ch- 05 brands and consumers

Excel Books5– 1 Brand Management Text and Cases (Ed-2) Harsh V Verma

Copyright © 2002, Harsh V Verma

Brand and ConsumersC-5 5

C H A P T E R

5

Brand and

Consumers




The Buying Decision

The core of marketing is exchange. It is the actualization of a transaction

between the seller and the seeker of value. It is a trade of values. The marketers

devise values which customers seek. Marketing arises out of exchange. In this

whole process, the customer must make a choice or decisions with regard to

selection of a value provider.

The customers essentially make two types of decisions in the context of

marketing.

The first type of decisions is directed at the choice of product or services.

These decisions are called assortment decisions.

The second type of decisions concern the choice of specific brands and how

to obtain them. These are called market related decisions.




Cont….

Perspectives on Consumer Behaviour

Alternative models exist to explain consumer behaviour. These seek to provide

explanations as to why do consumers behave as they do. The important ones

among these include:

Economic Perspective

Passive Perspective

Emotional Perspective

Cognitive Perspective




Cont….

Customer Decision making

The customer, after having done mental calculations about product assortment;

moves on to the next stage of market. A customer faces a hierarchy of levels of

choice to actually reach brand choice.

Problem Recognition

The problem recognition may be simple or complex. A simple problem

recognition is the frequent arousal of needs (e.g., hunger) which are

automatically dealt with, while complex problem recognition is the development

of a problem over time, as actual state and derived state move apart (e.g., over

time, usage of a computer may leave one desiring a system of higher

configuration).




Cont….

Search for Information

The search for a satisfactory solution necessitates gathering of relevant

information about alternative products and/or brands.

The information search stage is crucial for the marketers. The outcome of

the information search is knowledge about various brands. The brands

available in the market are organized in a particular form.

How Brands Get Eliminated

Total Brand: Titan, Timex, Maxima, Sieko, Citizen, Casio, Lancer, Omega, Cartier, Rolex, HMT, Mont Blanc, Reebok, Tag Heuer, Patek Phillipe, Corum

Unknown Brand: Patek Phillipe

Indifferent Brand: Mont Blanc, Reebok

Overlooked Brands: Corum, Patek Phillipe

Unable to satisfy: Casio

Considered Brands: Titan, Timex, Citizen, HMT

Total Brand: Titan, Timex, Maxima, Sieko, Citizen, Casio, Lancer, Omega, Cartier, Rolex, HMT, Mont Blanc, Reebok, Tag Heuer, Patek Phillipe, Corum

Unknown Brand: Patek Phillipe

Indifferent Brand: Mont Blanc, Reebok

Overlooked Brands: Corum, Patek Phillipe

Unable to satisfy: Casio

Considered Brands: Titan, Timex, Citizen, HMT




Cont….

Alternative Evaluation

“Evaluation is a continuing process that starts with the gathering of

information, or even before, and continues to the point where a product is

purchased. Consumers evaluate information as they gather it, accepting,

discounting or discarding information as it appears relevant and/or

trustworthy.”

The consumer’s evaluation of alternatives may vary from being very simple

to very complex. Often, consumers evaluate brands on the basis of their

ability to deliver functional benefits, psycho-social benefits and value

satisfaction.




Cont….

Post-Purchase Behaviour

The purchase decision is the culmination of the decision making process.

Once a choice has been made, the consumer moves on to buy the product.

The decision making does not terminate with the act of purchase. After the

purchase, consumers go through the post-purchase evaluation stage.

The post-purchase evaluation involves comparison between the

expectations and actual performance of the product or brand.

Brand Selection

Brand marketer’s interest is served when the consumer selects and purchases

his brand. A brand fails when it gets eliminated in the process. Therefore, the

greatest challenge facing the brand marketer is how to survive in each stage of

decision making and ultimately get bought.




Cont….

Moven17 identifies alternative perspectives on consumer decision making. “Not all

or even most consumer behaviour results from the traditional decision making.”

There are three perspectives in consumer behaviour:

The traditional decision making perspective

The experiential perspective

The behavioural influence perspective.




Consumer Behaviour Perspectives and Brands

Perspective Consumer Brand Focus

Decision making (high) Highly Appeal to reason

cognitive Utility focused, verbal

Left brain Elaborate information

Decision making (low) Moderate reason Toned down reason

oriented Verbal and visual

Moderate left and right brain Limited information

Experiential Emotional Appeal to emotions,

Orientation feelings

Right brain Visual

Behavioural No role of reason Manage selling environment

or emotion (intervening system)




Cont….

