Strategic market management. Aaker D.

St. Petersburg: 2007. - 496 p. (Series "Management Theory").

“Strategic Market Management” is one of the most significant works of the recognized management classic David Aaker. The new 7th edition maintains the best traditions of this illustrious book: it is distinguished by its simplicity of presentation and coverage of all essential aspects of creating, evaluating and implementing business strategies. Along with this, the book reflects the latest trends in the field of strategic management, adds fresh examples and cases, and shows ways to apply strategic developments in practice. After reading this book, you will be able to properly understand and control the dynamic environment, propose forward-looking and creative approaches that are adequate to the conditions and changes that the company faces, and create strategies based on sustainable competitive advantages.

The publication will be useful to managers developing enterprise development strategies, students of MBA programs and other training courses in strategic marketing, strategic management and strategic market planning.

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Table of contents
Preface 10
Five supports 10
Book 12 Objectives
Who is this book for? 14
PART I. INTRODUCTION AND OVERVIEW
Chapter 1. Business strategy: concept and trends 18
What is business strategy? 20
Strategic directions 26
Strategic market management: historical analysis 27
Strategic market management: characteristics and trends 32
The need for strategic market management 36
Main ideas 37
Topics for discussion 38
Notes 39
Chapter 2. Strategic Market Management: Topic Review 40
External analysis 41
Internal analysis 49
Business vision 53
Identification and selection of strategy 56
Selecting Strategic Options 61
Process 63
Main ideas 63
Topics for discussion 64
Notes 64
PART II. STRATEGIC ANALYSIS
Chapter 3. External and customer analysis 66
External analysis 66
Subject of customer analysis 72
Segmentation 73
Buyer Motives 79
Unmet needs 86
Main ideas 90
Topics for discussion 91
Notes 91
Chapter 4. Competitor Analysis 93
Determining competitors from the buyer's perspective 95
Defining competitors as strategic groups 98
Potential competitors 102
Competitor Analysis: Studying Rivals 103
Strengths and weaknesses of the competitor 108
Gathering information about competitors 117
Main ideas 119
Topics for discussion 119
Notes 120
Chapter 5. Analysis of markets and submarkets 121
Directions of market analysis 122
Actual and potential market volumes 127
Market and submarket growth rates 128
Market and submarket profitability analysis 132
Cost structure 135
Distribution systems 137
Market Trends 138
Key success factors as the basis of competition 139
Risks in fast-growing markets 140
Main ideas 145
Topics for discussion 146
Notes 147
Chapter 6. Environmental Analysis and Strategic Uncertainty 148
Components of environmental analysis 150
The problem of strategic uncertainties 160
Impact Analysis: Assessing the Impact of Strategic Uncertainties 161
Scenario analysis 164
Main ideas 168
Topics for discussion 168
Notes 169
Chapter 7. Internal Analysis 170
Financial condition: sales volume and profitability 171
Performance assessment: not a single profit 176
Determinants of strategic options 182
From analysis to strategy 185
Portfolio analysis of business 187
Main ideas 191
Topics for discussion 192
Notes 192
Application. Forecasting cash flows: sources and consumers of financial resources 193
Workshop (for part II) 197
New dynamic industry: energy bars 197
Topics for discussion 200
Taking on an Industry Giant: Competing with Wal-Mart 202
Topics for discussion 206
PART III. ALTERNATIVE BUSINESS STRATEGIES
Chapter 8. Creating Sustainable Competitive Advantage 210
Sustainable Competitive Advantages 211
The role of synergy 219
Strategic vision and strategic opportunism 223
Dynamic Vision 233
Main ideas 238
Topics for discussion 238
Notes 239
Chapter 9. Strategic directions 240
What is an effective business strategy 241
Strategic directions 244
Quality as a strategic option 252
Main ideas 260
Topics for discussion 261
Notes 261
Chapter 10. Strategic Directions: Value Creation, Focus, and Innovation 263
Value as a Strategic Option 263
Focusing Strategies 274
Innovation 279
Main ideas 286
Topics for discussion 286
Notes 287
Chapter 11. Global strategies 288
Motives for global strategies 290
Which country should I choose? 294
Standardization and customization 297
Global Brand Management 302
Strategic Alliances 306
Main ideas 313
Topics for discussion 314
Notes 315
Chapter 12. Strategic Positioning 316
The Role of Strategic Positioning 317
Options for strategic positions 328
Development and selection of a strategic position 341
Main ideas 343
Topics for discussion 344
Notes 345
Workshop (for part III) 346
Strategic repositioning: quality as an option 346
Topics for discussion 348
Development and opposition to PCP and risks in achieving success 349
Topics for discussion 353
PART IV. GROWTH STRATEGIES
Chapter 13 Growth Strategies: Product Market Penetration and Expansion, Vertical Integration, and the Big Idea 356
Growth in existing product markets 358
Development of a new product for an existing market 365
Market expansion using existing products 371
Vertical integration strategies 374
Idea 379
Main ideas 381
Topics for discussion 382
Notes 383
Chapter 14. Diversification 384
Related diversification 385
Synergetic Mirages 393
Unrelated diversification 397
Strategies for entering a new product market 404
Main ideas 408
Topics for discussion 409
Notes 410
Chapter 15 Strategies for Hostile and Declining Markets 412
Creating conditions for growth in declining markets 413
Profitable Survival 416
“Milking” or “harvesting” 417
Diversification or liquidation of business 421
Choosing the right strategy during a market downturn 423
Hostile Markets 426
Main ideas 433
Topics for discussion 434
Notes 434
Workshop (for part IV) 436
Use of brand assets 436
Topics for discussion 439
Building Brand Assets to Support Growth Strategy 439
Topics for discussion 444
PART V. IMPLEMENTATION
Chapter 16. Organizational issues 446
Conceptual diagram idea 447
Structure 448
Systems 452
People 455
Culture 457
Achieving Strategic Congruence 461
Innovation organization 467
Summary of Strategic Market Management 471
Main ideas 472
Topics for discussion 473
Notes 474
Workshop (for part V) 475
Planning a risky direction of development without internal support 475
Topics for discussion 478
Application. Planning forms 480
Pet food 480

