chapter 8 textbook Flashcards

(42 cards)

1
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lleveraging secondary brand associations

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. Secondary brand associations may be quite important for creating strong, favorable, and unique associations or positive responses if existing brand associations or responses are deficient in some way. It can also be an effective way to reinforce existing associations and responses freshly and differently.

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2
Q

when do secondary associations matter most

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Consumers might form a mental association from the brand and to all associations
In general, these secondary brand associations are most likely to affect evaluations of a new product when consumers lack either the motivation or the ability to judge product-related concerns.
when consumers either do not care much about or do not feel that they possess the knowledge to choose the appropriate brand, they may be more likely to make brand decisions on the basis of secondary considerations such as what they think, feel, or know about the country from which the product came, the store in which it is sold, or some other characteristi

When consumers lack motivation: They don’t care enough to deeply evaluate the product.
When consumers lack ability: They don’t feel knowledgeable enough to judge the product properly

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3
Q

linking a brand to a well known entity

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So, linking a brand to a well-known entity can reinforce positive associations or even reshape how consumers see the brand, depending on the entity’s image.

When a brand is linked to another entity (like a celebrity, a company, a country, or a cause), it can influence the existing perceptions people already have about the brand. This happens because consumers naturally transfer some of the qualities they associate with that entity to the brand.
Consumers already have knowledge, judgments, or feelings about the entity.
When they see a brand linked to that entity, they assume some of those characteristics apply to the brand too.
This can strengthen or change existing brand associations depending on whether the entity is viewed positively or negatively.

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4
Q

three important factors in predicting the extent of leverage from linking the brand to another entity

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1) awareness and knowledge of the entity
- Ideally, consumers would be aware of the entity; hold some strong, favorable, and perhaps even unique associations about it; and have positive judgments and feelings about it.
2) meaningfulness of the knowledge of the entity

3) rtrasnferabilty of the knowledge of the entity

The more consumers see the similarity between the entity and the brand, the more likely they will infer similar knowledge about the brand.
Judgments or feelings may transfer more readily than more specific associations, which are likely to seem irrelevant or be too strongly linked to the original entity to transfer.

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5
Q

“Leveraging secondary brand associations” means that marketers can borrow existing associations from another entity. this helps the brand

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Create or reinforce a point of difference (POD) – something that makes it stand out from competitors.
Create a point of parity (POP) – something that makes it comparable to competitors on an important attribute.

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6
Q

When linking a brand to another entity, marketers must consider:

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Consumer awareness – Do consumers know the entity well enough for the association to be meaningful?
Association fit – Are the qualities of that entity relevant and desirable for the brand?

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7
Q

✅ Commonality Leveraging Strategy

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This strategy is used when the entity’s associations match or complement the brand’s desired image.
In other words, the brand leverages something consistent and congruent with its existing associations.
Example:
New Zealand is famous for its high-quality wool and natural environment.
A New Zealand sweater manufacturer can easily emphasize “authentic New Zealand wool” to create strong, favorable, and relevant brand associations (e.g., purity, quality, sustainability).
This helps reinforce the brand’s credibility and point of difference.

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8
Q

🌀 Complementarity Branding Strategy

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Sometimes, marketers choose to associate their brand with an entity that represents something new or different from its current image — this is called complementarity.
It’s riskier but can help reshape brand perception or enter new markets.
The challenge: consumers may find the association incongruent or confusing at first.
Success depends on skillful marketing programs that help consumers connect the dots.
Example:
A traditional Swiss watch brand (known for heritage and craftsmanship) partners with a tech company to launch a smart watch.
Initially, consumers might see this as inconsistent — but with effective storytelling and marketing, the brand can blend tradition + innovation, opening a new positioning opportunity.

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9
Q

⚠️ The Risks of Leveraging Secondary Associations

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Loss of control:
When a brand borrows associations from another entity, it can’t fully control that entity’s image.
Example: If a brand is endorsed by a celebrity who later faces a scandal, the brand’s image can suffer.
Unwanted associations:
The entity will have many associations — not all are desirable.
Example: A brand partnering with a sports team might benefit from the team’s popularity but also inherit negative associations if the team performs poorly.
Changing perceptions over time:
The public’s perception of the entity may change, and this will affect the brand.
Example: A country once perceived as eco-friendly might later face criticism for environmental issues, undermining a brand’s sustainability claims.
Difficulty managing transfer:
Ensuring that only the right associations transfer from the entity to the brand is complex.
It requires consistent messaging, storytelling, and sometimes repetition for consumers to make the correct mental links.

