brand associations
TRANSCRIPT
Brand Associations
Akash C.MathapatiAsst Professor – Marketing Area
Kirloskar Institute of Advanced Management [email protected]
Associations, Image & Positioning
Akash C.Mathapati
• Positioning is closely related to the association and image concepts except that it implies a frame of reference, the reference point usually being competition
Akash C.Mathapati
The Value of Brand Associations
Akash C.Mathapati
AssociationsAssociations
Help Process/Retrieve Information
Help Process/Retrieve Information
Differentiate/PositionDifferentiate/Position
Reason-to-BuyReason-to-Buy
Create Positive Attitudes/Feelings
Create Positive Attitudes/Feelings
Basis for ExtensionsBasis for Extensions
Types of Associations
• What does these brands mean to you ?
Akash C.Mathapati
Types of Associations
• Product Attribute– Most used positioning strategy is to
associate an object with a product attribute or characteristic
– Positioning problem is usually to find an attribute important to a major segment & not already claimed by a competitor
Akash C.Mathapati
• Intangibles– Companies love to make brand comparisons
• Problems with such specmanship– Brand position based upon a specification is
vulnerable to innovation– When firms start a specification shouting
match, they all eventually lose credibility– People do not always make decisions based
upon a particular specification anyway
Akash C.Mathapati
• Regis McKenna, an advisor to silicon valley firms– “intangible factors are more effective
associations to develop than specific attributes.”
– Perceived quality, technological leadership, perceived value or healthy food
Akash C.Mathapati
Customer Benefits
• Most product attributes provide customer benefits, there usually is a 1 to 1 correspondence (crest, BMW)
• A rational benefit is closely linked to a product attribute and would be part of a “rational” decision process
• A psychological benefit, often extremely consequential in the attitude-formation process, relates to what feelings are engendered when buying and/or using the brand (e.g., Avanti)
Akash C.Mathapati
Relative Pricing
• Relative price, is so useful & pervasive that it is appropriate to consider it separately. In some product classes there are 5 well-developed price levels– Saks fifth avenue, Neiman Marcus,
Bloomingdale’s– Macy’s, Robinson’s, Bullocks, Dayton’s etc– Sears, Montogomery Ward, j.C Penney– K Mart
Akash C.Mathapati
• Positioning with respect to relative price can be complex. The brand usually needs to be clearly in only one of the price categories
• The job then is to position its offering away from others at the same price point
Akash C.Mathapati
Use/Application
• Associate the brand with use or application – Reach out and touch some one
Akash C.Mathapati
User/Customer
• Associate a brand with a type of product user or customer
• User positioning strategy is effective because it can match positioning with a segmentation strategy
• Identifying a brand with its segment often is a good way to appeal to that segment– Cadbury – adult soft drink market
Akash C.Mathapati
Celebrity/Person
• Linking a celeb with a brand can transfer those associations to the brand
• One characteristic important for a brand to develop & manufacture a product
Akash C.Mathapati
Life-Styles/Personality
• Every person, of course possesses a personality and a life style that is rich, complex & vivid and distinctive as well
Akash C.Mathapati
Product Class
• Some brands need to make critical positioning decisions that involve product-class associations– 7 up, maxim freeze-dried coffee
Akash C.Mathapati
competitors
• Positioning strategies, the frame of reference, whether explicit or implicit, is one or more competitors
• It is useful to consider positioning with respect to a competitor for two reasons– The competitor may have a firm, well-
crystallized image, developed over many years, which can be used as a bridge to help communicate another image referenced to it
Akash C.Mathapati
– Sometimes it is not important how good customers think you are; it is just important that they believe you are better than a given competitor
• Positioning with respect to a competitor can be an excellent way to create a position with respect to a product characteristic, especially price quality
Akash C.Mathapati
Creating Associations
• Identifying and managing signals– Customers often discount or disbelieve
factual information– They cope by using signals or indicators,
one attribute or association can imply others
– E.g., healthy cereal, caterpillar
Akash C.Mathapati
Providing credibility in the High-Tech World
• Ben Rosen (Sevin Rosen Funds) – Compaq, Lotus
• Having alliance
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Understanding Unanticipated Signals
• Millers diet beer failed because of perceived taste problems– Associations with low calorie, diet
products was avoided
• Pringles
Akash C.Mathapati
The Role of Promotions
• Strengthening Associations & Brand Awareness– Leather Strapped luggage tags – Amex– Terrycloth robe – Polo Cologne– Belts, Handbags – Levi’s– Outdoor Gear & 2 mountain bike – Jeep
Akash C.Mathapati
Akash C.Mathapati
Role of Publicity
• Creating associations and recognition need not to be expensive
• Advertising sometimes is extremely difficult and expensive because it lacks both credibility & interest value
Akash C.Mathapati
Involving the Customer
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Changing Associations
• Changing associations (repositioning) often is a delicate job because of the existing associations
Akash C.Mathapati
Maintaining Associations
• Be consistent over time– Changing associations is wasteful when
associations that have been nurtured over a long time-period are allowed to dissipate when a new association is emphasized
• Be consistent over elements of the marketing program– E.g., E.J Korvette, a pioneer discounter
(Eugene Ferfauf, 1948)Akash C.Mathapati
Managing Disasters
• Suzuki Samurai• Tylenol• Nestle• AT&T
Akash C.Mathapati