Brand Admiration E-Book

C. Whan Park

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 382

Veröffentlichungsjahr: 2016

Beschreibung

Brand Admiration uses deep research on consumer psychology, marketing, consumer engagement and communication to develop a powerful, integrated perspective and innovative approach to brand management. Using numerous real-world examples and backed by research from top notch academics, this book describes how companies can turn a product, service, corporate, person or place brand into one that customers love, trust and respect; in short, how to make a brand admired. The result? Greater brand loyalty, stronger brand advocacy, and higher brand equity. Admired brands grow more revenue in a more efficient way over a longer period of time and with more opportunities for growth. The real power of Brand Admiration is that it provides concrete, actionable guidance on how brand managers can make customers (and employees) admire a brand. Admired brands don't just do the job; they offer exactly what customers need (enabling benefits), in way that's pleasing, fun, interesting, and emotionally involving (enticing benefits), while making people feel good about themselves (enriching benefits). Providing these benefits, called 3 Es, is foundational to building , strengthening and leveraging brand admiration. In addition, the authors articulate a common-sense and action based measure of brand equity, and they develop dashboard metrics to diagnose if there are any 'canaries in the coal mine', and if so, what to do next. In short, Brand Admiration provides a coherent, cohesive approach to helping the brand stand the test of time. A well-designed, well-managed brand becomes a part of the public consciousness, and ultimately, a part of the culture. This trajectory is the fruit of decisions made from an integrated strategic standpoint. This book shows you how to shift the process for your brand, with practical guidance and an analytical approach.

Leseprobe

Praise for Brand Admiration

The brand admiration model provides a compelling framework (the 3Es) for developing brands that enhance value to customers and companies alike. Such brands connect with customers and meet goals contributing to their happiness by providing meaning, identity, and emotion. This is powerful stuff!

—JAMES R. BETTMAN, Burlington Industries Professor, Fuqua School of Business, Duke University

Park, MacInnis, and Eisingerich bring their wealth of experience and insight to offer a thorough, original, and practical view of branding. Comprehensive, concise, and highly actionable, their detailed development of the brand admiration concept is a virtual gold mine for thoughtful practitioners interested in improving the design, implementation, and measurement of their branding strategies.

—KEVIN L. KELLER, E. B. Osborn Professor of Marketing, Tuck School of Business, Dartmouth University, and former executive director of the Marketing Science Institute

This book constitutes a rich and insightful addition in the world of brand strategy, as it pinpoints the ins and outs of how to build a beloved brand. For anyone or any company committed to being an admired brand, this book is required.

—EUI SUN CHUNG, vice chairman, Hyundai Motor Company

Park, MacInnis, and Eisingerich provide a powerful yet immensely practical perspective on building and managing brand admiration. Solidly grounded in academic research, the book provides an array of actionable tools to curate and measure brand admiration for the short- and long-term success of brands. This book is a must read for senior executives in businesses large and small, as well as for those who are directly involved in managing brand performance.

—BABA SHIV, Sanwa Bank, Limited, and Professor of Marketing, Stanford Graduate School of Business

Finally, a book that evolves the discipline of branding with a fresh, comprehensive, and practical approach. This is a must read for business leaders looking to build an enduring brand that will maximize the value of their company.

—DOREEN IDA, former division president and marketing director at Nestlé USA

Savvy branders like Apple and Nike know that to win you need to go beyond functionality into emotionality. But how do you execute on making your brand human? Park, MacInnis, and Eisingerich provide an easy-to-use road map grounded in rigorous consumer psychology research. Their enable, entice, enrich framework is logical, intuitive, and timely. This book gives you the conceptual tools to create and sustain brands that are admired.

—ROHIT DESHPANDÉ, Sebastian S. Kresge Professor of Marketing, Harvard Business School, and former executive director of the Marketing Science Institute

Brands are social evaluations of organisational vitality. Every leader is looking for ways to enhance his or her brand and reputation in crowded chatter. Park, MacInnis, and Eisingerich offer a practical, research-driven toolbox that unlocks a truly insightful and innovative approach to branding. Must read!

—GERRY GEORGE, Dean and Lee Kong Chian Chair Professor of Innovation and Entrepreneurship, Lee Kong Chian School of Business, and Editor, Academy of Management Journal

This book beautifully solidifies why experiential marketing is one of three essential elements that contribute to making a brand admired. The breakthrough integrative framework brilliantly conveys the key issues brand managers must consider when growing their brands.

—BERND SCHMITT, Robert D. Calkins Professor of International Business, Columbia University, and faculty director of the Center on Global Brand Leadership

There is much to admire about Brand Admiration! The authors present a cutting-edge framework practitioners can use to build valuable brands that consumers trust, love, and respect.

—DEBORAH ROEDDER-JOHN, Curtis L. Carlson Chair in Marketing and professor, Carlson School of Business, University of Minnesota

Table of Contents

Title Page

Copyright

List of Figures

List of Tables

About the Authors

Foreword

Preface: What Makes This Book Different?

