Brand Module 2009

8/8/2019 Brand Module 2009

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Consumer Attitude & brand building


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Not for circulation : for internal useonly

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Consumer Attitude

In consumer behavior context , attitude is a learned pre deposition

to behave in a consistently favorable or unfavorable way with

respect to a given stimuli. (Brand )

Learned deposition refers to information source , perception ,

experience , exposure to media etc which helps to build an attitude& gives momentum to the behavior .

The momentum can be negative or positive.

Consistency refers to the voluntary decision ( Compulsive buying

) which makes the consumer to purchase the product/ service /

brand till such time there are no intervening factors which force

the consumer to change the attitude.


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Two school of thoughts in Attitudinal theory

1 . Insights on product usage :

Attribution theory focuses on how consumer assign causality to

events and how they form or alter attitudes as an outcome of

assessing their own behavior, or the behavior of other people or

things.

Dove communication is built on the product insight that soap driesskin , but Dove doesnt because of its moisturizing content to

nourish the skin.

Cognitive dissonance theory : Anglo Saxon View ( Western theory)

and Non Anglo Saxon View ( Eastern cultural rich view )Theory suggests that the conflicting thoughts, or dissonant

information, that follow a purchase /acceptance decision might

propel consumers to change their attitudes to make them consonant

with their actions.


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Tri component Attitude model:1 Cognition component

2 Affective

3 Conation

Conation

Cognition

Affect

An attitudinal shift of the market happens when , positioning

invokes beliefs , establish liking & induce a stimuli for buying

known as tri-component model. .


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1.A positive or negative belief ( myth, Superstition, taboo, strong

reference opinion, Right or wrong product/service informationfrom authentic source ) As consumers hold many beliefs about a

product or service, it is difficult to decide which belief influence

the buyers attitude most.

Hence Multi-attribute ( known as the Fishbein) Model attempts to

summarize overall attitudes into one score using the equation:

For each belief, take the weight or importance (Wi) of that belief

and multiply it with its evaluation (Xib).


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For example, if a consumer believes that coffee can help to

overcome metal fatigue by partially energizing ,hence gives the

importance 4 on a scale of 1 to 7.

He or she believes that coffee can energize better than tea, hence

rates 6 on a scale from 1 to 7. Thus, the product here is 4(6)=24.

On the other hand, he or she believes that coffee consumption is

bad for health, hence rates 2.

Coffee has high caffeine content hence bad for health, thus rates

1 . Now we have 2(1)= 2. Had these two beliefs been the only

beliefs the consumer held, total, or aggregated, attitude would

have been 24+(2)= 26. If required the scale can be extended from-7 to +7 .

Since the second belief & evaluation factor is weak, it will

negate the buyers decision towards coffee.

In practice, of course, consumers tend to have many more beliefs

that must each be added to obtain an accurate measurement.


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Affect . Consumers feeling & emotions associated with the brand.

Consumers hold certain feelings toward brands . These feelings are

based on the beliefs (e.g., a person feels nauseated when thinkingabout a hamburger because of the tremendous amount of fat it

contains), but there may also be feelings which are relatively

independent of beliefs.

Behavioral Intention. The behavioral intention is what theconsumer plans to do with respect to the object (e.g., buy or not buy

the brand). As with affect, this is sometimes a logical consequence of

beliefs (or affect), but may sometimes reflect other circumstances--

e.g., although a consumer does not really like a restaurant, he or shewill go there because it is a hangout for his or her friends.


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The Attitude shift is for :

1.Utilitarian Function2.Ego-defensive Function

3.Value-expressive Function

4.Knowledge Function

1. Utilitarian FunctionFavorable attitude towards a brand happens because it has high

usage imagery . Marketers may stress the utilitarian feature or

may suggest uses of the product that may not be obvious.

2. Ego-defensive Function

Products that we purchase to protect our self-images, to replace

our sense of insecurity with personal confidence.

Techno savvy image , flamboyant image etc


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3. Value-expressive Function

Consumer's express personal values through the brands theypurchase and own .Marketers often attempt to identify their brands

with these values.

Fairness is a symbol of beauty & helps to gain success

corporate .

4. Knowledge Function

Consumers feel the strong need to know and understand how the

brand can be put to application or support & justify her decision

of buying .


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Attitude change strategies

Change Belief ( Add belief , Change currently held , change

importance of belief.)

Change Affect

Change Behavior

Approach

1.Comparative advertising

2 Hyperbole statement .

3. Emphasizing Brand Attributes ( USP)

4 Competition based advertising


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Attitude & persuasion

Persuasion : A series of psychological processes mediating

perception , comprehension , agreement , retention , retrieval &

decision making using vital cue.

Primary route of persuasion .

Secondary route of persuasion


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Message

Motivated to

process

Ability to

process

Persuasion

Cue present

No

NoYes

Yes

Cognitive processing

Cognitive structure

Change

Attitude change

change +ive

Neutral

Temporary

Attitude shiftRetain original

Attitude

Yes

No

ELABORATON

PROCESS


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Attitudes & their impact on brand building strategy

Attitude is a mental predisposition favorable or un

favorable ( positive or negative towards product or

service concept presented through brand.

Linkages between Value Attitude and Belief.

Value BeliefAttitude


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Brand Value

According to David Aaker ,premium price which thebrand commands , can generates over its competitor

during a business cycle determines its brand value.

When a commodity becomes a brand, it is said tohave equity. The difference between the perceived

value and the intrinsic value of a brand , due to

which stands out among its rivals is called brand

equity.

When brand builds it equity in the market , the

stature of the brand goes high.


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Cult brand

Iconic Brand

Aspirational brand

Me too brand

Orphan brand

Out there brand

Low

B E

High

BE


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The Concept of Brand Equity

The brand equity concept stresses the importance ofthe brand in marketing strategies.

