Professional Documents
Culture Documents
Learning Outcomes
Explain how to maximize brand equity across
all the different brands and products of the firm
Appreciate how a firm determines which brand
elements to choose to apply across the
products it offers for sale (Branding Strategy
or brand architecture)
Explain brand terminologies and concepts
such as brand architecture, brand-product
matrix, brand portfolio, brand hierachy,
Explain how cause marketing can build brand
equity
Branding strategy
Branding strategy is critical because it is
the means by which the firm can help
consumers understand its products and
services and organize them in their minds.
Two important strategic tools: The brandproduct matrix and the brand
hierarchy help to characterize and
formulate branding strategies by defining
various relationships among brands and
products.
11.3
11.5
Brand-Product Matrix
1
Products
2
3
A
Brands
B
C
Must define:
Brand-Product relationships (rows)
Line and category extensions
Important Definitions
Product line
A group pf products within a product
category that are closely related
11.10
11.11
Flankers
Cash cows
Low-end entry-level
High-end prestige brands
11.12
Brand Hierarchy
A means of summarizing the
branding strategy by displaying the
number and nature of common and
distinctive brand elements across the
firms products, revealing the explicit
ordering of brand elements
A useful means of graphically
portraying a firms branding strategy
11.13
Corolla
CE
S
LE
Toyota
(SUV/vans)
Camry
SE
LE
XLE
Avalon
Platinum
Edition
XL
XLS
Toyota
(Cars)
Celica
Toyota
Financial
Services
ECHO
SE
SLE
11.14
Matrix
Lexus
MR2
Spyder
Prius
11.16
Family Brands
Brands applied across a range of
product categories
An efficient means to link common
associations to multiple but distinct
products
11.17
Individual Brands
Restricted to essentially one product
category
There may be multiple product types
offered on the basis of different
models, package sizes, flavors, etc.
11.18
Modifiers
Signals refinements or differences in
the brand related to factors such as
quality levels, attributes, functions,
etc.
Plays an important organizing role in
communicating how different
products within a category that share
the same brand name are
11.19
Corporate credibility
Expertise
Trustworthiness
Likability
11.20
Principle of clarity
Logic and relationship of all brand
elements
employed must be obvious
and transparent
11.22
Principle of differentiation
Differentiate individual items and brands
11.23
11.24
11.25
Brand Architecture
Guidelines
Advantages of Cause
Marketing
11.29
Green Marketing
A special case of cause marketing
that is particularly concerned with
the environment
Explosion of environmentally friendly
products and marketing programs
11.30
11.31
Key Points
1. Branding strategy is important as a means of
enabling consumers to understand and
connect with the brand, since it can help
consumers organize a companys products
and services in their minds.
2.
Designing a brand strategy involves
decisions regarding
the number of levels
to use, how brand elements at different
levels will be combined for a given product,
and how brand elements will be linked to
multiple products.
3. Each successive level in a brand hierarchy
allows the firm to communicate additional,
specific information about products.
4. In general, associations for a higher-level
brand should be relevant
to as many
Tutorial
1. Assign students the task of
identifying pairs of competing
brands with different branding
strategies
2. Contrast the branding strategies
and brand portfolios of market
leaders in two different industries