if necessary, changing policies of price, distribu,on, promo,on and
product)
Product
- Beyond the set of physical characteris,cs of the product, the product policy concerns the capacity of the
set of product features and aJributes to generate value for the target
- A set of tangible and intangible aJributes...
- ... The defini,on of this “set” is based on the market analysis, not only on the managerial perspec,ve
on what can be offered (to avoid the “marke,ng myopia”, Theodore LeviJ in 1960)
- The rela,onship between product design and brand design
Price
- Price going from the lower extreme (represented by the sum of the direct and indirect costs relate to the
product) to the upper extreme represented by the monetary quan,fica,on of the value that the target
segment assigns to the firm’s offering
- Price is a crucial variable in purchase decisions:
- Inferring quality from price: price highly influences the posi,oning in the market
- Price highly influences the opportunity to have access to a given target segment (e.g., luxury goods
whose exclusivity and status dimensions are mirrored by the price)
- The basis for consumers’ product comparisons
- Cri,cal marke,ng decision: Entry Price Strategy
- Penetra*on strategy: pursuing high sales volume in a limited ,me by offering a low price. Need to
reflect on the opportunity to increase the price later (high price elas,city)
- Skimming strategy: premium price to op,mize short- term profit by targe,ng the cutng-edge
customers looking for the latest (most innova,ve) and best offering regardless price (“pioneer
customers”). In a second stage, the price becomes lower to widen the market. Typical of products with
high technological content
Marke.ng myopia is the failure of the management in the decision-making process, not adequately defining
the scope of their business for a poor and limited insight into the market and consumers’ needs and
preferences.
Price Elas,city: % varia,on of the quan,ty of the demand (sales) determined by 1% price varia,on.
It is a measure of customers’ sensi*vity to the price as variable for purchase decision-making.
E= % Sales varia.on / % price varia.on
How change in the product price affects the change in the demand for that product?
Usually nega,ve value: if price rises, demand decreases ( |E|>1 elas,c demand). If E is close to zero (|E|<1),
it means the demand is inelas*c
The price-brand rela,onship is evident in ,mes of price policy change: price elas,city can be one possible
measure of such rela,onship (the hypothesis of the brand influence)
E= (qt2-qt1)/qt1 * 100 / (pt2- pt1)/pt1 *100

Price of Product 1 Price of Product 2

Time Quan*ty of Product 1 Quan*ty of Product 2
(Euro) (Euro)
t1 1.10 45 1.10 45

t2 1.25 36 1.25 41
Price Elas,city: % varia,on of the quan,ty of the demand (sales) determined by 1% price varia,on.
It is a measure of customers’ sensi*vity to the price as variable for purchase decision-making.
E= % Sales varia.on / % price varia.on

How change in the product price affects the change in the demand for that product?
Usually nega,ve value: if price rises, demand decreases
(|E|>1 elas,c demand). If E is close to zero (|E|<1), it
means the demand is inelas*c q
E= (qt2-qt1)/qt1 * 100 / (pt2- pt1)/pt1 *100
1. E= (36-45)/45*100 / (1.25-1.10)/1.10 *100 = -1.46
2. E=(41-45)/45*100 / (1.25-1.10)/1.10 *100 = -0.65

The more horizontal the more inelas*c (2)

