Brand Management Summary PDF

Table of Contents {#table-of-contents.TOCHeading} ================= [Tutorial 1: Introduction 2](#tutorial-1-introduction) [Tutorial 2: Economic Approach 4](#tutorial-2-economic-approach) [Main assumptions 4](#main-assumptions) [Theoretical framework 5](#theoretical-framework) [Methods and Data...

Table of Contents {#table-of-contents.TOCHeading} ================= [Tutorial 1: Introduction 2](#tutorial-1-introduction) [Tutorial 2: Economic Approach 4](#tutorial-2-economic-approach) [Main assumptions 4](#main-assumptions) [Theoretical framework 5](#theoretical-framework) [Methods and Data 6](#methods-and-data) [Managerial implications 7](#managerial-implications) [Tutorial 3: Identity Approach 8](#tutorial-3-identity-approach) [Main assumptions 8](#main-assumptions-1) [Theoretical framework 10](#theoretical-framework-1) [Methods and Data 12](#methods-and-data-1) [Managerial implications 13](#managerial-implications-1) [Tutorial 4: Consumer-based Approach 14](#tutorial-4-consumer-based-approach) [Main assumptions 14](#main-assumptions-2) [Theoretical framework 15](#theoretical-framework-2) [Methods and Data 17](#methods-and-data-2) [Managerial implications 17](#managerial-implications-2) [Tutorial 6: Personality Approach 18](#tutorial-6-personality-approach) [Main assumptions 18](#main-assumptions-3) [Theoretical framework 19](#theoretical-framework-3) [Methods and Data 21](#methods-and-data-3) [Managerial implications 21](#managerial-implications-3) [Tutorial 6: Relational Approach 23](#tutorial-6-relational-approach) [Main assumptions 23](#main-assumptions-4) [Theoretical framework 24](#theoretical-framework-4) [Methods and Data 27](#methods-and-data-4) [Managerial implications 27](#managerial-implications-4) [Tutorial 7: Community Approach 27](#tutorial-7-community-approach) [Main assumptions 27](#main-assumptions-5) [Theoretical framework 28](#theoretical-framework-5) [Methods and Data 31](#methods-and-data-5) [Managerial implications 31](#managerial-implications-5) [Tutorial 8: Cultural Approach 33](#tutorial-8-cultural-approach) [Main assumptions 33](#main-assumptions-6) [Theoretical framework 34](#theoretical-framework-6) [Methods and Data 36](#methods-and-data-6) [Managerial implications 38](#managerial-implications-6) [Tutorial 9: Sensory Approach 39](#tutorial-9-sensory-approach) [Main assumptions 39](#main-assumptions-7) [Theoretical framework 40](#theoretical-framework-7) [Methods and Data 42](#methods-and-data-7) [Managerial implications 42](#managerial-implications-7) Tutorial 1: Introduction ======================== **What is branding?** Branding is the process of creating a unique identity for a product, service, or company. It goes beyond just a logo or name; branding encompasses the entire image and personality of a brand, including its values, tone, and the emotional connection it forms with its audience. A brand is essentially the perception of a company in the minds of consumers, influenced by elements like visuals (logo, colours), messaging, customer experience, and reputation. Effective branding helps differentiate a product or company from its competitors and fosters trust and loyalty among customers. The goal is to build a lasting, positive impression that resonates with the target audience and reinforces the brand\'s promise. **How did branding evolve over time?** It started with a view from the company's perspective and sending out its message to consumers (using an economic and identity approach). Then, it pursued a more human and receiver focus (with the consumer-based, personality and relational approaches). Finally, a sensory and more biological focus was added to the picture (with the sensory approach). **What are the two main brand management paradigms?** [Positivistic]: a notion of the brand being 'owned' by the marketer, who controls the communication to a passive recipient/consumer. Brand equity is perceived to be something created by the marketer, and the brand is seen as: "a manipulable lifeless artefact (product plus that is created by its owners/managers and that can be positioned, segmented and used to create an image)". [Constructivist/interpretive]: the nature of the brand and the value of the brand equity as something created in the interaction between a marketer and an active consumer: "as holistic entities with many of the characteristics of living beings" and "as a living entity (with a personality with which we can form a relationship and that can change and evolve over time". **What are the main shifts in communication, focus, methods, and brand value creation reflected through the four periods of brand management and eight brand approaches?** [Communication]: more open and transparent? [Focus]: it shifted from a company's perspective to a customer's perspective. Acknowledgement of the consumers' ownership of the brand and an embrace of the more chaotic forces in consumer culture. [Methods]: shifted from quantitative to qualitative methods (to mixed methods approaches?) [Brand value creation]: it shifted from marketer consumer to an all-round approach wherein both parties need each other equally. **Bring an example of branding in a non-traditional context (i.e. do not think of branding of products and services but the branding of \....) to the tutorial. We will try to link it to the different approaches in class.