SECTION 1: THE BIG PICTURE

Chapter 1: Why Brand Admiration?

Introduction

The Value of a Brand

The Brand Admiration Management System

Notes

Chapter 2: Living Examples of Admired Brands

Introduction

Overview

Admired Brand in the B2B Market

Admired Brand in the Nonprofit (Service) Market

Admired Brand in the International Market

Types of Brands

Key Takeaways

What about Your Brand?

Notes

Chapter 3: The Science behind Brand Admiration

Introduction

Overview

The Theory behind Brand Admiration

Brand Trust, Love, and Respect

How to Build Brand Admiration: The 3Es

Key Takeaways

What about Your Brand?

Notes

SECTION 2: BUILDING ADMIRED BRANDS

Chapter 4: Building Admiration from the Inside

Introduction

Overview

Employees as Brand-Building Resources

Creating a Meaningful Mission Statement

Enabling, Enticing, and Enriching Features That Make the Mission Statement Come to Life

Enabling, Enticing, and Enriching Employees as People

Key Takeaways

What about Your Brand?

Notes

Chapter 5: Building Brand Admiration among Customers

Introduction

Overview

The Brand-Positioning Statement

Strategic Decisions for Developing a Positioning Statement

Positioning Statement and Financial Goals

Key Takeaways

What about Your Brand?

Notes

Chapter 6: Building Top-of-Mind Brand Recall

Introduction

Overview

Key Issues in TOM Brand Recall

Enhancing TOM Brand Recall Using Logos

Enhancing TOM Brand Recall Using Brand Names

Enhancing TOM Brand Recall Using Product (Package) Design

Designing Logos, Brand Names, and Product/Package Designs Jointly

Key Takeaways

What about Your Brand?

Notes

SECTION 3: STRENGTHENING AND LEVERAGING ADMIRED BRANDS

Chapter 7: Strengthening Brand Admiration

Introduction

Overview

Value-Enhancement Strategies That Strengthen Brand Admiration

Strategies That Manipulate Brand Benefits

Strategies That Adjust a Benefit’s Importance Weight

Strategies That Create (Change) the Referent

Thinking Broadly about Value-Enhancement Strategies

Key Takeaways

What about Your Brand?

Notes

Chapter 8: Leveraging Brand Admiration: Extension and Feedback Effects

Introduction

Overview

Why Leverage an Admired Brand?

How to Leverage a Brand: Product and Brand Extension Strategies

Key Takeaways

What about Your Brand?

Notes

Chapter 9: Leveraging Brand Admiration: Implementation Issues

Introduction

Overview

When Are Product and Brand Extensions Most Likely to Be Successful?

Is High Fit Always Necessary?

Achieving Optimal Extension and Feedback Effects over Time

Key Takeaways

What about Your Brand?

Notes

Chapter 10: Brand Architecture Design

Introduction

Overview

Brand Naming Options in Brand Architecture Design

Designing the Structure of the Company’s Brand Architecture

Criteria in Choosing a Branding Option in the Company’s Brand Architecture

Key Takeaways

What about Your Brand?

Notes

SECTION 4: ASSESSING THE VALUE OF ADMIRED BRANDS TO FIRMS AND CUSTOMERS

Chapter 11: Measuring Brand Equity

Introduction

Overview

Perspective on Brand Equity

Measuring Brand Equity

Appeal of the Brand-Equity Measure

Key Takeaways

What about Your Brand?

Notes

Chapter 12: Brand Dashboards

Introduction

Overview

What a Brand Admiration Dashboard Can Do for You?

The Brand Admiration Dashboard: An Illustrative Example

Key Takeaways

What about Your Brand?

Appendix

Notes

Afterword: Concluding Thoughts

Index

End User License Agreement

Guide

Table of Contents

Begin Reading

List of Illustrations

Preface: What Makes This Book Different?

Figure P.1 The Brand Admiration Management System

Chapter 1: Why Brand Admiration?

