Destination Marketing: Brand Personality and Branding Strategies

Destination Branding and Image Topics

1. Role and importance of destination brands 2. Brand identity 3. Consumer-based brand equity

What is a brand?

Branding is a means to distinguish the goods of one producer from those of others . According to American Marketing Association (AMA), a brand is a "name, term, sign, symbol or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition".

Strategic Role of Branding

What is Branding? https://www.youtube.com/watch?v=JKIAOZZritk

Top 20 Best Global Brands

1. Apple +26% 408,251 $m
2. Amazon +24% 249,249 $m
3. Microsoft +27% 210,191 $m
4. Google +19% 196,811 $m
5. Samsung +20% 74,635 $m
6. Coca-Cola +1% 57,488 $m
7. Toyota +5% 54,107 $m
8. Mercedes-Benz +3% 50,866 $m
9. McDonald's +7% 45,865 $m
10. Disney +8% 44,183 $m
11. Nike +24% 42,538 $m
12. BMW +5% 41,631 $m
13. Louis Vuitton +16% 36,766 $m
14. Tesla +184% 36,270 $m
15. Facebook +3% 36,248 $m
16. Cisco +6% 36,228 $m
17. Intel -3% 35,761 $m
18. IBM -5% 33,257 $m
19. Instagram +23% 32,007 $m
20. SAP +7% 30,090 $m

Importance of Brands

Today's consumers have more product choice but less decision- making time than ever before . Consequently, a brand that can help simplify decisions, reduce purchase risk, and create and deliver expectations is invaluable (Keller, 2003)

The future of marketing will be a 'battle of brands, a competition for brand dominance' (see Aaker, 1991 p. ix) . Within the tourism industry, DESTINATIONS are emerging as the biggest brands (Morgan et al., 2002)

Brand is a concept different from slogan and logo!

Brand Structure Components

For Zara (1997), the brand is structured on three basic COMPONENTS:

• Identification component (identification marks);
• Perceptual component (cognitive associations and perceptions);
• Fiduciary component (confirms expectations).

The brand therefore, both from a general perspective and in each of the components into which it can be broken down, has a significant impact on customers' perceptions and purchasing decisions.

Brand Utility Functions

Kapferer and Thoenig (1989) and Lambin (1991) define a series of UTILITY FUNCTIONS assumed by the brand for both the customer and the manufacturer.

Benefits Offered to Customers

In terms of benefits offered to customers, the brand has the functions of:

• Assurance
• Orientation
• Playfulness
• Personalization
• Practicality

Benefits Offered to the Manufacturer

In terms of benefits offered to the manufacturer, the brand assumes the functions of

• Capitalization
• Positioning
• Protection

Brand Equity Definition

In general, the value of a brand (or BRAND EQUITY) is based "on a series of 'assets' and 'liabilities' associated with it that add or subtract value to the product or service sold by a company and purchased by consumers" (Aaker, 1997).

Assets and Liabilities Categories

The ASSETS AND LIABILITIES on which the value of the brand is based can be grouped into five categories (Aaker, 1997):

• Awareness
• Perceived quality
• Loyalty
• Other values associated with the brand: (brand associations)
• Other exclusive brand resources (Patents, Trademarks, exclusive distribution/communication channels)

Increasing Importance of Brand Equity

Increasing importance of brand equity due to:

• Increasing global competition
• Risk of commodification
• The growing power of retailers (private labels)
• More sophisticated consumers
• Support Brand extensions

Brand Equity Pyramid (Keller)

According to Keller (2008), brand equity is developed through a sequential process divided into four phases, called customer based "BRAND EQUITY PYRAMID" or Keller's Pyramid

1. The first phase consists in the development of positive brand awareness and brand association within a specific product class (Salience).
2. In the second phase (Performance and Brand imagery), the company must try to develop brand "meanings" in the minds of buyers. (Functional / Abstract Dimension)
3. The third stage involves the development of appropriate responses from consumers-buyers in terms of cognitive judgments and affective responses (Judgement and Feelings).
4. The last, more complex phase is aimed at creating a link between brand and customer (Brand-customer relationship) that leads to a medium-long term relational dynamic. (Resonance)

Keller's Brand Equity Pyramid Stages

4. Relationships - What about you and me? Resonance

Judgements Feelings 3. Response - What about you?

Performance Imagery 2. Meaning - What are you?

