brand evaluation and patronage intentions in cb

8/13/2019 Brand Evaluation and Patronage Intentions in CB

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Brand Evaluation and

Patronage intentions inCB

Presented by:

Arun gupta - 10

Priyanka - 29

Sheenam - 33

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BRAND

The American Marketing Association (AMA) defines a

brand as a "name, term, sign, symbol or design, or a

combination of them intended to identify the goods and

services of one seller or group of sellers and todifferentiate them from those of other sellers.

Therefore it makes sense to understand that branding is not

about getting your target market to choose you over the

competition, but it is about getting your prospects to seeyou as the only one that provides a solution to their

problem.

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BRAND TYPES

Generic Product : item characterized by plain label, with no cleardifferentiation e.g. Xerox, Bisleri

Manufacturers

Brand :brand name owned by a manufacturer or other

Producer e.g. Coca Cola

Private Brand :

brand name placed on products marketed by

wholesalers & retailers e.g. Stop garments from

Shoppers Stop

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Family Brand :brand name that identifies several related

products e.g. Kissan Anapurna atta , jams ,

biscuits etc..(Food category)

Individual

Brand :

unique brand name that identifies a specific

offering within a firmsproduct line and that

is not grouped under a family brand e.g. Dovesoap from HLL

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BRAND EVALUATION

Brand evaluation is crucial in effective brand

management. This process enables marketers to obtain a

more accurate idea about how powerful a brand name is.In turn, this will help marketers decide what their future

marketing strategy would be.

To succeed in branding marketer must understand the

needs and wants of the customers and prospects.Marketer do this by integrating brand strategies through

company at every point of public contact.

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OBJECTIVES

The main objective of a brand evaluation is to help the

organization or company to identify the current changes

that need to be made to revitalize the brand. It helps an organization or company to develop their

brand based on the core values and beliefs of the brand.

A brand evaluation plays an important role during

brand building and planning stages and is critical to theprocess of building and sustaining brands.

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IMPORTANCE AND

NECESSITY OF EVALUATING

BRANDSThe necessity of evaluating brands resides both in the

companys and in the marketing environments

interests,especially those organizations or persons whoare interested in the companysand its brandsfinancial

performance. It is about the companys

stakeholders(suppliers, investors, financial institutions,

distributors, employees, customers etc.) and the

competition.

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The situations in which brand evaluation is

essential could be categorized as it follows :

Mergers and acquisitions

Informing financial partners (investors,

shareholders, banks, insurance companies etc)

Brand licensing

Compensation establishment in cases of

unauthorized usage of brand names

Elaborating marketing strategies and plans andevaluating the efficiency of implementation

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MERGERS AND ACQUISITIONS

Nowadays, the main determinants of mergers and

acquisitions are not only facilities or technologies, but even

more important, the value of brands.A few examples could

comprise: Rowntree Macintosh acquisition by Nestle in1988 for a price of 2.75 billion , three times the companys

capital market value and 26 times its profits; Kraft Foods

acquisition by Philip Morris in 1988 for a price of 12.9

billion USD, of which 90% represented Kraft Foodsbrands value.

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INFORMING FINANACIAL

PARTNERS

Financial partners perceive brand value as a reference

when establishing the extent to which they are willing to

take risks and finance the company that possesses thebrand. The interest of the brands proprietor is to over-

estimate the value of its brand. This situation could be

avoided through using a formal method of evaluation

implemented by an acknowledged third party

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BRAND LICENSING

Brand value is a reference in negotiating the price of a

brand licensing contract or the fee paid in order to use the

brand name. It is important to consider in this case the

potential future market and financial outcomes generatedby the power of the brand. Negotiation partners opposite

interests of over/under-valuing could be harmonized

through using a formal method of evaluation agreed by

both parties

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COMPENSATION ESTABLISHED IN

CASES OF UNAUTHORIZED USAGE OF

BRAND NAMES

Strong brands proprietors are exposed to brand piracy

which basically leads to weakening the brandsvalue.

Compensation establishments can be done considering: thedifference between the brandsvalue before and after the

piracy act, a retroactive brand name usage fee, or the share

of the piratesprofit earned due to using the brand name.

All of the considerations above imply a brand evaluation

process

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EVALUATING MARKETING

STRATEGIES AND PLANS

Brand portfolio evaluation can lead to identifying:

weaknesses and strengths among brands determinants,

ways of restructuring the brands mix, key-brandsmanagement, strategies and plans implementation

efficiency through after-before evaluations.

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BRAND EVALUATION

METHODOLOGIES

Since brand evaluation appeared as a response to the necessity

of introducing their values into the financial reports of the

companies, the most popular methods of evaluation are those

based on different financial indicators.Three main brands evaluation methods are well known :

Economic income approach

Market comparable approach

Cost approach

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DIMENSIONS OF BRAND

EVALUATION

The corporate brands can be evaluated along

the five dimensions:

Competence (factor 1) Exuberance (factor 2)

Credibility (factor)

Forcefulness (factor 4) Sincerity (factor 5)

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Competence : It is a cluster of related abilities, commitments,

knowledge and skills that enable a brand to (or an organization)to act effectively.

Exuberance: It is a joyful enthusiasm that a brand shows.

Credibility: It is the quality of being believed or trusted.