Time Price P1 (Euro) Quan*ty P1 Price P2 (Euro) Quan*ty P2

t1 1.10 45 1.10 45

t2 1.25 36 1.25 41

Place
- Distribu,on strategy: decisions on the length of distribu,on channels and intensity/distribu,on pressure
in the selected market
- Channel: all the steps from the firm to the consumer
- Key variables to be considered when structuring channels: product type and its perishability; complexity;
price; symbolic value; human and financial resources; role of intermediaries in the field; compe,tors;
need for post-sale assistance; need for customiza,on; opportunity for territorial presence and typology
of geographical market
- Informa*on flow (fundamental importance): from the firm to the customer, but also from the
customer to the firm
- What value the direct contact with consumer gives compared to the related costs?
In rela*on to the channel length:
- Channel length: defining the number of levels of intermedia,on between the firm and the customer
- ”Indirect long” channel: warehouses, shipping centres, stores in a complex mul,-level network
- Costs (each intermedia,on level’s margins)/benefits (extensive network, reaching several different
geographical spots)
- E.g. convenience products
- “Indirect short” channel: one level of
- The firm has to invest on reaching directly a high number of intermediaries (single stores)
- Costs derived from a logis,c infrastructure to reach the network of stores
 - Costs related to the distributors’ margins
- E.g. perishable products (fresh food) and shopping goods when the final distributors need to
receive accurate and detailed informa,on to handle the products and transferred it to customers
intermedia,on (stores)
- Direct channel: no intermediary
- B2B sectors and service firms, but also in the consumer products business u
- Direct contact is key to the compe,,ve advantage
- Mul,-channel strategies: A mix of channels (direct and indirect) depending on the different markets in
which the firm competes
In rela*on to distribu*on intensity:
- Intensity: defining the number of outlets dealing with the same product category (of relevance for the
indirect distribu,on)
- Intensive distribu.on: high coverage in a given market; presence in most distribu,on outlets dealing
with the same product category (e.g. convenience and preference goods) – no need of par,cular
informa.on provision
- Selec.ve distribu.on: a limited number of distribu,on outlets to have deeper control over the channel
(e.g. shopping goods)
- Exclusive distribu.on: few stores in a geographic area are exclusive outlets for purchasing the product
(e.g. franchising, e.g. car sectors)
CBBE defini,on
- the differen*al effect that brand knowledge has on consumer response to the marke.ng of that brand
- A brand has posi.ve CBBE when consumers react more favourably to a product and to the way it is
marketed when the brand is iden.fied than when it is not
- Three components of this defini.on:
- Differen.al effect (no differen.al effect, no brand)
- Brand knowledge (what is learnt, felt, perceived, heard about the brand)
- Consumer response to marke.ng (percep.on, preference, behaviours)
Brand knowledge
Associa*ve network memory model as tool to inves,gate the knowledge structure in consumers’ minds
(nodes and links)
Brans Strength of associa,on
Brand —>
Stored informa,on or concept
What comes to mind when you think of Apple computers? : design iPhone
Brand knowledge components
- Brand awareness: related to the strength of the brand node or trace in memory (familiarity), which we
can measure as the consumer’s ability to iden,fy the brand under different condi*ons. It is a necessary,
but not always a sufficient, step in building brand equity (in some low-involvement decisions it may be
enough to boost response!)
- Brand image: brand image is consumers’ percep,ons about a brand, as reflected by the set of brand
associa*ons held in consumer memory. In other words, brand associa,ons are the other informa*onal
nodes linked to the brand node in memory and contain the meaning of the brand for consumers.
Associa,ons come in all forms and may reflect characteris,cs of the product or aspects independent of
the product.
Sources of brand equity
Brand awareness
—> Brand knowledge —> Brand equality
Brand image
Brand awareness
- Brand recogni*on: consumers’ ability to confirm prior exposure to the brand when given the brand as a
cue (important for purchase in store)
- Brand recall: consumers’ ability to retrieve the brand from memory when given the product category, the
needs fulfilled by the category, or a purchase or usage situa,on as a cue (important for purchase on line)
How the brand knowledge is organised in memory and what kinds of cues and reminders may be necessary
for consumers to be able to retrieve brand from memory?
Important implica,ons for communica,on, adver,sing, choice of brand elements...
How to analyse brand awareness and image?
Recogni,on tests
- To recognize a brand under various circumstances (amongst many different items, brand logo or name
masked or distorted)
- Important also for the visual iden,ty (packaging, logo, font, name, shape, colours)
- Given a brand element (packaging, logo or even distorted element), does the consumer recognize the
brand?
- Eye tracking techniques to test the effec,veness of packaging design:
- Degree of shelf impact
- Impact of specific design elements
- Perceived package size
- Distance at which the package can be iden,fied
- Speed at which the package can be iden,fied
Recall tests
- Consumers must retrieve the actual brand element from memory when given some related probe or cue
- Unaided recall: recall amongst ”all brands” (only the strongest brands are recalled) (e.g. recall Porsche
911 amongst ”all cars”, Keller, 2013, p. 341)
- Aided recall: giving different cues, progressively narrowing down the set of brands amongst which to
recall the brand (e.g. recall Porsche 911 amongst German car, luxury car, etc.)
- The cue for recall can be of various types:
- Product aJributes
- Usage goals
- Context of usage
When you think of chocolate, which brands come to mind?
If you were thinking of having a healthy snack, which brand comes to mind?
When you think of making a present with some sweets/chocolate, what comes to mind?
Issues and limits of the use of these tests
- Guessing: the consumer guesses but he/she does not recall the brand
- Spurious awareness: the consumer makes a mistake and affirms he/she recalls the brand but it is not
true or the product does not even exist
Brand awareness is important because...
1. Without brand awareness (the brand node in mind) you cannot build a brand image (associa,ons)
2. It allows the brand to be included in the considera.on set (the set of brands that are considered
seriously for purchase)
3. In some case the mere familiarity and the fact of being perceived as well-established mo,vate the
purchase, with no needs of crea,ng brand associa,ons. Mostly in two cases:
- Convenience products/low-involvement purchase when the decision is not cri.cal
- When consumers have no ability to judge quality (technology or simply out of their interest) so that
any means (familiarity with the brand) is used to decide
Convenience products refer to those types of consumer products and services that consumers buy more
frequently with minimum buying efforts and comparisons.
Recogni,on and recall —>Brand awareness
—> Brand knowledge —> Brand equality
Brand image
Brand image
Once a sufficient level of brand awareness is created, an effort to cra{ (and measure) the brand image has
to be made
Marke,ng programmes need to create:
- strong, favourable (desirable for the consumer), unique associa,ons to the brand in memory
Brand associa,ons need to be:
- Strong (Strength): strength depends upon personal relevance and consistency over ,me. Direct
experience and word of mouth are par,cularly effec,ve, even in lack of intense adver,sing (adver,sing
may create very weak associa,ons…)
- Favourable (Posi*vity/Favourability): convincing about relevant aJributes/benefits towards overall
posi,ve brand judgement. Brand associa,ons are context - and situa,on-dependent
- Unique (Uniqueness): “unique selling proposi,on” which is a sustainable compe,,ve advantage...
- Uniqueness vs. Sameness: shared associa,ons (sameness) to acquire category membership; shared
associa,ons for prototypical and essen,al aJributes to the category (sameness); category associa,ons
(sameness)...
Brand associa,ons are:
- Brand aiributes: those descrip,ve features that characterize a product or service and its performance
- Brand benefits: func,onal and/or psychological, emo,onal...
- Brand values: the personal value and meaning that consumers aJach to the product or specific aJributes
(related to how the brand sa,sfies psychological and social needs). They are related to:
- The typical user’s profile associated with the product in customer’s mind (demographic- descrip,ve and
abstract-psychographic e.g. attude to life, to work, to family...)
- Purchase and consump.on situa.on (e.g. typology of store, easiness to buy, web; moment of day or
week when the product is used; formal or informal context…)
- Personality and value related to product/firm: human values embodied by the brand (e.g. spirited,
modern, contemporary, old-style, intellectual...) à brand personality (see later in the course)
- History, tradi.ons and experiences (of the consumer): associa,ons related to the consumer individual
history and experiences (there may be common traits across individual experiences)
Strong, favourable and unique associa,ons depend on the context (Time and Geography maAer) and
situa*on (For whom? When?)
EJEMPLO NUTELLA APUNTES Y MÁS COSAS MIRAR
Brand image
- Brand image: brand image is consumers’ percep,ons about a brand, as reflected by the set of brand
associa*ons held in consumer memory. In other words, brand associa,ons are the other informa*onal
nodes linked to the brand node in memory and contain the meaning of the brand for consumers.
Associa,ons come in all forms and may reflect characteris,cs of the product or aspects independent of
the product.
- Marke,ng programmes need to create:
- Strong, favourable (desirable for the consumer), unique associa,ons to the brand in memory
- Brand associa,ons are:
- Brand aiributes
- Brand benefits
- Brand values
Measuring the brand image
- Assessing the strength, the favourability and uniqueness of the associa,ons with qualita,ve (in-depth
interviews) and quan,ta,ve methods (based on surveys and sta,s,cal analysis)
- What do you associate to the brand strongly?
- When thinking of this brand, what comes to mind?
- What is good in this brand? What strengths?
- What are the nega,ve sides of this brand?
- What weaknesses?
- What is unique about this brand to you?
- What has this brand in common with other brands?
- Qualita.ve methods: collec,ng and analysing beliefs (descrip,ve thoughts that a person holds about the
brand)
- Quan.ta.ve methods: Ra,ngs and Likert scales (1 to 5; 1 to 7)
Unveiling the brand image (strength, favourability and uniqueness of the associa,ons) by comparing the
brand with other compe.ng brands.
Quan,ta,ve technique: Mul.dimensional scaling and Perceptual mapping
Mul.dimensional scaling transforms consumers’ assessment of similarity and preference of a set of brands
into distances in a perceptual mul,- dimensional space
Perceptual map built on 2 most relevant associa.ons used to
posi,on Brand A, Brand B and brand C.
Segment 1 and 2 are the ideal segments: 1 is more concerned
with healthy and 2 with taste and is not very concerned with
healthy food. A sample of customers is asked to assess the 3
brands based on these two associa,ons. E.g. How health is
food in Restaurant A? (1=no healthy; 5=very healthy) Results:

-Restaurant A: (Healthy=2.3; Flavourful= 2.8)

-Restaurant B: (Healthy=4; Flavourful=2.5)
-Restaurant C: (Healthy=1; Flavourful=4)

Segment 1 is beJer addressed by B; Segment 2 is beJer addressed by C; while A remains quite in the
middle.. What to do? (One op,on: make ac,ons to be and be perceived more healthy and reach segment 1!
MIRAR FOTOS
Issues to be considered
- Brand image can be confused with the knowledge structure of the product category (brands are
grouped in the minds of consumers by categories):
- An important informa,on is to know the exact posi,on of the brand in the mind and the rela,on with/
posi,on in the category
-
Product category cogni*ve structure (Keller, 2012: p. 110)
Crea,ng brand associa,on
Experien,al marke,ng
Marke.ng tac.c based on the design of ac.vi.es that are experien.al in nature (Same & Larimo, 2012)
“Process of iden,fying and sa,sfying customer needs and aspira,ons profitably, engaging them through
two- way communica,ons that bring
brand personali,es to life and add value to the target audience” (Smilansky, 2009)
Emo*ons, feelings and senses, less intellectual media*on
Direct experience of products in a «unique» way, by staging the en,re physical environment, usage and
consump,on processes for the customer
Experiental marke,ng

Guerrilla marke,ng: shocking and surprising

Guerrilla marke*ng is a “method of warfare that builds on raids and ambush aJacks” (HuJer & Hoffmann,
2011). Alterna,ve adver,sing originally u,lized by small and start-up businesses to obtain increased sales
by using tac,cs that rely on originality, good rela*onships, and unconven*onal methods to grab
consumers' aien*on and combat larger compe*tors (Levinson, 1984). From these origins, it has grown
into a strategy increasingly embraced by larger companies with high-reputa,on brands (e.g. Hyundai
installing ecological-friendly automated parking payment devices where parking ,me was paid for by
recycling plas,c boJles) (Roux, 2020)
(UNICEF)
Sources of brand equity
Recogni,on and recall —>Brand awareness
—> Brand knowledge —> Brand equality
Associa,ons —> Brand image
1. Brand recogni*on: consumers’ ability to confirm prior exposure to the brand when given the brand as a
cue (important for purchase in store)
2. Brand recall: consumers’ ability to retrieve the brand from memory when given the product category,
the needs fulfilled by the category, or a purchase or usage situa,on as a cue (important for purchase on
line)
1. Brand aiributes: those descrip,ve features that characterize a product or service;
2. Brand benefits and values: the personal value and meaning that consumers aJach to the product or
specific aJributes
Brand Management Models
Three interconnected models suppor,ng brand strategy making:
1. Brand posi*oning (how to establish a compe**ve brand)
2. Brand resonance (how to create intense and loyal rela,onships with
customers)
3. Brand value chain (based on the ac,ons undertaken, the tracing of value crea,on ac,vi,es to
understand the financial impact of marke,ng investments)
Strategic Brand Management Process : movimiento circular de las 4 etapas
1. Iden,fica,on and establishing of brand posi,oning and values —> Brand posi,oning model
2. Plan and implementa,on of brand marke,ng programs
3. Measure and Interpret Brand Performance —> Brand resonance model
4. Grow and Sustain Brand Equity
Brand posi,oning
A Brand Planning Model suppor,ng the development of a brand strategy: A first fundamental step of the
brand plan
Brand posi,oning
- The first step in the process of brand management aimed at define the desired and ideal posi*oning, the
desired and ideal cogni,ve structures of the brand posi,oning the brand in the target consumers’ minds
- Posi,oning is at the hearth of any marke,ng strategy: posi,oning is an“act of designing the company’s
offer and image so that it occupies a dis,nct and valued place in the target customer’s minds” (Keller,
2013, p. 79).
- Finding the appropriate “loca,on” in the mind of a selected group of consumers (market segment)
- It is the “guide” of the marke*ng strategy and marke*ng ac*ons as sta,ng:
- what a brand is all about
- how it is unique
- how it is similar to and different from compe,,ve brands
- why consumers should purchase and use it (why the brand is relevant to customers)
- Brand posi,oning implies the iden*fica*on of the main components of the brand including a limited set
of points of parity and points of differen,a,on crea,ng an adequate image in customers’ minds
• It is a sequence of steps of a strategic nature (different strategic decisions have to be made alongside the
process)
Compe**ve Frame of Reference:
(1) Target 3) Points of Difference