David Allen Aaker is an American professor, specialist in marketing, advertising and branding.
David Aaker was born in North Dakota, in Fargo in 1938.
He attended MIT Sloan School of Management, where he received a bachelor's degree in management.
Later, at Stanford University, he was awarded a master's degree in statistics and a doctorate in business administration.
In 1981, Aaker began teaching marketing strategies at the Berkeley Business School at the University of California, and since 1994, a marketing course.
His research interests center around branding tactics and strategy, brand creation and brand value management.

Aaker's contributions to branding

It was David Aaker who brought branding to a whole new level of understanding.
Back in 1980, he made a proposal to evaluate brand equity as a company's strategic asset. Brands, in his opinion, are one of the main and important intangible assets of a company, as well as a key strategic function.
This concept was recognized all over the world, it was accepted by many marketers and company executives, and it is still developing today.
The concept turned out to be very useful for business as a whole, and made it possible to bring together marketers and managers in the formation of common strategic goals of the company. Some critics feel that Aaker is too theoretical in his approach, although they agree that his concepts are sound and logical.
In their opinion, in practice there is often confrontation between departments and misunderstanding of the interaction between managers and marketers. Others, on the contrary, confidently take from Aaker's structured and clear material practical recommendations in the field of marketing and business for creating a successful company.
David Aaker is the author of specific approaches that have become necessary for achieving success and advancement in the market.
He formulated several extremely important principles on branding. Many modern authors of books on marketing rely heavily on Aaker's developments.
He himself is a convinced supporter of the fact that a brand is a necessary and mandatory condition for any company, because it is it that makes it possible to receive a price premium.

Aaker's achievements

  • "Brand Value Management"
  • "Creating strong brands"
  • "Brand Leadership"
  • "Strategic Market Management"

are familiar to every marketer and have undoubtedly become bestsellers.
David has written more than 100 articles that have been published in leading American and European advertising and marketing magazines.
Currently, David Aaker is Vice President of Prophet Brand Strategy and Advisor at Dentsu Inc., and Professor Emeritus at the Haas Business School at Berkeley University (California).
He consults with leading European and American companies and gives lectures and seminars around the world as a member of the directors of Solano Counties and the Food Bank of Contra Costa.
David Aaker has received three awards:

  • “the Paul D. Converse Award” - for his contribution to the science of marketing,
  • “the Buck Weaver Award” - for achievements in the field of marketing theory and practice,
  • “the Vijay Mahajan Award” - for contribution to marketing strategy.

