POM: Session 16B Brand Equity Models

Creating a combination of logo, colour, design, name and tagline is not a big task. The actual tasks starts after that. The job of making the brand come alive in the minds of consumers is the branding strategy. Making consumers believe in the brand is more of a psychological process. The belief that the brand commands in the minds of consumers is the brand's Brand Equity. The marketers must take consumers through the stages of brand recognition (awareness), selection (perception), liking and purchasing (attitudes and beliefs) and finally the very rare phenomenon these days  - loyalty. 

There are number of models that explains the same with different perspective. The perspective differs as the objectives behind developing these models were different.

POM; Session 16A Branding Strategy - Brand Equity

Brands or branding is the most fashionable term around. It equally fashionable, as well as challenging for a marketer to design something which is expected to give life to a non-living commodity. As you have learnt in positioning, the task of giving heart and soul to a product is the most creative aspect of product decisions. As defined by American Marketing association, a brand is a term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them for those of competitors.

A brand is something that identifies the product performance in terms of functions, rational or tangible needs. For example Clean and Clear face wash suggests that the product is for cleaning and not for any other cosmetic benefit.

POM: Session 8 Psychological Processes

At every stage of this decision making model, there is one predominated psychological process that goes along. At need recognition stage, motivation is main psychological force. At information search stage, it the perception that makes consumers considers few brands and not all of them. Evaluation of alternatives is highly influenced by attitudes and beliefs. Purchase decision dominated by decision rules and post purchase results in learning.

Motivation

A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Buying motives are classified as rational motives i.e. utilitarian object approach and emotional motives i.e. psychological approach. 

Some of the important contributions were made by Abraham Maslow and Sigmund Freud in the field of human psychology and very much applicable to consumer markets. Maslow in Theory of Need Hierarchy suggested that individuals have different level of needs, namely – physiological, social, safety, esteem and self-actualization need. Once lower level needs are satisfied, consumers look for higher level of needs.

Sigmund Freud suggested that most needs are hidden and they will only come out after probing the sub-conscious minds.

POM: Session 9 Consumer Buying

Buying Decision Making Process

Consumer buying process is highly affected by two factors: the psychology behind purchase and the monetary value of product. The consumer decision making process is the combination of all experiences that an individual comes across in learning, choosing, using and even disposal of a product. The buyer decision process consists of five stages: 

1. Need recognition
2. Information search 
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behaviour

Stage I: Need Recognition

The buyer recognizes a problem or need. The need can be triggered by either internal stimuli or external stimuli. Internal stimuli are needs are individual’s own needs. They may arouse due to some problem to which individuals seek solution, for example a hungry person will look for some food. Need may also arise as a result of some new events in life, like first day of school/college, parties, weddings, festivals. External stimuli are the marketer’s efforts to generate needs for product and service through advertisements, offers and discounts.

Marketing Application to VALS Model in Indian Context

Strategic Business Insights (SBI)'s VALS framework is one the best models to describe the psychographic consumer segmentation. In our daily life, knowingly or unknowingly, we come across several advertisements that are inspired from these life-styles. Study of buyer behaviour reveals that more the buyer's lifestyle relates to the appeal, more favourable is the attitude towards the brands. 

Lets try to understand the Indian detergent market with the help of VALS framework:

Survivors are the consumers with low resources hence their lifestyle is not governed by any of the basic motivations. They are very low on resources and thus only ends are important. Marketers must focus here on price sensitivity first and then on trust and loyalty. They would buy a product only if they realise the need and importance of the product:

In this Tide advert, the target market is made to think on the value of the product. Also the demand is created when it was made affordable by offering Re. 1/- sachets.

The Matter of Belief

Swachhata (cleanliness) is a habit, it's a belief that is learnt and that's what is the motto of young and swachh India. Today, the companies and the brands with the hygiene attributes in their product portfolio are happily taking the responsibility to develop the beliefs in the minds of people. It has been a difficult exercise and required more engagement than ever.

New Trends to be Watched in Twenty Sixteen

Business Environment

2015 has seen some trends that will continue to grow this year as well. Here is the alphabetical listing of these trends that will be there to watch.

Apps: Year 2015 has been the year of Apps. You think about any product or service and there is a mobile application for it. Almost everything from grocery, appliance, apparel, utility, travel is available on apps.

Broadcast: Broadcast of non-cricketing sports have been the highlight and with the kind of sponsorship and advertisement they are getting it will only increase.

China: Like it or hate it but you can't ignore it! Downfall in the growth of Chinese economy will continue to affect the Indian business environment.

Deepika: Deepika Padukone has emerged as the most successful actress for the two consecutive years. Her brand value is highest amongst all and she will be seen associated with big brands.

Ecommerce: The success of ecommerce industry is no surprise. It took some time in country like India thanks to not so good infrastructure, but now, the ecommerce industry is a threat to many big retailers.

Facebook: The dominance of social media will continue. The effective reach to target audience is the key and that's the reason of success of facebook. 

GST: The Goods and Services Tax will be implemented this year. This Tax is expected to regularised tax system across different states. This is going to be a benchmark for logistics in India.