QUIZZ True or False

4th August 2004

1: ³Brand imagery´ is influenced by users profiles. 2: To achieve right brand identity marketer has to create brand salience with the customer. 3: The product is the heart of brand equity. 4: After developing certain brand image the customer studies brand performance. 5: Depth of brand awareness concerns the range of purchase and usage situations in which brand elements come to mind.

On 28th July we covered Strong brand is built with four steps (a) brand identification (b) Establishing brand meaning in the mind of customer © Bring forth positive brand responses and (d) convert responses to loyalty and relationship with customer. Then these four steps were converted to six building blocks (salience, performance, imagery, judgment, feelings and resonance) which provide foundation for developing successful brand. We agreed that success of each step or building block depends upon success of preceding step or block. Brand salience, brand performance and brand imagery were discussed in some detail. Today we will discuss the next block i.e. BRAND JUDGEMENT

BRAND JUDGMENTS
BRAND JUDGEMENTS COVER CUSTOMERS¶ PERSONAL OPINIONS AND EVALUATIONS WITH REGARD TO THE BRAND.

1: Brand Quality 2: Brand Credibility Brand/Company is judged as competent, innovative, market leader, dependable or keeping customer interest in mind. 3: Brand Consideration

4: Brand Superiority

BRAND FEELINGS
³Brand Feelings´ are customers¶ emotional responses and reactions with respect to the brand. These feelings are evoked by marketing program for the brand.

Six important types of brand-building feelings are 1: Warmth - Consumer may feel sentimental, warmhearted or affectionate about the brand.

2: Fun ± customer feels amused, lighthearted, playful and so on 3: Excitement: A different form of up beat feelings, the brand makes customers energized.

Brand Feelings .. Contd.

4: Security ± The brand produces feeling of safety, comfort and self assurance

5: Social Approval ± Customer feels positive reactions of others.

6: Self-respect - customer feels better about himself, sense of pride, accomplishment or fulfillment.

All types of customer responses are possible but what matters most is how positive these responses are.

Emotional response to a situation

BRAND RESONANCE

focuses on the ultimate relationship and level of identification that the customer has with the brand. Brand resonance can be broken into four categories 1: Behavioral loyalty ± repeat purchases and share of category volume attributed to the brand. 2: Attitudinal Attachment - Personal attachment

3: Sense of Community 4: Active Engagement ± Customer spends more time, energy money joins a club, receives up date about the brand.

Emotional response to a situation

Resonance

4: Relationship

Judgment Feelings

3: Response

Performance

Imagery

2: Meaning

Salience

1: Identity

Quality of being prominent

CBBE pyramid

To reach the pinnacle of the pyramid you have put right block to the right place.

BRAND RELATIONSHIP CAN BE CHARACTERIZED IN TERMS OF TWO DIMENSIONS: INTENSITY -- Strength of the attitudinal attachment and sense
of community

ACTIVITY -- How frequently the customer buys and uses the brand.

BRAND BUILDING IMPLICATIONS

Customer Owns Brands Don¶t Take Shortcuts with Brands Brand Should Have a Duality Brand Should Have Richness Brand Resonance Provides Important Focus

MARKETING ADVANTAGES OF STRONG BRANDS 1: Greater loyalty 2: Lesser vulnerability to competitive marketing actions and crises 3: Larger margins 4: Greater trade cooperation and support 5: Increased marketing communication effectiveness 6: Possible licensing opportunity 7: Additional brand extension opportunities

BRAND POSITIONING AND VALUES

³POSITION´ - as defined by Marketers or Brand Managers A position is the way a brand is viewed relative to the competition by current and prospective customers The way the brand is defined by consumer on important attributes - the place the brand occupies in consumer¶s mind relative to competing brands. Brand positioning is act of designing the company¶s offer and image so that it occupies a distinct and valued place in target consumer¶s mind - Kotler.

IDENTIFYING AND ESTABLISHING BRAND POSITIONING
Positioning involves making proper place of the brand in the minds of a group of consumers or market segment A good brand position tell what a brand is all about, how it is unique, and similar to competing brands and why consumer should purchase and use the brand. To develop right position of a brand we need to be clear on
a: b: c: d: Target consumer/market Main competitors Points of parity Points of difference

TARGET MARKET
Market is the set of all actual and potential buyers who have sufficient interest in , income for, and access to a product. Mass Marketing Market segmentation is dividing the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior and thus require similar marketing mixes. Segment Marketing Niche Marketing, Micro Marketing, Local Marketing and Individual Marketing

Segment Bases
a: Descriptive or Customer Oriented What kind of person or organization is the customer

b: Behavioral or Product Oriented How the customer thinks of or uses the brand or product. Behavioral or product oriented base is often helpful in understanding brand issues.

Taking Tea as an example The Sensory segment The Sociables Segment The Worriers Segment The Independent Segment

Seeking aroma and touch of class Seeking social recognition Seeking caffeine for freshness Seeking low price

Consumer Seg. Bases Behavioral
User status Usage rate. Usage occasion Brand loyalty Benefits sought

Business-t0-Business Seg. Bases Nature of Good
Kind Where used Type of buy

Buying Condition
Purchase location Who buys Type of buy

Demographic
Income Age Gender Family

Demographic
Number of employees Number of production workers Annual sales volume Number of establishments

Psychographics
Values, opinion and attitude Activities and lifestyle

Geographic
International Regional

Marketers usually target more than one segment

Sometime rationale is behavioral considerations Mostly demographic segmentation is used

Other criteria are as under := = = = Identifiability Size Accessibility Responsiveness

BRAND LOYALTY SEGMENTGATION 1: LOYAL 2: ROTATORS 3: DEAL SELECTIVES 4: PRICE DRIVENS USERS ± segmentation on the basis of strength of commitment A: Convertible B: Shallow C: Average D: Entrenched NONUSERS A: Strongly Unavailable B: Weakly Unavailable C: Ambivalent D: Available

NATURE OF COMPETITION
Competitors in the same ³Product Category´ segment the market to their own preference or marketing plan. Consumers in the target market may also have certain other brands in the same product category. Products and brands likely to be close substitutes? Competitive analysis of total factors like financial condition, capabilities, channels of distribution, intentions etc. Choose the segments where consumers can be profitably Serviced. Target more than one segment

POINTS-OF-DIFFERENCE ASSOCIATIONS
POD are strong, favorable and unique brand associations for a brand. Consumer strongly associate certain attributes and benefits to a brand and believes that he cannot find to the same extent with a competing brand This concept is similar to Unique Selling Proposition (USP) Another somewhat similar concept is SCA (Sustainable Competitive Advantage)

POINTS-OF-PARITY ASSOCIATIONS
Not necessarily unique to the brand but may in fact be shared with other brands. Necessary, but not sufficient, for a brand choice

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