BRAND RESONANCE AS A STRATEGIC MARKETING TOOL Professor Kevin Lane Keller Tuck School of Business Dartmouth College 1

Agenda Understanding Brand Resonance Managing the Four Components of Brand Resonance Key concepts Case studies Summary & Discussion

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 Branding Objective at Each Stage Stages of Brand Development Building Blocks RELATIONSHIPS: What about you & me? Intense, Active Loyalty 4 Resonance RESPONSE: What about you? Positive, Accessible Reactions 3 Judgments Feelings 2 MEANING: What are you? Points-of-Parity & Difference Performance Imagery IDENTITY: Who are you? Deep, Broad Brand Awareness 1 Salience

Brand Resonance Building Blocks: 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 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

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 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 Enduring Feelings Sense of Security (Inner-directed) Social Approval (Outer-directed) Self-Respect (Actualization) Increasing level of intensity Self-Respect Higher level of values & needs Sense of Security Social Approval Inner-Directed Outer-Directed

Brand Resonance Building Blocks: 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 of Brand 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 Branding Objective at Each Stage Stages of Brand Development Building Blocks RELATIONSHIPS: What about you & me? Intense, Active Loyalty 4 Resonance RESPONSE: What about you? Positive, Accessible Reactions 3 Judgments Feelings 2 MEANING: What are you? Points-of-Parity & Difference Performance Imagery IDENTITY: Who are you? Deep, Broad Brand Awareness 1 Salience

Sub-Dimensions of Brand Resonance Pyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT JUDGMENTS QUALITY CREDIBILITY CONSIDERATION SUPERIORITY FEELINGS WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT SALIENCE CATEGORY IDENTIFICATION NEEDS SATISFIED PERFORMANCE PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE IMAGERY USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

Nike Brand Resonance Pyramid Salience – Everything Athletic Attachment Community Engagement Fun Exciting Self-respect Emotional Route Rational Route Credibility Superiority Innovative Quality Stylish Empowerment Irreverence Salience – Everything Athletic

Starbucks Brand Resonance Pyramid Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority Warm Fun Relaxation Romantic indulgence Emotional Route Rational Route Quality ingredients Exotic variety Personalized service Comfortable atmosphere Sophisticated & elegant Casual & comfortable “Third Place” Progressive & cool Salience – Highly accessible & convenient (ideally anywhere & anytime)

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?

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?

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?

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 Brand Consumer Consumer Brand Resonance Network Company Company – Brand connections Consumer – Company connections Brand Consumer – Brand connections Consumer Consumer Consumer – Consumer connections

Any marketing activity can be judged by its total effect on the four dimensions of brand resonance Behavioral Loyalty Attitudinal Attachment Sense of Community Active Engagement

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

1. Building Behavioral Loyalty Break down barriers at purchase & consumption Broaden customer access point Find appropriate new distribution outlets Elicit additional & new consumption opportunities 24

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)

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 26

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

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 28

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”). 29

Consumer-to-Consumer Equity Transfer Promotions Sponsorships Events Experiences Information Consumer 1 Consumer 2 Emotions Blogs Web sites Bulletin boards Online ads & videos 30

Building Brand Engagement Must have people read about, talk about, think about, and engage in activities with the brand Create opportunities for brand involvement 31

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. 32

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

The Duality of Brand Resonance Heirloom Brands Intensity of Relationship Beloved Brands Heritage Brands Necessity Brands Utilitarian Brands Activity of Relationship Brand Resonance Requires Customer Intensity & Activity

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

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