(2) Compe,,on (who are the compe.tors?) (4) Points of Parity

Defining the Compe,,ve Frame of Reference: (1) Target AND (2) Compe,tors
(1) Target market
- Market: set of actual and poten*al buyers, having interest, income and access to the product; the
whole of the market with mo,va,ons and possibility to buy
- Market (micro)segmenta,on: the division of the market in homogenous groups of customers having
similar needs and wants (and so poten,ally addressed with the same marke,ng mix!)
- Once we have the segments, we may chose one or more segments and define marke,ng ac,ons
addressing them
- The defini,on of a segmenta,on plan needs to consider:
 - A trade off between costs and benefits: most finely segmented market is more expensive and requires
high degrees of customiza,on (marke,ng ac,ons and products) compared to standardiza,on, but it
implies higher chances to succeed in suppor,ng customers’ sa,sfac,on
- The result of subjec,ve choices about how to segment the market (criteria selec,on)
Segmenta,on criteria
- Descrip*ve segmenta*on (customer oriented): socio-demographic, economic,
geographic, psychographic
- Behavioural segmenta*on (in rela.on to brand- customer rela.on): purchase
modality, usage and consump,on modality, brand loyalty
- Benefit segmenta.on (sought benefit, purchase mo,va,on)
Benefit segmenta,on bases are par,cularly strategic to branding: what do customers
seek?
combina,on of descrip,ve and behavioural segmenta,on can be used: for instance, a
segment by age and gender (Female 19-25) may include different behavioural
segments (e.g. in terms of usage context)
Segmen,ng ... A maJer of subjec,ve choice!
- Requirements guiding an effec,ve segmenta,on:
- Iden*fiability: Can we easily iden,fy the segment? (opportunity/measurability; the
criteria for segmenta,on need to be not too abstract and complex)
- Differen*al response of the customers in the segments to the marke,ng ac,ons (max difference across
segments is sought)
- Size: Is there adequate sales poten,al in the segment? (adequate dimension of the segments in terms of
poten,al income from targe,ng them)
- Accessibility: Are specialized distribu,on outlets and communica,on media available to reach the
segment?
- Responsiveness: How favourably will the segment respond to a tailored marke,ng program? (the
possibility to address them with adequate offering and s,muli so that favourable responses to
customized marke,ng programmes are triggered)
Is segmenta,on profitable?
Is it feasible?
Toothpaste users:
- “Sensing”: interest for taste and how the product looks like
- “Social”: interest for white teeth
- Anxious”: high aJen,on to dental care
- ”Independent”: looking for low prices
From addressing specific segments to mixing brand aJributes and benefits for
addressing all them
Segmenta,on methods APUNTES ALGO
- A priori segmenta.on:
- Defining homogeneous groups based on predefined criteria based on the knowledge of the market/
business/product
- A posteriori segmenta,on
- Leaving data (and big data!) speak... Data analysis techniques to go from data to clusters of
homogenous customers whose characteris,cs are then analysed in details
Interna,onal segmenta,on APUNTES
- Aim: to find, in the different countries, groups of consumers with same needs and expecta,ons, despite
of na,onal and cultural differences
- Within the specific country/region, the relevant segments may be of a rela,vely small size, but the
global span makes the interna,onal business significant
- Local differences: product and brand adapta,on (see later in the course)
Transna,onal segments
- Groups of consumers with same needs and expecta*ons, although living in different countries
- Similar consumers’ profile across countries, although lifestyle remains different
- Similar marke,ng mix including similar communica,on techniques can be used
- Mass customiza.on strategy when degrees of individualism in society makes collec,ve iden,,es
(na,onal, religious, ethnic ) weaken in some circumstances
- Interna,onal markets gives the opportunity to steer interna.onal demand for «universal products»
Global brands extending lifestyles and values but to a certain extent: important cultural differences remain
Gobaliza,on not necessarily means standardiza,on Different cultures, ethnic and linguis,c groups want to
defend their diversity
The case of Kit Kat in interna,onal markets
Global target
“Kit Kat’s target market is both men and women belonging to all age groups. The brand displays itself as
“youthful” in nature, and focuses on that segment of consumers who are fond of chocolates, and are willing
to indulge themselves in chocolaty snacks. Due to its tagline, “Have a break, have a KitKat”, the consumers
are drawn to this brand due to its associa.on with “breaks”. Its low prices, which have been constant over
the past years, allow it to target the mass consumer market, as opposed to other premium chocolate brands
like Ferrero-Rocher”
Unique selling proposi*on:
- Making it widely available along with affordability factor
- Different Varie,es & Limited Edi,ons – flavour, forms, and shapes

Kit Kat, Nestlè in India (Rastogi, 2018) Segmenta.on criteria & Target:
- Demographic:
- Age Group: 18-30; 30-40
- Psychographic: “Good things happen when you take a Kit Kat break”
- Aftude: thankful, kindness, spontaneity, joy, refreshing
 - Personality/Values: Taking .me for yourself, looking for enriching .me
- Ac.vi.es/Life stage: college youth and working individuals (long hours working
(2) Compe,,on
- Targe,ng implies the defini,on of the nature of compe..on and the
set of compe.tors:
- What companies made the same target choice or may be about to do
the same choice? (Direct compe.tors and New entrants)
- What other compe.ng brands are considered by poten.al customers
(including subs.tute brands!)? (Subs.tutes)
- Abell Model: customer needs, customer groups, technology to iden.fy
compe.tors
- Compe.tors have to be iden.fied in light of customers’ mental
hierarchy in which the brand is posi.oned
- Mul.ple levels of compe..on to consider when tailoring brand
associa.ons
Target + Compe,,on= Compe,,ve frame of reference
Target and nerds may change ((who will buy and why, for what purpose?)
Technology (how a need starts being sa,sfied? On-demand tv)
The compe,,ve frame of reference can change in space (in different geographic markets!)= chocolate as a
gi{ (from everyday snack to special gi{)
The compe,,ve frame of reference can change over ,me (e.g., following technological evolu,on) =“TV as
digital contents on-demand provider

Communica,ng the Compe,,ve Frame of Reference

- Not only defining the compe,,ve frame of reference (iden,fying compe,tors) to make strategic branding
decisions, but also to communicate it (remind the brand func,on and the simplifica,on of consumers’
decision to purchase)
- Communica*ng the product category to the customers helps them to understand why considering the
brand (before the connec,on to the category is built, second the elements of differen,a,on are
affirmed)
- For consolidated products, this may be irrelevant: e.g., Nutella “Spread the Happy” (2018 campaign)
- For new products and par,cularly innova,ve products (e.g., high tech products), this may be
fundamental (what category of product does the brand belong to? What connec,on to a certain
category?): however, in case of radical innova,on, fitng a product category may be even difficult
- Communica,ng the brand placement within the compe,,ve arena (what are the compe,tors beyond the
product category? à based on the Abell model) can be very important
Smart speaker, Intelligent assistant, cloud-based voice
Fitng one or more category or leading the establishment of a new category?
How to communicate the category in brand communica,on?
- Informing about the typical benefits of the category and how the brand fits them (tailoring POPs, see
later about the posi.oning model)
- Comparing the brand with other brands in the category
- Include a descriptor in the brand name
Once the compe,,ve frame of reference is built, POPs and PODs can be defined/iden,fied/designed
(3) Points of Difference (POD)
- “aAributes or benefits that consumers strongly associate with a brand, posi.vely evaluate, and believe
they could not find to the same extent with a compe..ve brand” (Keller, 2013, p. 83)
- POD associa.ons can be classified as:
- Func@onal aAributes and benefits (performance-
related)
- Abstract values (imagery-related)
- PODs to frame:
- The unique selling proposi.on
- Sustainable compe..ve advantage (sustainable in
.me! Durable and defensible)
PODs mirror the compe..ve strategy undertaken
by the company (what’s the compe..ve advantage?)