Figure 1.1 The Brand Admiration Management System

Chapter 2: Living Examples of Admired Brands

Figure 2.1 The Brand Admiration Management System

Figure 2.2 Different Types of Benefits, Different Types of Brands

Chapter 3: The Science behind Brand Admiration

Figure 3.1 Brand Admiration Model: Drivers and Consequences

Chapter 4: Building Admiration from the Inside

Figure 4.1 Building Employee Brand Admiration

Figure 4.2 Beliefs/Principles Subsumed in Starbucks’ Mission

Chapter 5: Building Brand Admiration among Customers

Figure 5.1 Strategic Decisions Underlying the Brand-Positioning Statement

Figure 5.2 Communicating Brand Identity: Singapore Airlines

Figure 5.3 Communicating Brand Identity: Caterpillar

Chapter 6: Building Top-of-Mind Brand Recall

Figure 6.1 Morton Salt Package, Logo, and Brand Name

Figure 6.2 Marketing Actions That Enhance Brand Recall

Figure 6.3 Examples of Well-Known Logos

Figure 6.4 Brand Logos with Taglines

Figure 6.5 Examples of Cutely Beautiful Brands

Chapter 9: Leveraging Brand Admiration: Implementation Issues

Figure 9.1 Nike Brand Evolution Map

Chapter 11: Measuring Brand Equity

Figure 11.1 The Brand Admiration Management System

Figure 11.2 Brand Admiration: Financial Value

Chapter 12: Brand Dashboards

Figure 12.1 Metrics That Comprise the Brand Admiration Dashboard

List of Tables

Chapter 1: Why Brand Admiration?

Table 1.1 Value of an Admired Brand to a Company

Table 1.2 Value of an Admired Brand to Customers

Table 1.3 The Exponential Impact of the 3Es

Chapter 4: Building Admiration from the Inside

Table 4.1 Company Mission Statements

Chapter 5: Building Brand Admiration among Customers

Table 5.1 Sample Positioning Statement

Table 5.2 The 3Cs: Criteria for Choosing a Target Market

Chapter 7: Strengthening Brand Admiration

Table 7.1 A Customer’s Value Judgments

Table 7.2 Brand Value-Enhancement Strategies

Table 7.3 Integrated Value-Enhancing Strategies

Chapter 8: Leveraging Brand Admiration: Extension and Feedback Effects

Table 8.1 Why Leverage an Admired Brand?

Table 8.2 Leveraging Brand Names Using Product Extensions

Table 8.3 Leveraging Brand Names Using Brand Extensions

Chapter 9: Leveraging Brand Admiration: Implementation Issues

Table 9.1 Strategic Use of Low-Fit Brand Extensions

Chapter 10: Brand Architecture Design

Table 10.1 Types of Brand Naming Options

Table 10.2 Meaning and Examples of Different Branding Options

Table 10.3 Brand Architecture Structure

Table 10.4 Brand Architecture Structure of Toyota Motor Corporation

Table 10.5 Brand Architecture Evaluative Criteria

Chapter 11: Measuring Brand Equity

Table 11.1 Adjusting Marketing Surplus by Marketing Efficiency

Table 11.2A Assessing Brand Equity and Marketing Performance: Cruise Brand

Table 11.2B Assessing Brand Equity and Marketing Performance: Boom Brand

Table 11.2C Assessing Brand Equity and Marketing Performance: Cruise Brand versus Boom Brand

Chapter 12: Brand Dashboards

Table 12.1 Do’s and Don’ts of a Good Brand Admiration Dashboard

Table 12.2 Brand Admiration, Brand Loyalty, and Brand Advocacy Behavior Scores: Supermarket Brand

Table 12.3 Scores on the 3Es, and Love, Trust, and Respect: Supermarket Brand

Table 12.4 Scores for Heart Share, Mind Share, and Spirit Share: Supermarket Brand

Table 12.5 Examples of Measures

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C.Whan Park | Deborah J. MacInnis | Andreas B. Eisingerich

BRAND ADMIRATION

Building a Business People Love

Foreword by Allen Weiss

Copyright © 2016 by John Wiley & Sons. All rights reserved

Published by John Wiley & Sons, Inc., Hoboken, New JerseyPublished simultaneously in Canada

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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for damages arising herefrom.

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Library of Congress Cataloging-in-Publication Data is Available

ISBN 9781119308065 (Hardcover)ISBN 9781119308072 (ePDF)ISBN 9781119308096 (ePub)

Cover Design: PAUL MCCARTHYCover Art: © MAREIKE DRIES / EYEEM / GETTY IMAGES

List of Figures

Figure P.1

The Brand Admiration Management System

Figure 1.1

The Brand Admiration Management System

Figure 2.1

The Brand Admiration Management System

Figure 2.2

Different Types of Benefits, Different Types of Brands

Figure 3.1

Brand Admiration Model: Drivers and Consequences

Figure 4.1

Building Employee Brand Admiration

Figure 4.2

Beliefs/Principles Subsumed in Starbucks’ Mission

Figure 5.1

Strategic Decisions Underlying the Brand-Positioning Statement

Figure 5.2

Communicating Brand Identity: Singapore Airlines

Figure 5.3

Communicating Brand Identity: Caterpillar

Figure 6.1

Morton Salt Package, Logo, and Brand Name

Figure 6.2

Marketing Actions That Enhance Brand Recall

Figure 6.3

Examples of Well-Known Logos

Figure 6.4

Brand Logos with Taglines

Figure 6.5

Examples of Cutely Beautiful Brands

Figure 9.1

Nike Brand Evolution Map

Figure 11.1

The Brand Admiration Management System

Figure 11.2

Brand Admiration: Financial Value

Figure 12.1

Metrics That Comprise the Brand Admiration Dashboard

List of Tables

Table 1.1

Value of an Admired Brand to a Company

Table 1.2

Value of an Admired Brand to Customers

Table 1.3

The Exponential Impact of the 3Es

Table 4.1

Company Mission Statements

Table 5.1

Sample Positioning Statement

Table 5.2

The 3Cs: Criteria for Choosing a Target Market

Table 7.1

A Customer’s Value Judgments

Table 7.2

Brand Value-Enhancement Strategies

Table 7.3

Integrated Value-Enhancing Strategies

Table 8.1

Why Leverage an Admired Brand?

