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 http://bestglobalbrands.com/2014/ranking/ What is a brand? • “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 How Interbrand value brands https://www.youtube.com/w atch?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 brand Brand dimension explanation Example Brand personality Unique character Body Shop Virgin Symbols Semiotic representation of the brand Coca-cola – bottle shape Nike – swoosh Ikea – yellow & blue Brand/customer relationship Formal and informal links Tesco – every little helps Co-op – ethical stance Self-expressive benefits What the brand says about itself & how that resonates with users’ self image Apple – think & be different Nike – excel, succeed Microsoft – 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=v2C5qjbfYw Brand Meaning The 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) Persuasion Theory • 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. Consumer Motivation • Falls into the following categories 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 Model of needs and message strategy Taylor (1999) rational Utilitarian needs Acute need routine ego social sensory Hedonistic 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 Framework Need or problem recognition Information search Pre-Purchase evaluation of alternatives Purchase decision Consumption Post consumption evaluation Divestment Sequential communication and decision making processes The meaning transfer model (McCracken, 1986) Culturally constituted world – cultural values and symbols Marketing Communications Fashion System Consumer goods Possession ritual Exchange ritual Grooming ritual Individual Consumer Divestment ritual Nature of marketing communications needed • 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) Promotional Sub-Mix (Communications Mix) • • • • • • Advertising Sales Promotion Public Relations Personal Selling Direct Marketing Sponsorship PLACE ADVERTISING Bulletins Billboards Posters Cinema Transit Ambient guerrilla Samples Coupons Discounts Competitions Bonus packs PERSONAL PERSONAL SELLING SELLING Sales Assistants Sales Assistants B2B B2B sales sales Telesales Telesales Merchandising Merchandising Display Display installation installation POINT OF PURCHASE ADVERTISING Direct mail Telephone Broadcast media Print media Computer-related Shelf talkers Gondola isle markers Shopping cart ads Queue TV Till receipts In-store radio and TV DIRECT MARKETING Trade deals and buying allowances POS display allowances Contest and dealer incentives Trade shows Co-operative advertising TRADE PROMOTIONS Trade deals and buying allowances POS display allowances Contests and dealer incentives Trade shows Co-operative advertising PUBLIC PUBLIC RELATIONS RELATIONS Events and Events and Sponsoring: Sponsoring: (Sports, (Sports, arts, arts, causal causal marketing, marketing, entertainment, entertainment, fairs fairs and and festivals) festivals) Publicity Publicity Product Product Placement Placement Through a choice of Traditional, Digital , User generated channels PROMOTIONS CONSUMER PROMOTIONS DIRECT RESPONSE AND INTERACTIVE MARKETING ADVERTISING MEDIA MEDIA ADVERTISING ADVERTISING TV TV Radio Radio Newspapers Newspapers Magazines Magazines On-line On-line Viral Viral 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