** A good example of branding in a non-traditional context is [personal branding]. Personal branding involves individuals (not companies or products) building a unique identity and public image. This can be seen with influencers, public figures, and professionals who brand themselves to stand out in their industries or social media. Anna Wintour As the long-time editor-in-chief of Vogue, her brand is centred around sophistication, authority, and high fashion expertise. Known for her signature sunglasses, blunt bob hairstyle, and influential position, Wintour's personal brand is synonymous with fashion's elite and sets a tone for style trends globally. Her personal brand is not attached to any one product but to her identity as a trendsetter and a respected voice in fashion. She represents the high standards, exclusivity, and creative vision of the fashion industry, making her an iconic figure in personal branding. **\ ** Tutorial 2: Economic Approach ============================= Article: **How prominent are private labels in your country of origin? (e.g. check market shares published by Nielsen)** In the Netherlands, private labels hold a significant position in the retail market. As of 2023, private label products accounted for 37.1% of the market share, indicating a slight growth from previous years. **Which factors contribute to the success of private labels?** - Competitive Pricing: Private labels often offer products at lower prices compared to national brands, appealing to cost-conscious consumers. - Improved Quality: Retailers have invested in enhancing the quality of their private label offerings, making them comparable to, or even surpassing, national brands. - Brand Trust: Established retailers leverage their brand reputation to instil confidence in their private label products. - Exclusive Offerings: Private labels provide unique products that are exclusive to specific retailers, attracting customers seeking distinctive options. - Economic Conditions: During economic downturns or periods of inflation, consumers tend to be more price-sensitive, making private-label products an attractive option. **Do you consider private-label products as branded products?** Private-label products are indeed considered branded products. They carry the retailer\'s brand name or a unique brand created by the retailer, distinguishing them from generic or unbranded items. This branding helps in building customer loyalty and recognition. **How do retailers build their private label brand?** - Brand Architecture: They develop a structured brand portfolio, often including economy, standard, and premium tiers, to cater to different market segments. - Marketing and Promotion: Retailers invest in marketing campaigns to promote their private labels, highlighting quality and value propositions. - Product Development: Continuous innovation and improvement in product offerings ensure that private labels meet consumer expectations and stay competitive. - Packaging and Design: Attractive and functional packaging enhances the appeal of private-label products, making them stand out on shelves. Main assumptions ---------------- 1. Consumption choices are rational The brand can be controlled and managed by the sender (company). If management gets the marketing mix right, the brand will be successful and strong. Consumers are perceived to be passive receivers of marketing messages, who perceive and evaluate brand messages rationally. This perception of the consumer originates from the concept of [the economic man] and transaction theory about the exchange of goods. Described using these assumptions about human behaviour: - Human behaviour is guided by rational parameters. - Consumers have 'perfect information' about the available alternatives. - The exchange between two parties is perceived as an isolated event. - Consumers are constrained by limited income, which forces them to find ways of maximising the utility of their income. The economic man is not only able to oversee all available choices but also able to evaluate all of them and choose the best functional deal. The consumer has [perfect information] to make the most rational choice in any situation. [The invisible hand] assumes that resources are allocated according to where they will give the highest possible functional outcome or revenue because efficient methods of production will be adopted by manufacturers to accommodate the utility-maximising behaviour displayed by the individual. Also called, the behaviour of optimisation. Queueing up in a line at the supermarket where all customers line up in the shortest line for them to be faster but also to not make 1 line very long and the rest short, would not make sense for them as well as other customers, therefore it is done out of self-interest as well as societal interest. 2. Brand-consumer exchanges are linear, functional and transaction-based. Consumers search for the best possible deal and are assumed to consider every transaction cost before choosing the right brand or product. If the barrier of transaction costs is too high (too difficult to find and buy the product) then the consumer might choose another product even though it might not deliver maximum utility compared to other products or in relation to price. Therefore, the transaction costs must be minimised. Communication is perceived to be linear and functional where the consumer will act according to the market stimuli (a product, a price, a placement and promotions) with a certain predictable brand choice behaviour. There is no interaction between the brand and the consumer. The brand-consumer exchange is merely perceived as an exchange of goods through isolated transactions. [The primary goal is to achieve the next transaction or sale]. Theoretical framework --------------------- 1. Core theme: Marketing mix The brand operates in a market, where the consumer is assumed to make rational consumption decisions and where interactions with customers are linear, standalone and isolated events, rather than an ongoing relationship. Consumers evaluate brands on their functional utility against their price, and the four P's is the mix of marketing actions that makes the transaction with consumers possible. Getting the right mix is essential for whether or not a brand will be successful. 