The third part – brand management
The seventh chapter:
Strategies of iconic brands:
Strategies based on personal meanings in brand management
- Brand as a person
- Brand as a friend: Creating emotional attachment
- Brand and romance
- Brand and sense of homelessness: Nostalgia
- Instant legacy
- Brand experience
- Brand as the weakest
Strategies based on social differentiation in brand management
- modeling
- Cultural capital and uniqueness
- Strategic fragmentation: Before the sale of a product falls, we will intentionally limit its supply and replace it with another product.
- Gender identity: Women influence 80% of consumer goods purchases. Women have a broader view of life and consider more factors when making decisions. What shows to be most successful is creating a fun atmosphere where men and women are happy together and this is the sign of a positive and relaxing brand.
Strategies based on social integration in brand management
- Brand community: Brand celebrations – brand loyalty – brand promotion
- New tribes: For example, a group is used to advertise in the community.
- Subcultures:
- Brand mythology: A brand represents an idea or a set of ideas that people can live with and build a new way of living in a rapidly changing society.
The eighth chapter:
Applied brand strategies in brand management:
Brand salience, often called top of mind (i.e., the first brand that comes to mind involuntarily in response to awareness questions) is probably the most important feature that any low-involvement brand has.
Brand prominence is critical to its success, but not sufficient. Without the formation of a positive brand perception, the development of a strong brand is impossible.
Brands and precognitive processes:
v Mere exposure:
Low levels of preference were achieved simply by exposing subjects to the same stimulus repeatedly without the need for awareness.
It has no effect on recall.
It leads to a preference among unfamiliar brands.
v Classical conditioning:
Not just exposure but pairing it with a pleasant emotional stimulus
Minimal cognitive processes:
- Surface processing
- Creating brand links and meanings:
Colors: Coca-Cola red color
Music: We can double the connected senses by adding sound to visual factors.
With the name of the brand name
celebrities: The main benefit of using a celebrity sponsor is raising brand awareness. In iconic brands, not only should buyers like and know the famous person, but they should also feel that their social circle recognizes that person as a positive advertiser for the brand.
Intuitive choice: such as:
I buy the cheapest brand.
I buy a brand that makes me feel warm.
Alternative cues: Consumers often use alternative cues to simplify the choice process. For example, small dimensions are considered equal to a lower price.
Market Beliefs: Common beliefs about companies, advertisements and stores are also used in their decision making.
Distinguishing meaningful from meaningless differences: A brand can be differentiated based on unrelated attributes. Consumers use a meaningless difference as a decision aid, but more importantly, a higher price appears to increase the effectiveness of differentiation because consumers perceive through price that the differentiation is indeed a value. Is.
Behavioral processes:
Pursuing brand loyalty in many fast-moving consumer goods markets is a fruitless task, and one should pay attention to the number of consumers who have the brand in their brand collection. That’s why brand prominence is so important.
Penetration strategy (new consumers) or frequency of purchase (by current consumers) in fast-moving consumer goods markets:
All big and small brands should try to increase influence, but big brands have less room to grow with this strategy and it is necessary to pay attention to increasing the frequency of sales.
Management of consumer impressions:
The consumer’s perception of a brand is based on what she knows about the brand, which includes advertising, packaging, actual consumption, etc.
Renewal of favorite impressions – Development of favorite impressions – Situations for new use – Persuasion to replace the product group – Use of real consumers in advertising – Reasonable marketing (associate the brand with a good cause.)
Management of selection positions:
New distribution outlets – new packaging – multiple china shelves
Increasing the volume of purchases (for example, with a discount):
Limitation of purchase volume (for example, only 10 cans per person) – a small hint (buy 5 cans for weekends) – price withdrawal (usually the idea: Bigger packages means lower unit price.)
Increase consumption volume:
discount effects-
Stash: Storing at home can lead to increased consumption.
Packaging effects: Increasing the size of a product is one of the ways to increase consumption.
Advertising effects: 2 effects: It can create new consumption conditions (complementing the current consumption behavior) or highlight the brand and product group through tactical media timing.
Building brand loyalty:
Loyalty programs (promise rewards for repeat business)
Increasing consumer engagement (e.g. by developing a membership program)
The ninth chapter
Expansion strategies in brand management
Brand basket: It represents the types of brands that are marketed by a company.
Brand line: Includes all products marketed under a brand name.
- Perhaps the main reason for having several brands in a product group is to satisfy different market segments.
- The choice of strategy in this area depends on the amount of penetration into the product group (the amount of consumption) and the share of the brand compared to other brands in the product group (taking competitive brands into account).
- One of the results of the shrinking brand strategy (the brand has no connection with a specific product) is to come up with something called the senior brand.
- A source brand is what products are directly identified with, and a corporate brand acts as a guarantee of that product’s quality.
Brand extension with 2 line extension and product group extension strategies:
If our intention is to generalize the line, it is necessary to consider both expansion and contraction strategies. Adding items to a line increases market penetration, but also increases costs. The total increase in sales must be greater than the added costs and the total profitability will also increase. Although there may be tactical considerations that reduce profitability in the short term (for example, dealing with a competitor’s threat), the long-term strategic goal should be to increase brand profitability through generalization.
Too much is not always good. Along with brand extension in a product line, it’s often good to have a billing strategy in mind, adding new generalizations and removing some of the current ones.
Product group generalizations may either occur within the product group in which a brand is marketed, or they may be formed in an entirely new product group. The main reason for the supply of different brands in a product group is to meet the needs of different market segments.
Ø Development benefits (brand extension):
It reduces the cost of introducing a new product by making it easier to distribute and create brand awareness and positive brand perception faster.
It reduces the risk of the exam.
Increases customer base.
Creates a stronger brand perception for the parent brand.
It creates more development opportunities.
ØDisadvantages of development (brand extension):
The possibility of consumer confusion
Fragmentation of sales of the mother brand
Limited development opportunities
Brand expansion and brand management in the postmodern world:
In a world increasingly obsessed with the transcendental (from postmodernism), the stability that brands provide with a history and positive brand equity can provide little stability. From the perspective of brand development strategy, this means that the development of existing well-known brands is preferable to the introduction of a new brand name. It should reconstruct the styles of the past in a critical and imitative way with a revisionist tendency.