Forcefulness : Something that is forceful in a brand and has a

very powerful effect and causes you to think or feel something

very strongly.

Sincerity : It is the quality or condition of being sincere;

genuineness, honesty, and freedom from duplicity.

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EVALUATING THE BRAND

STRENGTH ON THE MARKET

To evaluate brand strength, whether it is of a consumer product, a

business service or a public sector organisation, there are differentquestions which can be asked to the client are:-

What is unique about the function or purpose of your brand

or organisation ?

What are your service or performance targets ?

What are the characteristics you want to associate with it ?

How do you position yourself against the competition ?

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What we can actually measure are:

Functional benefits performance based on defined service

factors Emotional benefits based on how closely customers identify

with the brand, its status and its reputation

Loyaltyto the brand or organisation (where relevant), or readiness

to switch supplier Advocacy how ready people are to recommend the product or

service

Using these measures we can identify which factors are the most

important in defining the market value of the brand. These mayconcern levels of service, familiarity, or perceived quality the

analysis will identify where investment may be made to improve

the position of the brand in the market.

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PATRONAGE INTENTIONS/ MOTIVES IN CB

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MOTIVES

Needs which are unsatisfied are motives

Consumers buy goods/services becauseof some motives

Motive can be a strong desire, feeling,

stimulus or emotion which play vital rolein consumer buying decisions.

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CLASSIFICATION OF BUYING MOTIVES

Reasonswhy a person buys a particular product.

1. Innate and Acquired Motive

2. Primary and Secondary Motive

3. Conscious and Unconscious motive

4. Positive and Negative Motive

5. Product and patronage Motive

6. Rational and Emotional Motive 23


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EMOTIONAL RATIONAL

BUYING MOTIVES

PRODUCT MOTIVES PATRONAGE MOTIVES

EMOTIONAL RATIONAL

BUYING MOTIVES 24


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Product motives

related to product, its price, size, quality etc.

Patronage motives

related to the physical evidence of the store,

goods/services

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Why do buyers purchase from certain

specific shops?Considerations/factors persuade the buyer

to display his store patronage

Emotional - to gain social recognition , to

imitate others , favorite/most preferred

shop based on subjective reasons

Rational- logical reasoning (offer a variety

of products , latest design stock, prompt

delivery, assure good after sales services)26


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EMOTIONAL MOTIVES

Selection of goods acc. to the personal andsubjective criteria, e.g. pride, fear, status,

affections etc.

These impulses persuade to purchase

products spontaneously & without fore

thinking on the consequences.

Buyer letthe heart rule over the mind

e.g. parents purchase cloths, toys to their

child. 27


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RATIONAL MOTIVES

Consumer select goods based on totalobjective criteria such as size, weight, price

etc.

Involve careful reasoning & logicalanalysis of purchase.

Carefully consider diff. alternatives &

choose one which gives him greater utility

e.g. Furniture purchase for house

suitability to home envt., durability, economy28


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Product EmotionalBuying Motives:

1) Pride2) Fashion or Imitation

3) Gender

4) Habits5) Love and Affection

6) Comfort

7) Praise

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Product Rational Buying Motives :

1. Safety or Fear

2. Suitability

3. Durability4. Economy

5. Convenience

6. Versatility

7. Hobbies

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Th f t f h/ id


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There are four types of approach/avoidance

behaviors including:-

1) physical, related to store patronageintentions

2) exploratory, related to in-store search and

exposure (response to emotional states)

3) communications, related to personal

interactions

4) performance and satisfaction, related to

repeat shopping and time/money

expenditures. 31

A ith b d l lt t l lt


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As with brand loyalty, store loyalty

concerns a consumers intentions and

behaviors toward a particular store.Retailers are interested in store image and

store atmosphere because they focus on

the influence of store attributes onconsumersaffect and cognitions.

A common conflict between

manufacturers and retailers centers onbrand loyalty versus store loyalty.

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Model


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Model

Perceived

Service Quality

Perceived

MerchandiseQuality

Perceived

Merchandise

PricePerceived

Merchandise

Assortment

Perceived

Shopping mall

Value

Store Patronage

Intention

H5

H1

H2

H3

H4

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Measure ItemsMeasurement Scales


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Service Quality

Interaction

Quality

Responsiveness toward customers questions and

complaints

Employees willingness to Help customers

Employees friendliness and politeness

Physical

Environment

Quality

Employees efforts to provide accurate product and service

information

Employees efforts to provide conveniences in searching,

ordering, order cancellation and processing.

Employees efforts to accept customers wants

Outcome

Quality

Employees efforts on visual and page design in providing

product and services

Employees efforts to maintain security on customers

private information and payment

Employees willingness to help customers in solving their

problems and complaint s after sale

Overall Service

Quality

Service quality comparing to competitors

Reasonable level of service

Perceived

Merchandise Quality

Merchandise quality

Quality differences between the displayed merchandise and the merchandisedelivered

Measurement Scales

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PATRONAGE MOTIVES

1. Patronage Emotional Motives :

1. Appearance of the store

2. Recommendation of friends and relatives

3. Imitation

4. Prestige5. Habit

2. Patronage Rational Motives :

1. Proximity

2. Widest Assortment

3. Credit Facilities

4. Treatment

5. Services Offered 36


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THANK YOU

brand evaluation and patronage intentions in cb

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