2. Supporting theme: transaction cost theory [This describes the barriers and exceptions to the perfect transaction] (or even the transaction taking place) information and accessibility consumers are assumed to have. Also, consumers can have switching costs. The economic approach\'s ultimate goal is the next transaction. Keeping the transaction costs as low as possible (or completely getting rid of them) and making sure that the route to the transaction is as smooth as possible. By measuring the transactions, it can be concluded whether the brand strategy is efficient. The short-term perspective is that because transactions are an isolated event, the primary focus is the next transaction rather than relationship building. Price and functional product quality are important parameters. Improvements to the marketing mix are assumed to strengthen the branding strategy. Tactical management is useful in this approach and marketing managers are driven to target large numbers of customers with mass communication and ensure a quality product, is sold at the right place, for the right price. The barriers to transactions are consumers' ability because, before any transaction, they are limited with rationality (that they do not have a complete overview of options and cognitively grasp all information about all available alternatives). 3. Supporting theme: the four P's The tool to overcome the barriers of the transaction cost theory is the marketing mix. The marketing man: seeking the perfect pattern or formula of marketing operations from the many available policies. If he were a mixer of ingredients what he designed was the marketing mix. Managers assume to be able to control consumers if they have the perfect marketing mix. **Box: three dimensions of aesthetic product design** - Segment prototypicality: is the product similar to already existing products in the same segment or is it prototypical? - Brand consistency: how consistent is the design with other products under the same brand name? - Cross-segment mimicry: when a brand that caters to one segment (discount) mimics the aesthetic design of products catering to another segment (luxury). Methods and Data ---------------- The overall objective of research and data collection is to investigate how manipulating one or more factors of the marketing mix will affect consumers' brand choices. Quantitative research methods wherein correlations between variables are deducted. The sample data is broad and not deep. The replicability of the results is important because results are mostly used for decision, marking, and problem-solving on a general basis. Other analyses will capture and link brand sales to marketing strategy actions. Customised regression models are often developed to accommodate the need for investigating marketing mix variables that affect different factors of consumer brand choice behaviour like brand switching or brand market shares. Managerial implications ----------------------- The economic approach has a push strategy. [Points of critique to this approach]: - The lack of consideration for the interactivity consumers have with the brand. - The ability to portray the world of consumption with the functional and transactional exchange. As in the real-world consumers do not have perfect information about available products and brands. - Individual preferences. This approach is the foundation of contemporary brand management. Tutorial 3: Identity Approach ============================= Main assumptions ---------------- Introduction to identity approach:\ The identity approach is a much more all-encompassing idea of managing the brand (in comparison to the economic approach) since it involves identifying the whole organisation (in terms of incorporating the organisation, it can be argued that it is the most far-reaching of all). 1. The identity perspective Two main streams in identity - Visual identity: Using this as a communication tool. The communication should uphold a consistent visual expression while ensuring the brand remains fashionable by continually adapting to emergent changes. - Behavioural identity: company personality \> product attribute functionality. Consumers perceive brands through all the contact moments over time. Therefore, employees and their behaviour are a key contributor to brand identity. Important questions in the identity approach: - Who are we? - What do we want to stand for? - What do we want to become? 2. From product to corporate branding Traditionally the idea of brand management is that every product should have a different brand identity. The identity refers to the corporate brand identity and the internal and external elements that contribute to the corporate branding identity. **[Product branding]** = too narrow, external perspective detached from the organisation behind the products. Short-term advertising ideas. **[Corporate branding]** = one unified message across all functions sent out will elevate the whole organisation to a strategic overall level. Also, on tactical and functional processes and long-term brand ideas. Expands differentiation by enabling companies to use their heritage actively to create strong brands. More integrated relationships between internal and external stakeholders (top management, employees, customers and other stakeholders). [Box