The value of the brand | Marketing Concepts.
The market is invaded from generic products, competitive brands and line extensions. In
this environment, the biggest fear is that the concept of the brand
equity (brand equity), which is defined as the consumer to an
established brand loyalty is ceasing to be important.
One of the biggest challenges for marketing professionals is to understand how to build this elusive concept of the value of their brands. Professor Kevin Keller, who is an authority on the concept of the brand value of the University of North Carolina said: "companies are not owners of their brands. The consumers are those who think that they are the true owners of the brands".
Increase the value of a brand depends on enhance this value in the minds of consumers of that mark. The value of the brand is composed of loyalty of attitude and conduct loyalty. The loyalty of attitude reflects how the consumer feels and thinks about the product or service, and that proportion of his heart and his mind give those brands. The loyalty of conduct refers to the action about what people do with their money and proportion of purchases that give the product.
Marketing professionals want and need both types of loyalty. The two types of loyalty varies according to interpersonal relationships. A high level of loyalty of attitude and conduct, shows an ideal combination, something that any company would like to have with your customers.
The fear is that low levels of loyalty of attitude and conduct are becoming increasingly common and that relations between the company and its customers are becoming more and more impersonal and distant.
As consumers improve their quality of life, brands become a dominant factor in the consumer decision-making process. The brands offer consumers more quickly identify products and services that have high value. Seven of every ten American consumers agree with the expression: "I always buy the same brand without really thinking". Despite this, many marketing professionals are killing their brands with promotions, low investments in advertising and line extensions. Often promotions promote a brand become generic. In that case the message to the consumer is: "We are as good as the others and... also are cheaper".
When consumers do not find significant differences between brands, loyalty disappears. Brand extensions also erode consumer loyalty.
Since 1975, the company NPD Group, a Port Washington (New York) research firm, has maintained a database of 50 brands that were first, second, or third in its category when the company began its study. Joel Rubinson, the director general of the firm said that, although the loyalty of the consumer (as a measure of the proportion of purchases among other brands) has declined in general, it has declined significantly in those brands where the category has created many level product segmentation.
But just as it is possible to destroy a brand through inefficient marketing practices or short term, it is also possible to build the value of the brand. Saturn, Starbucks, Snackwell's and Netscape are examples of very strong brands that virtually did not exist 10 years ago.
When people convince that brand means something more than a simple name, when it turns into a curriculum that reflects achievement, performance and superiority, the executives will protect it. The concept of the value of the brand is not, as much they believe, obsolete
A brand is a name or noun with a literally grammatical connotation which serves for identification and is at the same time a relatively abstract idea with a meaning associated with this allowing their assessment and their differentiation.
Say for example a common item in the home. In Mexico, McCormick from Mexico long sold under the trade name McCormick ® mayonnaise. McCormick, as a term is originally a surname of family (probably the name of who developed a recipe for the production of mayonnaise).
This market represents at the same time a label association that relates to a:
In the remaining part of this point, I will discuss three basic associations of value which a brand can be developed that they are perception, differentiation and performance.
Once explained, these associations can become the basis of a relationship marketing campaign.
Attributes of brand perception. Prior to distinguish a product, a brand creates you an identity. The first approach of a client with a brand is merely perceptual: customer can evaluate it according to guidelines as to what sounds to me?, is a national product or foreign is?, is something completely new or is an extension of something that I already know?, is it easy to pronounce or not? These initial associations are the first, however should not be the most significant to the consumer. If a brand you park at this level of partnership, you are wasting much of their potential.
Differentiation is the second type of Association. A brand, as well as creating an identity, must categorize the product that endorse. A brand that eventually acquires value by Association should be an identity. In this aspect the connotation of the name plays an important role.
It is important that there is a distinction clear, so clear like Pepsi Coke ® ® stands out despite the fact that both are (or were at some time) Pepsi-Cola and Coca-Cola respectively. This differentiation must be valid for all types of products inside and outside the industry to which belongs the product to which the brand is being developed.
Exceptions to this case are extensions of the brand, brand endorsements and promotional associations who are subjects of another point.
A brand has really developed value when it has a connotation that is clear, unique and above all associated elements intrinsic, i.e. relating to the nature of the product.
Examples of this would be a component or a feature, a manufacturing process or technology incorporated into its design. Another likely category become a connotation is through the incorporation of extrinsic Association items, items associated with the use or application of the product and which by its own peculiarities (a special purpose or unique in the market application) allow you to connote a permanent benefit.
For condiments that association can then be relative to the product and its characteristics (E.g. lemon juice) or may be relative to your applications or applications (V. gr. unbeatable in salads).