Competitive strategy PODs

Brand 1 Cost leadership “ The low coast provider”

Brand 2 Differentiation “ Overall superior quality”

”Our strength is the price” ”The most loved by Italians
- Affordability - Style and history superior
- Good quality standards - Personalisa,on
- Easiness - High services

For any POD, brand managers need to think of Reasons to Believe...It is not easy to sustain, prove and
persuade about PODs
- Corporate brand equity (if it exists, can help)
- Well established product brands in the por…olio may help: brand managers should think carefully about
the brand architecture (we will speak about this at a later stage of the course...)
- Omnichannel strategy searching for high level of consistency across all forms of communica,on by the
company might help
Proof points or Reasons to Believe (RDB, a technique to prove the benefit, suppor,ng the establishment of
POD associa,ons):
- Key func,ons, aJributes and ingredients (also backed by science, tests, studies)
- Key endorsement (recommended by...), reviews and tes,monials
- Longevity and exper,se of the company
What about influencer marke,ng?
Reputa,on and relevance of cer,fica,on is growing but not high in all sectors (e.g. tourism services, low
awareness of their existence)
Criteria for selec,ng PODs
- Desirability: composed of three dimensions
- Relevance: PODs need to be relevant to the customer
- Dis.nc.veness: affirming superiority (a relevant superiority!)
- Credibility: convincing PODs
- Deliverability:
- Feasibility: firm’s capability to produce/deliver the product/service and the promised aJributes
- Communicability: firm’s ability to convince customers this can be done (the importance of “Reasons to
Believe”) and to give the necessary informa,on
- Sustainability: sustainability in ,me (over years!) and so PODs that can be defended by compe,tors
and not easily replicable
EJEMPLO APUNTES
The challenge of differen*a*on in our culture today»
- In business differen,a,on is everything but we are forgetng what it means to be different
 - «we con,nue to produce brands that are notable, not for the difference, but for their sameness» (p.
210)
- Sameness is the result of compe,,on: it’s «too much about compe,tors»
- A compe,,ve myopia: too much effort to understand what compe,tors are doing (and the number of
compe,tors certainly keeps growing)
- Compara,ve metrics create conformity
- Of course, this does not mean to ignore compe,,on!
- Being different means standing out of the compe,,ve blur
«The compe,,ve herd»
The minute we choose to measure something, we are essen,ally choosing to aspire to it ... A metric creates
a pointer in a par,cular direc,on. And once the pointer is created, it is only a maJer of ,me before
compe,tors herd in the direc,on of that pointer (Moon, 2010, p. 29)
Jeep (inventor of the SUV and heritage in sport u,lity cars) vs. Nissan: an evolu,onary perspec,ve
Rugdness and Reliability have become standard metrics against which car companies measure themselves
in the SUV category à homogeneiza,on of the offerings within the category over ,m
A compe,,ve trend in all car categories (and beyond)... «Once everyone starts doing it, no one stands
out» (p. 33) APUNTES
- Compe..ve herd: prevailing innova,on model of the «augmenta,on- by-addi,on» (new product
aJributes, new product lines to sa,sfy addi,onal customer) which is easily replicable
- Reverse-posi*oned branding: differen,a,ng by innova,ng (not just adding)
Reverse-posi,oned brand: IKEA Brands that were able to take a category value proposi,on to create
difference by stripping away the superfluous. Differen,a,ng through the removal of benefits, if the removal
is though…ully executed.
Design but affordable So simple and minimal you can do it yourself Well-built Home like family Swedish
wellbeing
No customiza,on based on customers’ perferences; No assembling service (unless required)
(4) Points of Parity (POP)
- Not unique to the brand, shared with other brands
- Necessary but in most case (!) not sufficient condi,on
- POPs may changing depending on the evolu,on of the market, laws, technology...
- Different types:
- Category points-of-parity: necessary (yet not sufficient) condi,ons for purchase,
minimal generic associa,ons connected to expected aJributes (see earlier the
importance of communica.ng the Compe..ve Frame of Reference)
- Compe**ve points-of-parity: aimed to negate points of difference of other brands
(e.g., the SUV market)
- Correla*onal points-of-parity: deriving (not shaped or constructed) from the
existence of other points of difference (or parity) – they can also be nega,ve! One
POD can create nega,ve correla,onal POPs (inverse rela,on)...
- E.g. If you create the associa,on “tasty”, the correla,on POP is “not
healthy” (following the general knowledge of the tasty food category) : need to
 be aware and invest to hold together “tasty” and ”healthy” for food brands
Ralph Lauren’s brand extension: need for category point-of-parity
- Brand extension: couture line and luxury leather accessories
- POP: Made in Italy to draw the brand upwards and fit the category of luxury couture line and leather
accessories (Kapferer & Bas,en, 2009)
- Made in Italy as ingredient branding also providing the Reason to Believe
Correla,onal POPs: How to handle nega,vely correlated POP-POD?
- Customers may find both points relevant
- Compe,tors will aJempt to build their PODs on your nega,vely correlated POP
- Possible tac,cs:
- Two different marke,ng campaigns trea,ng separately the two points (high costs)
- Linking to some other brand/en,ty that may support in affirming the correla,onal point (person brand,
endorsement...)
- Finding way to redefine the rela,on between POP and POD convincing customer it is not a nega,ve
rela,on (what credible story can enable this?)
Tasty vs. Healthy (food) The credible story of the Italian food heritage and lifestyle standing for Slow Food,
Healthy lifestyle
To recap: posi,oning frames some key points for the firm
1. Who is the target
2. Who are the compe,tors
3. How similar to the compe,tor the firms’ brand value proposi,on is
4. How different from the compe,tor the firm’s brand value proposi,on is
Upda,ng posi,oning
- Posi,oning evolves over ,me to exploit opportuni,es and face new challenges posed by the compe,,ve
forces in the market
- However, it should be changed “very infrequently”, only when circumstance significantly reduce the
effec,veness of POPs/PODs
- Two circumstances:
1. Catching market opportunity: a) adding new brand aJributes, benefits and
values; b) laddering technique to unveil addi*onal values
2. Facing compe,,ve market challenges: Reac*ng
1. Laddering
A process of upgrading, leading from crea,ng associa,ons with
aJributes, to associa,ons with benefits, and then with values
through an explora,on of deeper associated meanings and
mo,va,ons underlying customers’ choice
The brand becomes more and more abstract: this implies an
enlargement of the set of viable brand strategies
Laddering techniques as method to explore customers’ brand
percep,on.
EJEMPLO NUTELLA
2. Reac,ng
- Compe,,ve advantage may exist for a short or limited ,me
- Erosion of a POD by (new) compe*tors (thus becoming a POP!)
- Possible reac*on:
- “Do nothing”: keep on the same brand building line (the compe*tor’s effort might result ineffec*ve)
- Defensive: defending the posi*on by reassuring the customers and strengthen the iden*fied POPs and
PODs
- Offensive: reposi@oning to address the threat
EJEMPLO VW
Brand mantra: on top of posi,oning
- It reflects the “essen,al ‘heart and soul’ of the brand” (Keller, 2013, p. 93): “brand essence” or “core
brand promise”
- It is important especially when the brand span mul,ple product categories and therefore may have
mul,ple – yet related – posi,onings
- It explains to employees, partners, customers the spirit/essence of the brand posi,oning: driving/guiding
behaviours/attude in line with the mantra (a sort of guidelines, internal branding directed to the
diverse corporate stakeholders)
- E.g., front office of service provider
- E.g., retailers
- E.g., designers of the retail layout
- Usually focused on PODs (also POPs may be important)
- A short, simple and inspiring phrase: 3 to 5-words phrase
Gucci brand mantra?
- Brand func,on
- Descrip,ve modifier
- Emo,onal modifier
The design of the brand
mantra: three possible Brand func*on Descrip*ve modifier Emo*onal modifier
components
Addi,onal qualifier
Describing the nature of Specifying and further
specifying how benefits are
product/service, type of outlining the product/
released (experien,al-
experience, benefit service
emo,onal qualifier
Employees on board to outline the brand mantra and to make it sustainable
- The brand mantra stressing the importance of internal branding, making all
parts of the organiza,on align to the brand and its values
- Par,cularly important in service firms!
- B2E (business-to-employees) brand perspec,ve
- How to define a brand mantra?
- Par,cipa,on, collec,ve brainstorming and discussion to get to the key
points and inspire evolu,on
- The customer/external focused-perspec,ve remains.
From brand posi,oning to the brand iden,ty
Brand iden,ty:
The set of Brand Elements
- Brand elements: brand name, URLs, logo, symbols, spokespeople, slogans, jingles, packages, signage...
- Trademarkable (not always) devices that serve to iden,fy and differen,ate the brand
Can I legally protect the brand elements in a given market?
How easy is to imitate the name? For instance by adding some prefix or suffix?
Vitz —>Toyota Yaris in Europe
Packaging
Choice of aesthe,c and func,onal characteris,cs of the packaging
- Iden,fying the brand
- Communica,ng descrip,ve and persuasive informa,on
- Facilita,ng transport and conserva,on of the product
- Facilita,ng consump,on of the product
Powerful device to boost brand awareness and to create the brand image (e.g. exclusivity, sustainability,
innova,on)
Models to support brand development
- Brand posi.oning: this model describes how to iden,fy a compe,,ve advantage
- Brand resonance: how to build intense and loyal rela,onships with customers, based on the iden,fied
compe,,ve advantage
- Brand value chain: tracing the value crea,on process to beJer understand the financial impact of
marke,ng investments and expenditure
Brand resonance
A model helping understand how brand posi,oning affects what consumers think, feel, and do and the
extent to which they connect with the brand, thus providing important informa,on for brand planning
Brand resonance model
- This model supports and gives a sense of direc,on to brand building and the needed ac,ons. The model
is a guideline and measurement pla…orm for assessing marke,ng ac,ons and decisions effec,veness:
- Are our ac,ons affec,ng customer loyalty, community and engagement?
 - Are our ac,ons boos,ng the brand performance and imagery associa,ons?
- It guides and frames marke,ng research to assess the progresses of the brand along the pyramid steps
- It allows the assessment of what the brand has become and what block of the brand pyramid is
problema,c in order to intervene
- Customers are central to the building of brand equity(customer- centricity: knowing, taking care of,
being accountable for, learning from customers)
- Time is needed to get through the different steps and building blocks
The model structure
- The resonance pyramid states that brand building has a
ra,onal and an emo,onal side. Accordingly, brand building
requires customers’ ra,onal and emo,onal involvement
- The strength (equity) of the brand depends upon what
customers have learnt and experienced/experimented
(brand knowledge) over .me about that brand
- The model is composed of sequen,al steps (the success of
one step is based on the effec,veness of the previous step)
CBBE: the differen,al effect that brand knowledge has on
consumer response to the marke,ng of that brand
Sequen,al steps (the success of one step is based on the
effec*veness of the previous step):
1. ensure iden*fica*on of the brand and its associa,on to a product category or class of needs
2. develop total brand meaning establishing key tangible and intangible associa,ons in customers’
minds
3. elicit customer response when he/she iden,fies the brand and bears in minds certain associa,ons
4. based on the response, the building of a brand- customer rela*onship
Milestone of Dimensiones Branding objec*ves at Achievement in
the Pyramid this stage brand development