heritage brands]: a phenomenon marked by its meaningful past, present and prospected future, it has a considerable track record, longevity, long-held core values, symbols and history which have enabled the strongest of heritage brands to build a relationship of trust authenticity and affinity with its customers and stakeholders. Traits: - Omni temporality: transcends time and connects past, present and prospected future. - Institutional trait consistency: continuity of meaningful organisational traits. - Tri-generational hereditary: a meaningful organisation has existed for at least three generations. - Augmented role identities: corporate heritage institutions are infused with multiple role identities. - Ceaseless multigenerational stakeholder utility: the brand has been salient for consecutive generations of consumers and stakeholders. - Unremitting management tenacity: diligent continuous management of corporate heritage. 3. Brand-consumer exchange Expanded to a focus on all potential stakeholders. Pov's: - Corporate identity (visual and strategic pov): linear and controlled communication to all stakeholders to create an enduring, distinctive and stable brand identity. The concept of the creation of coherent visual identity. - Organisational identity: how behaviour affects brand identity, and it is believed to be context-dependent and both socially and individually created the result of a co-creation between brand and stakeholder. - Image: communication is most likely linear, but stakeholders' reactions are perceived to be central. Element in the formation and management of identity. The stakeholder perspective of the exchange. - Reputation: a long-term gathering of impressions and evaluations of the images stored in the long-term memory of consumers and stakeholders. Reputation focuses more on relation-building than linear communication. The brand identity has evolved from a static, narrow concept focusing on graphic design to a much more dynamic, complex and socially constructivist perception of identity. Identity is not just formed inside a company and then sent to consumers, who perceive the message exactly as intended. Box key characteristics for organisational identity: - Central character: it captures the essence of the organisation. - Claimed distinctiveness: it distinguishes the organisation from others. - Temporal continuity: it exhibits continuity over time (it is stable and enduring). Theoretical framework --------------------- Four supporting theories, two internal and two external. Corporate identity and organisational identity = internal. Image and reputation = external. 1. Supporting theory: corporate identity (internal) Refers to visual representations of identity and how the strategic brand vision influences brand identity. Corporate identity is the assembly of visual, physical and behavioural cues representing the company, making it immediately recognisable to consumers and other stakeholders. Deep insight into organisational behaviour and culture is needed. Input from strategic management (vision, mission, strategic direction or the corporation) is in line with the brand identity. Brand identity should be represented visually through the management of product design, logo name, and so on (all visual representations of brand identity). 2. Supporting theory: organisational identity (internal) Refers to the behavioural and cultural aspects of brand identity. Key concepts are culture and structure (who they are and what they stand for). Employees are a pivotal instrument (especially important in the service and retail industry). They should 'live the brand' and act as ambassadors and co-creators of brand equity. in the interaction between consumer and employee, the brand is brought to life, demanding a high level of commitment to the brand from the employee. In reality, this is hard to achieve as employees do not buy internal branding efforts in the long term (storytelling and value-based management tools). After the training sessions, the employees will be more committed, but over time, they fall back into old routines. Resellers also have an important impact on the creation of the brand identity, and all other stakeholders also take part in this. Brand identification: how resellers identify with their employer (distributor identification) or with a focal brand (brand identification) from a supplying manufacturer. 3. Supporting theory: corporate image (external) The aim is to project one coherent image to all stakeholders, ensuring a consistent perception of the brand image amongst stakeholders. The brand image exists in the mind of the receiver and how they perceive the brand identity. Image refers to an instant image at a given point in time. 4. Supporting theory: reputation (external) As opposed to the image concept, reputation is built over a longer time. Reputation management is often not considered unless it is threatened. It is most effective when communicated by an independent third party. Investments in PR and good relations with key players in the media are smart moves, or even lobbying influential political interests. [The corporate brand toolkit] - Strategic vision: the central idea of what the company does. The strategic vision expresses future management aspirations. (= corporate identity). - Organisational culture: internal values and beliefs. It is basic assumptions that embody the heritage of the company, manifested in the ways that employees feel about the company across rank, reflected in behaviour. (= organisational identity). - Stakeholders' images: how external stakeholders perceive the company. It is the outside world's overall impression of the company. (= image and reputation).  