Brand Management: Class 2
How to Build strong brands?
1. Recap Class 1
Emotional benefits have a lot to do with people choosing brands. Emotions and feelings and friendship become extremely important to consumers when they pick and choose their favorite brands.
* The power of emotional elements and benefits that contribute to the strength of a brand.
* Remember a brand is difficult: Remember the barriers.
* Strong brands make a connection with people and communicate a distinct advantage.
* A strong band is when it has the trust of consumers. It-s the one who can generate the most trust, loyalty.
2.1. Brand Strength
Gainers | Losers |
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2. Trial-Repeat Model
Uses: Diagnostic and predictive to set marketing priorities.
Sales are formed as customers move over time along a path:
Unaware Aware Trial Repeat Loyalty
Market Share = Awareness x Trial x Repeat x Distribution (Assume 100% Distribution)
All of above numbers are percentages (%)
Brand | Awareness | Trial | Repeat | Mkt Share |
A | .80 | .50 | .30 | 12% |
B | .30 | .50 | .80 | 12% |
. Both have a 12% share of the market. But if we take a look to the numbers we will see that:
* Brand A: Improve product delivery, only 30% of tryers buy again.--> Calls for meetings with R&D and product development
* Brand B: Pump up the volume: boost awareness Inadequate marketing spending.
3.3. Diffusion of Innovations (Geoffrey Moore)
Product market position cycles vary in momentum and market share levels as marketers and consumers move across a formation curve
* Each segment group mandates a change in value proposition, for example:
* Early majority (growth stage) is NOT motivated by the same factors that influence innovators and early adopters
* Consumer willingness to incur risk a key factor
* Late adopters purchase actions find innovator motivations far from this groups’ value proposition
In very gap you have to reorient your strategy (your value proposition: price, packaging etc…) as you move to innovators (who is very risk) to laggards for example that are 0 risky,
When you go to early adopters to early majority you have to make sure that your product value proposition is correct because what is Ok for early adopters can be not Ok for early and late majority. Laggards will follow the group in front of them (late majority).
Reading: In a high tech then, according to Moore, there is a “chasm” between the “visionaires” and the “pragmatists” adopters and early majority. The “we’ve got great technology” approach that got you to the edge of the chasm will not get you across it.
3.4. Consumer Learning Models
* Diagnostic interpretation of extensive consumer data
* Consumers move through a series of attitudinal and behavioral phases that impact consumer buying patterns and help to gauge market performance
* Learn (awareness & knowledge)
* Feel (attitude & preference)
* Do (behavioral)
Set-up research to track these measures; additional metric to market share/sales; useful diagnostic measures as consumers move thru a series of attitudinal and behavioral states.
CONSUMER BEHAVIOUR: LEARN FEEL DO
3.5. Share of Voice
The more you make aware of you branding, the more spending you can spend the more market share you will get.
“He who yells the loudest… wins!”
But this model does not always work. Reebook spent a lot of money advertising trying to increase its market share and now has go down.
Sales Formation Models Summary
* Go much deeper than “sales” or “market...