Brand as differentiator by adding/creating value

Most subsequent definitions make no reference to the brand as identifier, although this can be assumed to have been covered as part of the overall multidimensional construct. Differentiation is achieved by adding ‘value’, as articulated first in Farquhar’s 1989 definition (Table 2.2).

Seven of the ten definitions in Table 2.2 which follow after Farquhar contain the word

‘value’. The sense in which the word value is used varies with different definitions.

That brands enhance the value of the core product in ways which are of importance to consumers is evident from de Chernatony and McDonald’s (1998), Keller’s (1998), and Doyle’s (2001) definitions. There is considerable empirical evidence in the literature to support a conceptualisation of brands having a functional/utilitarian component and a symbolic/expressive component (Levy 1959; Lannon and Cooper 1983; Park et al. 1986; McWilliam and de Chernatony 1989; Leigh and Gabel 1992;

Keller 1993; Park and Srinivasan 1994; Meenaghan 1995; Bhat and Reddy 1998;

Ligas 1999; Wee and Ming 2003).

Table 2.2: Selected definitions of brands (in chronological order-from left to right, top to bottom)

Author and Definition American Marketing Association

(1960) “A name, a term, symbol or design or a combination of them that is intended to identify goods or services of one seller or group of sellers and to differentiate from competition”.

Farquhar (1989 p.25)

“A name, a symbol, design or mark that enhances the value of a particular product beyond its functional purpose”.

Aaker (1991) “A distinguishing name and/or symbol…intended to identify the goods or services of either one seller or a group of sellers and to differentiate those goods or services from those of

competitors”.

Hankinson and Cowking (1993 p.1)

“A product or service made distinctive by its positioning relative to the competition and by its personality”.

de Chernatony and McDonald (1998 p.20) “An identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique, sustainable added values which meet their needs most closely”.

Keller (1998)

“A set of mental associations held by the consumer which adds to the perceived value of a product or service”.

Doyle (2001 p.20)

“Brands add value by differentiating the firm’s product and providing consumers with confidence in the rational or emotional benefits it offers”.

Seetharaman et al. (2001 p.243)

“An asset that does not have physical existence and the value of which cannot be determined exactly unless it becomes the subject of a specific business transaction of sale and acquisition”.

Deagon (2002 p.A3)

“Intangible assets that can build shareholder value”.

de Chernatony (2002 p.116) “A dynamic interface between an organisation’s actions and customer’s interpretations…a cluster of functional and emotional values which promise a particular experience”.

Salzer-Mörling and Strannegård (2004 p.228)

“Stories about the corporate self; they carry a message of the inner, core values of the organisation or the product”.

American Marketing Association (2004)

“A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. The legal term for brand as

trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name”.

White (2007 p.20)

“A complete experience and entertainment”.

Jevons (2007)

“A tangible or intangible concept that uniquely identifies an offering, providing symbolic communication of functionality and differentiation, and in so doing sustainably influences the value offered”.

Source: Original

The functional dimension describes product related performance capabilities which comprise the added value component of branding. According to de Chernatony and Dall’Olmo Riley’s (1998) brand construct which comprises twelve dimensions (Table 2.3), these include usage effectiveness, value for money, availability and reliability The main contributors whose scholarship underpinned an understanding of these

Table 2.3: Brand construct with antecedents and consequences and supporting literature

BRAND AS: ANTECEDENTS/CONSEQUENCES MAJOR CONTRIBUTORS FROM THE LITERATURE LEGAL

INSTRUMENT

Mark of Ownership. Name, logo, design.

Trademark. Prosecute infringers.

Broadbent and Cooper 1987; Landes and Posner 1987

LOGO Name, term, sign, symbol, design.

Product characteristics. Identify, differentiate, quality assurance.

Goodyear 1991; Gofton 1995

COMPANY Recognisable corporate name and image.

Culture, people, and programmes of the organisation define corporate personality.

Convey consistent messages to all stakeholders.

Aaker 1996; Balmer 2001a and b; de Chernatony 2002; Balmer and Gray 2003.

SHORTHAND Facilitates information processing, speeds decisions.

Jacoby et al.1977; Sheth et al. 1991.

RISK REDUCER Confidence that expectations being fulfilled. Brand as contract.

Roselius 1971; Kaplan et al.1974; de Chernatony 1989; Doyle 1989; Low and Fullerton 1994; Kapferer 1995.

IDENTITY SYSTEM

Holistic identity – culture, personality, self-projection, physique, reflection, and relationship. Communicate essence to stakeholders.

Kapferer 1992; Balmer 1995; Aaker 1996; Kapferer 1997a; Meffert and Burman 1996; de Chernatony 1999;

Stern 2006; Burmann et al. 2009;

Heding et al. 2009 IMAGE Consumer centred. Image in consumers’

mind is brand ‘reality’.

Newman 1957; Keller 1993; Heding et al. 2009.

VALUE SYSTEM Consumer relevant values imbue the brand e.g. heritage, ethical, political.

Sheth et al. 1991; Soloman and Buchanan 1991; Kapferer 1997a;

Doyle 2001; Urde 2003; Jevons 2007.

PERSONALITY Psychological values communicated through advertising and packaging, define the brand’s personality. Human values projected.

Levy 1959; Woods 1960; Grubb and Grathwohl 1967; Lannon and Cooper 1983; Alpert 1972; Holbrook and Hirschman 1982; Plummer 1985;

Park et al. 1986; Broadbent and Cooper 1987; Belk et al. 1988; Biel 1991; Mick and Buhl 1992; Holt 1995; Ligas 1999; Zinkhan et al.

1996; Aaker and Maheswaran 1997.

RELATIONSHIP Consumer has attitude to brand. Brand as a person has attitude to consumer.

Recognition and respect for personality.

Develop relationship.

Kapferer 1992; Blackston 1993;

Shouten and McAlexander 1995;

Fournier and Yao 1997; Fournier 1998; Muniz and O’Guinn 2001;

Bengtsson 2003; Heding et al. 2009.

ADDING VALUE Non functional extras. Value satisfier.

Consumers imbue the brand with subjective meaning they value enough to buy.

King 1973; de Chernatony and McDonald 1992; Wood 1996; Cova 1997; de Chernatony et al. 2000;

Jevons 2007; de Chernatony 2009.

EVOLVING ENTITY

Change by stage of development Goodyear 1996.

Adapted and updated from: de Chernatony and Dall’Olmo Riley (1998)

Not all definitions take a consumer focus however, for example in Seetharaman et al.’s (2001) and Deagon’s (2002) definitions the value referred to is the brand’s financial value. Salzer-Mörling and Strannegård’s (2004) reference to value relates to the brand conveying the core values of either the organisation or the product. De Chernatony’s later definition (2002) picks up the two-way communication process at the heart of brands. He recognises that products are augmented with values which

result from communication between brand managers and consumers providing positive experiences for consumers.