All three must be identified well and aligned to each other, any misalignment could lead to bad brand management. [The AC4ID framework] The aim is the same as the other tool. Namely, it must be aligned to ensure a strong brand identity. - Actual: the actual identity, organisational behaviour and everyday reality of the corporation. (= organisational identity). - Communicated: the brand identity is expressed through all sources of communication. - Conceived: refers to the image/reputation of the corporation -- how do stakeholders conceive brand identity? (= image and reputation). - Covenanted: refers to an explicit set of promises and relationships associated with a corporate-level brand identity. - Cultural: refers to the collective feeling employees have in relating to the corporate brand including its historical roots. (= organisational identity). - Ideal: represents the optimum positioning of the organisation in the market at any given time. (= image and reputation). - Desired: lives in the hearts and minds of the corporate leaders -- the equivalent of the strategic vision. Methods and Data ---------------- 1. Corporate identity Also refers to the visual identity of the brand. - Brand-specific historical records are used to get an overview of the corporate identity (vision and strategy) and its development. Semi-structured interviews, storytelling and heuristic analysis are used to gather these insights. - Measuring and comparing how the visual expressions reflect the positioning of a brand relative to the competition. 2. Organisational identity A strong organisational culture is consistent over time, and the organisational values and norms are important. Several sources of a strong organisational identity are: style of top management, everyday organisational behaviour, organisational stories and myths, and embedded norms and values. Three perspectives on organisational culture: - Integration: functionalist perspective and the forces in the organisation oriented towards consensus and consistency. - Differentiation: interpretive approach. Cultural consensus exists within different subcultures/groupings but not on an organisation-wide level. - Fragmentation: a constructivist perspective. It is assumed that an organisation's culture can display a multitude of views. There is no consensus, and the relationship between manifestations of organisational culture is complex. Only a combination of the whole organisation, subgroups and individual levels of research will offer a complete overview of the drivers of organisational culture. Such as: symbols, power structures, organisational structures, control systems, rituals/routines/practices and stories/jargon. Qualitative methods (interviews/observations and even better interaction and immersion into the culture) to understand the detailed holistic descriptions based on intensive fieldwork. 3. Image and reputation When uncovering the formation of brand image and the mechanisms behind how image and reputation can be studied: - Perception: first, we absorb inputs with our senses, and then we perceive them. The process of meaning creation is where the brain identifies input patterns and recognises certain elements as being intertwined. - Cognition: mental images capturing relationships and ensuring recognition. - Attitudes: the general evaluations people make of themselves, other people, objects and issues. Emotions influence how people behave and can make people react (= consume). It is important to understand these units to maybe change consumption patterns. Managerial implications ----------------------- The drivers of corporate (visual) identity are top managers The drivers of organisational (culture and behavioural) identity are employees The drivers of image and reputation are all stakeholders. Detecting identity gaps between each element: Aligning identity gaps: - Stating: state the vision and identity of the corporate brand (who are we, and what do we want to become?). Articulating core values and identity behind brands establishes the corporate identity. - Organising: link vision with culture and image practices. How can we organise to achieve fit? Cross-functional structure and process changes establish the frame for developing the appropriate organisational identity. - Involving: involve stakeholders through culture and image. Engage employees in execution and involve consumer images. Get input from multiple sources. - Integrating: integrate culture and images around a new brand identity. Align the organisation behind the brand. Align the multiple identities across internal functions. - Monitoring: tracking corporate branding gaps and brand performance. To ensure commitment from employees in the long term, activities, events, and sponsorships are a good way to inspire them. These real-life experiences, rather than through communication, will make them share real-life experiences among employees and ensure that they will live the brand's values and organisational identity. Tutorial 4: Consumer-based Approach =================================== Main assumptions ---------------- Customer-based brand equity = the brand resides in the minds of consumers as a cognitive construct. The consumer is the main point of interest in this approach. They are considered the 'owner' of the brand. 