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10
Q

Three main branding options for a new product

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Create a new brand
Adopt or modify an existing brand
Combine an existing and a new brand

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11
Q

create new brand

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The company develops an entirely new name, logo, and identity that is separate from its existing brands.
This approach gives the company maximum flexibility to position the product in a new way and avoid any baggage from existing brands.
However, it also means starting from scratch — building awareness, associations, and trust will take time and money.

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12
Q

. Adopt or modify an existing brand

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The new product carries the name of an existing brand (corporate brand or product line).
This leverages existing brand equity — consumers’ awareness, trust, and positive associations transfer to the new product.
However, if the product fails, it can damage the reputation of the parent bran

When Samsung launches the Samsung Galaxy C8, it builds on the strong reputation of the Samsung brand (innovation, reliability) and the Galaxy line (cutting-edge smartphones).
This helps consumers feel confident about the new product.

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13
Q

Combine an existing and a new brand

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Also called sub-branding or co-branding.
The new product combines a known brand with a new name, blending credibility from the parent brand with a fresh identity.
This allows some differentiation while still leveraging existing brand equity.
Example:
Apple Watch Ultra combines the corporate brand Apple with the new product name Ultra, suggesting both Apple’s reputation and enhanced performance.

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14
Q

corporate or family brand

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A corporate or family brand (like Samsung, Apple, or Nestlé) can provide powerful brand equity because it signals trust, quality, and consistency across different products.
However, this strategy isn’t always beneficial:
Some companies deliberately avoid using the corporate brand to create a “smaller,” more authentic, or niche image.
Consumers sometimes perceive large corporations as impersonal or profit-driven, so companies may launch or acquire smaller brands to appear more relatable.
Example:
Unilever owns Ben & Jerry’s, which maintains its image as a socially conscious, independent ice cream brand. Using the Unilever name prominently might weaken that “authentic” small-brand perception.

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15
Q

⚠️ Link Between Brand and Industry Category

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Brands are often automatically associated with their industry or category, whether they want to be or not.
This can be helpful when the category is respected or growing.
But it can be harmful if the category faces criticism or decline.
Example:
If consumers associate Coca-Cola with the soft drink industry, and the industry becomes linked to health problems (like obesity), that negative industry image can harm Coca-Cola’s brand even if the company launches healthier options.

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16
Q

Country of origin and other geographic areas

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Besides the company that makes the product, the country or geographic location from which it originates may also become linked to the brand and generate secondary association
Choosing brands with strong national ties may reflect a deliberate decision to maximize product utility and communicate self-image, based on what consumers believe about products from those countries

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17
Q

Marketers can establish a geographic or country of origin in dif way

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embedding the ,ocation of the brand name like idaho potatoes or combine it with a brand name like baileys irish ice cream, can also make the location the dominant theme in brand advertising

18
Q

issues with country o

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Definition is blurry:
Is it where the brand was founded? Where it’s designed? Where it’s manufactured or assembled?
(Example: Apple is an American brand, but its products are made in China.)
Globalization blurs boundaries:
As brands become multinational, COO becomes less clear and less influential for some consumers.

19
Q

country of origin at the point of purchase

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Because most products must legally display their origin on the label, consumers are reminded of it right before they buy. This can affect brand choice — especially when buyers care about authenticity, quality, or ethical sourcing.

20
Q

country of origin in domestic markets

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In home markets, COO can:
Trigger patriotic feelings (e.g., “Buy American!” campaigns).
Evoke nostalgia or cultural pride — brands that feel part of one’s national identity.
However, patriotic marketing can become generic or overused if every company uses it.

21
Q

channels of distribution

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Menbers of te channels of distribution could directly affect the equity of the brands they sell
Because of associations to product assortment, pricing and credit policy, quality of service, and so on, retailers have their own brand images in consumers’ minds
Retailers create these associations through the products and brands they stock and the means by which they sell them. To more directly shape their images, many retailers aggressively advertise and promote directly to customers.
A consumer may infer certain characteristics about a brand by where it is sold: “If it’s sold by Nordstrom, it must be good quality.” Consumers may perceive the same brand differently depending on whether it is sold in a store viewed as prestigious and exclusive, or in a store designed for bargain shoppers and having more mass appeal.
The transfer of store image associations can be either positive or negative for a brand.
For many high-end brands, a natural growth strategy is to expand the customer base by tapping new channels of distribution. Such strategies can be dangerous, however, depending on how existing customers and retailers react.