Brand silence - Depth Depth (of awareness) How likely and Brandawareness(recogni Brand iden,ty (Who
easily brand elements come to mind (high ,on and are you?)
likelihood, high depth) recall)
- Breath (of awareness) In how many situa.ons
brand elements come to mind (range of
purchase and usage contexts in which the
brand elements come to mind)
- ”Posi,oning” in Product Category Cogni*ve
Structure (hierarchy of the product category)
in customers’ mind: product class, category,
type, brand (perceived sa,sfied needs)

Brand recall: consumers’ ability to retrieve the brand from memory when given the product category, the
needs fulfilled by the category, or a purchase or usage situa,on as a cue
Brand recogni,on: consumers’ ability to confirm prior exposure to the brand when given the brand as a cue
EJEMPLO PISA
What brand elements?
What brand awareness?
A place for tourism?
A place where to live and work?
A place for high-tech companies and jobs?
- High brand awareness
- A problem with breadth and with posi,oning in the product category cogni,ve structure
- Depth How likely and easily brand (elements) come to mind
- Breath : in how many situa,ons brand (elements) come to mind (range of purchase and usage context);
- ”posi,oning” in Product Category Structure (hierarchy) in customers’ mind (perceived sa,sfied needs)

Milestone of the Dimensions Branding objec*ves at this Achievement in

Pyramid stage brand
development

Brand salience Depth (of awareness) HIGH How likely and Brand awareness Brand iden,ty
easily brand elements come to mind (high (recogni.on and recall) (Who are you?)
Par,ally likelihood, high depth) Strong landmark
developed Brand elements recogni,on (the Leaning
Breath (of awareness) LIMITED In how and recall: Tower)
many situa.ons brand elements come to • Leaning Tower
mind (range of purchase and usage contexts
in which the brand elements come to mind) • Galileo Galilei

”Posi,oning” in Product Category Cogni*ve • University for

higher educa,on
Structure PARTIAL (hierarchy of the product
category) in customers’ mind: product class, • Hospitals
category, type, brand (perceived sa,sfied
needs)
Milestone of the Dimensions Branding objec*ves Achievement in
Pyramid at this stage brand development

Brand imagery User imagery Point-of-Parity and Brand meaning

as the idealized user iden,fied by descrip,ve Point-of- Difference (“emo,onal route”)
(abstract demographic factors or abstract psychographic concerning the (What are you?)
associa,ons based ones (gender, age, income, attude to life, social sa,sfac,on of
on intangible status, career expecta,ons...) and that psychological and
aspects) customers associate to the brand social needs

Purchase and Usage imagery associa,ons

concerning under what condi,ons/situa,on to
buy/use

Brand Personality and Values

the brand acquiring personality traits or human
values, “like a person” (modern, old-fashioned,
sincere, cosmopolitan...) – inferred values by
consumers

Brand history, heritage and experiences

associa,ons to the past, brand history,

entrepreneur/family

Aaker’s brand personality concept: the “set of human characteris,cs associated with the brand” (1997: 347)
The brand personality provides a conceptualisa,on of the affec,ve component of the brand. This is the
whole of human characteris,cs embodied by the brand (Aaker, 1997), a form of anthropomorphism helping
people feel in line with the brand (Haigood, 1999 cited in Kaplan et al., 2010). The brand personality turns
human values into brand components, allowing individuals to find a match between their values and the
brand, inducing them to choose it. (Pasquinelli et al., 2022, p.3)

Modali,es of representa,on of the brand through the person using it

- Adver,sing
- Endorsement
- Placement in movies, games, TV series, books... ...
The basis for purchasing behaviour: posi,ve reac,ons to the encounter with the brand may boost purchase
Milestone of the Pyramid Types of customer’s Branding objec*ves at this
judgements and opinions stage
objec*ves at this stage
Achievemen t in brand
development

Brand Judgement Brand Quality Reac,on Brand

The brand attude highly
(opinion and evalua,on) response (“ra,onal route”)
depends on overall (What about you?)
perceived quality which is
o{en the basis for
customer’s choice and
repeat purchase. Brand
quality based on aJributes
and benefits
Brand Credibility
Mostly referring to the
company (rather than the
single product). Based on:
1) perceived exper*se
(competent, innova,ve,
leader), 2) trustworthiness
(keeping in mind
customers’ interest), 3)
likability (fun, interes,ng,
worth spending ,me with)
Brand Considera,on
When the customer takes
into account the brand as
possible purchase. Beyond
quality and credibility, the
brand needs to be judged
as concrete alterna.ve for
purchase, as relevant for
the individual customer (an
important step toward
brand equity!)
Brand Superiority
Consumers see unique
associa,ons, evaluate the
brand beJer than the
compe,tors, they see the
advantages very clearly
(significant unique
associa,ons)

