Brand Evaluation and Patronage Intentions in CB
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Transcript of Brand Evaluation and Patronage Intentions in CB
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Brand Evaluation and
Patronage intentions inCB
Presented by:
Arun gupta - 10
Priyanka - 29
Sheenam - 33
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BRAND
The American Marketing Association (AMA) defines a
brand as a "name, term, sign, symbol or design, or a
combination of them intended to identify the goods and
services of one seller or group of sellers and todifferentiate them from those of other sellers.
Therefore it makes sense to understand that branding is not
about getting your target market to choose you over the
competition, but it is about getting your prospects to seeyou as the only one that provides a solution to their
problem.
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BRAND TYPES
Generic Product : item characterized by plain label, with no cleardifferentiation e.g. Xerox, Bisleri
Manufacturers
Brand :brand name owned by a manufacturer or other
Producer e.g. Coca Cola
Private Brand :
brand name placed on products marketed by
wholesalers & retailers e.g. Stop garments from
Shoppers Stop
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Family Brand :brand name that identifies several related
products e.g. Kissan Anapurna atta , jams ,
biscuits etc..(Food category)
Individual
Brand :
unique brand name that identifies a specific
offering within a firmsproduct line and that
is not grouped under a family brand e.g. Dovesoap from HLL
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BRAND EVALUATION
Brand evaluation is crucial in effective brand
management. This process enables marketers to obtain a
more accurate idea about how powerful a brand name is.In turn, this will help marketers decide what their future
marketing strategy would be.
To succeed in branding marketer must understand the
needs and wants of the customers and prospects.Marketer do this by integrating brand strategies through
company at every point of public contact.
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OBJECTIVES
The main objective of a brand evaluation is to help the
organization or company to identify the current changes
that need to be made to revitalize the brand. It helps an organization or company to develop their
brand based on the core values and beliefs of the brand.
A brand evaluation plays an important role during
brand building and planning stages and is critical to theprocess of building and sustaining brands.
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IMPORTANCE AND
NECESSITY OF EVALUATING
BRANDSThe necessity of evaluating brands resides both in the
companys and in the marketing environments
interests,especially those organizations or persons whoare interested in the companysand its brandsfinancial
performance. It is about the companys
stakeholders(suppliers, investors, financial institutions,
distributors, employees, customers etc.) and the
competition.
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The situations in which brand evaluation is
essential could be categorized as it follows :
Mergers and acquisitions
Informing financial partners (investors,
shareholders, banks, insurance companies etc)
Brand licensing
Compensation establishment in cases of
unauthorized usage of brand names
Elaborating marketing strategies and plans andevaluating the efficiency of implementation
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MERGERS AND ACQUISITIONS
Nowadays, the main determinants of mergers and
acquisitions are not only facilities or technologies, but even
more important, the value of brands.A few examples could
comprise: Rowntree Macintosh acquisition by Nestle in1988 for a price of 2.75 billion , three times the companys
capital market value and 26 times its profits; Kraft Foods
acquisition by Philip Morris in 1988 for a price of 12.9
billion USD, of which 90% represented Kraft Foodsbrands value.
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INFORMING FINANACIAL
PARTNERS
Financial partners perceive brand value as a reference
when establishing the extent to which they are willing to
take risks and finance the company that possesses thebrand. The interest of the brands proprietor is to over-
estimate the value of its brand. This situation could be
avoided through using a formal method of evaluation
implemented by an acknowledged third party
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BRAND LICENSING
Brand value is a reference in negotiating the price of a
brand licensing contract or the fee paid in order to use the
brand name. It is important to consider in this case the
potential future market and financial outcomes generatedby the power of the brand. Negotiation partners opposite
interests of over/under-valuing could be harmonized
through using a formal method of evaluation agreed by
both parties
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COMPENSATION ESTABLISHED IN
CASES OF UNAUTHORIZED USAGE OF
BRAND NAMES
Strong brands proprietors are exposed to brand piracy
which basically leads to weakening the brandsvalue.
Compensation establishments can be done considering: thedifference between the brandsvalue before and after the
piracy act, a retroactive brand name usage fee, or the share
of the piratesprofit earned due to using the brand name.
All of the considerations above imply a brand evaluation
process
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EVALUATING MARKETING
STRATEGIES AND PLANS
Brand portfolio evaluation can lead to identifying:
weaknesses and strengths among brands determinants,
ways of restructuring the brands mix, key-brandsmanagement, strategies and plans implementation
efficiency through after-before evaluations.
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BRAND EVALUATION
METHODOLOGIES
Since brand evaluation appeared as a response to the necessity
of introducing their values into the financial reports of the
companies, the most popular methods of evaluation are those
based on different financial indicators.Three main brands evaluation methods are well known :
Economic income approach
Market comparable approach
Cost approach
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DIMENSIONS OF BRAND
EVALUATION
The corporate brands can be evaluated along
the five dimensions:
Competence (factor 1) Exuberance (factor 2)
Credibility (factor)
Forcefulness (factor 4) Sincerity (factor 5)
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Competence : It is a cluster of related abilities, commitments,
knowledge and skills that enable a brand to (or an organization)to act effectively.
Exuberance: It is a joyful enthusiasm that a brand shows.
Credibility: It is the quality of being believed or trusted.