Salience 1. Identity - Who are you?

Brand Critical Success Factors (Keller, 2000)

• The brand excels at delivering the benefits customers truly desire
• The brand stays relevant to customers
• The pricing strategy is based on consumers' perceptions of value
• The brand is properly positioned in the market by offering a distinctive value proposition
• The brand is consistent
• The brand portfolio and hierarchy make sense
• The brand makes use of, and coordinates, a full repertoire of marketing activities
• The brand's managers understand what the brand means to consumers
• The brand is given proper support, and that support is sustained over the long run
• The organisation monitors the sources of brand equity

Brand Personality Concepts

Grandi (1987) underlines how a consumer's perception of the brand is of a personified image, constructed in a symbolic way also by virtue of the communication efforts put in place by companies; what the consumer wants and buys is in fact the GLOBAL PERSONALITY OF THE PRODUCT.

Cook (1992) states that the relationship between brand and customer presents characteristics similar to those of an emotional relationship between individuals, thus attributing a real PERSONALITY TO THE BRAND.

Aaker (1997) defines brand personality as the "set of human characteristics associated with the brand"; at the same time Aaker proposes a scale useful for measuring brand personality based on 5 dimensions which are in turn divided into specific elementary traits.

Aaker's Brand Personality Dimensions

Brand Personality

• Sincerity
  • Down to Earth
  • Honest
  • Wholesome
  • Cheerful
• Excitement
  • Daring
  • Spirited
  • Imaginative
  • Up-to-Date
• Competence
  • Reliable
  • Intelligent
  • Succesful
• Sophistication
  • Upperclass
  • Charming
• Ruggedness
  • Outdoorsy
  • Tough

Examples of Brand Personality (Aaker)

• Sincerity
  • DISNEY
  • Hallmark
  • amazon
  • Cadbury
• Excitement
  • TESLA
  • Red Bull®
  • Coca-Cola
• Competence
  • VOLVO
  • Google
  • intel®
  • Microsoft
• Sophistication
  • TIFFANY & CO.
  • ROLEX
  • GUCCI
• Ruggedness
  • SMOTORZ
  • HARLEY-DAVIDSON
  • KSYTIESS
  • Timberland
  • Jeep
  • Marlboro

Brand Personality Relational Bases (Manaresi, 1999)

Manaresi (1999) develops the theory of relational bases, which despite being based on the metaphor of the interpersonal relationship between consumers seeks to integrate the measurement of rational and emotional aspects and to extend the scope of brand personalization.

According to this perspective, the foundations on which the relationship between customer and brand is built can be traced back to some categories (Relational Bases) concerning the possibility of the brand to BE PERCEIVED as a:

• Reward base: able to provide rewards-incentives (eg. loyalty programs of American Express, Lufthansa)
• Expert base: high in know-how and expert (eg Apple);
• Coercive base: able to exercise a form of coercion against the consumer (eg Bianchi bykes, Ducati, Harley Davidson);
• Legitimate base as legitimized by tradition and culture_(eg Antinori, Frescobaldi);
• Referent base as being stuck to the values of the consumers (eg Coop and the partner customer).

Brand Strategies Overview

Businesses can decide to follow two main brand strategies:

1 - Multi-product brand strategy 2 - Multi-brand strategy

Multi-product Brand Strategy

1 - "Multi-product" brand strategy Through the multi-product brand strategy, also called "Family branding" or "Corporate branding", the company uses a single brand (which often coincides with the name of the company) for all its products-services (Eg. FIAT).

This strategy makes it possible to carry out the so-called "PRODUCT LINE EXTENSION", through which, using the same brand, one enters new segments within the same product class (for example new products in a certain line of FIAT Cars).

Brand Strategy Risks and Variants

One of the most significant risks of line extensions is to activate a "cannibalization", where the sales resulting from the extension are made to the detriment of the other products in the line.

You may also have "SUB-BRANDING" choices when the company places a less hierarchically relevant brand alongside the family brand (eg FIAT 500)

. You can also have «BRAND EXTENSION> when the family brand is used to enter a different product class (eg Barilla for sauces). "Brand dilution" risk

According to some, a variant of the brand extension is configured in "CO- BRANDING", or the coupling between two brands for the same product-service; we can mention, for example, the Fiat 500 - Gucci cases or the co-branding between Disney and Ariete.