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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!