Brand Management Class Notes- Nov 3

Brand Management Class Notes- Nov 3 - Introduction …This...

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Unformatted text preview: Introduction …This raises the question, branding is a good thing, but will it work even more in certain situations? The idea is that consumers who are making a purchase, and they don’t seem comfortable with the object quality, those are the people who are more likely to look at brand for some kind of reassurance. And the example that we talked about this is light bulbs. The other idea is that maybe people look at brands more when decisions are more risky, so I showed you the label across categories. The risk is not limited to only functional risks, the risk can also be social, and when you buy coffee you compare Kroger brand with Folgers, and Kroger brand may be cheaper but you are not sure whether the quality and taste lacks. So the impliciation from all of this , one is if you are spending money on all that branding, then you want people to feel the sense of risk in the purchase, so you need to increase feeling of fear and uncertainty. The other direction is if you are a market leader with your brand, you do not want people to feed on stats sheets and numbers, instead what we want to do is add attributes to …that are nonquantifiable, because those things that will make our brand better. An example is Intel. Intel This is 2004, Wall Street Journal, some of you may remember when you were shopping for PCs, you were comparing microprocessors. Look at the two computer boxes, and say this has the Intel 2 hertz and A&D 2 gigahertz gig ,and they are priced differently. I will scratch my head and say why do you pay more for the Intel? So Intel figured out that this is not a wise thing that they are doing, so they did in 2004 was they said that the speed is not the same thing that matters in the microprocessor, there is also power consumption and other features, so what you are going to do is switch the naming scheme. So now what we are going to do when we shop for Intel microprocessors, it wouldn’t be called the 2 Gigahertz, you will say the … so now all of a sudden, it’s like “Oh Intel, it’s very good.” If you are A&D, you have to figure out how to get back to numbers. Service brands If you are hiring an adviser or if you are a consumer buying insurance, sure branding matters, questions of concern include whether this company will be around later and so on, so let’s talk about what it is in the service business that makes branding appropriate? You can’t touch service, and therefore… the leading service provider benefits because it seems more real, and if you do that, you raise the level of confidence that people have in you, and one of the ways you can tangalize that is to brand it, so if you think of the overnight deliver companies, UPS is very intangible, and yet, when I close my eyes, I see the uniformed guys in the trucks, so it feels more real. When I think of insurance companies, I think of the Prudential Rock, Allstate, these are are tangalizing, so branding really helps in adding confidence to your services. There is one other tangalizing, so branding really helps in adding confidence to your services....
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This note was uploaded on 02/09/2012 for the course MKT 303 taught by Professor Rajeevbatra during the Fall '11 term at University of Michigan.

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Brand Management Class Notes- Nov 3 - Introduction …This...

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