He has received awards for articles in the Journal of Marketing and California Management Review.
Aaker is perhaps one of the most prominent figures in the field of brand building and branding. A recognized authority on brand strategy, David Aaker was named one of the top five most influential people in marketing and business in 2007.

Links

This is a preliminary encyclopedic article on this topic. You can contribute to the development of the project by improving and expanding the text of the publication in accordance with the rules of the project. You can find the user manual

David Aaker

Aaker on branding. 20 principles for achieving success

Dedicated to my wife Kay, daughters Jennifer, Jen, Joylyn and their families.

They all supported and inspired me.

AAKER ON BRANDING

20 Principles That Drive Success


© 2014 DAVID AAKER.


Reviews of the book “Aaker on Branding”

“A provocative book from cover to cover, a guiding light for modern marketers!”

Stephen Althaus Director of Brand Management, BMW

“Aaker offers 20 core principles and practical steps to create, expand and leverage powerful brand assets that can deliver sustainable economic growth. This book is a must-read for business owners who want to find the key to brand-driven success.

Sue Shim Global Marketing Director, Samsung Electronics

"David Aaker has written a must-read survey of sound principles and contemporary challenges for 21st century marketers."

Larry Light former Marketing Director at McDonalds

“Many of David Aaker's books have been helpful to my career development in business and marketing. This is a fantastic book that succinctly sums up everything he has learned about creating enduring and successful brands. Apply David's 20 Principles: Your brand will be more successful and you will become a better leader—guaranteed!”

Jim Stangel former Global Marketing employee, P&G

“I believe that in an ever-changing world, this book is a must-read for every marketing director. She addressed pressing issues facing my company and also increased my to-do list. In addition, the book provided a complete picture of the evolution of the role of marketers in companies.”

John Wallis Marketing Director, Hyatt Hotels Corp.

“The true test of a marketing genius is not producing a successful product, but creating a lasting brand. David Aaker has done more than anyone to help us understand how to build a brand."

Philip Kotler co-author of the book "Marketing Management", 14th edition

“No enterprise today can be successful without applying the principles so clearly formulated by Professor Aaker. Ultimately this tour de force(manifestation of skill ( fr.). – Approx. lane.) his genius in such a critical discipline as brand management."

Joseph V. Tripodi Director of Marketing and Commercial Affairs, Coca-Cola

“I just finished reading your (fantastic!) book. What I liked most is that you have created a central hub for thought leadership in branding.”

Eliza Steele Director of Marketing, Consumer Programs and Services, Microsoft

Introduction

Why this book?

What is a brand? It's much more than a name or logo. This is a company's promise to provide the customer with what the brand stands for, not only functional benefits, but also ways of emotional and social self-expression. A brand is more than delivering on promises. It is also a journey of sorts, an evolving relationship built on the perceptions and experiences of consumers encountering a brand.

Brands are a powerful force. They serve as the foundation of customer relationships, the platform for strategic opportunities, and the force behind financial performance, including stock market returns. Let's look at the most attractive brands and their “essence”. Google is associated with competence and dominance in search engines, Harley-Davidson with emotional and self-expression benefits, IBM with competent, problem-solving computer services, Singapore Airlines with distinctive service, Mercedes for those who appreciate the best, American Express is associated with customer satisfaction and the use of Internet technologies, and finally, Patagonia is associated with durability. The strength of these brands has led to customer loyalty, business success, persistence despite product problems, and has provided the basis for introducing new products or entering new markets.

Besides, brands and brand strategies are fun and interesting. Often, CEOs will set aside half an hour to discuss brand strategy, but the discussions end up dragging on for hours, confirming the fact that they were the most fun they've had at work in months. It is interesting to learn which brand positions have succeeded, which brand building programs have received support, how successfully the brand has been used in new markets, and so on. We can talk about creativity and diversity in brand strategies forever.

