What's in a Name: Advertising and the Concept of Brands

334 Pages·2003·1.47 MB·English

by  John Philip Jones

Copyright © 2003 by M. E. Sharpe, Inc.
All rights reserved. No part of this book may be reproduced in any form
without written permission from the publisher, M. E. Sharpe, Inc.,
80 Business Park Drive, Armonk, New York 10504.
Library of Congress Cataloging-in-Publication Data
Jones, John Philip
What’s in a name? : advertising and the concept of brands / by John Philip Jones and
Jan S. Slater.—2nd ed.
p. cm.
Includes bibliographical references and index.
ISBN 0-7656-0973-8 (alk. paper)
1. Advertising. 2. Brand name products. I. Slater, Jan. II. Title.
HF5823 .J718 2002
658.8’343—dc21
2002030890
Printed in the United States of America
The paper used in this publication meets the minimum requirements of
American National Standard for Information Sciences
Permanence of Paper for Printed Library Materials,
ANSI Z 39.48-1984.
~
BM (c) 10 9 8 7 6 5 4 3 2 1
To our students, in the hope that throughout their professional
careers they will remember that the value of a theory depends on the
amount of empirical support it has received.

There must be a personality shining through all the talk about the product. I
have overwhelming evidence that one of the reasons why people buy my
Mountain Grown Apples is because they take to a character called Old Jim
Young, who chats with them in the advertising.
(James Webb Young, How to Become an Advertising Man)
James Webb Young was the first person to use the term “added values” to
describe the psychological benefits of brands as perceived by their users.
Advertising is an important—perhaps the most important—source of these
added values. Although this book does not discuss specifically Old Jim Young’s
Mountain Grown Apples, it attempts to explain what these apples meant to
the people who bought and ate them. This relationship with its consumers is
a quality shared by every strong brand.

Contents
List of Tables and Figures xiii
Foreword: Advertising and Brand Planning xvii
Don Johnston and Harold F. Clark Jr.
1. Introduction 3
2. Brands: What They Are and Why They Emerged 19
A Shopping Trip and Some Conclusions Therefrom 20
The Economist’s View of Oligopoly—and a Different Hypothesis 23
Oligopolistic Competition in the Real World 28
The Emergence of Brands 31
Oligopoly, Price, and the Consumer 37
The Argument in Brief 40
3. Factors That Shape a Brand During Its Conception and Birth 45
The Importance of Innovation and the Belief in Decline 50
Five Influences on a New Brand 54
The Importance of Market Testing 65
The Argument in Brief 69
4. Factors That Shape a Brand During Its Growth and Maturity 73
Initial Growth 74
Five Influences on a Growing Brand 79
Beyond the Primary Growth Cycle 101
The Argument in Brief 103
5. The Mature Brand and the Consumer: The Nature of
Repeat-Buying Theory 107
Consumer Sales Defined in Consumer Terms 112
Predictive Models in Action 115
ix
x CONTENTS
Four Myths 124
How Brands Grow 128
How Advertising Strategy Should Be Influenced by
Repeat-Buying Theory 129
The Argument in Brief 133
6. Advertising Research: A Digression on Recall 136
Reading-and-Noting: Its Fall from Grace 140
The Twentieth-Century Philosophers’ Stone 143
“Learn-Feel-Do” and “Learn-Do-Feel” 145
The Limited Circumstances When Recall Testing Can Be Useful 150
Pretesting Based on Simulating Consumer Behavior 154
Tracking Studies 156
The Argument in Brief—and a Footnote on Aggregated Data 157
7. How Advertising Influences Sales 163
Advertising’s Short-Term Effect and How It Is Measured 165
Medium-Term Effect as a Repetition of Short-Term Effects 170
The Advertising Response Function 177
Continuity in the Marketplace 181
Medium-Term Effects Measured Econometrically 185
The Argument in Brief 185
8. How Advertising Builds Brands 188
Six Measures of the Long-Term Effects of Advertising 189
Penetration and Purchase Frequency 191
Price and Price Elasticity 199
Advertising Elasticity 202
Advertising Intensiveness 207
Accountability 210
The Argument in Brief 211
9. Giving a Brand Legs: Brands as Collectible Entities 214
The Case for Collectible Brands 215
Collecting Coca-Cola: It’s the Real Thing 217
Hallmark Collecting: When You Care Enough 219
The Loyal Relationship with Collectible Brands 220
Building Brand Loyalty 222
Linking the Collectible to the Company 223
The Argument in Brief 228