One of the biggest challenges for marketing professionals is to understand how to build this elusive concept of the value of their brands. Professor Kevin Keller, who is an authority on the concept of the brand value of the University of North Carolina said: "companies are not owners of their brands. The consumers are those who think that they are the true owners of the brands".
Increase the value of a brand depends on enhance this value in the minds of consumers of that mark. The value of the brand is composed of loyalty of attitude and conduct loyalty. The loyalty of attitude reflects how the consumer feels and thinks about the product or service, and that proportion of his heart and his mind give those brands. The loyalty of conduct refers to the action about what people do with their money and proportion of purchases that give the product.
Marketing professionals want and need both types of loyalty. The two types of loyalty varies according to interpersonal relationships. A high level of loyalty of attitude and conduct, shows an ideal combination, something that any company would like to have with your customers.
The fear is that low levels of loyalty of attitude and conduct are becoming increasingly common and that relations between the company and its customers are becoming more and more impersonal and distant.
As consumers improve their quality of life, brands become a dominant factor in the consumer decision-making process. The brands offer consumers more quickly identify products and services that have high value. Seven of every ten American consumers agree with the expression: "I always buy the same brand without really thinking". Despite this, many marketing professionals are killing their brands with promotions, low investments in advertising and line extensions. Often promotions promote a brand become generic. In that case the message to the consumer is: "We are as good as the others and... also are cheaper".
When consumers do not find significant differences between brands, loyalty disappears. Brand extensions also erode consumer loyalty.
Since 1975, the company NPD Group, a Port Washington (New York) research firm, has maintained a database of 50 brands that were first, second, or third in its category when the company began its study. Joel Rubinson, the director general of the firm said that, although the loyalty of the consumer (as a measure of the proportion of purchases among other brands) has declined in general, it has declined significantly in those brands where the category has created many level product segmentation.
But just as it is possible to destroy a brand through inefficient marketing practices or short term, it is also possible to build the value of the brand. Saturn, Starbucks, Snackwell's and Netscape are examples of very strong brands that virtually did not exist 10 years ago.
When people convince that brand means something more than a simple name, when it turns into a curriculum that reflects achievement, performance and superiority, the executives will protect it. The concept of the value of the brand is not, as much they believe, obsolete
A brand is a name or noun with a literally grammatical connotation which serves for identification and is at the same time a relatively abstract idea with a meaning associated with this allowing their assessment and their differentiation.
Say for example a common item in the home. In Mexico, McCormick from Mexico long sold under the trade name McCormick ® mayonnaise. McCormick, as a term is originally a surname of family (probably the name of who developed a recipe for the production of mayonnaise).
This market represents at the same time a label association that relates to a:
- a generic product (mayonnaise)
- a category or categories of items (mayonnaise, mustard and other spices to flavor foods)
- a qualification or attribution of quality in relation to these asociaciones(McCormick Mayonesa.) Dressing with lemon juice)
- This gramatico-abstracta duality creates powerful, more powerful meanings than the name or noun not commercial and at the same time prone to multiple associations. The value of brand (brand equity) resides primarily in these associations and loyalty, preference or satisfaction that eventually might generate in the consumer.
In the remaining part of this point, I will discuss three basic associations of value which a brand can be developed that they are perception, differentiation and performance.
Once explained, these associations can become the basis of a relationship marketing campaign.
Attributes of brand perception. Prior to distinguish a product, a brand creates you an identity. The first approach of a client with a brand is merely perceptual: customer can evaluate it according to guidelines as to what sounds to me?, is a national product or foreign is?, is something completely new or is an extension of something that I already know?, is it easy to pronounce or not? These initial associations are the first, however should not be the most significant to the consumer. If a brand you park at this level of partnership, you are wasting much of their potential.
Differentiation is the second type of Association. A brand, as well as creating an identity, must categorize the product that endorse. A brand that eventually acquires value by Association should be an identity. In this aspect the connotation of the name plays an important role.
It is important that there is a distinction clear, so clear like Pepsi Coke ® ® stands out despite the fact that both are (or were at some time) Pepsi-Cola and Coca-Cola respectively. This differentiation must be valid for all types of products inside and outside the industry to which belongs the product to which the brand is being developed.
Exceptions to this case are extensions of the brand, brand endorsements and promotional associations who are subjects of another point.
A brand has really developed value when it has a connotation that is clear, unique and above all associated elements intrinsic, i.e. relating to the nature of the product.
Examples of this would be a component or a feature, a manufacturing process or technology incorporated into its design. Another likely category become a connotation is through the incorporation of extrinsic Association items, items associated with the use or application of the product and which by its own peculiarities (a special purpose or unique in the market application) allow you to connote a permanent benefit.
For condiments that association can then be relative to the product and its characteristics (E.g. lemon juice) or may be relative to your applications or applications (V. gr. unbeatable in salads).
Published for educational purposes