Table 8.2

Leveraging Brand Names Using Product Extensions

Table 8.3

Leveraging Brand Names Using Brand Extensions

Table 9.1

Strategic Use of Low-Fit Brand Extensions

Table 10.1

Types of Brand Naming Options

Table 10.2

Meaning and Examples of Different Branding Options

Table 10.3

Brand Architecture Structure

Table 10.4

Brand Architecture Structure of Toyota Motor Corporation

Table 10.5

Brand Architecture Evaluative Criteria

Table 11.1

Adjusting Marketing Surplus by Marketing Efficiency

Table 11.2A

Assessing Brand Equity and Marketing Performance: Cruise Brand

Table 11.2B

Assessing Brand Equity and Marketing Performance: Boom Brand

Table 11.2C

Assessing Brand Equity and Marketing Performance: Cruise Brand versus Boom Brand

Table 12.1

Do’s and Don’ts of a Good Brand Admiration Dashboard

Table 12.2

Brand Admiration, Brand Loyalty, and Brand Advocacy Behavior Scores: Supermarket Brand

Table 12.3

Scores on the 3Es, and Love, Trust, and Respect: Supermarket Brand

Table 12.4

Scores for Heart Share, Mind Share, and Spirit Share: Supermarket Brand

Table 12.5

Examples of Measures

About the Authors

Dr. C. Whan Park is the Robert E. Brooker Professor of Marketing, University of Southern California. He received a BA in German language and literature from Seoul National University, Korea, in 1967, and an MS and PhD in business administration from the University of Illinois in 1974. Dr. Park has published numerous articles in the Journal of Marketing Research, Journal of Consumer Research, Journal of Marketing, and Journal of Consumer Psychology. His works have also appeared in many other journals, including Organizational Behavior and Human Performance, the Harvard Business Review, and the Journal of Retailing. Professor Park coauthored Marketing Management (Dryden Press, 1987) with Dr. Gerald Zaltman of Harvard University, and Handbook of Brand Relationships (M.E. Sharpe, 2009) with Deborah J. MacInnis and Joseph Priester. In 1987 he was the recipient of the Alpha Kappa Psi award for his article Strategic Brand Concept-Image Management, which appeared in the Journal of Marketing. He is a fellow of the Society of Consumer Psychology (2012) and the Association for Consumer Research (2015). Dr. Park is a former editor of the Journal of Consumer Psychology (2008–2012). He currently serves as director of the Global Branding Center, Marshall School of Business, University of Southern California (2008–present). Dr. Park served as an advisor to Samsung from 1989 to 1998 and as a member of the board of directors for Samsung Corporation from 2001 to 2010. He has been an advisor for Pulmuone Corporation since 1993. He has been directing and teaching a number of marketing executive programs at Marshall since 1998.

Dr. Deborah J. MacInnis is the Charles L. and Ramona I. Hilliard Professor of Business Administration and a professor of marketing at the Marshall School of Business, University of Southern California. She received a BS in psychology from Smith College in 1980 and a PhD in marketing from the University of Pittsburgh in 1986. She is theory development editor at the Journal of Marketing, and formerly served as coeditor of the Journal of Consumer Research and associate editor of the Journal of Consumer Research and Journal of Consumer Psychology. She formerly served as treasurer, and president, of the Association for Consumer Research, and is a former vice president of conferences and research for the American Marketing Association’s Academic Council. She has received the Journal of Marketing’s Alpha Kappa Psi Award and its Maynard Award for papers that make the greatest contribution to marketing thought, and the Long-Term Contribution Award from the Review of Marketing Research. Professor MacInnis is coauthor of a leading textbook on consumer behavior (with Wayne Hoyer and Rik Pieters) and coeditor of several volumes on branding (with C. Whan Park and Joseph Priester). She has also served as vice dean of research and strategy and vice dean of the undergraduate program at the Marshall School of Business. She is the winner of local and national teaching awards and is the recipient of USC’s Mentoring Award. She is a member of the American Marketing Association and the Association for Consumer Research. Professor MacInnis’s research focuses on emotions and branding.

