This is the summary of Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.), chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity) by Keller, K. L. (2008, Prentice Hall.) I designed this powerpoint for an HTM631 class (Strategic Marketing in Hospitality and Tourism) in spring 2009.

1. HTM 631 (Spring 2009)
Keller, K. L. (2008). Strategic Brand Management:
Building, Measuring, and Managing Brand
Equity (3rd ed.), Prentice Hall.
7. Leveraging Secondary Brand
Associations to Build Brand Equity
Suh-hee Choi

2. Preview
Strategic Brand Management Process:
Where are we?
Mental maps
Identify and Establish Competitive frame of reference
Points-of-parity and points-of-difference
Brand Positioning and Values
Core brand values
Brand mantra
Plan and Implement Mixing and matching of brand elements
Brand Marketing Programs Integrating brand marketing activities
Brand Value Chain
Measure and Interpret Brand audits
Brand Performance Brand tracking
Brand equity management system
Brand-product matrix
Grow and Sustain Brand portfolios and hierarchies
Brand Equity Brand expansion strategies
Brand reinforcement and revitalization

3. Preview
Secondary Sources of Brand Knowledge
Ingredients Company
Alliances 4. Other Extensions
Brands
5. Licensing 2. Country of
origin
1. Co mpany
Endorsers 6. People Brand Places
3. Channels
Things
8. Third-party
7. Events
endorsements

4. Conceptualizing the Process
Creation of New Brand Association +
Effects on Existing Brand Knowledge
Associations Associations
Other
Brand
Entity
Associations Mental Associations
Association
1. How much do people know about the entity?
2. Is the knowledge MEANINGFUL to the brand?
3. Is the knowledge transferable?
Guidelines commonality complementarity

5. Conceptualizing the Process
Discussion
 Let’s think of the example of successful “cause marketing
programs” (p. 282) in hospitality and tourism industry.
How do they enhance brand image, feelings, attitudes,
and experiences?

6. 1. Company (Branding Strategies)
1. Creating a new brand
2. Adopting / modifying an existing brand
3. Combining brands
Ways of leveraging

7. 2. Country of Origin and Other Geographic Areas
Ways of leveraging

8. Country of Origin and Other Geographic Areas
Ways of leveraging

9. Country of Origin and Other Geographic Areas
Discussion
 “Events or actions associated with the
country may color people’s perceptions
(Keller, p. 287).”
Ways of leveraging

10. Country of Origin and Other Geographic Areas
Example: British Airways “Utopia”
Ways of leveraging http://www.lockonaviation.net/html/utopia.html

11. Country of Origin and Other Geographic Areas
Example: (p. 288)
• In 2003, Wedgwood closed two factories and
move factories to Asia.
• Research in the U.S. showed that what
customers wanted was the Waterford label
and not where the crystal was made.
• Retailers worried that it could harm its brand
image.
http://www.youtube.com/watch?v=WP9RmuoZUpg
Ways of leveraging

12. 3.Channels of Distribution
http://www.careernomics.com/Loreal0709/ca
Ways of leveraging n/excelling.php

13. 4. Co-branding
- definition / examples
 Brand bundling / brand alliances
 Existing brands combined into a joint product /
marketed together
 Hospitality examples
THE NEW STAY SMART®
Mr. Clean®, SHOWERHEAD BY KOHLER®
(Holiday Inn Express® )
Ways of leveraging

14. Co-branding
- advantages/disadvantages
Advantages Disadvantages
1. Borrow needed 1. Loss of control
expertise 2. Risk of brand equity
2. Leverage equity you dilution
don’t have 3. Negative feedback
3. Reduce cost of product effects
introduction 4. Lack of brand focus and
4. Expand brand meaning clarity
into related categories 5. Organizational
5. Source of additional distraction
revenue
Ways of leveraging

15. Co-branding
-guidelines
 Guidelines
- Each brand should have adequate brand awareness +
judgment + feelings.
- Marketers should ask:
• our capabilities
• resource constraints (people, time, money)
• our goals
- Marketers should check:
• profitability
• contribution to brand equity
• extrinsic advantages
Ways of leveraging

16. Co-branding
-ingredient branding
 A special case of co-branding which creates brand equity
for materials, components, or parts that are necessarily
contained within other branded products.
 Benefits
- Consumers: a signal of quality + reduce risk
- Host product producers : leverage the equity from the
ingredient brand to enhance its own brand equity
 Disadvantages : loss of control, consumer confusion
 Hospitality and tourism examples:
- Tourism package with …….. ?
Ways of leveraging

17. 5. Licensing
 Contractual agreement to use names, logos, characters, etc.
 Entertainment licensing : characters from movies/cartoons
 Lucrative for licensors
 Guidelines : beware of short-lived brands!
 Corporate trademark licensing
- licensing a company’s names, logos, and brands to be used
in various products.
- advantage : increase brand exposure, generate extra
revenues, enhance brand image
- disadvantage : inappropriate licensing harm the brand
reputation
Ways of leveraging

18. Licensing
 Hospitality industry examples?
http://www.nick.com
http://www.nickhotel.com
Ways of leveraging

19. Licensing
 Tourism industry examples?
http://www.tourism.australia.com/Marketing.asp?sub=0413&
al=2119
Ways of leveraging

