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