Brand Value (Discussed in Detailed in Class with Examples) • Brand value model is not just a composite measure of various factors thought to be related to brand value and brand equity. In other words, we don't simply measure "brand image", "brand awareness", "brand loyalty", and other concepts and combine them into a score we then call "brand value". • Instead, we measure brand value as an independent entity and then decompose that measure into its key drivers. The advantage of this approach is that it does not make any assumptions about the degree to which each factor contributes to brand value. Different markets, products and product categories will result in different brand value profiles. M.Usman Aleem
Transcript
Brand Value (Discussed in Detailed in Class with Examples)
• Brand value model is not just a composite measure of various factors thought to be related to brand value and brand equity. In other words, we don't simply measure "brand image", "brand awareness", "brand loyalty", and other concepts and combine them into a score we then call "brand value".
• Instead, we measure brand value as an independent entity and then decompose that measure into its key drivers. The advantage of this approach is that it does not make any assumptions about the degree to which each factor contributes to brand value. Different markets, products and product categories will result in different brand value profiles.
• Brand personality refers to those human personality traits (sometimes developed cognitively) which are developed harmoniously with a brand, whether it is a product or a service.
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Brand Personality
• While branding a product or a service, especially if it is new, or is being launched in a new market, or is getting repositioned in a new or existing market, in depth understanding of all the dimensions of Brand Personality is of utmost importance to the product or service manager or the brand manager.
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Brand Personality• The 5 main dimensions of brand personality are Sincerity,
Excitement, Competence, Sophistication, Ruggedness. Consumers perceive sincere brands as being honest, not-exaggerating, truthful, and cheerful. Similarly consumers perceive exciting brands as being daring, adventurous, high spirited, imaginative, and somewhat with a sharp cutting edge (especially for certain technology gadgets like the Play Station).
• Consumers perceive Competence from product or service reliability, deliver-ability and from the success symbols from a brand. A brand that is perceived to be sophisticated is viewed as being charming and associated with a higher snob value and thus fit for the upper society, or to fulfill higher order needs from Maslow’s hierarchy of needs. Similarly rugged personality brands are perceived to have the features of being outdoorsy and tough.
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Figure( VRY Impo)All discussed in clas based on discusion … Note: Only Ruggedness was discussed, but not in detail. So wil not be covered in exam..
• Increasing shelf presence and retailer dependence in the store
• Attracting consumers seeking variety• Increasing internal competition within
the firm• Yielding economies of scale in
advertising, sales, merchandising, and distribution
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Market & SegmentMarket:
1. A public gathering held for buying and selling merchandise.
2. A place where goods are offered for sale. 3. A store or shop that sells a particular type of
merchandise: a vegetable market. Segment:
• Any of the parts into which something can be divided: segments of the community; a segment of a television program.
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Market Segmentation• Marketing term referring to the aggregating
of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action.
• For Example, an athletic footwear company might have market segments for basketball players and long-distance runners. As distinct groups, basketball players and long-distance runners will respond to very different advertisements.
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Market Segmentation• When the term “market segmentation” is used, most of
us immediately think of psychographics (are any attributes relating to personality, values, attitudes, interests, or lifestyles ) , lifestyles, values, behaviors, and multivariate cluster analysis routines.
• Market segmentation is a much broader concept, however, and pervades (spread) the practice of business throughout the world.
• What is market segmentation? At its most basic level, the term “market segmentation” refers to subdividing a market along some commonality, similarity, or kinship. That is, the members of a market segment share something in common.
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Market Segmentation• The purpose of segmentation is the concentration of
marketing energy and force on the subdivision (or the market segment) to gain a competitive advantage within the segment.
• It’s analogous to the military principle of “concentration of force” to overwhelm an enemy.
• Concentration of marketing energy (or force) is the essence of all marketing strategy, and market segmentation is the conceptual tool to help achieve this focus.
• Before discussing psychographic or lifestyle segmentation (which is what most of us mean when using the term “segmentation”), let’s review other types of market segmentation.
• Our focus is on consumer markets rather than business markets.
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Types of Segmentation1. Geographic segmentation
• This is perhaps the most common form of market segmentation, wherein companies segment the market by attacking a restricted geographic area.
• Geographic segmentation can take many forms (nation, regions, states, counties or even neighborhoods), (urban versus rural, north versus south, seacoasts versus interior, warm areas versus cold, high-humidity areas versus dry areas, high-elevation versus low-elevation areas, and so on).
• These examples also reveal that geographic segmentation is sometimes a surrogate for (or a means to) other types of segmentation.
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Types of Segmentation• Geographic Segmentation:
• For example, corporations may choose to market their brands in certain countries, but not in others.
• A brand could be sold only in one market, one state, or one region of Pakistan
• Many restaurant chains focus on a limited geographic area to achieve concentration of force.
