Brand for UP Chap002 2013 · Microsoft PowerPoint - Brand for UP Chap002 2013 Author: compaq Created Date: 4/26/2013 7:48:13 PM

How customers learn about and use brands Asst.Prof. Dr. Jusana Techakana 1

How customers learn about and use brandsHow customers learn about and use brands..

B r a n d M a n a g e m e n t A s s t . P r o f . D r . J u s a n a T e c h a k a n a

Brand value is based on brand knowledge which

Brand value

gis the information that customers have stored away in their minds about the brand over time.


Broad view of marketing activities.• Recognize that all types of

Two key points about brand knowledge.

g ypmarketing activities have an effect on brand knowledge.

• Changes in brand knowledge will impact traditional measure such as sales.

Six pillars of a brand

•Availability. •Awareness.Awareness.•Protection.•Differentiation. •Relevance. •Consumer Insight.


The Task of Brand Management

Developing methods of shortening and i th i ti di tmanaging the communication distance

between the brand and the end user / consumer.

Brand Equity

Product Attributes Product Features

How to Build Brand Equity

Product ConceptBrand Concept Brand Attributes Brand Features

.Product Benefits

Physical Brand Positioning Psychological

Product Information

IMC

Brand Benefit

Brand Information

IMC /Brand Contact Points

Advertising PR Sales Promotion Direct Marketing Event

Brand Knowledge

Positive Unique Strong

Brand Equity

DM/ Personal Selling


Target Market

A market is the set of all actual and t ti l b h hpotential buyers who have

sufficient interest in, income for, and access to a product.

Market segmentation

Market segmentation divides theMarket segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixessimilar marketing mixes.gg


Tradeoffs

Market segmentation requires making tradeoffs. A trade-off (or tradeoff) is a situation that involves losing one quality or aspect ofinvolves losing one quality or aspect of something in return for gaining another quality or aspect.

It often implies a decision to be made with full comprehension of both the upside and d id f ti l h idownside of a particular choice.

Attribute and Benefit Trade-offs

•Price and quality•Convenience and quality•Convenience and quality•Taste and low calories•Efficacy and mildness•Power and safety•Ubiquity and prestige•Comprehensiveness (variety) and simplicityComprehensiveness (variety) and simplicity•Strength and refinement


Strategies to ReconcileAttribute and Benefit Trade-offs

E t bli h t k ti•Establish separate marketing programs•Leverage secondary association (e.g., co-brand)•Re-define the relationship from negative to positive

Consumers (BConsumers (B22C)C) Business (BBusiness (B22B)B)

Consumer Vs. Business Buyers

Buy for their own personal or household use

Buy on behalf of their organization• Typically consult others

in the organization

Buy for their own personal or household use• Typically use more of an

emotional approach

in the organization• Typically buy larger

quantities• Often use a bidding

process

• Typically use more of an emotional approach


Sociocultural FactorsSocio-cultural Factors

All Consumers Are Human

Social ClassSocial ClassAffectedBy:

Reference Groups

Figure 5-3: Think/Feel/Do Response Wheel


Figure: 5-4: The Elaboration Likelihood Model

Figure 5-5: 4-Step Decision Process

++


Step 1: Recognize a problem/opportunity Step 1: Recognize a problem/opportunity

How Does Brand Decision-Making Work?

Step 3: Take Action

Step 2: Evaluating brand alternativesStep 2: Evaluating brand alternatives

Step 3: Take Action

Step 4: Evaluating the purchase decision

Step 3: Take ActionStep 3: Take Action

Dimensions or attributes used to compare alternatives

Evaluative Criteria

Objective criteria - price, warrantee, etc.

Subjective criteria - style, appearance, image

Consumer’s view product is a set of consequencesF i l iblFunctional consequences are concrete, tangible outcomes

Psychological consequences are abstract and subjective


Geographic SegmentationDemographic SegmentationPsychological Segmentation

Bases Segmentation

Psychological SegmentationPsychographic SegmentationSociocultural SegmentationUse - Related SegmentationUsage-Situation SegmentationBenefit SegmentationBenefit SegmentationHybrid Segmentation Approaches

Measurability

Criteria For Effective Targeting of Market Segments

IdentificationSufficiencyStabilityAccessibility


CriterionCriterion• Segment size • Segment growth rate• Competitor strength

Market Segment Attractiveness Worksheet

Score*Score*--------------------

• Competitor strength• Customer satisfaction with existing products• Fit with company image• Fit with company resources• Distribution available• Investment required• Stability / predictability• Cost to serve

--------------------------------------------------------------------------------

• Sustainable advantage available• Communication channels available• Risk• Other (……………)

*Score on a 1 to 10 scale, with 10 being most favorable

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Nature of Competition

• Deciding to target a certain type of consumer often defines the nature of competition

• Do not define competition too narrowly– Ex: a luxury good with a strong hedonic benefit like

stereo equipment may compete as much with a vacation as with other durable goods like furniture


Points-of-Parity and Points-of-Difference

• Points-of-difference (PODs)– Attributes or Benefits that consumers

strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.

Points-of-Parity and Points-of-Difference

• Points-of-parity (POPs)N il i h b d b– Not necessarily unique to the brand but may in fact be shared with other brands.

– At least match the competitors– While POPs may usually not be the reason

to choose a brand, their absence can certainly be a reason to drop a brand.


Choosing POP’s & POD’s

• Desirability criteria (consumer perspective)– Personally relevant– Distinctive and superior– Believable and credible

Choosing POP’s & POD’s

• Deliverability criteria (firm perspective)

– Feasible – Profitable– Pre-emptive, defensible, and

difficult to attackdifficult to attack


Brands fulfill three basic functionsImage Benefit

Brands have an ideational value.• Self‐realization• Self‐representation• Identification

Risk reductionBrands reduce the risk of making the wrong decision.• Safety

Information EfficiencyBrands facilitate information processing.• Provenance• Orientation

Super Brand Manager

• Continuity• Trust

• Interpretation• Recognition

Types of Perceived Risk

MonetaryPsychological

PerceiveRisk

SocialFunctional

Super Brand Manager

Physical


Brand Funnel Analysis

Brand

Loyalty

Frequent

Purchase

Trial

Purchase

Conside‐

rationFamiliarity

Brand Awareness

Super Brand Manager

How customers learn about and use brandsHow customers learn about and use brands..

For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/IrwinB r a n d M a n a g e m e n t A s s t . P r o f . D r . J u s a n a T e c h a k a n a

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Brand for UP Chap002 2013 · Microsoft PowerPoint - Brand for UP Chap002 2013 Author: compaq Created Date: 4/26/2013 7:48:13 PM