1. The brand-consumer exchange and the cognitive perspective The marketer is very much in control of (linear) brand communication as the recipient of the message is assumed to understand it as intended by the sender. The dominant man metaphor is a computer wherein the human mind is supposed to process sensory data in much the same way a computer processes binary data. The [if-then logic] applies: if the marketer feeds the 'consumer computer' with the information, then the consumer will do as intended and choose the brand. A linear response to sensory input consumer brand choice is assumed. The consumer appears to be all-powerful in the brand-consumer exchange, but the consumer 'ownership' of the approach is paradoxical; even though the consumer 'owns' the brand, he or she is still treated as a generic entity that the skilled communicator is able to 'program' into intended action. Theoretical framework --------------------- 1. Supporting theory: cognitive consumer perspective We store knowledge in our memory, and when memory is activated, the spreading activity begins. Knowledge in memory consists of nodes and links and is structured into associative networks. Nodes are stored information connected by links in associative networks. Some nodes are stronger than others (some associations are stronger). Box memory representations - Direct or analogous representations: direct (non-verbal) sensory sensations such as, what does the brand look like or how does it feel? It includes stimuli of all senses. - Propositional representations: interpretations of the brand (symbolic meanings). Non-sensory, abstract brand meanings derived from the sensory brand experiences. - Linguistic representations: words and sentences used to express the brand's meaning and experiences. Repeated exposure to a commercial message is significant as this can lead to permanent memory nodes, memory is very durable. 2. Supporting theory: information processing theory of consumer choice Choice is a process, and consumers make many choices during the day, from important/big to very minor/small. The following factors influence this process: processing capacity, motivation, attention, perception, information acquisition and evaluation, memory decision process and learning. The 'man/computer' has limited processing capacity, which is why the marketer should be aware to make the most efficient communication. The human mind, therefore, chooses not to process all information. Box heuristics: - Lexicographic heuristic: 'I buy the least expensive brand'. - Familiarity heuristic: 'I buy the brand most familiar to me'. Especially in low-involvement categories, it is worth investigating which heuristics are typically applied in choice processes. Customer-based brand equity = the differential effect of brand knowledge on consumer response to the marketing of the brand. It is consumers' reactions to marketing actions that are in focus. Brand awareness: - Brand recognition: does the customer recognise the brand name? The consumer must confirm having had prior exposure to the brand. - Brand recall: more demanding as the consumer must recall the brand on the mention of a cue (e.g. product category). Brand image: the perception about a brand as reflected by the brand associations held in consumer memory. The (four) set of associations linked with the brand. Several types of associations are linked to brand image: attributes, benefits and attitudes. Attributes: - Product-related attributes: directly associated with the product could be the physical appearance of a car. - Non-product-related attributes: external aspects related to purchase, for instance. Four groups: price information, packaging, user imagery (impression of the type of person consuming the brand) and use of image (impression of the type of context of brand use). Benefits: - Functional: personal expectations of what the product can do for consumers. Corresponds to product-related attributes, but more personal evaluations (they are less objective). - Experiential: the sensory experience of using a brand. This provides variety for the consumer and satisfies hedonic consumption needs. - Symbolic: self-expression and the way we signal to others through consumption objects. Attitudes: - Favourability: the consumer's overall brand associations are more or less favourable than those associated with competition. Is the overall brand attitude so favourable that it will likely affect consumption behaviour? - Strength: the way associations spread in the associative web, activated by the brand as a node. Strong associations appear fast and demand attention. - Uniqueness: some central associations should ideally not be shared by competing brands. Unique associations are the unique selling points of a brand. Methods and Data ---------------- 1. Information-processing consumer perspective Input-output approach: Input factors are manipulated, and the change in the output of the process is then measured. Corresponds with the if-then logic. By testing consumers' reactions to different inputs, the best (most predictable) marketing action can be planned. Process-tracing approach: choice is seen as a process following explainable paths in consumers' minds. This approach aims to understand and explain this process. Different ways of understanding this: - Verbal protocols: thoughts are verbalised during a purchase process. - Prompted protocol: the shopping experience is video filmed, and afterwards the consumer explains which decision process they went through. - Matrix array: a matrix with as many factors of a choice process as possible. This method stimulates the examination of choices a consumer goes through, 1 by 1, leading to the final choice. - Chronometric analysis: an analysis of response time. By asking questions and measuring the response time to stimuli, the pace of memory and understanding how easily associations are retrieved is measured. 