• Regional differences in consumer preferences exist, and this often provides a basis for geographic specialization. For example, 1. a company might choose to market its cooked gravy only in the Eastern Karachi.
• 2. Likewise, a Hot-sauce might concentrate its distribution and advertising in North Nazimabad
• 3. A chainsaw company might only market its products in areas with forests.
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2. Distribution Segmentation• Different markets can be reached through different
channels of distribution.
• For example, a company might segment the “tie and collar” market by selling the product to supermarkets under one brand name, to mass merchandisers under another brand, to pet stores under another brand name, and to veterinarians under yet another brand name.
• This type of distributional segmentation is common, especially among small companies that grant each channel a unique brand to gain distribution within that channel.
• Other examples of distributional segmentation would be an upscale line of clothing sold only in expensive department stores, or a hair shampoo sold only through upscale beauty salons.
Types of Segmentation
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3. Media Segmentation:
• While not common, media segmentation is sometimes a possibility.
• It is based on the fact that different media tend to reach different audiences.
• If a brand pours all of its budget into one media, it can possibly dominate the segment of the market that listens to that radio station or reads that magazine.
• Media segmentation is most often practiced by companies that have some control over the media and can somehow discourage competitors from using that media. Unilever
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4. Price Segmentation:
• Price segmentation is common and widely practiced.
• Variation in household incomes creates an opportunity for segmenting some markets along a price dimension.
• If personal incomes range from low to high, the reasoning goes, then a company should offer some cheap products, some medium-priced ones, and some expensive ones. This type of price segmentation is well illustrated by the range of automotive brands marketed by General Motors historically. Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac varied in price (and status) along a clearly defined spectrum to appeal to successively higher income groups.
Types of Segmentation
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5. Demographic Segmentation:
• Gender, age, income, housing type, and education level are common demographic variables.
• Some brands are targeted only to women, others only to men.
• Music downloads tend to be targeted to the young, while hearing aids are targeted to the elderly.
• Education levels often define market segments. For instance, private elementary schools might define their target market as highly educated households containing women of childbearing age.
• Demographic segmentation almost always plays some role in a segmentation strategy.
Types of Segmentation
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6. Time Segmentation:
• Time segmentation is less common but can be highly effective.
• Some stores stay open later than others, or stay open on weekends.
• Some products are sold only at certain times of the year (e.g., Eid cards, Goats / Cows, fireworks).
• Chili is marketed more aggressively in the fall, with the onset of cooler weather.
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• Football is played in the fall, basketball in the winter and spring, and baseball in the spring and summer (or at least this used to be the pattern).
• The Olympics come along every two years.
• Department stores sometimes schedule midnight promotional events.
• The time dimension can be an interesting basis for segmentation.
• In addition to the foregoing, markets can be segmented by hobbies, by political affiliation, by religion, by special interest groups, by sports team loyalties, by universities attended, and hundreds of other variables.
• You are only limited by your marketing imagination.
Types of Segmentation
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How Can You Use Marketing To Acquire More Customers
1. Spend time researching and create a strategic marketing plan.
2. Guide your product development to reach out to customers you aren't currently attracting.
3. Price your products and services competitively.
4. Develop your message and materials based on solution marketing
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The Importance of a Target Market • When it comes to your customers keep in
mind the importance of target marketing.
• The reason this is important is that only a proportion of the population is likely to purchase any products or service.
• By taking time pitch your sales and marketing efforts to the correct niche market you will be more productive and not waste your efforts or time.
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Positioning The positioning possibilities that exist for any given brand or service are
almost infinite in number. Some commonly used positioning strategies are:
1. Positioning against a broader market; for example, positioning a bicycle brand as a substitute for the automobile, rather than as a substitute for other brands of bicycles.
2. Positioning against a price segment of the market; for example, positioning a car brand against luxury imported cars.
3. Positioning against a usage segment of the market; for instance, positioning a brand of cooking oil as the very best brand of oil for frying chicken.
4. Positioning against a geographic segment of a market; for example, positioning Ford trucks as made for driving conditions in Texas.
5. Positioning against a psychographic segment of the market; as an example, positioning the Volvo as the car for drivers who are primarily concerned about safety.
6. Positioning against a channel of distribution, a season of the year, a particular type of weather, a human fear, etc.
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Market Segmentation
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Problems with Product Life Cycle.
• In reality very few products follow such a prescriptive cycle.
• The length of each stage varies enormously. • The decisions of marketers can change the stage, for
example from maturity to decline by price-cutting. • Not all products go through each stage. • Some go from introduction to decline.
• It is not easy to tell which stage the product is in.
• Remember that PLC is like all other tools.
• Use it to inform your gut feeling.
Strategies for the differing stages of the Product Life Cycle.
