Brand authenticity and strategic brand management

© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School

Presentation

Strategic Brand Management

and the concept of brand authenticity

© Dr. Mike Schallehn(When content of this presentation is used

you have to cite the original source „Schallehn (2012)“!)

Strategic Brand Management

and the concept of brand authenticity

© Dr. Mike Schallehn(When content of this presentation is used

you have to cite the original source „Schallehn (2012)“!)

For further information about the brand

authenticity construct visit as well

www.brandauthenticity.org

1


Professional background

• Founder and managing director of ALANDIA GmbH & Co KG

– http://www.alandia.de / ALANDIA Absinthe Shop / Absinth Shop

2


Definition of a brand

Strategic concept of identity-based brand management

Brand-authenticity as a success factor of branding

2

Agenda

3

1

3


What is a brand?

4


Historical concept of a brand: Brand as a property sign

“The word “brand” derives from the Old Norse word “brandr”, which means

“to burn”, as brands were and still are the means by which owners of

livestock mark their animals to identify them.” (Keller 2002)

5


Today´s concept of a brand: Brand as a bundle of

benefits

6

…a bundle of benefits with

sustainable differentiation

potential.

(Burmann/Meffert 2005)

A brand is…

Functional benefits:

- Fast and safe, sports car

Symbolic benefits:

- Driving pleasure, fun

The bundle consists of:


Importance and challenges of branding

7

1. Increasing functional parity of

products

- Saturated markets

- Outsourcing activities

1. Brands serve as an important (the only) differentiator.

2. Branding needs (more than ever) strategic management.

1. Brands serve as an important (the only) differentiator.

2. Branding needs (more than ever) strategic management.

2. Increasing awareness for brand

authenticity in society

- Increased market transparency and

customer power through internet


Question

What are the functions of brands for consumers?

8


Functions of brands: Consumer perspective

9

3. Brands add (symbolic) value to the

product:

• Prestige, Self-Fulfillment, Group Membership, Social acceptance etc.

• Help to (re)identify

a product/service.

• Bundle information

and thereby

facilitate buying

decisions.

2. Brands minimize risk:

• Build trust and

reduce the risk

of a wrong

purchase

decision.

1. Brands give orientation:


Functions of brands: Company perspective

10

Price level

[€]

Source: Apple

Apple iPhone

400

500

600

700

800

900

1000

2007 2008 2009 2010 2011

Other SmartphonesPrice

Premium

iPhones sold in 2011:

72 million


Strategic brand management: Identity-based brand

management

• State of the art in terms of strategic brand management is the

Identity-based brand management approach(Aaker 1996, Meffert/Burmann 1996)

• Derived from social-psychology

11


Model of the identity-based brand management

approach

12

Brand Image

(External Perspective)

Brand Identity

(Internal Perspective)

Brand Promise

(Positioning)

Brand Behavior

Brand

Expectations

Brand

Experiences

Strong Brand

Individual, continuous and consistent behavior

leads to strong perceptions about the brand!

Source: Burmann/Meffert (2005)


Individual, continuous and consistent

brand behavior: Positive example Porsche

13



brand behavior: Negative example Aston Martin

14




15

• Aston Martin Cygnet:

• 98 PS

• 5.5 l/100Km

• 38.000 Euro

• Based on the technique

of Toyota iQ

© Dr. Schallehn – Professorship for Marketing and Entrepreneurship at the Cologne Business School 16




Brand authenticity as success factor

Definition:

„The degree to which brand identity is causally linked to brand

behaviour.“ (Schallehn 2012)

0% Authenticity 100% Authenticity

External forces are causally linked to behavior

Personal Identity is causally linked to behavior

17

Source: Schallehn (2012)


Identity and authenticity

Who am I?Who am I?Do I externally present myself

accordingly to my identity?

Do I externally present myself

accordingly to my identity?

Attribute related concept Self-presentation related concept

Identity Self-Presentation?

Identity Authenticity


18


Concept of brand authenticity

Brand Behavior

Brand Promise

(Positioning)

Identity

Perceived

brand authenticity:

Is the brand promise

consistent

with the identity

of the brand?

Should not be corrupted by external forces

(Only promise what you are)


19


Antecedents of brand authenticity

Continuity

of the

brand

Consistency

of the

brand

Perceived

Brand authenticity

Individuality

of the

brand

+

+

+

Continuity: Fit of the brand promise with historical brand behavior

Consistency: Fit of the brand promise with current brand behavior

Individuality: Level of uniqueness in brand behavior


20


Brand authenticity and its effects

Brand Authenticity

Brand Credibility

Brand Trust


21


Bibliography

Aaker, D. (1996): Building strong brands, New York: Free Press.

Schallehn, M. (2012): Marken-Authentizität. Konstrukt,

Determinanten und Wirkungen aus Sicht der identitätsbasierten

Markenführung, Wiesbaden: Gabler.

Burmann/Meffert (2005): Markenmanagement:

Identitätsorientierte Markenführung und praktische Umsetzung,

Wiesbaden: Gabler.

Burmann, C./Schallehn, M. (2012): Sein oder nicht Sein, das ist

hier die Frage: Konzeptualisierung und empirische Analyse von

Marken-Authentizität, in: Marketing ZFP, Heft (4), Jg. 34.

Burmann, C./Schallehn, M. (2010): Konzeptualisierung von

Marken-Authentizität, LiM Arbeitspapiere Nr. 44, Burmann, C.

(Hrsg.), Universität Bremen: Bremen.

22