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How Consumers Choose Brands
Extended Problem Solving
Consumers get more involved in the purchase where they see signicant
dierences between competing Brands in the same product eld.Likely to occur or High Priced Brands - seen as a risky purchase because ocomplexity. eg: cars, computers, hi-f.
Also occurs or brands that refect the consumers sel image eg: Cosmetics,Clothes, jewellery.
Harder to get consumers to switch brands here. Consumer eels it is
important to buy the right brand.
Problem Recognition
Inormation Search
Evaluation o Alternatives
Purchase
Post purchase Evaluation
Feedback
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Dissonance Reduction
Consumers get more involved in the purchase but theysee minimal dierences between competing Brands in thesame product eld.
Consumers may be conused by lack o Clear BrandDierences.
Purchase decisions may be based on riends opinions oradvice rom a shop assistant.
This brand purchase choice is made without rm brandbelies.
Consumer may experience post purchase dissonance
Brand Advertising should reduce post purchase dissonanceeg: an ad may have the tagline Youve Chosen Well toreassure consumers after the purchase and encouragebrand loyalty.
Or at Point o Purchase packaging should try to stress apoint o reassurance. Selling by Brand Reassurance notBrand Pushing
OH Its a DVD Player ?
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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 itAMERICAN EXPRESS
Go Forth, Original Jeans, Original People, Have you ever had a bad time in LevisLEVIS
Nothing comes between me and my Calvins.CALVIN KLEIN JEANS
The Luxury o Dirt.
Diesel. For Successul Living.
DIESEL JEANS
The ocial uniorm o New York.DKNY JEANS
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The Fresh Food PeopleWOOLWORTHS
Theres no other store like David Jones
Was. Is. Always David Jones.Think dierentApple Computer
Australian or beerFOSTERS
Hunted by Some, Savoured by ManyCHAIGER
Simply AdvancedCANON
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 o a ew o the above none includes the Brand name in the tagline. They convey the brandvalues so succinctly they become part o the brand.
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A great tagline conveys a companys benet withpersonality and attitude and the most memorable
taglines connect on an emotional level.
Many amous taglines are basically an evocative,inspiring call to action.
A Tagline should
Capture the essence o your mission, your
promise, your brandPortray a clear message
Be memorable/ sticks in the mind
Be simple
Inspire / Spark an Interest
Consider your markets values, belies, businessinterests and buying characteristics.
Feed your Family or Under $10
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Limited Problem Solving
This is where consumers do not regard the buyingo products as important issues, perception o minordierences between competing brands eg. Packaged
Groceries, Household cleaning materials.
Consumers see little risk in switching brands - Lowinvolvement with the product.
No behavioural change occurs until the consumer comesacross a purchase trigger eg Instore display or Point oSale Advertising.
Brand switching can be more easily encouraged herethrough coupons, free trial incentives etc.
Low involvement Brands should be positioned asunctional problem solvers. eg Dish washing liquid as aneective cleaner o Greasy dishes rather than smellingFresh
Brand should be located at eye level. Packaging shouldbe eye catching and simple.
Problem Recognition
Brand belies ormed rompassive Learning recalled
rom Memory
Purchase made
Brands May Or May Not BeEvaluaterd Aferwards
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Brands satisy dierent needs
Brands purchased to refect consumersneeds in a particular context
Need State Brand
Sophisticated Me
Mummy Me
Healthy Me
Budget Me
Indulgent Me
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Dierent MarketingStrategies ordierent Consumersegments
Developing dierential Brand Marketing Strategies based onsegmentation o consumers into Four Prot Opportunity Groups- Hallberg 1995.To Achieve this good market research data isrequired
CategoryVolume
High Prot 83% 16% Produce themost Prot
MediumProt
14% 16%
Low Prot 3% 16%No Prot 0% 52% Not Buying
the Brand
Analysis - High Prot Segment accounted or 83% oBrands Prot.
With this sort o analysis showing how protable a small groupo consumers are, more ocussed brand strategies can be
developed.Dierent buyers having dierent degrees o attractiveness.
Dierent strategies or dierent opportunity consumers.
Lost Consumers can also be tracked- Changing Need States?Dissatisaction?
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Added Values rom a Belie that the Brandis eective
Belies infuence the consumers view about the ACTUALperormance o a Brand.
eg. Blind Taste Tests. Functionally Diet Pepsi is preerredto Diet Coke.