Brand equity is defined in terms of the marketingeffects uniquely attributable to the brand.

Brand equity relates to the fact that differentoutcomes result in the marketing of a product or

service because it creates a symbolic imagebrand as Symbol, as compared to if the same

product or service did not have that name.


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Brand As Symbol

Figurative Symbol

WORD

(Brand Name )

Object

Logo, emblem ,

Color ,Form , structure

Pattern , packaging Mascot

Concept

Theme, slogan,

punch line

Goes with Self imageOf the consumer


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The Concept of

Customer-Based Brand Equity

Customer-based brand equity creates

Differential effect Customer brand knowledge ( Informed )

Customer response to brand ( Connect )


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Benefits of


Enjoy greater brand loyalty, usage, and

affinity

Command larger price premiums

Receive greater trade cooperation & support

Increase marketing communication

effectiveness

Yield licensing opportunities

Support brand extensions.


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Determinants of


Customer is aware of and familiar with the

brand

Customer holds some strong, favorable, and

unique brand associations in memory


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Building


Brand knowledge structures depend on . . .

The initial choices for the brand elements

The supporting marketing program and the

manner by which the brand is integrated into it


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Building Brand Equity

Strategic brand management involves the design

and implementation of marketing programs and

activities to build, measure, and manage brand

equity.

Brand equity building process is defined as

involving four main steps:

1) Identifying and establishing brand positioning and

values2) Planning and implementing brand marketing

programs

3) Measuring and interpreting brand performance

4) Growing and sustaining brand equity


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Rationale of

Customer-Based Brand Equity Model

Basic premise: Power of a brand resides in theminds of customers

Challenge is to ensure customers have the righttypes of experiences with products & servicesand their marketing programs to create the rightbrand knowledge structures: Thoughts

Feelings

Images

Perceptions

Attitudes


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Strategic BrandManagement Process

Mental maps

Competitive frame of reference

Points-of-parity and points-of-difference

Core brand values

Brand mantra

Mixing and matching of brand elements

Integrating brand marketing activities

Leveraging of secondary associations

Brand Value Chain

Brand audits

Brand tracking

Brand equity management system

Brand-product matrix

Brand portfolios and hierarchies

Brand expansion strategies

Brand reinforcement and revitalization

KEY CONCEPTSSTEPS

Grow and Sustain

Brand Equity

Identify and Establish

Brand Positioning and Values

Plan and Implement

Brand Marketing Programs

Measure and Interpret

Brand Performance


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Building


Building a strong brand involves a series of steps

as part of a branding ladder

A strong brand is also characterized by a logicallyconstructed set of brand building blocks.

Identifies areas of strength and weakness

Provides guidance to marketing activities


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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?


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Salience Dimensions

Depth of brand awareness

Ease of recognition & recall

Strength & clarity of category membership

Breadth of brand awareness

Purchase consideration

Consumption consideration


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Performance Dimensions

Primary characteristics & supplementaryfeatures

Product reliability, durability, andserviceability

Service effectiveness, efficiency, and

empathy

Style and design

Price


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Imagery Dimensions

User profiles Demographic & psychographic characteristics

Actual or aspirational

Group perceptions -- popularity

Purchase & usage situations Type of channel, specific stores, ease of purchase

Time (day, week, month, year, etc.), location, and context ofusage

Personality & values Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences Nostalgia

Memories


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Judgment Dimensions

Brand quality

Value

Satisfaction

Brand credibility

Expertise

Trustworthiness

Likability

Brand consideration

Relevance

Brand superiority

Differentiation


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Feelings Dimensions

Warmth

Fun

Excitement Security

Social approval

Self-respect


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Resonance Dimensions

Behavioral loyalty Frequency and amount of repeat purchases

Attitudinal attachment Love brand (favorite possessions; a little pleasure)

Proud of brand

Sense of community Kinship

Affiliation

Active engagement Seek information

Join club

Visit web site, chat rooms


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CBBE & Marketing Actions

Consumer-

Brand

Resonance

Brand Salience

Consumer

Judgments

Consumer

Feelings

Brand

PerformanceBrand

Imagery

INTENSE, ACTIVE

LOYALTY

RATIONAL &

EMOTIONAL

REACTIONS

POINTS-OF-

PARITY &POINTS-OF-

DIFFERENCE

DEEP, BROAD

BRAND

AWARENESS


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Brand Positioning

Define competitive frame of reference Target market

Nature of competition

Define desired brand knowledgestructures

Points-of-parity necessary

competitive

Points-of-difference strong, favorable, and unique brand associations


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Brand Valuation & Brand equityWhy Brand valuation :

Physical assets and intangible assets are important for an organization .

Brand is one among the most important intangible asset of an organization.

Organization want to commit marketing spends & evaluate the productivity of the

same to the brand portfolio which deliver high yield .( Power brands )

To ensure the correct value is ascertained for merger & acquisition purpose.Accounting requirements enforces that purchased brands are capitalized & amortized

appropriately in the books .

Brand valuation ensures brand licensing fees correctly reflects the benefits

received to the organization.


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Brand Valuation


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Valuation approach :

Valuation by replacement cost.

Valuation by market price.Valuation by potential earning

Valuation by inter brand model

Valuation by Multiple earning method.

Inter brand method : Brand strength is calculated using a set of marketing &

strategic criteria to give the brand an overall mark. The seven factors used are

:

Factors Max score Brand A Brand B Brand C

1. Leadership

2. Stability

3. Internationality4. Support

5. Protection

6. Market

7. Trend

Brand strength

Brand Module 2009

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Transcript of Brand Module 2009