GOOGLE
And aser the launch of ChatGPT?
"While Google has been a leader in AI innova,on over the last several years, they seemed to have fallen
asleep on implemen,ng this technology into their search product," said Gil Luria, senior so{ware analyst at
D.A. Davidson. "Google has been scrambling over the last few weeks to catch up on Search and that caused
the announcement yesterday (Tuesday) to be rushed and the embarrassing mess up of pos,ng a wrong
answer during their demo."
What is the attude to the brand? What is the reac,on to it?
- Good search engine? Quick? Good result rankings? Good features such as language op,on, etc? Good
filters and labels to manage mails?
- Is it the leader in search engine and internet based services?
- Do you consider it as a concrete alterna,ve? Yes/No
- Is it beJer than Yahoo? And the others? Why?
- What judgement? Posi,ve/nega,ve? Strong/weak/not clear

Milestone of Typologies of feelings Branding objec*ves at this Achievement in

the Pyramid stage brand development

Brand Feeling Warmth Reac,on (emo,onal Brand response

reac,on, affec,on, which (“emo,onal route”)
sense of calm and peacefulness, feeling
may be posi,ve/nega,ve, (What about you?)
“home”, familiarity, closeness (e.g., heritage
more intense/less intense)
brands)
Fun
amusement, feel joy, playfulness Excitement
energizing, experiencing something special,
sense of being alive, fascina,ng
Security
sense of health, wellbeing, security and safety,
free from anxiety
Social approval
sense of being accepted by others Self-respect
feeling beJer about yourself, accomplishment,
fulfilment, pride

Looking at communica,on to have a sense of how brand tried to be “resonant” during the pandemic
Messages of reassurance and resilience in Covid-19 emergency: AJemp,ng to trigger Brand Feeling more
than Brand Judgement
 Milestone of the Dimensions of Resonance Branding objec*ves at Achieveme nt
Pyramid this stage in brand
developme
nt

Brand Resonance Loyalty (loyal behaviour) Loyalty and “being in Brand

Defined by the repeat purchase and the amount sync with the brand” rela,onship
(customers feel they
(What about
are ‘in sync’ with the or share of category volume (share of category 1. Repeat purchase
you and me?)
brand) requirement, SCR)
Aiachment 2. Intensity and depth
of the
Personal aJachment (beyond sa,sfac,on,
customer-brand
beyond respect of the brand)
psychological bond
Sense of community
Iden,fica,on with a brand community as social 3. Brand seeking,
phenomenon (sense of affilia,on; online/ informa,on
offline), brand ”followers” as part of a family exchange and
Ac*ve engagement collabora,on
(customer-brand)
Customers are engaged when willing to invest
(events,
,me, energy, money beyond purchase (e.g.,
informa,on,
joining a brand club, brand merchandise helps
community)
the expression of this engagement and
membership, brand evangelists and
ambassadors)

Rela,onship is entangled by two dimensions:

- Intensity (AJachment and Sense of Community)
- Ac*vity as ac,ve behaviour (Loyalty and Engagement)
Loyalty measurement: Repeat purchase (e.g. number of customers buying two or more ,mes a year)
Incidence of 100%-loyal buyers of the variant (Solo Usage Percentage) Share of category requirements (or
share of wallet) - SCR (volume or revenue): a given brand’s % share of purchases in its category by brand
buyers
Unit Share of Requirements (%) = Brand Purchases (units) /Total Category Purchases by Brand Buyers (units)
Revenue Share of Requirements (%) = Brand Purchases ($)/Total Category Purchases by Brand Buyers ($)
IF = 1, highest loyalty
Engagement measurement (digital marke,ng)
To sum up the Brand Resonance model (I)
- What’s its func,on? What is it for?
- It supports and gives a sense of direc,on to brand building and the ac,ons that are needed primarily
depending on the evolu,on step the brand has achieved
- It guides and frames marke,ng research to assess the progresses of the brand along the pyramid
- It allows to assess what the brand has become and what block of the brand pyramid is problema,c in
order to intervene
If you should assess the progresses of the
brand along the pyramid, what would you
ask to a sample of customers?
- Salience:
- Performance:
- Imagery:
- Judgement:
- Feeling:
- Resonance:

To sum up the Brand Resonance model (II)

- Customer are central to the building of brand equity (customer-centricity: knowing, taking care of, being
accountable for, learning from customers)
- Time: “Rome wasn’t built in a day”...,me to get through the different steps and building blocks
(awareness may be achieved in a short ,me, but risks if this passage is overlooked or skipped by brand
managers)
- Brand building has a ra*onal and emo*onal dimensions
- Resonance as guideline and measurement plauorm for assessing marke,ng ac,ons and decisions
effec,veness:
- Are they affec,ng customer loyalty, community, engagement?
- Are they crea,ng brand performance and imagery associa,ons?
- ...
Models to support brand development
- Brand posi.oning: this model describes how to iden,fy a compe,,ve advantage
- Brand resonance: how to build intense and loyal rela,onship with customers, based on the iden,fied
compe,,ve advantage
- Brand value chain: tracing the brand value crea,on process to beJer understand the impacts of
marke,ng investments and expenditure
Brand value chain (BVC)
- A model to assess the sources of brand value crea,on and the outcomes of brand equity
- Many different stakeholders par*cipate in brand value crea*on and need to receive informa,on on the
effects of brand management
- The BVC has to support brand managers, marke,ng director, CEO, general manager in carrying out their
roles
- The model ra,onale (a chain of brand value crea,on and assessment):
- Brand equity resides in customers (actual and poten,al): the model starts from here (investments in
marke,ng programs targe,ng customers): the shaping of customers’ brand knowledge and the
triggering of customers’ response translate into the brand performance in the market
- This is translated into financial actors’ assessment of the brand value (brand value for shareholders)
A sequence of stages at which value is created. A ra,onal
representa,on of the branding process allowing a diagnos,c
view on brand management:
What stage is not performing well in terms of brand value
crea.on? What to do?
A tool to isolate the problem and making the process and its
actors accountable.
If I map what/who is part of the branding process, I know
how much brand management costs
Structure:
- Stages: phases of brand value crea,on process from the first investment in brand value crea,on to the
forma,on of shareholder value
- Ac,vated value sources: bases for measuring the created brand value (brand metrics)
- Mul,pliers: moderators and booster of value transfer from one stage to another, which means linking
factors connec,ng one stage to another determining how and how much value created at one stage is
transferred to or “mul,plied” for the next stage

A chain of actors and ac,vi,es that create the brand value: Who par,cipate in the chain?
Not just brand managers are brand value creators! (customers, shareholders, compe,tors, employees...
The model: Stage and Mul,plier
Stage 1: Marke,ng programmes investment u Ac.vated value sources:
- Adver*sing, online marke*ng communica*on, sponsorship, public rela*ons, distribu*on network,
etc.
- Any ac*on that, inten*onally or not, contribute to brand value development (e.g., product R&D
and design; employee training...)
- Not all the financial investment in marke*ng programmes will be transformed into brand value: this
will depend upon te qualita@ve aspects of the marke@ng programmes and so upon the programme
mul@plier
- Mul*plier 1: Program Quality Mul*plier (dimensions of the quality of the marke*ng program
implementa*on to be assessed)
- Dis*nc*veness: elements of uniqueness compared to compe*tors, effec*ve differen*a*on
- Relevance: relevant to the target customers so that they pay aien*on to the brand and include it
into their considera*on set
- Integra*on (over all ac*ons; over *me): consistency in all the aspects of the programme and
consistency over *me (with the past programmes)
- Value: clear value proposi*on for customers
- Excellence: highest standards in execu*on, state of the art
For a given investment in marke,ng programmes we will have different market performances depending on
how the marke,ng programmes are implemented
- Stage 2: Customer Mind-Set
Anything present in customers’ mind, such as thoughts, feelings, experiences, percep,ons, attudes related
to the brand: the 5As from the resonance model (to be read as a sequence of steps, one as the basis for the
following step)
 1. Awareness: recall/recogni.on
2. Associa.ons: strength, favourability and uniqueness of perceived aAributes and benefits
3. Aftudes: overall evalua.on of the brand in rela.on to quality and sa.sfac.on
4. AAachment: loyalty as bonding and low propensity to change (capacity to stand nega.ve events,
e.g. defec.ve product)
5. Ac.vity: loyalty as seeking informa.on, buying, talking about the brand
The brand value is created when all the 5 steps are accomplished
- Mul*plier 2: Marketplace Condi*ons
- Compe..ve superiority (or inferiority): effec,veness of compe,tor brands’ marke,ng investments (are
compe,tor a real threat?)
- Channel and intermediaries support: partners’ effort in suppor,ng the brand and the rela,ve sales
- Customer size and profile: how many and how ‘profitable’ the customers aJracted by the brand are in
concrete
If the customer mind-set creates value in the following step (Market Performance) also depends upon
factors external to the single customer’s mind set (mul,plier)