But through Imagery in the branded product test Diet Cokewas preerred
Blind% Branded%
Prefer Diet
Pepsi
51 23
Prefer Diet
Coke
44 65
Equal/dont
know
5 12
100 100
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Added Values rom Experience
Consumers gaining condence through reliabilityexperience and perceive minimal Risk with the Brand
Added Values rom Reerence Group
EectsThe way personalities endorse a Brand that targetsconsumers who may aspire to a certain liestyle.
No Name Brand
Scarlett Johansen
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Added Values rom the Appearance o aBrand
Consumers orm Impression o the Brand rom Packaging.Brand Preerences based on attraction to Design.
For example the premium positioning o products by usingMetallic Inks to enhance premium positioning.
This is a way o communicating a Brands added value.
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Search or Brand Inormation
Inormation is gained rst rom memory - i insucient thenrom external resources.
Memory - Previous experience with Brand
From an Advertisement
Researching the Brand
External - Friends, Family
Inormation Sources
Memory External
Actively Aquired Passively Aquired
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Factors Infuencing Choice oBrands
Demographic, Geographic, Psychographic
Social Class
Family Liecycle
Reerence Groups and Family Infuences
Perception, Attitude Personality
Buying Behaviour is Infuenced by:
Price
Free-Discounts-Sale
Visual Appeal - Packaging
Bundling
Noticeable dierence in Brands
Features, Benets, Attributes
Umbrella Brands
Consideration Set
Brand Ambassadors
Instant, Easy to Use, Ready made
Health Related Products
Consideration SetConsideration set is the subset o brands that consumers
evaluate when making a purchase decision. A consumer
has a limited inormation processing abilities and limits
the comparison to a subset o brands that is termed asconsideration set.
In the requently purchased product category such as
groceries, consumers mostly ace inormation overload
and may engage in strategies to minimize the cost o
inormation search (utility comparison or cost-benet trade-
o).
Also, requently purchased products are characterised byrequent price promotion o varying depths o discounts;
a consumer aces signicant uncertainty about the
prices brands. Consumers may limit their attention and
evaluation to a subset o available brands to simliy the
purchase decision.
The consideration set is made up o the brands that are
taken seriously by the consumer in his or her purchasedecision.
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Co-branding, also called brand partnership,is when two companies orm an alliance towork together
EXAMPLES:
Adidas - Polar Electro
Adidas (ADDDY) and Polar Electro created Project Fusion,which integrates heart rate and speed and distancemonitoring equipment into sports apparel.
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Apple - Nike
Nike and Apple brought music and exercise togetherwhen they developed the Sports Kit, a wireless system thatallows shoes to talk to an iPod.
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Fiat - Mattel
To celebrate Barbies 50th anniversary, Mattel and Fiatjoined orces to create the 500 Barbie. The car comesin nail-polish-pink and eatures lip gloss in the glove
compartment.
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Issac Mizrahi - Target
The acclaimed Issac Mizrahi designed a womens ready-to-wear line or Target stores. The partnership lasted ve
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.
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MasterCard - Virgin
Virgin teamed up with MasterCard to develop a prepaid
card targeted at individuals who dont have a bankaccount or have a low credit score.
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Citi Bank - BP
In 2006 Citibank partnered with BP to launch Australiasrst uel discount credit card, the BP-Citibank MasterCard.The partnership oers customers the opportunity to save
on uel and everyday items at nearly 1,400 BP servicestations across the country.
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Licensed Brands
Licensing in this case means renting or leasing o anintangible asset. Examples o intangible assets caninclude a song(Close to the Edge-Grand MasterFlash Kia Commercial), http://www.youtube.com/watch?v=yzIy2yGTk4Ua character (Ben 10), a name(Michael Jordan) or a brand (The Ritz-Carlton).
An arrangement to license a brand requires a licensingagreement. A licensing agreement authorizes a companywhich markets a product or service (a licensee) to leaseor rent a brand rom a brand owner who operates alicensing program (a licensor).
Cartoon Network Enterprises (CNE) andiStoryTime, a leading publisher o childrensstorybooks or the iTunes App Store, todayannounced a frst-time partnership that willbring two o the networks biggest boybrands, Ben 10 and Bakugan, to the iPhone
and iPad.
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Apple
When Apple launched the iPod there was an
immediate need or accessories such as headphones,charging and syncing stations and carrying cases.
Apple decided not to manuacture these products andinstead chose to have a licensee make the products.
By doing so, Apple could oer branded EarbudHeadphones, iPod docking stations and iPod
socks.
Each is made by a separate company but togetheroer the consumer an elegant solution. All o theseaccessories are sold by licensees.
Apple Accessories
Apple Socks