Brand Management “Without question, branding is a complex management area that deserves study from a variety of different perspectives and academic traditions. By providing a multi-disciplinary approach, this textbook provides a welcome and invaluable resource for thoughtful students, scholars, and practitioners who want to fully understand branding and brand management.” Kevin Lane Keller, Tuck School of Business at Dartmouth “At last a book that cuts through the clutter about understanding brand and so clearly clar- ifies the brand concept. A book that superbly bridges the academic domain and enables practitioners use it to build brand equity.” Leslie de Chernatony, Birmingham University Business School “We think this is an excellent treatment of our topic. Thorough and complete, yet concise and very readable. We love the design and structure, both with regards to the seven approaches, as well as to the four layers within each approach.” Albert M. Muniz, Jr., DePaul University and Thomas C. O’Guinn, University of Wisconsin For over two decades it has been argued that the brand is an important value creator and should therefore be a top management priority. However, the definition of what a brand is remains elusive. This comprehensive book presents the reader with an exhaustive analysis of the scien- tific and paradigmatic approaches to the nature of brand as it has developed over the last twenty years. Taking a multidisciplinary approach and offering an exhaustive analysis of brand research literature, it delivers a thorough understanding of the managerial implica- tions of these different approaches to the management of the brand. Brand Management: Research, theory and practice fills a gap in the market, providing an understanding of how the nature of brand and the idea of the consumer differ in these approaches, and offers in-depth insight into the opening question of almost every brand management course: ‘What is a brand?’ Tilde Heding and Charlotte F. Knudtzenboth lecture in strategic brand management at Copenhagen Business School. Tilde and Charlotte have published widely, while also running their own brand management consultancy, Heding & Knudtzen. Mogens Bjerre is associate professor of Marketing at Copenhagen Business School. He has published exten- sively in the fields of franchising, key accounts management, strategic relationship marketing and retailing. Brand Management Research, theory and practice Tilde Heding, Charlotte F. Knudtzen and Mogens Bjerre First published 2009 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Simultaneously published in the USA and Canada by Routledge 270 Madison Ave, New York, NY 10016 Routledge is an imprint of the Taylor & Francis Group, an informa business This edition published in the Taylor & Francis e-Library, 2008. “To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” © 2009 Tilde Heding, Charlotte F. Knudtzen and Mogens Bjerre Typeset in Times New Roman by Saxon Graphics Ltd, Derby Printed and bound in Great Britain by MPG Books, Bodmin All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data Library of Congress Cataloging-in-Publication Data Heding, Tilde. Brand management : research, theory and practice / Tilde Heding, Charlotte F. Knudtzen and Mogens Bjerre. p. cm. ISBN 978–0–415–44326–5 (hbk.) – ISBN 978–0–415–44327–2 (pbk.) – ISBN 978–0–203–99617–1 (ebook) 1. Brand name products–Management. 2. Branding (Marketing) I. Knudtzen, Charlotte F. II. Bjerre, Mogens, 1959- III. Title. HD69.B7H43 2008 658.8(cid:2)27–dc22 2008021896 ISBN 0-203-99617-8 Master e-book ISBN ISBN10: 0–415–44326–1 (hbk) ISBN10: 0–415–44327-X (pbk) ISBN10: 0–203–99617–8 (ebk) ISBN13: 978–0–415–44326–5 (hbk) ISBN13: 978–0–415–44327–2 (pbk) ISBN13: 978–0–203–99617–1 (ebk) Contents List of illustrations vii List of tables x List of boxes xi Foreword Leslie de Chernatony xiii Preface xv Acknowledgements xvii PART I Setting the scene 1 1 Introduction 3 2 Key words in brand management 9 3 Overview: brand management 1985–2006 20 PART II Seven brand approaches 27 4 The economic approach 29 5 The identity approach 47 6 The consumer-based approach 83 7 The personality approach 116 8 The relational approach 151 9 The community approach 181 10 The cultural approach 