Building Strong Brands 1.

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BUILDING STRONG BRANDS

BuildingStrong Brands

Building Strong Brands

  1. Explain Customer-Perceived Value

Customerperceivedvalueis a marketconceptthatindicatessuccessof an individualproductin themarketisbasedon customersbelieveorassumptionthattheproductsatisfiestheir needs.Itinvolvescustomerevaluation of a productbenefitsandcostscomparedto othercomplimentarygoods.Thisconceptindicatesthat,afterintroductionof a productto themarket,consumersdecidehowto interpretandreactto themarketingmessages.Asa result,mostcompaniesspendtheir resourcesmarketingtheir productsto knowcustomersreactionsto their products.

Tounderstandcustomer-perceived value,themanufacturershould understandvalueproposition.Valuepropositioncomparesbenefitstheproductoffersto customersandtheir willingbuyingprice.To influencevalueproposition,manufacturersuselong-term advertisingstrategy,buildingthebrandby emphasizingtheproductuniquecharacteristicsthat maketheproductbettercomparedto complementarygoodsofferedby competitors.Theycan alsointroduceproductat a lowerpriceto enhanceproductvalue,with theprincipalaimof allowingthecustomersto perceivethebenefitsa productoffersthem, justifyingthepricetheyare paying(Verma, 2012).

Tounderstandhowconsumerswill perceiveyour product,conductingamarketresearchis necessary.Companiesusefocusgroupsandsurveysto understandhowcustomersperceivetheir products.Understandinghowconsumersperceivecompanyproductshelpsin decidingthemarketingmessagesto use.However,mainchallengeof instillingvalueperceptionoccurswhena companyhas inferiorgoodscomparedto theonesavailablein themarket(Lindgreen, 2009).

  1. Explain Total Customer Satisfaction.

Totalcustomersatisfactionis a measureof howgoodsandservicesprovidedby a particularcompanymeetorexceedcustomerexpectations. Its estimationsare madebased on thenumberorpercentageof customerswhoreportto thecompany,thattheir productsexceededtheexpectedbenefits.Companiesusethetoolto assessandmonitorbusinesstheyuseitas a performanceindicator.Inmarketwherecompetitionis stiff,totalcustomersatisfactionis a usefulmonitoring tool.

Highcustomersatisfactionratingsindicatea productfulfilling customerdemandsanditis goodforthebusiness.However,whenratingdip,itmeansthecompanyis makinglesssales,reducedprofitability thusactingas a warningindicator.Fora companyoperatingin a monopolistic market,customersatisfactionis lessimportant.Thecompanyhas a highbargainingpowercomparedto a companyoperatingin a perfectmarketora nearperfectmarket(Shneider, 2002).

  1. What Valuable Functions Can Brands Perform For A Firm?

Brandis a name,symbol,ora combinationof thetwo, giventoa productto differentiatecompanyproductsfrom others. Abrandaddsextradimensionsmakinga productdifferentfrom similarproductsin themarket.Thesedifferencesare tangibleorintangible,emotionalorjustrational.

Abrandidentifiessourceof certaingoodsorservicesallowingconsumersto assignsomeresponsibilitiesrelatedto theproductto acertainmanufacturer.Customerjudgesimilarproductsin a differentmannerdepending on howtheyarebranded.Experienceandmarketingprogramsallowconsumersto learnabout a particularbrand.

Brandsmakeiteasierto handleortracea productduring inventoryandbookkeeping.Aretailer can grouphis productsaccordingto differentbrands.Itallowsa companyto protectspecificfeaturesfrom beingcopiedthrough copyrights andpatents.Brandsalsosignala certainlevel of qualitymakingiteasierforcustomersto choosea particularbrandover theothers. Itis a powerfulmeansof securingcompetitiveadvantageover rivals(Kapferer, 2012).4.GivenThatThePowerOf A BrandResidesIn TheMindsOf ConsumersAndHowItChangesTheirResponseTo Marketing,There Are Two BasicApproachesTo MeasuringBrandEquity.Briefly,DescribeEachOf TheseApproaches.

Brandequityis a setof benefitsand costs or assetsandliabilitiesrelatedto a particularbrand.Thetwo eitheraddorreducethevalueof theproductto consumers.Thetwo basicapproachesto measuringbrandequityare financialandconsumer-based approach.In thefinancialapproach,brandequityis measuredby determiningthepricetheproductcommandsover complementarygoodsfrom rivalcompanies.Howthecompanysalesreactafter introductionof a newproductcan alsobe usedin determiningbrandequity(Glynn &amp Woodside, 2009).

Consumerbased approachof measuringbrandequityisbasedon theexperiencethecustomerhas with a product.Customers’attitudestowards a productdepend on thestrengthof a brand.Consumerperceptionof a productisbasedontheexperiencetheyhavehadwith theproduct.Ifa companyintroducesa newproductto themarket,itcan usefreesamplesinsteadf advertisementsforconsumersto decidehowtheyfeeltheproduct.Perceivedqualityandotherattributesandbrandloyaltyare someof thedeterminants of brandequity(Glynn &amp Woodside, 2009).5.HowDoesA LoyalBrandCommunitySupportThePositioning AndBranding Of A SmallBusiness?

Hugebrandssuchas Microsoft andCoca-Cola haveloyalcustomers.Thesecustomersare bothproductandbrandfans.Suchloyaltycreatesrivalrybetween companies,butconsumersbenefitmorethrough productdifferentiation. Fora smallbusiness,loyalbrandcommunitypositionsthebusinessproductssuperiorly over thoseof her rivals.Theloyalbrandcommunityis beneficialto a smallbusinesssince itassuressalesof acertainbulkof goodswithout advertising.Theloyalcommunitygivesa businessa competitiveedgeover rivalssince partof her productswill alwayshaveconsumers,guaranteeinga certainvolumeof salessomething her rivalsare unsureabout (Kotler&amp Keller, 2012).

References

Lindgreen,A. (2009). ManagingMarket Relationships: Methodological and Empirical Insights

(Reviseded.). Farnham, Surrey: Gower.

Kapferer,J. (2012). Thenew strategic brand management advanced insights and strategic

thinking(5thed.). London, UK: Kogan Page.

Kotler,P., &amp Keller, K. (2012). Marketingmanagement(14th ed., Global ed.). Boston,

Massachusetts:Pearson.

Schneider,M. (2003). Totalcustomer relationship management.New York: Thomson Learning.

Verma,H. (2012). Servicesmarketing text and cases(2nded.). New Delhi, India: Pearson

Education/DorlingKindersley.

Woodside,A. (2009). Business-to-businessbrand management theory, research, and executive

casestudy exercises(M. Glynn, Ed.). Bingley, UK: JAI Press.