Making Brands Succeed

Implicit in any brand’s success is the failure of rival brands. It is relative

superiority over competition in doing what customers value. Essential to the

success of a brand are the following:

Better brand strategy

Superior brand strategy

The following types of brands are generally potential candidates for

failure:

Brands offering similar values (parity brands)

Brands offering lesser value or suffering competitive disadvantage (inferior

brands)

Brands offering value not in line with customer needs (mismatch brands)

Brands offering superior value at higher sacrifice (over-priced brands)




Cont….

Making the Brand Relevant

The key to any brand’s strength lies in its connection with the customer. Products per se are not something which stimulate buyers. It is the perceived relevance to customer motives, values and benefits that turn them on. A product needs to be transformed into something that fits with what the customer is. A consumer is a bundle of needs, motives, goals and values. A brand must move beyond its physical character to acquire perceptual character representing itself as a means to achieving what is sought by him or her. This transformation essentially involves extension of its meaning by adding invisible layers that surround the brand as information layers. The brand must become a psychological entity in a prospect’s mind.

If a brand just limits itself to attribute level in the consumer’s mind (brand knowledge structure), the customer may find it difficult to decode its relevance in his personal frame. For instance, if Orient fans lay greater stress on higher PMPO—the knowledge is not perceived to be personally relevant. PMPO ends up as a belief connected with the brand Orient but connection with the buyer is not achieved. “The attribute levels of product knowledge are not relevant per se, while higher level of psychosocial consequences and values are more directly related to self”. Therefore, the brand’s knowledge structure must be made complete so as to make it relevant in prospects’ minds. The essence of good marketing is to create this brand – consumer relationship. It is only then, a brand may seek to achieve success in the market-place.




Cont….

The cognitive representation of a brand is its knowledge structure in a prospect’s mind. The

brand becomes the centre having a network of related concepts around it. When one thinks of a

brand a multidimensional network of associations springs up in the mind.

BRAND/PRODUCT

ATTRIBUTES BENEFITS VALUES

CUSTOMER

CONNECTION

Concrete Abstract Functional Psycho-social Instrumental Terminal




Cont….

Brand Attributes Must Connect With The Higher Order Needs — Sunglasses Category

The marketer can discover the subtle ways a brand develops relevance with prospects. The methodology used for discovering these is called means–end chain. With the help of means–end chains, the internal picture as to how an attribute translates into something of significance can be captured. The following hierarchical value map shows these links for sunglasses category.

UV protection Light weight Expensive

Design

Brand Metal strength

Scratch proof

Comfortable

Wearability

Eye protection

Stay healthy

Accomplishment Enjoy life Self esteem Responsibility to many

Quality

Look good

Sophisticated image

Make impression

Lasts longer

Saves from scratches

Save money

Source: Harsh V Verma and Neha Kalia, ‘ Values and consumer behavior: an exploratory study of young consumers’, Business Analyst, J33-46.July-Dec 1999, pp.




BRAND

CATEGORY

BRAND AND RIVALS

BRAND AND RIVALS

Category membership (acquire category associations)

Parity with rivals (acquire associations similar to rivals)

Build superiority (acquire association which customers prefer and are unique)

Brand Associations




Cont….

Building Superior Brands

Explore the connection between: Quick chill and Whirlpool refrigerators;

Golden Eye and LG television; Germi-check and Pepsodent toothpaste;

Micro ZPTO and Head & Shoulders Shampoo; PUF and Godrej refrigerators

(earlier); ‘Arrive in style’ and LML scooters; ‘over 100 exclusive models’.

All the brands are successful in the Indian market. The connection between

the attribute or/and benefit or/and value and the brand in question is very

strong.

It is so strong that recall of one leads to another. It is this connection which

makes these brands immensely successful.




Cont….

Nowadays, success is all about valued discrimination. In all of the above

cases, the following are common:

i. for whom is the product meant ? (the target customers)

ii. what do competitive brands offer ? (the similarity)

iii. what do customers desire/value but do not get ? (discriminative value,

e.g., Germi-check)

The procedure to achieve valued discrimination can be illustrated with the

help of a car market (not whole but a segment).