20. 6. People:
Celebrity Endorsement
"What do I wear in bed? Why, Chanel No.5, of course."
 Using well-known and admired people : Consumers judge based on
the knowledge about the celebrities.
- Advantage : easier to draw attention to a brand.
- Potential problems
• when celebrity endorse too many products....
• when the celebrity’s image and brand image doesn’t match….
• when people think the celebrities endorse just for the money
- Strategic evaluation / selection of celebrity required
Ways of leveraging

21. Celebrity Endorsement
 Example
December 11, 2008 02:10:41 GMT
“Chris Brown's "Got Milk?" print ad has hit the
Internet…”
February 11, 2009 02:49:48 GMT
“Having his "Got Milk?" ad campaign coming
to an end this week, Chris Brown will no
longer be used as the celebrity face of the
project.”
“The dropping of Chris Brown by several
companies, which products he endorses, adds
fuel to the existing speculation that his felony
battery case can ruin not only his reputation,
but also his career. Still, there have yet
comments issued by the star himself or his
people.”
Ways of leveraging

22. 7. Sporting, Cultural, or Other Events
favorability Strength
awareness
Sponsor
Brand
equity
Associations
Ways of leveraging

23. 8. Third-party Sources
Brand
Third-party endorser
 Hospitality and Tourism industry examples?
Ways of leveraging http://www.dinegreen.com/

24. Gnoth, J. (2002). Leveraging export
brands through a tourism destination
brand. Journal of Brand Management,
9(4/5), 262.

25. Creates
Leverage
Country as a
tourism
destination
brand Products and
services in
export market
Article: Gnoth (2002)

26. Tourism Systems:
Networks Vs. Channels
 Tourism product
Attraction
Transport Accommodation Hospitality
Article: Gnoth (2002)

27. Tourism Systems:
Networks Vs. Channels
 Difficulty of developing strategic models
Idiosyncrasies and complexity of the tourism industry
Difficulty of branding countries and tourism
destinations (because of complexity)
 NETWORK APPROACH helps
Article: Gnoth (2002)

28. Tourism Systems:
Networks Vs. Channels
 Networks
 The notion of ‘community’
1. Commonality: members share an intrinsic connection
to one another.
2. Values: they have shared rituals and traditions
3. Moral responsibility: they share a sense of moral
responsibility.
 Network theory supports the development of the the
tourism industry as an extended community.
Article: Gnoth (2002)

29. Extension of the tourism brand to
other products and services
which contribute to the pull to the destination
Branding the essential tourism service
which facilitate the tourism experience
Brand extension to non-tourism and export industries
Brand extension to other products and service (producers or those
product brands would like to leverage country brand image)
Article: Gnoth (2002)

30. which contribute to the
pull to the destination
 Tourists interact with these attributes, and it
characterizes their tourism experiences and
defines the qualities of services of experiences.
Article: Gnoth (2002)

31. 2. Branding the essential tourism service
which facilitate the tourism experience
 Intangibles allows a company, region, or country
to provide unique service delivery. Branding the
services facilitating the attraction the second level
of brand extension.
Article: Gnoth (2002)

32. 3. Brand extension to supporting infrastructure,
non-tourism, and export industries
 Food grown in the country
 Technological products (e.g. skis)
 Socio-political infrastructure (reputational capital)
---------------------------------------------------------------------
 Strategies to select important attributes are
important.
Article: Gnoth (2002)

33. 4. All other products and services (producers or those
product brands would like to leverage country brand image)
 There are also brands which are strong enough
on their own and don’t need a country brand’s
help derived from tourism.
 example:
 “While there may be brand connections from tourism to
these brands, the process is not always reversible.”
Article: Gnoth (2002)

34. The emergence and role of a country
as a brand
 Again, network is important!
 When tourists experience cohesive attributes within a
contiguous network throughout the country, new
information is interpreted in a way that has been
organized through past destination (country) brand
experiences.
Article: Gnoth (2002)

35. Gnoth (2002) : Discussion
 Isn’t is necessary in some cases that export brands
need to be disjoined from tourism destination brand?
 Some researchers argue that three levels of
experiences (functional, experiential, and symbolic
level) are not accumulative while others don’t. What
do you think?
 Isn’t it possible that “unifying” the brand image limits
the scope of destination images and eventually
narrows down the target market?
 “While there may be brand connections from tourism
to corporate brands, the process is not always
reversible.” What do you think of this statement?
Article: Gnoth (2002)

36. Review
Conclusion
 Gnoth (2002)
 Managing tourism systems as network + managing brand
attributes are important.
 Keller, Ch. 7
 Customers expect that there are same attributes between
the source factors and the brand. Consequently, marketers
can borrow the brand equity from these source to enhance
their own brand equity.
 8 ways to leverage secondary associations : 1) the company
2) the country or other geographic location 3) other channel
members that sell the product 4) other brands such as
ingredient brands 5) licensed characters 6) endorsers 7)
events 8) third-party sources
 Risks exist : Marketers have to sacrifice control.