Submitted by: Submitted by xbabiifresh
Views: 211
Words: 276
Pages: 2
Category: Business and Industry
Date Submitted: 10/21/2013 09:41 PM
Brands are merely symbols that evoke associations; These associations form a brand’s meaning.
Managing brands is about developing brand meaning and leveraging the associations for economic benefit:
1. Influencing consumer preference.
2. Commanding a price premium.
3. Leveraging awareness & meaning to enter new categories.
4. Influencing channel acceptance of the brand.
How Brands Influence Behaviour
5. Brand Awareness → increased consideration at purchase.
6. Brand Associations → perceived differentiation = reason to buy.
7. Brand Loyalty → less perceived risk = higher retention.
Key Points:
* Don’t confuse awareness with meaning!
* Managers tend to overweight the importance of awareness.
* Awareness only aids consideration. Meaning does the rest.
* Be careful about changing the identity meanings of your brand. Extending your brand to target a new market may be dangerous if it jeopardizes valuable identity meanings that current consumers are using.
* 1. 2. 3.
* Low differentiation = high price sensitivity.
* Commoditization can be a psychological state.
* Need to re-engage buyers who are past caring.
* Kodak Case
* -Jan 94; new strategy for film products
* -Jan 94; stock decrease 8% because of rumors of price cut on film
* -market share in past 5 years dropped from 76-70%, over past 5 years, market’s annual unit growth rate average 2%
* -previous strategy against competitors by introducing superpremium brand, Ektar
* -now propose to introduce cheaper brand, Funtime, at Fuji and Konica’s price level, 20% below flagship Gold Plus brand, available only in limited quantities during two off-peak selling seasons
*
* u.s. photo film market
* -1993, 670 million 24-exposure rolls made, typical price consumer pay 2.50-3.50
* -fuji and Kodak only branded products, agfa, 3m
* -kodak cannot sell film on private label basis
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