Dr. Andreas B. Eisingerich is the academic programme director of the full-time MBA and professor of marketing at Imperial College Business School, Imperial College, London. He received a BSc degree in management, with a focus on economics, quantitative methods, and psychology, from the London School of Economics in 2003, and a research master’s degree (MPhil in management with a focus on marketing) from the University of Cambridge in 2004, where he also earned a PhD in marketing in 2006. He publishes widely in leading academic and practitioner journals, including the Journal of Consumer Psychology, Journal of Marketing, Journal of Service Research, and Harvard Business Review, among others. Professor Eisingerich’s work focuses on consumer behavior, brand management, and service innovation, and includes collaborations with the Bill & Melinda Gates Foundation, UNAIDS, WHO, WWF, and numerous businesses across industries and markets.

Foreword

There are hundreds of books on the market about branding. Almost all talk about how to make your brand more relevant to customers, and maybe gain their trust. But what if there was an overarching framework that could be used to understand how a brand can systematically create value—and ensure that value endures—for both a company and its customers? Researchers C. Whan Park, Deborah J. MacInnis, and Andreas B. Eisingerich have recently introduced such a framework in their book, Brand Admiration: Building a Business People Love.

In this breakthrough, integrative, actionable, and research-based book, Professors C. Whan Park, Deborah J. MacInnis, and Andreas B. Eisingerich provide a fresh perspective on branding. The fundamental takeaway is that brand admiration is the ultimate destination point for brands.

Think about a few well-known brands: Nike, Apple, Disney, Google, and Salesforce. What do they have in common? Yes, they’re well-known brands with good products or services. But their enduring success can be attributed to the fact that they are admired.

Admired brands are those that customers love, trust, and respect—so much so that they feel some kind of personal connection to the brand. The brand is the first one people think about when they need something in the brand’s product category. Customers not only buy an admired brand, they speak well of it (even if they pay a little more for it), and they’ll be more forgiving when the brand screws up. Making your brand trusted, loved, and respected is critical, because these psychological states exponentially impact how loyal customers will be toward your brand and how much they’ll advocate on its behalf.

These customer behaviors create enormous value for companies in the form of increased profits, better employee retention, opportunities for partnerships, and more. From the authors’ perspective, a brand is more than a mere name that helps to differentiate products or services. It is a value-generating entity relevant to both customers and the brand owner—and the effort required to create an admired brand is worth its weight in gold.

Park, MacInnis, and Eisingerich not only clarify what brand admiration is, they show why every member of the organization should be intent on creating it. And they clarifywhat marketers can do to make their brand admired and keep it so. Specifically, the most admired brands provide benefits that underlie human happiness: they enable, entice, and enrich customers. This theory is rooted in sound marketing concepts, as well as established psychological theories of human motivations, goals, and needs. In light of the evolving nature of the competitive marketplace, marketers need to not just create, but also sustain brand admiration over time. A sound and actionable set of value-enhancement strategies will give you great insight into how you can continue to best your own brand and outshine competitors.

The authors also make clear recommendations for how marketers can leverage an admired brand through the strategic use of product and brand extensions. In this way, admired brands not only become more profitable, they are also more likely to provide avenues for continued growth.

As part of their integrative framework, Park, MacInnis, and Eisingerich have also developed a measure of brand equity that can help brand managers and CMOs show the worth of the brand (and of brand investments) to CFOs. Brand managers can also use the dashboard metrics the authors developed to diagnose whether there are any canaries in the coal mine, and if there are, what to do next.

What’s more, their framework applies to brands in any type of business and across industries—from B2B and B2C to tech, commodities, celebrities, institutions, nonprofit organizations, and more. It can be applied to new or existing brands with equal success. B2B brands in particular have much to gain by considering this brand admiration perspective. Everyone can learn from this book.

MarketingProfs is so keen on the concept of brand admiration that it has become a focal part of our corporate training program. What we like about this book is that it’s not based on fluff or purely on stories. The authors are world-renowned academics who have studied branding for decades. They use their own research and that of other thought leaders in marketing to build their integrative framework. We have yet to see a framework that offers so many new ideas and so much stimulating, action-oriented thinking in a single book.

Allen WeissCEO/FounderMarketingProfs, LLC

Preface: What Makes This Book Different?

The business world does not lack for books on branding. But Brand Admiration is different in several game-changing ways.

First, we develop a novel, integrated and overarching perspective on the fundamental goals of brand management and how we achieve them. We call this perspective the brand admiration management system. This system (Figure P.1) provides a road map for building, strengthening, and leveraging brand admiration over time, in ways that produce value to customers and companies alike. We regard brand admiration as the most desired state of a brand’s health. Unlike other books that primarily provide a set of to do’s, we provide an overarching system whose components are connected and integrated. In this way, our book offers the theoretical coherence that makes its set of “to do’s” highly compelling.

