Brands and customers
20 October 2014
Last week
• Elements of branding • Online behaviour – link across all channels• IBM– Know customer context and integrate (behaviour,
history, preference, circumstances)– Act on insights systematically – Broader view of customer experience
• “Brands are at the very heart of marketing. When a company creates a strong brand it attracts customer preference and builds a defensive wall against competition”
Peter Doyle (2002) Warwick Business School
• “A name, term, sign, symbol, or design, or a combination of them which is intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors”
American Marketing Association (AMA), 1960
http://bestglobalbrands.com/2014/ranking/
What is a brand?
How Interbrand value brandshttps://www.youtube.com/watch?v=qgo78dY5lE0
Brand narrative
• The story of a brand • Overarching and consistent• Connecting across all channels• Triggers personal memory of brand and projected
associations• Differentiates one brand from another• “A capsule of meaning “ – names, logos, packaging,
images – all brand artefacts • Ongoing dialogue through brand encounters – actual,
traditional media, digital media, user generated
Name that brand
Components of a brandBrand dimension explanation ExampleBrand personality Unique character Body Shop
VirginSymbols Semiotic representation of the
brandCoca-cola – bottle shapeNike – swooshIkea – yellow & blue
Brand/customer relationship Formal and informal links Tesco – every little helpsCo-op – ethical stance
Self-expressive benefits What the brand says about itself & how that resonates with users’ self image
Apple – think & be differentNike – excel, succeedMicrosoft – realise potential
Emotional benefits Affective attachment Harley Davidson – Hogs- Group affiliation
User imagery Image projected by brand users Rolex, Armani
Country of Origin Essence of brand associated with a country
Coca-cola; BMW, Guinness,
Organisational Associations Image organisation projects Ben & Jerry, Innocent Smoothie,
Perception of the brand & Intrinsic Characteristics (Functional & Expressive)
• Functional Approach– Possible to emphasise instrumental or impressive aspects e.g.– Instrumental = Soap brand x contains a hydrating cream– Impressive (emphasises the benefits of instrumental aspects) = the
hydrating cream of soap brand x makes sure your skin doesn’t dry out.– http://www.youtube.com/watch?v=3bI-uKniXpE
• Expressive Approach– Transforms the utilisation experience – through advertising = The consumer
experiences an altered frame of mind during consumption;– Brand name functions as a mode of communication between consumers –
conveys status, symbolic e.g. Lexus versus Citroen– Works with prestige brands– https://www.youtube.com/watch?v=jgqt2NjvtTw
Purchasing Motivation
• Negative purchasing motivation – branded good used as a result of unpleasant situation e.g. painkillers, nappies, cleaning agents. This requires a functional approach where emphasis is put on instrumental benefits;https://www.youtube.com/watch?v=lrMD_z_FnNk
• Positive purchasing motivation - branded good used as a result of a pleasant situation -pleasurable sensory experience; socially rewarding situation; intellectually stimulating e.g. food, clothing, cars. Emphasis is put on liking the advert http://www.youtube.com/watch?v=v2C-5qjbfYw
Brand MeaningThe Brand Triad
• “Brands and the interactive involvement of groups of consumers together create the brand value and brand meaning” Hedding et al (2009)
Brand
Consumer Consumer
The ‘brand-consumer exchange’
• “Brands are social entities experienced shaped and changed in communities. Therefore, although brand meaning might be ascribed and communicated to consumers by marketers, consumers in turn uncover and activate their own brand meanings, which is communicated back to the marketers and the associated brand community”– (Brown et al, 2003 p.31)
• Whilst our attitudes are internal and unique, our attitude to everything can be influenced and shaped by other people.
• Marketing communicators count on that fact through persuasive techniques
• Persuasion is Goal directed• Persuasion is a process • Persuasion can reinforce, create or change attitudes.– Bandura – important that the media messages provide
examples for people to imitate.
Persuasion Theory
• Falls into the following categories
Consumer Motivation
Category of need examples
Utilitarian/functional Basic product benefits like quenching thirst, basic principles of reward and punishment
Hedonistic/experiential Based on pleasure (Haagen Dazs)
Value expressive Express consumer’s central values or self-concept. Consumers cultivate a cluster of activities, interests and opinions to express a particular identity
Ego defensive Product protects the person either from external threats or internal feelings of insecurity e.g. deodorants
ego
social
sensoryroutine
Acute need
rational
Model of needs and message strategyTaylor (1999)
Utilitarian needsHedonistic needs
Understanding customer needs
• http://www.cracked.com/article_18939_8-stupid-amazon-products-with-impressively-sarcastic-reviews.html
Consumer decision making
• Decisions:– Extended problem solving– Limited problem solving To satisfied real, perceived and latent wants and needs
Information – by way of marketing communications – helps them to make those decisions
Brands are crucial – combining multifaceted and multidimensional information – both intrinsic and symbolic – to aid decision making
Consumer Decision-Making FrameworkNeed or problem recognition
Information search
Divestment
Pre-Purchase evaluation of alternatives
Purchase decision
Consumption
Post consumption evaluation
Sequential communication and decision making processes
The meaning transfer model(McCracken, 1986)
Consumer goods
Fashion SystemMarketing Communications
Divestment ritual
Grooming ritual
Exchange ritual
Possession ritual
Culturally constituted world – cultural values and symbols
Individual Consumer
• Dependent upon:– The individual preferences (demographics,
psychographics, values and personality)– Consumer resources,– Motivation (knowledge and attitudes)– Environmental influences (culture, social class,
family, personal and situational influences)
Nature of marketing communications needed
• Advertising• Sales Promotion• Public Relations• Personal Selling• Direct Marketing• Sponsorship
Promotional Sub-Mix(Communications Mix)
PUBLIC RELATIONSEvents and Sponsoring:
(Sports, arts, causal marketing, entertainment, fairs and festivals)Publicity
Product Placement
MEDIA ADVERTISINGTV
RadioNewspapersMagazines
On-lineViral
MEDIA ADVERTISINGTV
RadioNewspapersMagazines
On-lineViral
PLACE ADVERTISINGBulletins
BillboardsPostersCinemaTransit
Ambientguerrilla
CONSUMERPROMOTIONS
SamplesCouponsDiscounts
CompetitionsBonus packs
PERSONAL SELLINGSales Assistants
B2B salesTelesales
MerchandisingDisplay installation
DIRECT RESPONSE AND INTERACTIVE MARKETING
Direct mailTelephone
Broadcast mediaPrint media
Computer-related
POINT OF PURCHASE ADVERTISING
Shelf talkersGondola isle markers
Shopping cart adsQueue TV
Till receiptsIn-store radio and TV
DIRECT MARKETINGTrade deals and buying allowances
POS display allowancesContest and dealer incentives
Trade showsCo-operative advertising
TRADE PROMOTIONSTrade deals and buying allowances
POS display allowancesContests and dealer incentives
Trade showsCo-operative advertising
ADVERTISING
PRO
MO
TION
S
PUBLIC RELATIONSEvents and Sponsoring:
(Sports, arts, causal marketing, entertainment, fairs and festivals)Publicity
Product Placement
PERSONAL SELLINGSales Assistants
B2B salesTelesales
MerchandisingDisplay installation
Through a choice of Traditional, Digital , User generated channels
Why does integration have growing importance in marketing communications?
• It plays a major role in the process of developing and sustaining brand identify and equity
• “Building and properly managing brand equity has become a priority or companies of all sizes, in all types of industries, in all types of markets.” Kevin Keller
Planning your campaign