BRAND RESONANCE AS A STRATEGIC MARKETING TOOL

Professor Kevin Lane KellerTuck School of Business

Dartmouth College

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Agenda Understanding Brand

Resonance Managing the Four Components

of Brand Resonance Key concepts Case studies

Summary & Discussion

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Definition of Customer-Based Brand Equity

The differential effect that brand knowledge has on customer response to brand marketing activity Sources: Thoughts, feelings, images,

experiences, beliefs, attitudes, experiences, etc.

Outcomes: Revenue enhancements & cost savings

Brand Resonance The marketing challenge is to ensure

consumers have the right types of experiences to create the right brand knowledge

Brand resonance is when consumers feel that they are “in synch” with a brand

Creating brand resonance involves a series of steps as part of a “branding ladder”

Creating brand resonance is also characterized by a logically constructed set of brand “building blocks.”

BRAND RESONANCE PYRAMID

RELATIONSHIPS:What about you &

me?

RESPONSE:What about you?

MEANING:What are you?

IDENTITY:Who are

you?

Intense,Active Loyalty

Positive,AccessibleReactions

Points-of-Parity& Difference

Deep, BroadBrand

Awareness

Resonance

Judgments Feelings

Performance Imagery

Salience

Stages of Brand Development

Branding Objective at Each Stage

1

2

3

4

Building Blocks

Brand Resonance Building Blocks: Salience

Salience Depth and breadth of brand awareness

Recognition and recall at purchase and consumption How easily and often the brand is thought

of In all the right places … at all the right times … in all

the right ways

Brand Resonance Building Blocks:Performance & Imagery

Performance What the brand does to meet customers' more

functional needs. Brand performance refers to the intrinsic properties of the brand

in terms of inherent product benefits. Imagery

How people think about a brand abstractly rather than what they think the brand actually physically does.

Brand imagery is thus more extrinsic properties of the brand. Four important intangible dimensions are:

Type of user Brand personality History & heritage Experiences

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Superior Competitive Positioning Performance and Imagery associations should be

chosen to help the brand achieve a superior competitive positioning

Develop 3-5 unique brand points-of-difference (POD’s)

Desirable to consumer Deliverable by the company Differentiatied from competitors

Establish 2-4 shared brand points-of-parity (POP’s) Negate competitor points-of-difference Overcome perceived vulnerabilities from points-of-difference Demonstrate category credentials

Kevin Lane Keller, Brian Sternthal, and Alice Tybout (2002), “Three Questions You Need to Ask About Your Brand,” Harvard Business Review, September, 80 (9), 80-89.

Brand Resonance Building Blocks: Judgments & Feelings Judgments

Consumers overall brand evaluations How consumers combine performance and imagery

associations to form different kinds of brand opinions Quality, satisfaction, credibility, consideration, superiority

Feelings Consumers emotional responses and

reactions to the brand Can be mild or intense; positive or negative; or

experiential or enduring in nature. Can also relate to the social currency evoked by the brand.

Dimensions of Brand Feelings

Brand feelings can be divided into two broad categories: Experiential – immediate, short-lived during purchase/consumption Enduring – private, possibly part of day-to-day life

Brands should have one, or ideally both, types of feelings

Experiential Feelings

• Warm

• Fun

• Exciting

Increasing level of intensity

Enduring Feelings

• Sense of Security (Inner-directed)

• Social Approval (Outer-directed)

• Self-Respect (Actualization)

Self-Respect

Sense of Security Social Approval

Inner-Directed Outer-Directed

Higher level of values & needs

Brand Resonance Building Blocks: Resonance Resonance

The extent to which customers feel that they are “in synch” with the brand

Intensity or depth of the psychological bond that customers have with the brand or others

Level of activity engendered by this loyalty Repeat purchase rates The extent to which consumers seek out brand

information, events, or other loyal customers

The Four Components ofBrand Resonance Behavioral Loyalty

Customers’ repeat purchases and the amount or share of category volume attributed to the brand

Attitudinal Attachment When customers view the brand as being something

special in a broader context Active Engagement

When customers are willing to invest personal resources on the brand – time, energy, money, etc. – beyond those resources expended during purchase or consumption of the brand

Sense of Community When customers feel a kinship or affiliation with other

people associated with the brand.

BRAND RESONANCE PYRAMID

RELATIONSHIPS:What about you &

me?

RESPONSE:What about you?

MEANING:What are you?

IDENTITY:Who are

you?

Intense,Active Loyalty

Positive,AccessibleReactions

Points-of-Parity& Difference

Deep, BroadBrand

Awareness

Resonance

Judgments Feelings

Performance Imagery

Salience

Stages of Brand Development

Branding Objective at Each Stage

1

2

3

4

Building Blocks

Sub-Dimensions of Brand Resonance Pyramid

RESONANCELOYALTYATTACHMENTCOMMUNITYENGAGEMENT

JUDGMENTSQUALITY CREDIBILITYCONSIDERATIONSUPERIORITY

FEELINGSWARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

SALIENCECATEGORY IDENTIFICATIONNEEDS SATISFIED

PERFORMANCEPRIMARY CHARACTERISTICS &

SECONDARY FEATURESPRODUCT RELIABILITY, DURABILITY

& SERVICEABILITYSERVICE EFFECTIVENESS,

EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE

IMAGERYUSER PROFILESPURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUESHISTORY, HERITAGE, & EXPERIENCES

Salience – Everything Athletic

InnovativeQualityStylish

EmpowermentIrreverence

Credibility Superiority

FunExcitingSelf-respect

AttachmentCommunityEngagement

Nike Brand Resonance Pyramid

RationalRoute

EmotionalRoute

Salience – Highly accessible & convenient (ideally anywhere & anytime)

Quality ingredientsExotic varietyPersonalized serviceComfortable atmosphere

Sophisticated & elegantCasual & comfortable“Third Place”Progressive & cool

QualityCredibilityConsideration Superiority

WarmFunRelaxationRomantic indulgence

LoyaltyAttachmentCommunityEngagement

Starbucks Brand Resonance Pyramid

RationalRoute

EmotionalRoute

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Brand Resonance Components Behavioral loyalty – Customers’

repeat purchases and the amount or share of category volume attributed to the brand How often do customers purchase a brand? How much do they purchase?