The distribution channel is not just a logistics choice — it’s a branding decision.
Where a brand is sold can:
Reinforce or weaken its image.
Attract new customers or alienate existing ones.
Create valuable or damaging associations.
So, marketers must carefully choose where to sell their products to maintain a consistent brand identity.

22
Q

co branding

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Co-branding—also called brand bundling or brand alliances—occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion
Has been around for years
Interest in co-branding as a means of building brand equity has increased in recent years
Technology brands have also begun partnering with their non-technology counterparts in unique ways to appeal to customers→ nike and apple, apple inrceased apple watches appeal to athletes, nike also benefited from apple watch because it reinforces nike with fitness and health

23
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advantages of co branding

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The main advantage of co-branding is that a product may be uniquely and convincingly positioned by virtue of the multiple brands in the campaign. Co-branding can create more compelling points-of-difference or points-of-parity for the brand—or both—than otherwise might have been feasible. As a result, it can generate greater sales from the existing target market as well as additional opportunities with new consumers and channels.
Co-branding can reduce the cost of product introduction because it combines two well-known images, accelerating potential adoption. Co-branding also may be a valuable means to learn about consumers and how other companies approach them. In poorly differentiated categories especially, co-branding may be an important means of creating a distinctive product

24
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co branding disadvantages

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Disvandtages: The potential disadvantages of co-branding are the risks and lack of control that arise from becoming aligned with another brand in the minds of consumers. Consumer expectations about the level of involvement and commitment with co-brands are likely to be high. Unsatisfactory performance thus could have negative repercussions for both (or all) brands.25 If the brands are very distinct, consumers may be less sure about what each brand represent.26 If the other brand has entered into other co-branding arrangements, there also may be a risk of overexposure that would dilute the transfer of any association. It may also result in distraction and a lack of focus on existing brands

