BLENDING BRANDING THEORY & PRACTICE: Insights & Lessons From Applying the Brand Resonance Model

Professor Kevin Lane Keller Tuck School of Business Dartmouth College

Agenda

A Brief History of the Model Understanding Brand Resonance Implications, Insights, & Lessons

A Brief History of the Model

I was asked by Grey Advertising to develop a brand equity model I sketched out the basic model structure in the back of an exec ed classroom After fleshing out model details, I presented to Grey, but they passed As the result of a Brand Equity Day with P&G, they chose to use it as their tracking model, called it EquityScan, and calibrated it It has been adopted, sometimes just in parts, by several other companies since

Objectives of the Model

The model had to be logical, well integrated, and grounded. The model had to be versatile and applicable to all possible kinds of brands and industry settings. The model had to be comprehensive and have enough breadth to cover important branding topics, as well as enough depth to provide useful insights and guidelines.

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
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Brand Resonance

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

Stages of Brand Development Building Blocks Branding Objective at Each Stage
Intense, Active Loyalty

RELATIONSHIPS: What about you & me?

Resonance

RESPONSE: What about you?

Judgments

Feelings

Positive, Accessible Reactions

MEANING: What are you? Performance Imagery

Points-of-Parity & Difference

IDENTITY: Who are you?

Salience

Deep, Broad Brand Awareness

Brand Resonance Building Blocks: Salience

Salience

Depth and breadth of brand awareness

Recognition and recall at purchase and consumption In all the right places at all the right times in all the right ways

How easily and often the brand is thought of

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. Type of user Brand personality History & heritage Experiences

Four important intangible dimensions are:

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 (PODs)

Desirable to consumer Deliverable by the company Differentiatied from competitors Negate competitor points-of-difference Overcome perceived vulnerabilities from points-of-difference Demonstrate category credentials

Establish 2-4 shared brand points-of-parity (POPs)

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.

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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
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

Fun Exciting

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 of Brand Resonance

Behavioral Loyalty

Customers repeat purchases and the amount or share of category volume attributed to the brand When customers view the brand as being something special in a broader context 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 When customers feel a kinship or affiliation with other people associated with the brand.

Attitudinal Attachment

Active Engagement

Sense of Community

Sub-Dimensions of Brand Resonance Pyramid

RESONANCE LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

JUDGMENTS QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

FEELINGS WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT IMAGERY USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

PERFORMANCE PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE

SALIENCE CATEGORY IDENTIFICATION NEEDS SATISFIED

Achieving Resonance

First, must create foundation for resonance

Proper salience & breadth & depth of awareness Firmly established points-of-parity & points-ofdifference Positive judgments & feelings that appeal to the head & the heart

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Achieving Resonance

Then, must optimize four dimensions of brand resonance by developing marketing activities that:

Overcomes physical & mental barriers for purchase & consumption Strikes an emotional chord Are a catalyst for social connections Creates meaningful opportunities for interactions

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Nike Brand Resonance Pyramid

Loyalty 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 Quality ingredients Exotic variety Personalized service Comfortable atmosphere Warm Fun Relaxation Romantic indulgence Sophisticated & elegant Casual & comfortable Third Place Progressive & cool

Rational Route

Emotional Route

Salience Highly accessible & convenient (ideally anywhere & anytime)

Brand Resonance Network

Company

Company Brand connections

Consumer Company connections

Brand
Consumer Brand connections

Consumer
Consumer Consumer connections

Consumer

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

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
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The Duality of Brand Resonance

Intensity of Relationship

Heirloom Brands
Heritage Brands

Resonating Brands

Necessity Brands

Utilitarian Brands

Brand Resonance Requires Customer Intensity & Activity

Activity of Relationship

Brand Resonance Model Implications

The brand resonance model can be used

Qualitatively to guide & interpret possible marketing actions Quantitatively to measure marketing effects

Intel Brand Resonance Pyramid

Loyalty

Rational

Quality Credibility Sense of security Consideration Superiority Friendly, personal Accessible

Emotional

Speed/Power Security/Upgradability

Salience Not just for professionals

Cause Marketing Effects on Resonance

LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE

USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

CATEGORY IDENTIFICATION NEEDS SATISFIED

What I Have Learned About Using the Model

It helps to have macro and micro model representations Complexity helps and hurts To really facilitate adoption, you need indices, different forms of presentation, etc. to aid learning It is rare that companies can take models off the shelf and apply them successfully

Thanks!