2. Customer-based brand equity Indirect approach: measures brand knowledge (brand awareness, brand image) by assessing its sources (consumers' associations). - Brand awareness: testing by asking what brand is on top of mind or if the brand name is recognised. - Brand associations: lay out the association maps (especially by asking what, how, why questions). Direct approach: consumer reactions to the marketing strategies of the brand are compared with reactions to the same strategies ascribed to a fictitious or unnamed brand. Managerial implications ----------------------- it is all about making the brand known to consumers, making consumers pay attention to the brand by choosing the right brand elements and positioning the brand through consistency in brand communication.  Step 1 is to listen to consumer-based brand associations, step 2 is to implement them and control brand communication. Building the highest possible degree of brand awareness and familiarity is crucial for a successful brand in the customer-based approach. The constant repetition of a brand can lead to permanent memory nodes. The consumer only pays attention to the incoming information that captures attention and starts a relatively easing spreading activity. Consistency is key, and once having established high brand awareness and the right congruent brand associations, it is assumed risky to change course. This is very similar to positioning. The human being has limited processing capacity, so marketers should repeat fine-tuned messages to establish a lasting mental image for the brand. Identifying the highest competitor and investigating if you have a positive or negative position, then conducting a comparative analysis and formulating the brand strategy. Positioning is the strategic process of establishing a brand's identity in the minds of consumers, highlighting unique qualities and benefits that set it apart from competitors. It involves defining a brand's value proposition---what it offers and why it's relevant---so that it occupies a specific, desirable place in the consumer\'s mind. Positioning ensures the brand aligns with consumers\' expectations and appeals to their values and desires. By focusing on consumer perception, companies create a positioning that resonates emotionally, which can drive loyalty and strengthen brand equity. Box managerial guidelines - Adopt a broad view of marketing decisions. - Define the desired knowledge structures. - Evaluate alternative tactical options regarding communication channels. - Take a long-term view of marketing decisions. - Employ tracking studies over time. - Evaluate potential extension candidates. Tutorial 6: Personality Approach ================================ Main assumptions ---------------- It is assumed that consumers' need for identity and expression of self is a key driver of brand attitudes, choice and consumption. Consumers are believed to also -- apart from the physical and functional characteristics of a brand -- consume brands due to the symbolic benefits provided by brands. It is assumed that if these symbolic benefits are expressed by imbuing the brand with a human-like character, then the brand will be strengthened significantly. The thought behind this is that the brand becomes more relatable when it is portrayed as a personality. 'Brand personality and brand congruity' = the use of brand personality as a symbolic signal or source of self/identity construction can be based on the brand personality itself or the personality of the ideal/actual users of the brand. Most consumers are homogeneous when it comes to the perception of the personality of brands, meaning that the majority has similar perceptions of the human-like personality dimensions and traits that can be used to describe a specific brand. Brand consumer exchange There is a continuous reciprocal, dialogue-based (interactive) exchange between the brand and the consumer; it revolves around the exchange of symbolic benefits. Self-congruity = The symbolic benefits (brand traits) are evaluated to the extent by which they contribute to the consumer's self-expression/construction of identity. The link between brand personality and the self-image of the consumer. Theoretical framework --------------------- 1. Supporting theory: personality See core theme for Big Five in brand management framework. 2. Supporting theory: consumer self Material possessions are an extension of our identity and are defined as an important part of the so-called extended self. The extended self is, hence, the extension of self that humans produce through their relations with other people, family members, achievements and finally, our possessions. Over time, old possessions become less interesting, and consumers will seek new ones. Possessions are also used to express self to others. - Attributes: tall person or appreciative of family values - Narratives: linked to key events in life structured as stories. Layers of consumer self Individual self: objects are consumed because they carry a symbolic significance for the consumer on an individual basis. - Actual self: authentic representation of self. - Ideal self: representation of consumer aspirations and dreams of something that the consumer would like to become. Social self: the expression of self to others. Brands are consumed to either demonstrate belonging or distance to certain social/cultural groups. - Outgroup: uses the brand to demonstrate that they are not part of or don't support the group. - Ingroup: consuming certain products to demonstrate belonging to or support of certain groups. 3. Supporting theory: self-congruity congruence Self-congruity in three steps: 1. Consumers form associations about brands that can be related to their self (in brand personality personality traits). 