Showing papers by "Carlos J. Torelli published in 2013"

Globalization, Culture, and Branding: How to Leverage Cultural Equity for Building Iconic Brands in the Era of Globalization

Abstract: Preface PART I: UNDERSTANDING BRANDS AND THEIR CULTURAL MEANINGS 1. Brands and Models of Brand Equity 2. Cultural Equity PART II: GAINING INSIGHTS INTO HOW CROSS-CULTURAL CONSUMERS VIEW ICONIC BRANDS 3. Consumers from Different Cultures 4. Consumers' Reactions to the Cultural Meanings in Brands 5. Brands and the Fulfillment of Cultural Identity Needs PART III: BUILDING, LEVERAGING AND PROTECTING BRAND EQUITY 6. Putting it all Together: Why and How to Build an Iconic Brand 7. Leveraging and Protecting Cultural Equity

Putting It All Together: Why and How to Build an Iconic Brand

Abstract: Although most companies aspire to build brands that eventually get etched in the culture of the society and become cultural icons, very few succeed in this endeavor.1 Iconic brands have captured much attention from marketing practitioners and consumers alike, and one can easily find numerous recommendations from marketing consultants for building iconic brands. Unfortunately, because these recommendations often lack a strong theoretical basis, they are very difficult to implement without the help of the expert advice proposing them. A key reason for this state of affairs is the ambiguity in the definition of an iconic brand. The label “iconic” is frequently used when referring to powerful brands with dominant positions in their markets and very high levels of brand awareness.2,3 Iconic brands have also been referred to as timeless brands with long-standing traditions.4 These popular conceptualizations of an iconic brand are not very distinctive because they are just synonymous with brands with a recent or long history of high brand equity (see chapter 1).

Brands and Models of Brand Equity

Abstract: When I started writing this book in January of 2013, a Google search for the word brand yielded 2.91 billion (yes, with a b!) results. Although an exhaustive analysis of the content of these results was out of the scope of my inquiry, browsing through the results allows us to quickly identify key stakeholders concerning brands. A cursory glance shows page after page of links to brand consultants with recipes for helping companies create strong brands, as well as links to company websites promoting their own brands. The next category of links includes public news about brands, such as new product introductions, product recalls, and brand stories. Finally, blogs and forums also exist, in which consumers discuss issues related to the brands they use. These findings support the idea that brands matter to three different groups of stakeholders: companies, consumers, and society. Why are brands of interest for these different groups? Let us answer this question by focusing on the functions that brands perform for each group.

Consumers from Different Cultures

Abstract: Meet John, a stockbroker from New York, the United States. He starts the morning grabbing a skinny cinnamon dolce latte, his favorite drink, made to perfection (using soy milk, light foam, extra hot, and with an extra kick of espresso) by Celeste at the nearby Starbucks. John is looking forward to another exciting day at work that will get him closer to his dream of becoming office manager. He is well ahead of his peers in terms of the dollar amount of assets under management, and he wants to make sure that this statistic is noticed in today’s monthly staff meeting. John has prepared a speech to showcase his achievements during the last month. He plans to discuss in detail the actions that he undertook in order to land some key accounts during the month. This will give him the opportunity to stress his superior selling skills, something critical for his dream job as an office manager. On his way to work, John notices a billboard for the new Cadillac ATS, “Built to Be the World’s Best,” which reminds him to stop by the nearby Cadillac dealer to check this attractive new model.

Leveraging and Protecting Cultural Equity

Abstract: Marketers build equity into their brands with the expectation that this equity can be further leveraged to generate future growth. This is consistent with the notion that brands are assets capable of generating future streams of revenues for the firm (see chapter 1).1 Leveraging brand equity refers to the implementation of growth strategies that fit with the equity built into the brand. Adopting H. Igor Ansoff’s product-market expansion grid,2 growth strategies are often classified according to the extent to which they involve existing or new products or markets. As depicted in figure 7.1, depending on the combination of products (existing or new) being offered to different types of markets (existing or new), the following four growth strategies emerge: market penetration, product development, market development, and diversification.

Consumers’ Reactions to the Cultural Meanings in Brands

Abstract: Attracted by a youthful, growing population of 70 million, Mango, the iconic Spanish clothing brand whose ads feature Penelope Cruz, opened its first store in central Tehran in April 2009. Although wearing a Mango miniskirt in public is grounds for being arrested, the aisles were crowded soon after the store opening, and the venture was anticipated to quickly become profitable.1 The sudden success of the Mango store stands out against an apparent negative sentiment toward Western fashion brands doing business in Iran—seen by politicians as a bad influence on women—which even resulted in the torching of a Benetton store during anti-Western demonstrations earlier the same year. These situations illustrate the mixed reactions of consumers to the cultural meanings in brands. Exposure to brands loaded with cultural meanings can bring culture to the fore of the mind, which in turn can facilitate the framing of situations in cultural terms. In some cases, this cultural framing can induce an assimilation of consumers’ judgments and actions to implicit cultural values and norms. However, on other occasions, framing a situation in cultural terms can create a contrast and elicit exclusionary responses. Furthermore, all of this can occur without consumer awareness of culture as a driver of the effects.

Brands and the Fulfillment of Cultural-Identity Needs

Abstract: As a consumer, John can have multiple identities (e.g., a father, an engineer, a male, an American), some of which he more strongly associates with than others. Those identities that more centrally define who he is are more likely to be salient in his mind in different contexts. However, certain situations can make salient any given social identity that matters to him. For instance, although John might consider being an engineer as a defining aspect of himself, which probably affects how he pragmatically thinks about events and the physical environment, his identity as an American would likely dominate his thoughts when he is with his family at a Fourth of July fireworks celebration of American independence. In this context, John might think differently about Volkswagen versus Ford cars. Although John might normally value Volkswagen’s well-known engineering expertise (based on his engineer identity), the Fourth of July might increase the value that he sees in Ford cars, which symbolize the salient American identity. A central issue discussed in this chapter is the extent to which consumers’ valuation of a brand (e.g., evaluations, purchase intentions, or willingness to pay for branded products) responds to the brand’s ability to fulfill social identity needs that are salient in the situation.