Cont….

Identify Segments

Perform detailed market segmentation analysis. Study existing segments – the

customer characteristics and competition.

What do Strong Brands have in Common?

Some brands consistently score high on strength. They are all strong brands. Strong brands

have great equity and enjoy customer loyalty and profits. Every manager wants to create a

strong brand. What do top brands have in common which can provide a benchmark against

which a brand can be measured? There are ten attributes shared by top brands:

1. Deliver Excellent Customer Benefits: The brand’s tangible and intangible

components must be combined to create value or benefits that customers desire. The

brand must be an excellent provider of these benefits.

2. Stay Relevant: With time, customers change. Make sure you are in touch with these

changes. A brand’s tangible and intangible components need to be fine tuned to stay

relevant.




Cont….

3. Pricing is Based on Perception of Value: Price is an important brand attribute. Charging too high or too low a price may not be appropriate. Make sure price is based on how customers view the product as a whole.

4. Proper Positioning: Well positioned brands occupy a distinct place in customers’ minds. Strong brands achieve points of parity in areas where competitors are aiming to get advantage. They create appropriate points of differences to gain advantage over competition.

5. Consistency: Strong brands essentially strike a perfect balance between continuity and change. Change is needed for staying relevant, while continuity is required to maintain a brand’s core. Continuity helps a brand from going astray.

6. Brand Portfolio and Brand Hierarchy: Companies keep a portfolio of brands for different customer segments and product lines. Generally, corporate brands are combined with sub-brands at different levels. All these brands contribute to overall equity of the portfolio. It is therefore necessary that this hierarchy is well thought out and properly understood.

7. Brand Makes Use of all Needed Marketing Elements to Build Activities: Brands are made up of all marketing elements. These elements perform various functions for the brand. Make sure these elements are combined intelligently to perform brand related functions, e.g., awareness, or image.




Cont….

8. Know What a Brand Means to Consumers: Managers of strong brands exhibit great

understanding of what a brand means to consumers in terms of its perceptions,

beliefs, attitudes and behaviours. It is on this understanding that they make decisions

about the brand. This gives them an idea about what can be touched and what is

untouchable about the brand.

9. Long-Term Support: Brand equity construction requires long-term sustained efforts.

Only then can consumers have proper depth and breadth of awareness and strong,

favourable and unique associations. Short cuts must be avoided. Impact of marketing

programmes must be appreciated before any change is made.

10. Monitor Sources of Equity: The health of a brand must be assessed on an on-going

basis. Brand tracking studies need to be carried out for the evaluation of brands’

performance. Strong brands are supported and navigated by a formal system.

Adapted from: Kevin Lane Keller, The Brand Report Card, Harvard Business Review,

Jan-Feb, 2000.




Cont….

Understand Key Drivers of Buying

List the attributes and/or benefits and/or values sought by the customers. This

task involves extensive use of marketing research. Various open and disguised

methodologies would be used to understand the key drivers of buying. The need

is to go beyond the obvious. For instance, we may get a list like the following:

Price

Image

Looks

Accessories

After sale support

Fuel efficiency

Comfort

Safety

Space

Pick up/acceleration

Power

Colours

Performance




Cont….

Determine Relative Importance

The next step in the process is to get customers to rate or rank these

parameters/requirements in such a manner that these are divided into important

and unimportant or less important categories. The earlier step allows us to

capture the overall buying criteria that customers use. In this step the purpose is

to get priorities or importance that customers attach to various dimensions. For

instance, the above list would look like the following:




Cont….

Important Not Important

• Price √

• Image √

• Looks √

• Accessories √

• After sale support √

• Fuel efficiency √

• Comfort √

• Safety √

• Space √

• Pick up/acceleration √

• Power √

• Colours √

• Performance √




Cont….

Important Not Competitor Competitor

Important A B

• Price √ √ √

• Image √ √ √

• Looks √ √

• Accessories √ √

• After sale support √ √

• Fuel efficiency √ √

• Comfort √ √ √

• Safety √

• Space √ √ √

• Pick up/acceleration √ √

• Power √ √ √

• Colours √ √

• Performance √




Important Attributes Shared/Common Sources of Valued to Competition Discrimination

• Price √

• Image √

• After sale support √

• Fuel efficiency √

• Comfort √

• Safety √

• Performance √

ch- 05 brands and consumers

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