How Consumers Choose Brands

Problem Recognition

Extended Problem Solving

Consumers get more involved in the purchase where they see significant differences between competing Brands in the same product field. Likely to occur for High Priced Brands - seen as a risky purchase because of complexity. eg: cars, computers, hi-fi. Also occurs for brands that reflect the consumers self image eg: Cosmetics, Clothes, jewellery. Harder to get consumers to switch brands here. Consumer feels it is important to buy the right brand.
Purchase Information Search

Evaluation of Alternatives

Post purchase Evaluation

Feedback

Dissonance Reduction
Consumers get more involved in the purchase but they see minimal differences between competing Brands in the same product field. Consumers may be confused by lack of Clear Brand Differences. Purchase decisions may be based on friends opinions or advice from a shop assistant. This brand purchase choice is made without firm brand beliefs. Consumer may experience post purchase dissonance Brand Advertising should reduce post purchase dissonance eg: an ad may have the tagline Youve Chosen Well to reassure consumers after the purchase and encourage brand loyalty. Or at Point of Purchase packaging should try to stress a point of reassurance. Selling by Brand Reassurance not Brand Pushing

OH Its a DVD Player ?

Famous Taglines
When it absolutely, positively has to be there overnight. FEDEX When you care enough to send the very best HALLMARK Dont Leave Home without it AMERICAN EXPRESS Go Forth, Original Jeans, Original People, Have you ever had a bad time in Levis LEVIS Nothing comes between me and my Calvins. CALVIN KLEIN JEANS The Luxury of Dirt. Diesel. For Successful Living. Diesel jeans The official uniform of New York. DKNY Jeans

The Fresh Food People WOOLWORTHS Theres no other store like David Jones Was. Is. Always David Jones. Think different Apple Computer Australian for beer Fosters Hunted by Some, Savoured by Many Chaiger Simply Advanced CANON Which Bank? earlier today I was speaking to a new client and asking her bank details so we can pay her monthly rebate. When I asked which bank? her response was that one! - INTERNET BLOGGER With the exception of a few of the above none includes the Brand name in the tagline. They convey the brand values so succinctly they become part of the brand.

A great tagline conveys a companys benefit with personality and attitude and the most memorable taglines connect on an emotional level. Many famous taglines are basically an evocative, inspiring call to action.

A Tagline should
Capture the essence of your mission, your promise, your brand Portray a clear message Be memorable/ sticks in the mind Be simple Inspire / Spark an Interest Consider your markets values, beliefs, business interests and buying characteristics. Feed your Family for Under $10

Limited Problem Solving

This is where consumers do not regard the buying of products as important issues, perception of minor differences between competing brands eg. Packaged Groceries, Household cleaning materials. Consumers see little risk in switching brands - Low involvement with the product. No behavioural change occurs until the consumer comes across a purchase trigger eg Instore display or Point of Sale Advertising. Brand switching can be more easily encouraged here through coupons, free trial incentives etc. Low involvement Brands should be positioned as functional problem solvers. eg Dish washing liquid as an effective cleaner of Greasy dishes rather than smelling Fresh Brand should be located at eye level. Packaging should be eye catching and simple.

Problem Recognition

Brand beliefs formed from passive Learning recalled from Memory

Purchase made

Brands May Or May Not Be Evaluaterd Afterwards

Need State

Brand

Sophisticated Me

Brands satisfy different needs

Brands purchased to reflect consumers needs in a particular context
Mummy Me

Healthy Me

Budget Me

Indulgent Me

Developing differential Brand Marketing Strategies based on segmentation of consumers into Four Profit Opportunity Groups - Hallberg 1995. To Achieve this good market research data is required Category Volume High Profit 83% Medium Profit Low Profit No Profit 14% 3% 0%

Different Marketing Strategies for different Consumer segments

16% 16% 16% 52%

Produce the most Profit

Not Buying the Brand

Analysis - High Profit Segment accounted for 83% of Brands Profit. With this sort of analysis showing how profitable a small group of consumers are, more focussed brand strategies can be developed. Different buyers having different degrees of attractiveness. Different strategies for different opportunity consumers. Lost Consumers can also be tracked- Changing Need States? Dissatisfaction?

