week 1 - brands Flashcards
what is a brand
A brand is more than a product.
A brand is something that resides in the minds of consumers.
It reflects the perceptions of the consumers about the brand
Label - “Who” the brand is?
Meaning - What the brand does, and why should consumers care?
“A brand is a distinguishing name and/or symbol intended to identify the goods and services of one seller and to differentiate those goods and services from those of competitors”
define branding
defining, promosing and delivering a unique brand expierence constiently. Branding distinguishes the brand from it’s competitors and builds preerence
what makes a strong brand
enduring market leadership are vision and will. Enduring market leaders have a revolutionary and inspiring vision of the mass market, and they exhibit an indomitable will to realize that vision. They persist under adversity, innovate relentlessly, commit financial resources, and leverage assets to realize their vision
differnce between a brand and a product
brand = Has dimensions that differentiate it in some way from other products designed to satisfy the same need
Can be differentiated on the basis of: Packaging Services provided Customer advice Financing Delivery arrangements Warehousing Other attributes valued by the customers
Product = Anything available in the market for use or consumption, that may satisfy a need or want
Can be categorised into five levels namely:
Core benefit level – what we are actually buying
Generic product level – basic version of the product
Expected product level – what buyers normally expect
Augmented product level – value-added services that differentiate from competitors
Potential product level – augmentations and transformations that might happen in the future
Through branding, organisations can
Create perceived differences amongst products
Develop loyal customer franchise
Create value that can translate to financial profits
Buying brands can reduce risks in product choice decision e.g., assist in assessing and interpreting benefits
These risk can be categorised as
Functional e.g., does not meet expectations
Physical e.g., threat to consumers
Financial e.g., price/quality mismatch
Social e.g., embarrassment from others
Psychological e.g., affects mental well-being
Time e.g. cost of finding a new product
challanges and opportunities of branding
Consumers Expectations – the gap between performance and expectation is growing.
Companies need to continuously improve the quality of the product to keep up with the expectations of the consumers.
Brands need to be emotionally attached to the consumers. In other words, A brand should possess emotions. Once you make a brand possess emotions, you strengthen the brand and consumers will tend to like that brand.
Media:
Traditional advertising media is getting fragmented
Cost –To get that return of marketing investment it takes brands months to reach breakeven.
Clutter – Too many adverts going on. Its getting harder to grab consumer’s attention.
Fragmentation – Variations of TV/Radio stations are growing. More and more people are subscribing Netflix etc. Its difficult to reach the target consumers.
Technology factor – which enables consumers to avoid commercials.
Buzz and Guerilla Marketing - Non traditional media which is more interactive is emerging: e.g. outdoor branding and event sponsorship, market activations, superstore shelf branding etc.
explain the challange of increased competition and how this has occured
Increased Competition
Happens due to:
Globalisation: Threat of new entrants who want to enter your market as a source of more revenue.
Low Priced Competitors: chinese products, and their main bargain is low cost.
Brand Extensions: many companies might extend their existing brand into a new category which is a threat.
Deregulation: when government deregulate industries and allow new entrants.
increased cost is a byproduct of
More Competition = More investment needed to establish a new brand or supporting an existing brand.
Because of this factor many new brand eventually fail which is another reason why marketers decide to go for a “brand extension” to enter a new product category.
Greater Accountability:
There exists a pressure to meet short terms revenue and profit targets.
This might create adverse long term effects on the brand
what is brand equity
The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes and favorable consequences of brand use
brand equity leads to
brand recognition brand awarness brand loyalty brand preference brand trial
