5-Brand Decision Process

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1 Brand Decision Process Speaking to the Head and the Heart To acquire, retain, and grow customers, companies need to know how customers make brand decisions. The brand decision can be primarily cognitive or experiential depending on the product category and situation. Brand decision-making is partly rational and partly emotional, so brands must speak to both the head and the heart.

Transcript of 5-Brand Decision Process

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Brand Decision Process

Speaking to the Head and the Heart

To acquire, retain, and grow customers, companies need to know how customers make brand decisions.

The brand decision can be primarily cognitive or experiential depending on the product category and situation.

Brand decision-making is partly rational and partly emotional, so brands must speak to both the head and the heart.

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Factors That InfluenceBrand Decisions

Three factors influence decision-making:

Level of involvement (high to low)

Customers (retention) versus Prospects (acquisition)

Consumers versus Businesses

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The Head to HeartDecision-making Continuum

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Three Approaches toMaking a Brand Decision

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Relationship BetweenDecision-making and Involvement

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Basic Brand Decision-making Steps

Step 1: Problem and Opportunity Recognition

Step 2: Information Search Step 3: Evaluation of Choices Step 4: Behavior and Action Step 5: Review of Buying Decision

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Step 1:Problem and Opportunity Recognition

What are the needs and wants?Before brand messages can influence

customers or prospects, brand messages must first get the attention of these customers and prospects.

Selective perception is the process used to decide what is worthy of attention.

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Maslow’s Hierarchy of Needs

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Safety and Security Needs We often see

marketers use the safety need of Maslow’s Hierarchy of Needs in automobile ads.

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Safety and Security Needs In this ad,

Mercedes-Benz is positioning a luxury car on the Safety Appeal.

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Social Needs-Example

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Esteem Need

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Self Actualization

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Step 2: Information Search

During the search for information, customers usually focus on the differences they perceive among competing brands.

Brand awareness and brand knowledge are crucial here.

Research shows that when customers see marketing communication that is relevant to them, they are more likely to pay attention and think about it.

Two routes used in information searching: Central Route Peripheral Route

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Step 3: Evaluation of Choices – Cognitive Responses

A cognitive response involves reasoning, judgment, or knowledge.

For both consumers and businesses, using an evoked set of brands in frequently purchased product categories can greatly simplify the process.

Six risks both consumers and businesses try to minimize: Financial risk Performance risk Physical risk Psychological risk Social risk Time-loss risk

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Step 3: Evaluation of Choices – Affective Responses

An affective response involves emotional processing and results in preferring (or not preferring) a brand and developing a conviction about it.

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Attitude Dimensions

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Step 4: Behavior and Action

Attitudes and behavior are linked, however the links are not always direct or clear.

People act according to their attitudes and beliefs, as well as what they know.

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Step 5: Review of Buying Decision

Customers evaluate purchases consciously or subconsciously and arrive at some level of satisfaction.

This leads to either a repeat purchase or a return to a search for a different brand.

The review process involves learning.

Two theories of learning: Cognitive Learning Conditioned Learning

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Persuasion:Hierarchy-of-Effects-Models

Persuasion is the act of creating changes in beliefs, attitudes, and behaviors.

A classic persuasion model is AIDA.

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Think Feel/Do Model

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The Response Wheel

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Persuading People toPersuade Themselves

Marketing communication is a type of intervention in a customer’s brand decision process.

The intervention works only if the planner truly understands the customer’s relationship to the brand.

From an IMC perspective, communication that helps customers and responds to them in a personal way is much more persuasive than communication that tries to manipulate them.