Added Values from a Belief that the Brand is effective

Beliefs influence the consumers view about the ACTUAL performance of a Brand. eg. Blind Taste Tests. Functionally Diet Pepsi is preferred to Diet Coke. But through Imagery in the branded product test Diet Coke was preferred
Prefer Diet Pepsi Prefer Diet Coke Equal/dont know

Blind% 51 44 5 100

Branded% 23 65 12 100

Added Values from Experience

Consumers gaining confidence through reliability experience and perceive minimal Risk with the Brand

No Name Brand

Added Values from Reference Group Effects

The way personalities endorse a Brand that targets consumers who may aspire to a certain lifestyle.

Scarlett Johansen

Added Values from the Appearance of a Brand

Consumers form Impression of the Brand from Packaging. Brand Preferences based on attraction to Design. For example the premium positioning of products by using Metallic Inks to enhance premium positioning. This is a way of communicating a Brands added value.

Search for Brand Information

Information is gained first from memory - if insufficient then from external resources. Memory - Previous experience with Brand From an Advertisement Researching the Brand External - Friends, Family
Information Sources

Memory

External

Actively Aquired

Passively Aquired

Factors Influencing Choice of Brands

Demographic, Geographic, Psychographic Social Class Family Lifecycle Reference Groups and Family Influences Perception, Attitude Personality

Consideration Set
Consideration set is the subset of brands that consumers evaluate when making a purchase decision. A consumer has a limited information processing abilities and limits the comparison to a subset of brands that is termed as consideration set. In the frequently purchased product category such as groceries, consumers mostly face information overload and may engage in strategies to minimize the cost of information search (utility comparison or cost-benefit tradeoff). Also, frequently purchased products are characterised by frequent price promotion of varying depths of discounts; a consumer faces significant uncertainty about the prices brands. Consumers may limit their attention and evaluation to a subset of available brands to simlify the purchase decision. The consideration set is made up of the brands that are taken seriously by the consumer in his or her purchase decision.

Buying Behaviour is Influenced by:

Price Free-Discounts-Sale Visual Appeal - Packaging Bundling Noticeable difference in Brands Features, Benefits, Attributes Umbrella Brands Consideration Set Brand Ambassadors Instant, Easy to Use, Ready made Health Related Products

Co-branding, also called brand partnership, is when two companies form an alliance to work together
EXAMPLES: Adidas - Polar Electro Adidas (ADDDY) and Polar Electro created Project Fusion, which integrates heart rate and speed and distance monitoring equipment into sports apparel.

Apple - Nike Nike and Apple brought music and exercise together when they developed the Sports Kit, a wireless system that allows shoes to talk to an iPod.

Fiat - Mattel To celebrate Barbies 50th anniversary, Mattel and Fiat joined forces to create the 500 Barbie. The car comes in nail-polish-pink and features lip gloss in the glove compartment.

Issac Mizrahi - Target The acclaimed Issac Mizrahi designed a womens readyto-wear line for Target stores. The partnership lasted five years and ended in January 2008. Target continues to co-brand with other high-end designers such as Liz Lange, Tracy Feith, and Angie and Lola.

MasterCard - Virgin Virgin teamed up with MasterCard to develop a prepaid card targeted at individuals who dont have a bank account or have a low credit score.

Citi Bank - BP In 2006 Citibank partnered with BP to launch Australias first fuel discount credit card, the BP-Citibank MasterCard. The partnership offers customers the opportunity to save on fuel and everyday items at nearly 1,400 BP service stations across the country.

Licensed Brands
Licensing in this case means renting or leasing of an intangible asset. Examples of intangible assets can include a song(Close to the Edge-Grand Master Flash Kia Commercial), http://www.youtube.com/ watch?v=yzIy2yGTk4U a character (Ben 10), a name (Michael Jordan) or a brand (The Ritz-Carlton). An arrangement to license a brand requires a licensing agreement. A licensing agreement authorizes a company which markets a product or service (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor). Cartoon Network Enterprises (CNE) and iStoryTime, a leading publisher of childrens storybooks for the iTunes App Store, today announced a first-time partnership that will bring two of the networks biggest boy brands, Ben 10 and Bakugan, to the iPhone and iPad.

Apple
When Apple launched the iPod there was an immediate need for accessories such as headphones, charging and syncing stations and carrying cases. Apple decided not to manufacture these products and instead chose to have a licensee make the products. By doing so, Apple could offer branded Earbud Headphones, iPod docking stations and iPod socks. Each is made by a separate company but together offer the consumer an elegant solution. All of these accessories are sold by licensees.

Apple Accessories

Apple Socks