Awareness Long V1

Brand awareness is the recognition of a specific

brand name or logo, along with the traits associated

with this brand.

The number of people who know about the brand

Frequency of leaping to peoples mind the brand

name.

Prestigious brand names help increasing sales.

Brand awareness is intangible asset of companies

Monopoly market model – when only the brand

market share has impact on its awareness.

Advertising effort that influences the unaware

segment of the market.

Word-of-mouth effect – we can see it when people

who know about brand influence on the unaware

market segment and tend rise in the brand awareness.

Forgetting effect – when people forget about

brand, that tend loss of awareness.

- Ignoring the role of competition


- sparse empirical knowledge of advertising effectiveness in building awareness for mature products



- lack of guidelines to the optional strategies



- lack of guidelines to the optional strategies

- no information about competitors awareness and strategies

Oligopoly Market’s Model

• N-brands share one market.


• All positive and negative effects from competitors ad’s.

like confusion

effect…



… or effects from

comparative ad’s.



• All effects that old model include



• Allow the total awareness of all N-brand to vary over time

• All effects that old model include



Lets test our model on real data

We will use data from five different car brands

Fiat PuntoOpel Corsa

Ford Fiesta

Peugeot 206

Renault Clio

First, we take phone interviews to calculate brand awareness

data.

We add mathematical approaches to estimate model to the gathered

data

You can see how oligopoly model fits the awareness data

a w a ren

e ss

Now lets apply our model to find optimal ad strategy’s for the brand managers

We can find optimal amount of money that should be invested in media advertisement (in buying GRP’s)

This optimal strategy gives the best return in the terms of more brand awareness and less

money spend on advertising

By watching after optimal strategy we can reveal inverse allocation principal…

The greater (smaller) awareness level, the smaller (greater) advertisement

spending.

Small brands should spend more on advertising, whereas mature brands may “fly on automatic pilot”

without advertising heavily and relying more on brand purchase and consumption experience to

maintain awareness

When all brand’s are using optimal strategy’s the market soon comes to equilibrium state

We can calculate exact share of market for each brand in the equilibrium state

Using our model we can mathematically prove that in mature market, the category ad spending increases as the number of brands increases

We can count that mature product category can sustain three or more brands

Also we reveal that managers can reduce the category size to three brands by increasing ad

effectiveness

- We build model of brand awareness in dynamic oligopoly markets

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- Managers can use this model to assess ad effectiveness and predict competitors awareness


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- We build optimal strategy

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- We can predict the equilibrium market state

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- We can predict the equilibrium market state

- We reveal inverse allocation principle

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Presentation based on article:

“Building Brand Awareness in Dynamic Oligopoly Markets”

Authors:

Prasad A.Naik, [email protected]

Ashutosh Prasad, [email protected]

Suresh P.Sethi, [email protected]

Made by Ivan Petrov, [email protected]

mailto:[email protected]



Business

Awareness Long V1