Figure P.1The Brand Admiration Management System

Second, we directly link brand admiration to the brand’s value to companies. Building, strengthening, and leveraging brand admiration is, we argue, the most important and foundational objective of branding. Using decades of research in marketing and psychology, we emphasize three critical classes of benefits that characterize admired brands. Such brands enable, entice, and enrich customers. These three classes of benefits, called the 3Es for short, have an exponential effect on customers’ relationship with a brand. They build brand admiration by enhancing customers’ trust in, love of, and respect for the brand. This brand admiration, in turn, provides value to the firm. We describe some important psychological processes in Chapter 3 that explain why the 3Es create value for customers (and hence companies).

Third, we describe how companies can build, strengthen, and leverage this value. Rather than focusing on quick fixes, and tactics to enhance fourth-quarter earnings, we examine forces responsible for efficient short-term competitive advantages that also build (Chapters 4, 5, and 6), strengthen (Chapter 7), and leverage (Chapters 8, 9, and 10) brand admiration over the long term. When a short-term focus and long-term goals are aligned, brands enjoy short-term and long-term success. History is replete with examples of brands that have been market leaders for decades, generations, or even a century or more (Chapter 2).

Fourth, we propose an innovative way of thinking about brand architecture design (Chapter 10). We address how various businesses and products within the company’s portfolio are branded to deliver to a company the optimal financial, asset-building, and organizational benefits. We also present a novel and implementable metric for measuring brand equity (Chapter 11) and a set of dashboard metrics that help managers diagnose what’s driving (or not driving) successful brand performance (Chapter 12).

Fifth, our framework is not based on mere assertions. Nor is it based purely on a particular brand example. Instead, it is grounded in decades of theoretical and empirical research from us and other academics in marketing and psychology. In particular, our framework derives from research on fundamental human needs, goals, emotions, and motivations, as well as in empirical research that supports needs, goals, emotions, and motivations as drivers of brand admiration.

Finally, our framework is generalizable. It is equally applicable to the introduction of new brands and the management of existing brands. It is appropriate for brands in different industries and for both B2B and B2C brands. Brand managers, CMOs, CEOs, and employees who work for product brands, service brands, celebrity brands, country brands, institution brands, and NGO brands can all use our framework.

We hope you will see that the ideas in this book are novel, actionable, and strong—indeed, game changing in driving the value of your brand to your customers and your company.

SECTION 1

THE BIG PICTURE

Chapter 1Why Brand Admiration?

Admired brands create blockbuster value for companies and customers alike.

Introduction

Yes, we have heard about it and seen it with our own eyes, but it is still hard to fully grasp Apple’s miraculous comeback during the first 16 years of the 21st century. In 1999, Microsoft’s stock was at a record high, with its market capitalization close to $620 billion. Apple was teetering on bankruptcy. The notion that Apple would ever match Microsoft’s financial firepower, let alone surpass it, was unthinkable. In a 1998 Vanity Fair interview, Bill Gates “couldn’t imagine a situation in which Apple would ever be bigger and more profitable than Microsoft.” Nearly 17 years later, Apple’s market capitalization stands at $683 billion, more than double that of Microsoft’s. Sales of the iPhone 6s have been phenomenal, and more than 48 million iPhone 6 and 6s units were sold during the last quarter of 2015 alone.1 Indeed, in July of 2015 Microsoft’s chief executive Satya Nadelia stated that if Microsoft is to compete with Apple, Google, and others, Windows must become desired. Microsoft’s Windows operating system has endured as a must-have work tool, not because it’s an object that customers love. From his perspective, making customers love Windows was the critical objective.2

We don’t know what will happen to Apple five or 20 years from now. But the answers to two important questions might help Apple strengthen its success over time. The first asks how Apple turned itself around. The second asks what Apple must do to ensure continuous growth and prosperity. As to the first question, we’ve heard a lot about the things that Apple did right when it introduced the iMac, iPod, and iPhone. However, we do not understand how these and other factors created the powerful Apple brand. Knowing a list of factors is one thing. Understanding how they work together to produce such a strong impact on customers is another. Unless we can answer the first question, it is hard to answer the second.

Microsoft needs to ask why it failed to make people love Windows, despite its must-have usefulness. It also needs to ask whether creating brand love is the ultimate and true destination point to which Microsoft should aspire. We think the answer is no. While important for developing prosperous customer relationships, love alone is limited in its power to sustain customer relationships over time. To create prosperous and sustainable customer relationships, Windows needs to go beyond brand love. Like the world’s most successful brands, it needs to become admired. A fundamental goal of this book is to discuss what admired brands are, how to develop them, how to strengthen them, and how to leverage them over time so that they reap maximal benefits for customers and the company alike. Why does this matter? Let’s explore the brand’s value to companies and customers alike.

The Value of a Brand

The American Marketing Association defines a brand as a name, term, symbol, and/or design that’s intended to identify the goods and services of one seller or a group of sellers and to differentiate them from those of the competition.3 However, we argue that a brand is more than a mere name that helps with identification and differentiation. Identifying a brand and differentiating it from competing brands only makes sense when the brand offers value. We define a brand as a value-generating entity (name) relevant to both customers and the brand owner. If no one wants to buy the brand, the name doesn’t have much market relevance. Such a brand fails to provide value to either the company or customers. But what does it mean to say that a brand offers value to customers and companies? Let’s first consider what we mean by brand value to companies.