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Brand Resonance Components Attitudinal attachment – When

customers view the brand as being something special in a broader context Do customers “love” the brand? Do they describe it as one of their favorite

possessions? Do they view it as a “little pleasure” they

look forward to?

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Brand Resonance Components Sense of community – When

customers feel a kinship or affiliation with other people associated with the brand. Do customers interact with fellow brand

users or employees or representatives of the company?

Does this occur on-line and/or off-line?

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Brand Resonance Components Active engagement – When customers are

willing to invest personal resources on the brand – time, energy, money, etc. – beyond those resources expended during purchase or consumption of the brand

Do customers choose to join a club centered on a brand?

Do customers receive updates, exchange correspondence with other brand users or formal or informal representatives of the brand itself?

Do they visit brand-related Web sites, participate in chat rooms, and so on?

Company

Consumer Consumer

Brand

Brand Resonance Network

Consumer – Consumer connections

Consumer – Company connections

Consumer – Brand connections

Company – Brand connections

Behavioral Loyalty

Active Engagement

Attitudinal Attachment

Sense of Community

Any marketing activity can be judged by its total effect on the four dimensions of brand resonance

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Achieving Resonance First, must create foundation for

resonance Proper salience & breadth & depth of

awareness Firmly established points-of-parity & points-of-

difference Positive judgments & feelings that appeal to

the head & the heart Then, must optimize four dimensions

of brand resonance

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1. Building Behavioral Loyalty Break down barriers

at purchase & consumption

Broaden customer access point Find appropriate new

distribution outlets Elicit additional & new

consumption opportunities

Starbucks Growth Strategy Product development

Coffee driven Bottled Frappuccino, DoubleShot, Ice Cream

Complements Starbucks Card Duetto Visa, Hear Music Choice

Artist CD series, healthy breakfast items, smoothies

Market development New outlets

Hotels, airports, airlines, book stores, department stores, corporations, etc.

New markets Almost 5,000 coffeehouses in 93 markets outside

North America (with carefully chosen partners)

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2. Building Brand Attachment

Stake out emotional territory Experiential

Warm, fun or exciting Enduring

Sense of security, social approval, or self-respect

Celebrate uniqueness & make indispensable Relevance Immediacy

Pampers Pampers evolved from a functional

to an emotional positioning: Absorbency & dry baby “Caring for Baby’s Development”

Pampers changed marketing program accordingly Advertising etc. Web site

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3. Building Brand Community Allow, facilitate, and

encourage interaction online & offline with others Learn from and teach others Express and observe loyalty

Give them something to talk about Product or brand news Social events Marketing activities

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Dove “Real Beauty” Dove had been backed for decades by traditional

advertising touting the brand’s benefit of one-quarter moisturizing cream and exhorting women to take the seven-day Dove test.

A significant shift in strategy occurred for Dove in 2003 with the launch of the Real Beauty campaign, which celebrates “real women” of all shapes, sizes, ages, and colors.

The multi-media campaign was thoroughly integrated. Traditional TV and print ads were combined with all forms of new media,

such as real-time voting for models on cell phones and tabulated displays of results on giant billboards.

PR was dialed up; paid media was dialed down. The Internet was crucial for creating a dialogue with

women. A website was launched and supplemented with ad videos (“Evolution” & “No Age Limit”).

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Consumer-to-Consumer Equity Transfer

Consumer 1 Consumer 2Information

Emotions

Blogs

Online ads & videos

Web sites Bulletin

boards

EventsPromotions Experienc

es

Sponsorships

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Building Brand Engagement Must have people

read about, talk about, think about, and engage in activities with the brand

Create opportunities for brand involvement

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Jeep Jamborees & Camps In addition to the hundreds of local Jeep

enthusiast clubs throughout the world, Jeep owners can convene with their vehicles in wilderness areas across America as part of the company’s official Jeep Jamborees and Camp Jeep.

Since the inaugural Camp Jeep in 1995, over 28,000 people have attended the three-day sessions, where they practice off-road driving skills and meet other Jeep owners.

Jeep Jamborees bring Jeep owners and their families together for two-day off-road adventures in more than 30 different locations from Spring through Autumn each year.

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Marketing & Resonance Any marketing activity can affect

more than one dimension of resonance Interactive or multiple effects

Certain categories allow for more resonance Inherently high levels of interest & activities

To maximize brand resonance, increase the levels of both the intensity & activity of customer loyalty relationships

Activity of Relationship

Intensity of Relationship

The Duality of Brand Resonance

HeirloomBrands

UtilitarianBrands

BelovedBrands

Heritage Brands

Necessity Brands

Brand Resonance Requires Customer Intensity & Activity

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Summary Brand resonance can provide a useful

means to maximize brand equity & customer equity

Brand resonance is created by developing marketing activities that: Overcomes physical & mental barriers for

purchase & consumption Strikes an emotional chord Is a catalyst for social connections Creates meaningful opportunities for

interactions

Thanks!