The first goal of this book is to briefly introduce the most useful branding concepts and practices, summarized in the “20 Essential Branding Principles.” These provisions provide a broad understanding of brands, brand strategies, brand portfolios and the brand building process - everything that those involved in developing marketing, branding and business development strategies need to know. The principles of branding should be useful for those who are eager to update their knowledge, as well as those who lack experience in branding and who want to quickly achieve success in this field.

The second goal of the book is to provide a framework for creating, improving, and effectively using powerful brands. What steps do you need to take to create a strong brand? What opportunities might come your way? How does a strategist take a brand or family of brands to the next level so that it becomes a source of strength rather than a drag on the strategy? In any business, it is important to understand how to create a brand vision (also called a “brand identity”), implement it, maintain the brand in the face of aggressive competitors and dynamic markets, maximize the resulting strength of the brand, and effectively manage a portfolio of brands to ensure synergy, clarity and profitability. their use.

Branding is a complex and unique process. In each case, the contributing factors differ. In short, all 20 principles cannot be applied in all cases. However, they are a list of strategies, perspectives, tools and concepts that represent not only information you should know, but also options for possible actions. These principles will support the creation and management of mature and trusted brands and associated brand families, which in turn will support future business strategies.

All 20 principles describe concepts and practices that have been discussed a little in my last eight books. Six of these books are about branding: “ Brand equity management”, “Creating strong brands”, “Brand leadership” (together with Eric Jochimsteiler), “Brand portfolio management strategy”, “How to beat competitors. Creating a strong brand”, “Three threats to the strength of a brand”. The other two are "Amalgamation of branches" And " Strategic Market Management, 10th Edition" - cover areas closely related to this topic. I have mentioned these principles in my other works, in particular in the weekly column on davidaaker.com, created in the fall of 2010, in posts on HBR.org, in my columns in the “Marketing News” of the American Marketing Association and the German absatzwirtschaft, also in articles in California Management Review, Harvard Business Review, Journal of Brand Strategy, Market Leader and in other publications.

The information on branding organized in this book is drawn from a wide range of sources and presented for effective training and review of best practices in branding. However, at over 2,300 pages of just my eight books, it's quite a lot. Add to this dozens of other brand publications and several magazines on the topic. Eventually, as you research the literature on the topic, you will experience information overload. It is difficult for an uninformed person to understand what to read and what concepts to apply. As in other areas, there are many good ideas in branding that are beyond competition, and others that are inferior, require updating, and can be misinterpreted or misused. Some propositions that seem plausible are simply erroneous (if not dangerous), especially if taken literally.

The chapters in this book do not need to be read in order, although it is best to review the first two first as they provide a foundational understanding of the core concepts of strategic branding. You can then scroll through the remaining chapters, selecting only those topics that address your concerns. Or look for ones that are intriguing or seem provocative - they may be a possible source of new perspectives.

The world's leading expert in the field of brand management, American professor David A. Aaker offers the most complete and detailed study of the problems of creating a strong brand, clearly positioned in the market and having a strong brand identity. Among the main sections that are of undoubted interest to the reader are: analysis of numerous methods for assessing the market value of a brand, a comprehensive study of activities for the formation of a brand portfolio, taking into account the functions and roles performed by each brand, analysis of the main branding activities.

For marketers, entrepreneurs, brand management and product promotion specialists, teachers and students of economic universities.

Publisher: Grebennikov, 2003

ISBN 5-9389-0003-4, 0-029-00151-Х, 978-5-93890-031-8

Number of pages: 440.