Value to Companies

Surprisingly, we have paid so much attention to brands as identifiers and marketplace differentiators that we have not paid much attention to the substantial, real, and strategic benefits that brands can provide to companies. But these benefits are numerous and significant, as Table 1.1 (and Figure 1.1, later in the chapter) suggests.

Table 1.1 Value of an Admired Brand to a Company

Types of Value

What an Admired Brand Does

Revenue Generator

An admired brand increases customer loyalty and attracts new customers.

Cost-Efficiency Enhancer

An admired brand is in demand, which allows the company to take advantage of economies of scale and allows the company to enjoy cost-saving customer brand loyalty and brand advocacy behaviors.

Growth Facilitator

An admired brand facilitates the introduction and success of its extensions to other markets and other products.

Human-Capital Builder

An admired brand helps recruit and retain talented people who will ultimately determine the company’s success in the market place.

Employee-Morale Booster

An admired brand motivates employees to protect and strengthen the brand.

Second-Chance Provider

An admired brand enhances customers’ willingness to forgive mistakes made by a company.

Market Protector

An admired brand serves as a barrier to entry to future competitors.

Alliance Facilitator

An admired brand facilitates alliances with desirable and powerful external partners.

Asset Builder

An admired brand enhances the company’s marketplace value, and also allows it to demand a premium price in a brand-selling situation.

Figure 1.1 The Brand Admiration Management System

Revenue Generator

An admired brand increases customer loyalty and attracts new customers. These twin outcomes enhance a brand’s revenue. Although producing a soft drink is not rocket science, new entrants find it incredibly hard to compete in this market, since most customers have a strong and long-standing preference for a particular soft drink brand. And this holds true worldwide! A strong brand also increases revenue by making customers less price sensitive, allowing companies to charge a higher per-unit price. Think about the price premium brands such as McKinsey and Goldman Sachs can charge in the marketplace.

Cost-Efficiency Enhancer

An admired brand is in demand, which allows the company to take advantage of economies of scale. Strong brands also create favorable word of mouth (WOM) and customer evangelists who further contribute to marketing efficiency by lowering marketing costs. In fact, some brands became marketplace successes purely through WOM. Trader Joe’s is an example. Think about the stories customers relate about the unique products they can get only at Trader Joe’s. China’s Xiaomi, a tech company, relies entirely on brand communities and WOM from its fans for publicity and brand-promoting activities. Or consider the pride customers take in their durable Patagonia jackets and the stories they share about them. Since advertising and promotion costs often eat up a substantial portion of companies’ budgets, enormous cost efficiencies are realized by fan-based WOM.

Growth Facilitator

An admired brand can be leveraged and extended, creating growth (and revenue) from new product or market categories. An admired brand makes it easier for companies to grow and grow efficiently, through product and brand extensions that use the brand name. Such extensions help the company’s overall growth. Oracle grew by extending its brand to a portfolio of cloud and mobile solutions. Apple’s extensions have allowed it to grow from $19.3 billion in 2006 to $234 billion in December of 2015.4

Human-Capital Builder

An admired brand helps recruit and retain talented people who will ultimately determine the company’s marketplace success. Talent is the most difficult core competency for competitors to copy. Think about Google and Tesla’s abilities to attract top talent. Admired brands attract top talent at all levels of the organization.

Employee-Morale Booster

An admired brand also motivates employees to protect and strengthen the brand. Employees of admired brands are more committed to nurturing customers than are employees working for brands with no discernable equity. Why? Because they believe in the brand and are proud of what they do to help it flourish.5 Costco, which can be called an admired brand, has higher employee morale than competitor companies in the same industry. Employees who work for companies ranked as most admired in their industries take pride in the company’s success, and they work harder to protect and strengthen the company’s reputation. Executives who manage admired brands are even willing to accept lower pay for the opportunity to work for the brand.6

Second-Chance Provider

An admired brand also enhances customers’ willingness to forgive unfortunate mistakes made by a company, giving it another chance to redeem itself.7 Martha Stewart, Paula Deen, Toyota, Nike, and Harley-Davidson, to name just a few, have all fallen victim to brand gaffes and disasters. Yet the strength of their brands, the loyalty of their customer bases, and their customers’ willingness to see brand mistakes as rare and unusual events have helped them to recover.

Market Protector

An admired brand protects companies by serving as a barrier to competitive brand entry. Customers are reluctant to switch from an admired brand to a new one unless the benefits of the new brand are sufficiently compelling to motivate switching. Customers’ familiarity with admired brands provides comfort via what they know and have experienced. Their affection for a brand they know and admire makes them unwilling to invest in a new and untried brand. History shows that while many companies can produce athletic clothing, toys, and databases, they can’t simply compete with the likes of Nike, Lego, and IBM.