Forcefulness : Something that is forceful in a brand and has a
very powerful effect and causes you to think or feel something
very strongly.
Sincerity : It is the quality or condition of being sincere;
genuineness, honesty, and freedom from duplicity.
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EVALUATING THE BRAND
STRENGTH ON THE MARKET
To evaluate brand strength, whether it is of a consumer product, a
business service or a public sector organisation, there are differentquestions which can be asked to the client are:-
What is unique about the function or purpose of your brand
or organisation ?
What are your service or performance targets ?
What are the characteristics you want to associate with it ?
How do you position yourself against the competition ?
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What we can actually measure are:
Functional benefits performance based on defined service
factors Emotional benefits based on how closely customers identify
with the brand, its status and its reputation
Loyaltyto the brand or organisation (where relevant), or readiness
to switch supplier Advocacy how ready people are to recommend the product or
service
Using these measures we can identify which factors are the most
important in defining the market value of the brand. These mayconcern levels of service, familiarity, or perceived quality the
analysis will identify where investment may be made to improve
the position of the brand in the market.
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PATRONAGE INTENTIONS/ MOTIVES IN CB
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MOTIVES
Needs which are unsatisfied are motives
Consumers buy goods/services becauseof some motives
Motive can be a strong desire, feeling,
stimulus or emotion which play vital rolein consumer buying decisions.
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CLASSIFICATION OF BUYING MOTIVES
Reasonswhy a person buys a particular product.
1. Innate and Acquired Motive
2. Primary and Secondary Motive
3. Conscious and Unconscious motive
4. Positive and Negative Motive
5. Product and patronage Motive
6. Rational and Emotional Motive 23
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EMOTIONAL RATIONAL
BUYING MOTIVES
PRODUCT MOTIVES PATRONAGE MOTIVES
EMOTIONAL RATIONAL
BUYING MOTIVES 24
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Product motives
related to product, its price, size, quality etc.
Patronage motives
related to the physical evidence of the store,
goods/services
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Why do buyers purchase from certain
specific shops?Considerations/factors persuade the buyer
to display his store patronage
Emotional - to gain social recognition , to
imitate others , favorite/most preferred
shop based on subjective reasons
Rational- logical reasoning (offer a variety
of products , latest design stock, prompt
delivery, assure good after sales services)26
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EMOTIONAL MOTIVES
Selection of goods acc. to the personal andsubjective criteria, e.g. pride, fear, status,
affections etc.
These impulses persuade to purchase
products spontaneously & without fore
thinking on the consequences.
Buyer letthe heart rule over the mind
e.g. parents purchase cloths, toys to their
child. 27
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RATIONAL MOTIVES
Consumer select goods based on totalobjective criteria such as size, weight, price
etc.
Involve careful reasoning & logicalanalysis of purchase.
Carefully consider diff. alternatives &
choose one which gives him greater utility
e.g. Furniture purchase for house
suitability to home envt., durability, economy28
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Product EmotionalBuying Motives:
1) Pride2) Fashion or Imitation
3) Gender
4) Habits5) Love and Affection
6) Comfort
7) Praise
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Product Rational Buying Motives :
1. Safety or Fear
2. Suitability
3. Durability4. Economy
5. Convenience
6. Versatility
7. Hobbies
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Th f t f h/ id
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There are four types of approach/avoidance
behaviors including:-
1) physical, related to store patronageintentions
2) exploratory, related to in-store search and
exposure (response to emotional states)
3) communications, related to personal
interactions
4) performance and satisfaction, related to
repeat shopping and time/money
expenditures. 31
A ith b d l lt t l lt
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As with brand loyalty, store loyalty
concerns a consumers intentions and
behaviors toward a particular store.Retailers are interested in store image and
store atmosphere because they focus on
the influence of store attributes onconsumersaffect and cognitions.
A common conflict between
manufacturers and retailers centers onbrand loyalty versus store loyalty.
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Model
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Model
Perceived
Service Quality
Perceived
MerchandiseQuality
Perceived
Merchandise
PricePerceived
Merchandise
Assortment
Perceived
Shopping mall
Value
Store Patronage
Intention
H5
H1
H2
H3
H4
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Measure ItemsMeasurement Scales
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Service Quality
Interaction
Quality
Responsiveness toward customers questions and
complaints
Employees willingness to Help customers
Employees friendliness and politeness
Physical
Environment
Quality
Employees efforts to provide accurate product and service
information
Employees efforts to provide conveniences in searching,
ordering, order cancellation and processing.
Employees efforts to accept customers wants
Outcome
Quality
Employees efforts on visual and page design in providing
product and services
Employees efforts to maintain security on customers
private information and payment
Employees willingness to help customers in solving their
problems and complaint s after sale
Overall Service
Quality
Service quality comparing to competitors
Reasonable level of service
Perceived
Merchandise Quality
Merchandise quality
Quality differences between the displayed merchandise and the merchandisedelivered
Measurement Scales
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PATRONAGE MOTIVES
1. Patronage Emotional Motives :
1. Appearance of the store
2. Recommendation of friends and relatives
3. Imitation
4. Prestige5. Habit
2. Patronage Rational Motives :
1. Proximity
2. Widest Assortment
3. Credit Facilities
4. Treatment
5. Services Offered 36
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THANK YOU