25
to create a strong co brand
both brands should have adequate brand awareness; sufficiently strong, favorable, and unique associations; and positive consumer judgments and feelings
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ingredient branding
A special case of co branding is ingredient branding, this creates brand equity for materials, components, or parts that are necessarily contained within other branded products Ex: apples carplay is a feature available in certain automobiles like the Fiat The uniformity and predictability of ingredient brands can reduce risk and reassure consumers Because of this ingredient brands can become industry standards- a category point of parit Ingredient branding has become useful for mature brands that want cost effective ways to differentiat themselves andingredient brand can try to expand their sales opportunities Ex: Singapore airlines offer givenchy tableware and blankets, bose sound system, etc Ingredient branding can be used for services and products Chevy Camero has be featured in the movie transformers which has allowed the brand to gain status and increase visibility The yellow chevy camero saw an increase in sales of about 10% Barnes&Nobles and starbucks have a co branding relationship as well
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advantages of ingredient Brandin
From the perspective of the firm making and supplying the ingredient, the benefit of branding its products as ingredients is that by creating consumer pull, the company can generate greater sales at a higher margin Better long term supplier-buyer relationships Potentially Enhanced revenue from two revenue streams→ supplied ingredients and possible royalty rights payements From the standpoint of the host product manufacturer, the benefit is in leveraging the equity from the ingredient brand to enhance its own brand equity On the demand side The host product brands may achieve access to new product categories, different market segments, more distribution channels On the supply side the host product brands may be able to share some production and development costs with the ingredient supplier
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risks of co branding
costs of supporting marketing communications program can be high, many suppliers are inexperienced at designing mass media that have to go to intermediaries and consumers As with co branding, marketing programs for the supplier and manufacturer may have different objectives Some manufacturers may be reluctant to become supplier dependent and dont believe branded ingredients add value Manufacturers may resent any consumer confusion about what the “real brand” is if the branded ingredient gains too much equity The sustainability of the competitive advantage may be somewhat uncertain, because brands that follow may benefit from consumers increased understanding of the role of the ingredient so follower brands dont need to explain what the ingredient is as much anymore just why their version of the ingredient is better
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4 tasks of successful ingredient branding
Consumers must first perceive that the ingredient matters to the performance and success of the end product Consumers must then be convinced that not all ingredient brands are the same, and that the ingredient is superior, ingredient should have innovation or some advantage A distinctive symbol or logo must be designed to clearly signal to consumers that the host product contains the ingredient a coordinated push and pull program must be put into place such that consumers understand the importance and advantages of the branded ingredient, this will often include consumer advertising and promotions and sometimes in collaboration with manufacturers, retail merchandising and promotion programs, support of other channel members may be needed as part of the push strategy
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licensing
Licensing creates contractual arrangements whereby firms can use the names, logos, characters, etc of other brands to market their own rbands for a fixed fee Can be a shortcut means to gaining brand equity → walt disney is the champion of thise Entertainment licensing is big Licensing can be equity lucrative for the licensor Sport licensing of clothing apparel and other products have grown very very large Licnensing can provide legal protection for trademarks Licensing the brand for use in certain product categories prevents other firms or potential competitors from legally using the brand name to enter those categories Licensing risks: a trademark can become overexposed if marketers adopt a saturation policy Consumers can become confused or angry if the brand is licensed to a product that seemingly has no relation The brand name can become tarnished if the product fails to live up to consumer expectations
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brand licensing
Brand licensing is when a company (the licensor) allows another company (the licensee) to use its brand name, logo, or symbols on different products — usually in exchange for a royalty fee (often around 5% of the wholesale price). Example: Disney licenses its characters (like Mickey Mouse) to toy and clothing manufacturers. Harley-Davidson licensed its logo for items like shirts, rings, and coolers. Licensing can be profitable because the licensor earns revenue without manufacturing, inventory, or distribution costs.
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why license
Firms license their brands for several reasons: Generate extra revenue and profit. Increase brand exposure — reaching new audiences or product categories. Protect trademarks by keeping them active and visible in the market. Enhance brand image when licensing supports the brand’s lifestyle or identity (e.g., Ferrari on apparel or accessories).
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risks of licensing
a) Chasing fads Manufacturers might license brands that are trendy for the moment but short-lived (a fad). → This can create a short sales spike, but when the trend fades, the partnership loses value. b) Overexposure If too many products carry the same licensed brand, consumers may see it everywhere — which can cheapen the brand’s image and reduce exclusivity. (e.g., when Harley-Davidson’s name appeared on too many unrelated products, it lost some of its premium appeal.) c) Brand dilution If the licensed product doesn’t match the brand’s quality or image, it can confuse consumers or weaken brand meaning. Example: A luxury brand licensing its name for cheap products can harm its prestige. d) Loss of control Because another company makes and sells the licensed products, the licensor risks the product not living up to its reputation — damaging trust and image.
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how firms protect themselves from licensing issues
Diversify licensing agreements: Firms with limited brand equity often license to a variety of partners to spread risk (so they’re not dependent on one licensee or one trend). Develop unique offerings: Licensees are encouraged to create distinctive products and marketing strategies — not just copy the original brand’s appeal. Use marketing research: Before launching a licensed product, firms conduct research to: Ensure the brand and product fit well together. Estimate sales potential and avoid mismatched partnerships. Monitor and control quality: Strong licensing agreements include strict standards and approval processes for product design and marketing to protect the brand’s reputation.