Alliance Facilitator

An admired brand can facilitate alliances with desirable and powerful external partners. Such alliances can both leverage brand admiration and enhance it further. Alliances allow companies to build additional revenue and markets without making costly investments in areas in which they lack expertise. The ability of Apple and Samsung to attract partners serves as a testament to how much other companies admire these brands. Recent alliances between BMW and Louis Vuitton, Apple Pay and MasterCard, and Spotify and Uber also illustrate this point.8

Asset Builder

Finally, an admired brand generates greater shareholder return because investors take notice of admired brands when making their investment decisions.9 This in turn makes a company’s marketplace value substantially higher than its book value. That explains why Wanda Group paid $650 million to acquire the Ironman brand, which organizes, promotes, and licenses triathlons around the world, including the signature Ironman event that consists of a 2.4-mile swim, a 112-mile bicycle ride, and a 26.2-mile (a full marathon) run. As a sign of “having made it”, some participants tattoo the Ironman logo on their bodies upon completing this hellish and grueling event.

The critical question is this: If an admired brand offers value to companies on so many dimensions, how can companies develop an admired brand? The answer to this question is both simple and deceptively complex. The simple answer is that companies can’t reap the benefits of these myriad and significant sources of value unless they also provide value to customers. The deceptively complex answer is that the field of marketing has yet to develop a compelling perspective on what customers actually do value. Our brand admiration framework aims to provide this perspective.

Value to Customers

In order to provide value to companies, brands must first provide value to customers. But how do companies make their brands valuable to customers?

Value from Product Innovations?

Several scholars claim that brand success hinges on creating an uncontested market space. Or sometime we hear people say it is all about creating a “killer application”. But what is a killer application? The argument goes that in today’s information-rich economy, customers have full access to information about products. As such, brands can only compete on product quality and price. Accordingly, customers’ relationships with brands are based on an economic calculus where what one gets (brand quality) is commensurate with what is given (the price paid). The idea goes that due to this excessive product quality and price comparison trend, companies must focus on product innovations that reshape industry boundaries and create new competitive opportunities.10 This argument has merit. Clearly product innovations are crucial to a brand’s success in today’s markets.

Value from Benefits That Provide Happiness (the 3Es)

However, having an innovative product is just part of the solution for achieving competitive success. Decades of research on customer behavior show that a buying decision is not based purely on an economic calculus. Brand choices are largely driven by perceptions of what brands do for customers. In other words, rather than competing on purely economic terms, brands compete based on the degree to which their benefits make customers happy. Clearly, customers will not invest in brands that are not worth the money. But what they are looking for, more than a quality product at the right price, is a brand whose benefits help them to do what they need and want to do, in a way that is experientially gratifying to them and that makes them feel good about themselves as people. Whether it’s in a personal or a professional context, brands that provide these benefits make customers happy.

Brand benefits refer not to the features the product has, but rather the outcomes from brand acquisition or use that meet customers’ needs, wants, and goals, as human beings. This holds true regardless of whether these humans are occupying the role of B2B customers, B2C customers, sports and/or celebrity fans, or targets of nonprofit marketers.11 Our perspective on customer value is both novel and parsimonious. Specifically, we identify three broad classes of benefits that underlie human happiness: benefits that enable, benefits that entice, and benefits that enrich customers (see Table 1.2).

Table 1.2 Value of an Admired Brand to Customers

Brand Benefits (the 3Es)

Emotional and Motivational Effects on Customers

Enablement Benefits

An admired brand enables customers by offering solutions to problems and challenges (large and small) and conserving customers’ limited resources (time, money, psychological capacity, physical capacity). When enabled, customers feel empowered, secure, safe, relieved, and confident.

Enticement Benefits

An admired brand entices customers by engaging customers’ senses (touch, sight, sound, smell, and taste), their thoughts, and their hearts. When enticed, customers feel gratified, stimulated, engaged, and warmhearted.

Enrichment Benefits

An admired brand enriches customers by resonating with their beliefs and their sense of self (who they are, who they were, and who they want to be). When enriched, customers feel inspired, proud, connected, and validated.

Benefits That Enable Customers

Customers find value in brands that enable them. Such brands solve customers’ problems. They remove barriers, eliminate frustrations, assuage anxieties, and reduce fear. They provide peace of mind. Benefits that enable customers offer solutions to nagging problems (both large and small): for example, how do I avoid this acid reflux, how can I protect my home from burglars, and how can we get one IT system to talk to another. With the brand as a solution, customers feel empowered to take on challenges in their personal and professional lives. Knowing that they can count on (and trust) the brand to solve problems reduces anxiety and allows the customer to get on with other aspects of their lives. Fear and anxiety are replaced with feelings of empowerment, confidence, and security.