Contents of the book “Creating Strong Brands”:

  • 9 Branding and business - synonymous words
  • 11 Creating strong brands is the core task of a company’s marketing policy
  • 13 Preface
  • 17 Chapter 1. What is a strong brand?
    • 18 History of the Kodak brand
    • 24 What is brand equity?
    • 26 Brand awareness
    • 34 Perceived brand quality
    • 39 Brand loyalty
    • 44 Brand associations
    • 44 Objectives of the book
    • 45 Building strong brands: why is it difficult?
    • 57 Questions for discussion
    • 57 Notes
  • 59 Chapter 2. History of the creation of the Saturn brand
    • 60 Is Saturn a strong brand?
    • 61 How Saturn created a brand
    • 86 Challenges Facing Saturn and General Motors
    • 91 Assessing the history of the Saturn brand
    • 91 Issues for discussion
    • 92 Notes
  • 93 Chapter 3. Brand identity system
    • 94 What is brand identity?
    • 95 Brand Identity Pitfalls
    • 106 Four Aspects of Brand Identity
    • 114 Brand identity structure
    • 124 Brand value proposition
    • 132 Ensuring trust
    • 132 Bottom line: Establishing a relationship between brand and customers
    • 133 Working with Multiple Brand Identities
    • 135 Towards an understanding of brand identity
    • 135 Issues for discussion
    • 136 Notes
  • 137 Chapter 4. Associations with the organization
    • 138 History of The Body Shop brand
    • 141 History of Branding in Japan
    • 146 Brand as an organization
    • 150 Associations associated with the organization
    • 164 How associations with an organization work
    • 171 Issues for discussion
    • 171 Notes
  • 173 Chapter 5: Brand Personality
    • 171 History of the Harley-Davidson brand
    • 180 Measuring Brand Personality
    • 183 How a Brand Identity is Created
    • 189 What are the uses of brand personality?
    • 192 Model of satisfying the need for self-expression
    • 200 Brand-customer relationship model
    • 210 Functional benefit presentation model
    • 214 Brand personality and user persona
    • 217 Brand personality as a means of maintaining advantage
    • 217 Issues for discussion
    • 218 Notes
  • 221 Chapter 6: Implementing Brand Identity
    • 222 Brand position
    • 232 How to Achieve Outstanding Brand Positioning Results
    • 236 Tracking
    • 236 Strategic Brand Analysis
    • 249 The power of brand identity and positioning
    • 253 Issues for discussion
    • 254 Notes
  • 255 Chapter 7. Brand: development strategies over time
    • 256 History of the General Electric brand
    • 200 History of the Smirnoff brand
    • 266 Why change the identity, position or implementation of the brand?
    • 268 Why (if used skillfully) is it better to use the principle of constancy over time?
    • 274 Constancy over time: why is it difficult to achieve?
    • 282 Searching for the Fountain of Youth
    • 288 Issues for discussion
    • 289 Notes
  • 291 Chapter 8: Managing Brand Systems
    • 292 Towards a brand system
    • 296 Roles of a winning brand
    • 298 Roles of the supporting brand
    • 300 Strategic brands
    • 301 Sub-brand roles
    • 310 Benefit branding
    • 314 "Silver Zeros"
    • 318 How many brands should be included in the brand portfolio?
    • 320 Toward branding strategy
    • 320 Issues for discussion
    • 321 Notes
  • 323 Chapter 9. Brand Strengthening Levers
    • 324 Healthy Choice brand history
    • 328 History of the Kingsford Charcoal brand
    • 329 Brand levers
    • 330 Product line extensions
    • 333 Brand movement downwards
    • 343 Brand movement upwards
    • 348 Brand extension decisions
    • 349 Creation of assortment brands
    • 356 Co-branding
    • 359 Brand systems audit
    • 360 Issues for discussion
    • 360 Notes
  • 363 Chapter 10. Measuring Brand Equity by Product Category and Market
    • 364 Valuation of brand assets using the Young & Rubicam method
    • 369 Total Research's EquiTrend system
    • 373 Top brands submitted by Interbrand
    • 375 Why are brand equity measured by product category and market?
    • 376 “Top Ten Indicators” of Brand Equity
    • 380 Brand loyalty indicators
    • 385 Indicators of perceived quality and brand leadership
    • 387 Measuring associations and brand differentiation indicators
    • 392 Brand Awareness Metrics
    • 394 Market Behavior Indicators
    • 396 Toward an integral assessment of brand equity
    • 400 Adapting indicators to markets
    • 401 Issues for discussion
    • 401 Notes
  • 403 Chapter 11. Organization of the brand creation process
    • 404 Branding imperatives
    • 407 Adaptation of the organization to the process of creating brands
    • 413 The role of the advertising agency
    • 423 Issues for discussion
    • 423 Notes
  • 424 Conclusion
  • 425 Subject index