207 vi Contents PART III Taxonomy 243 11 Taxonomy of brand management 1985–2006 245 Index 260 List of illustrations 1.1 The logic of the approach chapters 5 1.2 A readers’ guide 6 4.1 The brand–consumer exchange of the economic approach 31 4.2 Assumptions of the economic approach 34 4.3 Supporting themes of the economic approach 35 4.4 Core theme and supporting themes of the economic approach 39 4.5 Theoretical building blocks of the economic approach 40 4.6 Relation between price and demand 42 4.7 Methods and data of the economic approach 43 5.1 Sources of brand identity 50 5.2 Assumptions of the identity approach 55 5.3 Supporting themes of the identity approach 56 5.4 Brand identity: the core theme and alignment frameworks of the identity approach 60 5.5 Alignment of the strategic stars of brand identity 62 5.6 Theory of the identity approach 64 5.7 Manifestations of organizational identity (culture) 67 5.8 Methods and data of the identity approach 70 5.9 Drivers of the alignment process of brand identity 71 5.10 Managerial implications of the identity approach 77 6.1 The brand resides in the mind of the consumer 85 6.2 The computer is the central metaphor of man in cognitive psychology 86 6.3 Assumptions of the consumer-based approach 87 6.4 Supporting themes and the core themes of the consumer-based approach 88 6.5 Simple associative network spreading from the node Volkswagen 89 6.6 The three forms of cognition applied to brands 90 6.7 Dimensions of brand knowledge 93 6.8 Associations spreading from the node ‘Seven up’ 96 6.9 ‘Seven up’ brand associations adapted to the customer-based brand equity framework 97 viii List of illustrations 6.10 Theory of the consumer-based approach 98 6.11 Methods and data of the consumer-based approach 103 6.12 Dualistic mechanisms of the consumer-based approach influencing the managerial implications 104 6.13 Managerial implications of the consumer-based approach 109 7.1 Brand personality construct 119 7.2 Assumptions of the personality approach 121 7.3 Supporting themes of the personality approach 122 7.4 Brand behaviour 123 7.5 Consumer self construct 125 7.6 The brand–self exchange of symbolic brand value in the market place 128 7.7 Core theme of the personality approach: brand personality 129 7.8 Dimensions of brand personality 130 7.9 Theory of the personality approach 133 7.10 Methods and data of the personality approach 138 7.11 Brand personality dimensions, traits and brand behaviour 142 7.12 Brand–self congruence of Chanel No. 5 144 7.13 Managerial implications of the personality approach 147 8.1 ‘Dyadic’ brand–consumer relationship 154 8.2 Assumptions of the relational approach 156 8.3 Supporting themes and core theme of the relational approach 157 8.4 Preliminary model of brand relationship quality and its effects on relationship stability 163 8.5 Theoretical building blocks of the relational approach 165 8.6 Methods and data of the relational approach 170 8.7 Managerial implications of the relational approach 176 9.1 The ‘brand triad’ 183 9.2 Assumptions of the community approach 185 9.3 Supporting themes of brand community 186 9.4 Conceptualization of the community in the sociological tradition 187 9.5 Brand community construct 188 9.6 Theoretical building blocks of the community approach 191 9.7 Methods and data of the community approach 196 9.8 The marketer as observer of a brand community 198 9.9 The marketer as facilitator of a brand community 201 9.10 Managerial implications of the community approach 203 10.1 Scope of the cultural approach 210 10.2 Assumptions of the cultural approach 213 10.3 The core theme, its supporting theme, the societal comment on brand icons and the future brand scenario 214 10.4 The movement of meaning 215 10.5 Iconic brands are brands that have become cultural icons 217 10.6 Theoretical building blocks of the cultural approach 224 List of illustrations ix 10.7 Research methods of the cultural approach 227 10.8 Methods and data of the cultural approach 228 10.9 The cultural brand management process 229 10.10 Managerial implications of the cultural approach 235 11.1 Taxonomy of brand management 1985–2006 246 11.2 Two dimensions and four brand management paradigms 252 11.3 The logic of the approach chapters 257