Stage 3: Market Performance • Mul*plier 3: Investor Sen*ment

Impact on customers’ behaviour and so on sales volume
1+2+3 = direct revenue stream
1. Price premiums: willing to pay “extra” money (premium price) compared to the average price in the
market (or compared to the price of the key compe,tors)
2. Price elas.city: inelas,c demand to price increase • (how demand varies with price varia,ons)

3. Market share: (see next slide)

4. Brand expansion: the capacity of the brand to support line/category extension and new product launch
will enhance future revenue
5. Cost structure: the possibility to reduce marke,ng expenditures thanks to the posi,ve customers mind-
sets (opportunity to lower the costs)
6. Brand profitability: this six dimension is the result of the former five dimensions
Mul*plier 3: investor sen*ment mul*pler
On top of market performance, investors (and financial advisors who are relevant in the financial market)
consider a set of factors for brand valua,on which are:
- Financial market dynamics: interest rates, confidence in the market
- Growth poten.al: growth poten,al of the brand and of the sector
- Risk profile of the brand: risk profile and vulnerability of the brand to the external context
- Brand contribu.on: the importance of the brand in the firms’ brand por…olio
If this brand value reaches the final step (financial market) also depends upon factors that are external to
the brand (the mul,plier)
Market share
- Absolute market share: company’s (brand) sales over a specified period of ,me (year or quarter) / total
sales in the (brand) market *100
- Rela*ve market share: company’s (brand) sales over a specified period of ,me (year or quarter)/ sales
by the leading compe,tor *100
- Or % Market share of the firm’s brand/% market share of their largest compe,,ve brand in the market
- Two possible units of measurement: volume/quan*ty (n. products, kg, unit market share) or revenue/$
(revenue market shar
Stage 4: Shareholder value At this stage, financial investors are brand “value creators
In light of all stages and informa,on/data available (measured and es,mated), the financial marketplace
iden,fy and assign the brand’s market value (e.g., brand or company sale). Indicators used for the financial
assessment of the brand:
1. Stock price
2. Price/earnings ra.o: ra.o that measures its current share price rela.ve to its earnings per share for
valuing the company (is the company able to remunerate more, equal or less than the price of the
stock in the market?)
3. Market capitaliza.on: mul.plying the total number of a company's shares by the
current market price of one share to see if the value of the company has been growing, decreasing
or stable.
How to create the brand value?
- Inves,ng in food arching pogrammes
- Maximizing the mul,pliers (program and marketplace
- Brand marke,ng managers’ main focus
- Chief marke,ng director (CMO)’s main focus
- The CEO’s main focus
Where shall I intervene to boost value along the value chain?
- At what stage of the chain are there cri,cal issues?
How can we inves,gate the brand value chain and its steps?
- Qualita,ve and quan,ta,ve research involving customers
- Market analysis and accoun,ng
- Financial market surveys
How the 3 analysed models combine?
Strategic Brand Management Process
1. Grow and Sustain Brand Equity
2. Iden,fica,on and establishing of brand posi,oning and values —>Brand Posi,oning model
3. Plan and implementa,on of brand marke,ng programs
4. Measure and Interpret Brand Performance —>Brand Resonance model Brand Value Chain
Tools to design brand management strategies in mul.-brand companies
- Brand-product matrix
- Brand hierarchy
Brand-Product Matrix: A tool to design brand management strategies
The tool highlights the brand mix and product mix: towards the design of the rela,onships amongst brands
By raw: brand-product rela*onships (brand line) telling about the set of products (in the same or other
categories) sold under a specific brand and so informing on brand extension strategies (category and line
extensions)
By column: product-brand rela*onships (brand poruolio strategy) telling about the set of brands and
brand lines that a par,cular firm offers for sale to buyers in a par,cular category, informing on nature and
number of brands in a specific category (use of different brands for addressing different market segments à
issues of brand por…olio management)
Product line: the set of product in the same category, offering similar benefits, sold to the same segments
(similar prices, same channels). A product line can correspond to one or more brands (columns of the
brand-product matrix)
Product mix: the whole set of products (all the columns of the brand-product matrix)
EJEMPLOS FOTOS
Key principle to structure a brand porfolio:
to maximize market coverage and minimize brand overlap
- Responding to different segments
- Responding to similar segments differently (responding to customers that like change): a costly strategy
with risks...
- Risk of cannibaliza.on between brands of the same company (need for pruning?)
Overall aim: to maximize overall brand equity
- (generally) any brand in the porqolio has not to decrease the equity of the other
- Ideally, the combina.on and co-presence of the brand in the porqolio maximize the brand equity
(synergy)
Risk of cannibaliza.on
- Circles = customers
- Intersec.ons= customers stepping from one brand to another
- Poten.al market= rectangular area
- Marca X (Brand x) = the set of compe*ng brands
- What is the best and worst case?
The case of a new brand launch in a mul.-brand company

Case 1: the new brand gives no market advantages while sharing the same market with the old brand
Case 2: the new brand extends the firm’s market share without, however, ‘stealing’ customers to the
compe,tors
Case 3: the new brand address the market occupied by the old brand and by the compe,ng brand; it also
expand the market
Case 4: the best case, no cannibaliza,on.

The case of Coca-Cola Zero and Coca-Cola Light (Italian market): A planned cannibalisa,on?
- 2007 launch of Coca-Cola Zero, adding to Coca-Cola Light as «healthy» drinks à perceived as the same by
many consumers
Why this choice? A «planned cannibaliza*on»
- Different target segments: addressing men, a segment that had remained uncovered by Coca-Cola Light;
while strengthening the female target for Coca-Cola Light (e.g., cobranding with Maybelline New York in
2009)
- Different posi*oning
- Different communica*on policy
- A «cannibaliza*on effect» was forecast (10% sales from Coca-cola classic and 25% from Coca-Cola
Light): however, the overall sales would have grown
- A successfull strategy: first stage à a degree of cannibaliza,on; second stage à the % of light cola- drinks
doubled over the total cola sales (C-C Light from 6% to 5.3%; C-C Zero reached 6.5%)
Branding strategy in mul,-product and mul,- brand companies.
Two dimensions characterising branding strategies:
- Breadth: brand-product rela,onship in
rela,on to brand extension strategies (how much the brand is “extended” by line and by category; how
many products are covered by a brand?)
- Depth: product-brand rela,onship in rela,on to choices of por…olio structuring
and the brand mix (how much the company is “deep” in filling a certain product category with its brands;
how many brands cover one product category?)

Brand-Product Matrix (Source: Keller, 2013, p. 387)

Brand roles in the por…oli
Flagship brand: flagship brand, represen,ng the company to consumers (the most recognizable and with
higher equity)
Flankers: crea,ng POPs (compe,,ve POPs) with compe,tors to support the advantage of the flagship brand
of the company
Cash cows: profitable and high sales, despite no marke,ng
Low-end/high-end (price/quality): brand line extremes from low-end aJrac,ng to store to high-end giving
credibility and pres,ge (highly profitable).
MIRAR EJEMPLO APUNTES
Brand por…olio op,miza,on
- Two important ques,ons for porqolio op.miza.on (maximising market coverage and minimizing
overlaps):
- What role does the single brand play in the por…olio?
- What posi,oning for the single brand?
Brand hierarchy
- A tool to summarise the branding strategy of a company by looking at the brand elements and their
combina,ons – either dis,nc,ve or in common across the owned products – revealing the company’s
branding strategy
- What rela,onships (closeness) across the branded products?
- What distance is built across the branded products?
- The brand levels structuring the hierarchy:
- Company or corporate (group) brand
- Family brand
 - Individual brand
- Modifier (dis,nguishing the specific model)
- Product descriptor (addi,onal, not properly brand element but it helps the posi,oning)