Brand systems management

This is one of Aaker’s biggest topics (not for nothing that the author wrote a separate book on this issue). However, in my opinion, in this book he did it best (more understandable).
Aaker was one of the first to propose the so-called hierarchy of brands. This is what she looks like:
· At the top of the hierarchy is corporate brand, which identifies the corporation behind a product or service offering.
· Assortment brand ( range brand ) is a brand covering several product classes. Yes, corporate brandGM, Nestle, AndHewlett Packardare themselves assortment brands….Under the nameJetcompanyHPproduces branded goods such asDeskJet, LaserJet, OfficeJet, FaxJetAndDesignJet.
· Product brands, if any, are followed by product line brands ( product line brands ) related to specific products of the organization, for example,Chevrolet Lumina, Carnation Instant Breakfast, HP LaserJet IV. Core product brands can be "refined" with the help of sub-brands (LaserJet IV S.E., Carnation Instant Breakfast Swiss Chocolate, Chevrolet Lumina Sports Coupe). Sub-brands of the second and third levels further highlight the offered product.
· Finally, the brand can be further specified by assigning brand designation for the special properties of a product or branded service associated with it.Carnation- sweetenerNutraSweet, ALaserJethas a resolution amplifierResolution Enhancement.

Roles of brands

Aaker's second important contribution is highlighting the role of each brand.


Rice. Roles of brands

For example, Incentive brand (driver brand"). Aaker defines it as follows: “It is a brand that motivates purchasing decisions. The consumer's main expectations from the purchase are concentrated in his identity. A compelling brand offers value that is prioritized in purchasing decisions and customer experience evaluations. For example, buying a razorGillette Sensor, consumers purchase primarily the shaving technology and functionality represented by the brand nameSensor».
And further: “Take, for example, the seriesBMW700 orLexus300. For most customers, motivating brands areBMWAndLexus…And hereFord TaurusAndMazda Miatamay have two motivating brands. Names and imagesTaurusAndMiatacan have a greater influence on the purchasing decision thanFordAndMazda, although the latter may play an active role. In such cases, it is important to examine the relative influence of each brand. If, say, the strategic task is to make a nameTaurusmotivating brand, and the consumer buys a car based on the company’s imageFord, then we can assume that the communication program forTaurusneeds improvement."
The next type of brand is a “brand that has a supporting role (endorser role)". It “provides support and lends credibility to everything that the driving brand claims.” For example, "General Mills- supporting brand in relation toCheerios, Gillette- to razorsSensor, HP- to a series of printersLaserJet. The main goal of using such brands is to further convince the buyer that the product really provides the promised functional benefits, since behind this brand there is a solid, successful organization whose name can only be associated with good products.” And further: “Evoking trust in the consumer is especially important when the product is new and little-known.”
As we can see, Aaker differentiated one brand into 6 different types of brands, which require different policies and a different view. As I understand it, brand typology was one of the reasons why Aaker became the chief branding specialist. At least I haven't seen anything like it anywhere else.
Go ahead. Sub-brand (subbrand) - “this is a brand that distinguishes part of the assortment range (product line) in the brand system.”
The sub-brand strategy, according to Aaker, involves the following aspects:
First, the sub-brand must be consistent with and support the parent brand's identity.
Secondly, the sub-brand must contribute to the value of the branded product by performing one of the following tasks:
· Describe offers;
· Structure and clarify proposal options;
· Exploit market opportunities;
· Expand or modify identity;
· Contribute to a horizontal or vertical expansion strategy by defining or modifying the parent brand
And further: “The costs of a sub-brand should also be justified in the sense that its creation does not require large investments, and the business represented by the sub-brand is self-sufficient to ensure its development.”
The most famous sub-brands are the company's productsMcDonald’ swhich creates sub-brands using the prefixMc. By the way, this is one of the ways to name them (prefixes and suffixes).
In general, a sub-brand is a great way to “offer a new product or serve a different market segment under one brand while minimizing confusion and brand dilution.”