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celebrity endorsement
Using well known and admired people for promoting products is a widespread phenomenon The rationale is that a famous person can draw attention to a brand and shape the perceptions of the brand by the inferences that consumers make based on the knowledge of the famous person Hope is that Celebrities fans become fans of product Celebrity must be well known enough to improve awareness, image and resources for the brand A celebrity endorser should have a high level of visibility and a rich set of potentially useful associations, judgements and feelings Ideally they are credible in terms of expertise, trustworthiness and likability or attractiveness and associations that carry relevance to the product → oprah winfrey has done a very good job of thise
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issues with celebrity endorsers
First, celebrity endorsers can endorse so many products that they lack any specific product meaning or are seen as opportunistic or insincere’ Celebrities run the risk of overexposure Second, there must be a reasonable match between the celebrity and the product Third, celebrity endorsers can get in trouble or lose popularity, diminishing their marketing value to the brand, or just fail to live up to expectations To broaden and reduce risk of linking to one celebrity, some marketers have begun to employ different celebrities or even celebrities who are deceased → Michael Jackson, Elvis Presley, Charles Schulz Fourth, many consumers feel celebrities are doing the endorsement only for the money and do not necessarily believe in or even use the brand, celebrities are also very expensive Celebrities also can be difficult to work with and may not willingly follow the marketing direction of the brand celebrities may distract attention from the brand in ads so that consumers notice the stars but have trouble remembering the advertised brand sometimes brands featuring celebrities could be the subject of controversy, which may lower the standing of the brand and the associated endorser Brands can become too reliant on a celebrity
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why marketers use celebrity endorsers
Celebrities are powerful brand ambassadors because they bring their own public image, credibility, and emotional appeal to the brands they endorse. Their fame can: Grab attention and increase brand awareness. Transfer positive associations (e.g., glamour, trust, athleticism, sophistication). Influence consumer attitudes and purchase intentions. But this only works if the celebrity’s image fits the brand.
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how to use celebrity endorsers
1️⃣ Choose a Relevant and Well-Known Celebrity Marketers must select a celebrity whose image and personality align with the brand’s identity. The celebrity’s traits (e.g., style, professionalism, energy) should reflect what the brand wants consumers to feel. Their associations — such as success, talent, or authenticity — should be transferable to the brand. Example: Roger Federer → Rolex (class, precision, timelessness). Beyoncé → Pepsi (youth, energy, star power). 2️⃣ Ensure a Logical Brand–Celebrity Fit There should be a natural connection between the product and the person. Consumers must believe that the celebrity would realistically use or approve of the brand. A weak or illogical match can confuse audiences or seem inauthentic. e.g., A fast-food endorsement by a fitness influencer may seem inconsistent. 3️⃣ Avoid Overexposure If a celebrity endorses too many brands, their credibility weakens, and their associations become blurred. Consumers may think they’re “just in it for the money,” and the endorsement loses impact. Example: If one actor appears in ads for a phone brand, a clothing line, and a car company — their influence on each individual brand diminishes. 4️⃣ Use the Celebrity Creatively in Marketing The advertising campaign should highlight the specific associations that connect the celebrity and the brand. Rather than simply showing the celebrity holding the product, the ad should tell a story that strengthens the link. For instance: Nike doesn’t just show athletes — it tells stories of performance and perseverance that reflect Nike’s “Just Do It” spirit. This helps ensure the transfer of meaning from the celebrity → to the brand. 5️⃣ Support with Marketing Research Before and after launching the campaign, marketers should use research to: Identify potential celebrity candidates (based on audience perceptions and values). Ensure a good fit with target consumers. Measure how effective the endorsement is (e.g., brand recall, favorability, purchase intent).
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celebrity as a brand
Celebrities themselves are brands — with their own image, audience, and reputation. They must manage their personal brand carefully to maintain credibility and consistency. If a celebrity’s reputation suffers (e.g., due to a scandal), it can damage the brands they endorse — a major risk for companies. Example: When Tiger Woods’ personal scandal broke, many brands (like Gatorade and Accenture) ended their partnerships because his image no longer aligned with their values
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social influencers as the new celebrities
The area of rapid growth has been in the use fo social media celebrities for advertising brands Ina addition to macro influencers there are micro influencers and noncelebrities that hold large sway Todays customers trust regular people because their endorsements appear to be driven by genuine expertise, not just money Online social influencers are taking celebrities places for traditional endorsements as more authentic ways of connecting with smaller audiences
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Sporting, cultural or other events
Sponsored events can contribute to brand equity by becoming associated with the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of existing associations The main means by which an event can transfer associations is credibility Brand may seem more likeable or expert by becoming linked to an event The extent to which his transfer takes place will depend on the events that are selected and how the sponsorship program is designed into the marketing program to build equity Ex: red bull sponsoring a major league soccer team and calling it “the new york red bulls” The rationale for sports sponsorships, in general, is that they provide access to specific target audiences Alternatively, a sports sponsorship may involve a new target audience that has typically not been associated with either a brand or a sport
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third party sources
marketers can create secondary associations in several different ways by linking the brand to various third-party sources Endorsements form leading magazines, acknowledged experts, etc can improve perceptions of and attitudes towards brands Third party sources can be very credible Grey goose third party strategy: perhaps the most important factor in the brand’s eventual success was a taste-test result from the Beverage Testing Institute that ranked Grey Goose as the number-one imported vodka→ grey goose became a top seller