Family brand: Buitoni An umbrella for more than one product category, but it is not the corporate brand
The poten*al contribu*on of each hierarchy level to brand value crea*on:
- Corporate / company brand: not necessarily both are known by the
customer; it may be crucial in the branding strategy; increasing role of
some associa,ons such as the social responsibility (also in rela*on to
workers treatment, human rights) and reputa*on of the organiza,on;
it may be composed of a broader set of associa*ons than the single
products; it is created over *me, by means of the offered products,
general behaviour and communica,on; growing acknowledgement of
the role of the corporate/company brand in highly compe,,ve markets
- Family brand: the company brand can not be equally effec,ve (with its
associa,ons) in rela,on to any product the company offers, so the
family brand can be a good op,on to introduce more specific
associa*ons to the “family” (e.g., Nestlè is the corporate brand
encompassing Kit Kat and Buitoni, two very different brands)
- Individual brand: it gives the opportunity to personalise the brand and
the marke,ng programme for the specific target; it may help isolate the
product brand failures (limi,ng the impact on the company brand)
Adding levels in the brand hierarchy:
- Gives opportunity to enriching and differen,a,ng brand associa,ons (a dedicated posi,oning)
- Implies addi,onal marke,ng expenses
- It adds specificity and sophis,ca,on but it may also result to complex and ar,culated to understand for
the customer
Strategic management: Developing a Brand Architecture
Brand architecture strategies

Source: Aaker & Joachimsthaler, 2000

- Brand architecture:
- How to sustain, nurture and maintain brand equity
- Relevant to mul,-product companies
- Diverse products for different segments
- Diverse products for different (geographical) market
- Diverse products in the same category, segment, (geographical) market
- Diverse products in different categories
- Aim:
- To clarify brand awareness (improving consumer understanding)
- To improve brand image (transferring or not brand associa,ons within the por…olio ) FOTOSS
Designing a brand architecture
- Defining the number of brand levels in the hierarchy
- Principle of simplicity: the lowest possible number of levels
- Defining desired brand awareness and image at each level (considering trade-offs)
- Principle of relevance: crea,ng as abstract (yet relevant) associa,ons as possible to be adequate to the
largest possible number of products
- Principle of differen,a,on: to differen,ate single products as much as possible
- Considering the opportunity to use a brand element for more products
- Principle of commonality: the more common elements products share, the stronger the linkages
between them
- Defining combina*ons of brand elements from the different levels for the individual product
- Principle of prominence: defining what brand element should be rela,vely more visible compared to
the others (larger, more dis,nc,ve, appearing first)

Defining the brand architecture

- Defining the brand architecture means to specify the brand elements and posi,oning associated with
the specific products/services for the brand
- A strategic decision to make when launching a new product
The two possible “extreme” strateges MIRAR FOTOS
Branded House :strategy (umbrella corporate or family brand for all products)
House of Brands strategy (a collec,on of individual brands with different brand elements)
 The brand rela,onship spectrum
-This is a brand architecture tool to support
brand strategists
-A range of strategies to:
-Allow brands to stretch across products and
markets
-Address conflic,ng brand strategy needs
- Protect brands from being diluted by over-
stretching
- Signal that an offering is new and different
-A con,nuum that involves 4 basic strategies
and 9 sub- strategies
-In choosing the most suitable strategy one
would need to look at the specific «driver role»
that each brand plays in influencing the
purchase inten,ons of consumers.
-A mix of strategy can be employed

Framing different rela,onships between parent/master brand (corporate/company/fami ly brand) and the
endorsed/sub-brand (family brand, individual brand)

House of brands: (individual brand is the driver) an independent set of stand-alone brands, each maximizing
the impact on a market. This strategy renounces to the economies of scale of marke.ng and synergies which
come from leveraging a brand (and its elements) across mul,ple businesses.
A very costly strategy overall: some brand has no opportunity to make significant investment and risks
decline or stagna,on.
Not connected - An appropriate strategy when:
- Targe,ng niche markets with very focused value proposi,on
- Avoiding brand associa,ons that would be incompa,ble with the offering (the corporate brand and the
other related brands would hamper the niche brand)
- Signalling the advantages of new offering
- Avoiding or minimizing channel conflicts
Shadow endorser – only few consumers know there is a link between the parent brand and the endorsed
brand (not visibly linked). The endorsed brand represents a totally different brand but the organiza,on is
backing the brand
Individual brand: Gucci dior
Comportase brand Kering LVMH Shadow endorsers
Endorsed brands:
S,ll the independence (individual brand is the driver, but...) of the house of brands but there is a visible
endorsment by an established brand that provides credibility and substance (strong endorser), even though
it plays a minor driver role.
This may also provide useful associa,ons to the endorser (in some case this prevails over suppor,ng the
endorsed brand).
Token endorser – minimal presence of the master brand just to give some credibility and ressurance (less
visible, less prominent). To be useful the endorser has to be highly reputable.
Linked Name – A link provided by the presence of part of the endorser’s name which is so strong to boost
the link to the brand in people’s minds
Sub-brands:
Brands connected to a master or parent brand and augment and modify the associa,ons of that master
brand. The master brand is the primary frame of reference (master as driver), which is stretched by sub-
brands that add associa,ons (func,onal, symbolic...).
The sub-brand extends the master brand into a meaningful new segment.
A closer link than endorser-endorsed brands. Such stronger link can also imply risks for the master brand.
Subbrand as co-driver – both master and sub-brand have a major driver role (e.g. Apple-iPhone)
Branded house:
Use of a single master brand (master is the driver) to span a set of offerings that operate with only
descrip.ve sub-brands; a large number of products under the master brand. The master brand becomes a
dominant driver (not just primary as in the subbrand strategy). The subbrand is a mere descriptor with liJle
or no driver role.
There is a risk of dilu.on and loosing appeal as spanning several different markets and this strategy can limit
the opportunity to serve specific groups. However, this strategy maximizes clarity, synergy and leverage.
«It should be the default brand architecture op.on. Any other strategy requires compelling reasons» (Aaker
& Joachimsthaler, 2000, p. 15)
Interna.onal markets: Same brands with different iden..es – when the same brand is used across products,
segments, and countries, different brand iden..es (brand elements) may be needed under the same brand
name: the same brand iden,y may not work in different contexts, at the same ,me too many brand
iden,,es are not manageable and costly.
Branding new products and services: how to posi,on the new product in the brand por…olio (what strategy
is the firm employing?)
Higher synergies, capitalising on the exis,ng brand assets, lower costs BUT high risk of dilu,on, nega,ve
effects on the exis,ng brands...
Lower synergies, limited capitalisa,on on the exis,ng brand assets, higher costs BUT lower risk of dilu,on,
lower risk of nega,ve effects on the exis,ng brands...
A balance of brand equity and cost implica,ons related to the marke,ng programmes
EJERCICIOS MIRARR
Brand extension
- Brand extension strategy are considered when a new product has to be launched
- Capitalise on exis,ng brands (brand extension)?
- Or launch a new brand?
- From scep,cism for the this strategy (following the “one brand-one product” approach) to understanding
the poten,al of this strategy
- A strategic op,on for firm’s growth
- Need to balance advantages and disadvantages
Assessing the opportunity for brand extension
Two ways to categorize growth strategies:
- Through exis,ng or new product
- Focusing on exis.ng or new market
When introducing a new product, three strategies are possible:
1. A new brand (a very risky and costly choice)
2. Brand extension (applica,on of an exis,ng/established brand, the parent brand) (not without risks!)
3. A combina,on of new and exis,ng brand (various op,ons in the brand rela,onship spectrum)

Ansoff’s Growth Matrix (product/market expansion

grid to reflect on modalities of growth for a firm)

Brand extension is a strategy based on leveraging brand equity to support the new product launch
- New product launch o{en fail (8 out 10!): brand extensions increase success rate although they carry on
risks
- Brand extension for the majority of new products: there is however a significant chance of failure
(Volkner & SaJler, 2006)
- Any sector has its characteris,cs: e.g., in the technology markets there is a trend of adop,ng new brands
for new products (endorsement can be however very important!)
Brand extension
- Two typologies:
- Line extension: applica,on of parent brand to a new product that targets a new or old market
segment within a product category the parent brand currently serves (e.g. adding different flavour,
ingredient variety, different form/size...)
 - Category extension: applica,on of the parent brand to enter a different product category from the
one it currently serves (also addressing the same already known market)
- Ver*cal extension:
- Providing a version of the product in the same category but with a lower (or higher) price (ver,cal
extension towards higher prices is very difficult)
- Forms of sub-branding: iden,fying the new product at a lower price
- Risky strategy for pres,gious brands (lower price policy) – loosing sense of exclusivity?
EJERCICIOS MIRAR