Strategic brands

Further Aaker based on the famous matrixBCG, offers his own version, or rather, he translates it into the plane of brands. For him it looks like this:
· "Candidate for liquidation (divestment candidate) is a brand with a weak positioning in an unattractive market or diverging from the strategic direction of the company’s development.”
· "Milch cow (milker) is a brand that, despite its “fatigue,” has quite a real strength...Due to the fact that a minimum of money is spent on maintaining such a brand, it can become a stable source of financing for other brands.”
· “A strategic brand is a branded product that is important for solving the future problems of the organization... Firstly, if it is capable of ensuring a significant volume of future sales and profits. It is likely already a strong dominant brand (sometimes called a megabrand) with plans to retain and expand its position; or is it a secondary brand that should be promoted to the role of the main one. Secondly, when it is a “support brand” (lincpin), capable of becoming an element on which the entire business structure rests or the future direction of the company’s development is based.”

Branded properties and components

What is important is that a brand can be not only a product, but also a property, which thanks to this will rise to a completely different level and in certain cases becomes a competitive advantage of the company. Because, as Aaker writes, “the very act of branding a product attribute provides credibility and enhances that attribute’s ability to stand out and add value to the brand.” Research also shows this: “Respondents were willing to pay more precisely because of the branded properties of the product” and even then “when they knew that this property was not particularly important for their choice.”
The same is true for product components. As Aaker writes, “A method similar to branding a new product feature is to brand a component, ingredient, or, more often in practice, to make visible a component (ingredient) that already bears a well-known brand name.” This is actually the answer to the question of how to find a competitive advantage or advantages. Looking at the Russian product market, you understand that for Russian marketers and brand managers this still remains a secret. At least that's the feeling.

"Silver bullet"

"Silver bullet" (silver bullet) - a sub-brand or branded benefit that serves as a means of changing or maintaining the image of the parent brand.” Eg, "Sony Walkman- a brand that supports the keySonyimage of an innovative company that specializes in miniaturization.” I guess you could also call itiPodFor the companyApple.
“Silver bullets” can also include not only goods, but also, as the author writes, also properties, components, service, and so on, because and they “maintain the image of the brand to which they belong.”

Brand levers

Such levers include “expansion of the product line,” i.e. “creating a new version of a product within the same product category. New flavors, packaging options, new sizes - all these are expansions of product lines. They can lead to an increase in costs without a compensating increase in sales volumes, make the brand image blurred, and make it difficult to communicate with consumers. However, they can also expand the circle of users, create diversity, add energy to the brand, stimulate the creation of new products, and block or deter competitors.” Probably the most controversial topic in all of marketing and branding. Thus, some marketers believe that expanding a product line is mortally dangerous, while others do just that. So, this is the most dangerous lever (but also the simplest). In addition, we should not forget that increasing the variety of one type of product does not lead to an increase in its sales, but to a decrease, about which even the book “The Paradox of Choice” by Schwartz was written. The same theme appears in Malcolm Gladwell, as well as in social psychologist Robert Cialdini.

Co-branding

A specific type of branding is “co-branding”. It is not often used and there are reasons for this (life moves along the path of convergence). However, it is still worth mentioning it here. Thus Aaker writes that “one way of co-branding is to become a branded ingredient in another branded product.” For example, "chocolate"Hershey’ swith minimal risk for the brand has become a signatureingredientcookie mixesBetty Crocker».
Another form of co-branding could be “creating a combined brand (composite brand), i.e. combinations of two brands to increase consumer benefits or reduce costs."

Measuring brand equity across product categories and markets.

To measure brand equity, here is a table that Aaker suggests using to assess equity. It seems to me that it is ideal for practical application in a marketing plan in the corresponding section. In fact, this sums up everything that has been said.


As you can see, the table presented is somewhat reminiscent of a marketing audit. I think in this case we can talk about a branding audit.
In conclusion, it is worth listing 8 points why it is difficult to create brands. Aaker gives this diagram:

Here everything is more or less clear and understandable. And many points can be found more than once in many other books on branding. This is an old topic, so to speak.
To summarize, we can say that, in general, the book reminds everyone of the marketing bible “Marketing. Management". You could say that this book alone is worth almost all other books on branding.