2. Consumers' representations of self are activated (either actual, ideal or social self). 3. Consumers engage in matching process between their perception of associations derived from the brand and their representation of self (determining the match between brand personality and consumer self). This process is important for consumers' formation of attitude, emotional attachment, brand choice and loyalty. The development of self-congruity is a dynamic two-way process, therefore is brand personality two-fold as is consists of how the brand shows its personality and how the consumers perceive it. Brands are used in multiple ways: - Ideal self: brand is used to enhance a dream or aspirations (sometimes hard to live up to). - Actual self: brand is used to enhance their self-image. - Social self: brand is used to fit with a group or to not fit with a group (in- or outgroup). Actual self is most important for brand attachment, therefore smarter for a brand to connect with actual self (authentic brand). 4. Core theory: brand personality Brand personality is made up of three key theories: - The Big Five from human psychology & brand management (personality) - The concept of self (consumer self) - Th matching mechanisms between brand personality and self-brand (=self-congruity) The Big Five of brand management = five major groupings of personality traits consumer associate with brand and conclude that brands also have unique personalities. The personality traits describe characteristics that people associate with each brand personality dimension. These traits should be reflected in the attributes and behaviour of the brand. Consistency and durability are paramount. Dominant personality traits = explanation of how the dimensions can be expressed in the communication of a brand personality, therefore emphasising certain traits and behaviours. Consumers automatically project humanlike personality traits to brands. Methods and Data ---------------- Scaling = the process of measuring or ordering entities according to the attributes or traits that characterise them. In the personality approach they are used to determine the nature and strength of consumers' attitudes or opinions towards a specific brand personality. Scaling techniques - Nominal scales: the weakest form as they are only there to categorise or label, the number has no meaning. - Ordinal scales: more structure by rank-ordering them in terms of characteristics. Customer satisfaction from 1 o 5 for instance. It tells us something about the direction or relative standing. - Interval scales: numbers indicate the magnitude of difference between items, there is no absolute zero point. For instance, assigning brands according to the highest preference (highest number is the one you like most, lowest number is the one you like least). - Ratio scales: most powerful and includes all previously mentioned scales. Numbers have an actual meaning and there is an absolute zero point. Examples: age, income, price, costs, sales revenue, sales volume, market share. Studies of self-congruity are often done by using a scale, where consumers rate their perceptions of own self according to the personality characteristics of the brand. These quantitative methods may not be the best survey tool for capturing the unconscious aspects of people's symbolic consumption of brands. Qualitative research is perceived to be stronger as they are used to gain a deep understanding before doing quantitative research. Conducting research with mixed methods is the best way to go. Managerial implications ----------------------- We have learned that the personality approach assumes that brands are consumed because they contribute to consumer construction and expression of identity and that consumers automatically project humanlike personality traits to brands. The goal of brand personality is to describe a mix of perceptual reality from the consumer perception -- they should reflect the way the consumers feel about the brand rather than just expressing how the company would like the consumer to feel. The creation of brand personality consists of the following steps: - Identify personality: determine personality dimensions and traits fit and develop a brand personality statement with these traits characterising the brand. - Make it appealing: analyse the consumer self-brand exchange, adjust the statement if consumers are to use the symbolic attributes of the brand differently. - Understand target groups: get this right from the beginning, early adopters as this can have an enormous impact. - Align personality of brand and consumer: gather data and analyse the extent to which the brand is congruent with consumers' self and align the personality accordingly. - Develop the communication platform: choose communication channels that support the developed brand personality. Early adopters are critical for the alignment of brand personality because they are the group of consumers whom other consumers will identify with and use as a measure of the authenticity of the brand personality. This process takes place because consumers\' self-expression has a social dimension, where consumers seek inspiration from reference groups for brand consumption and use brands to demonstrate belonging to certain reference groups. Early adopters can be used as a control group to ensure that the brand expresses desired personal traits. If early adopters display personality traits that are similar to or in line with the brand\'s personality, the brand personality will be reinforced and strengthened, or if they aren't identical, the brand personality is weakened. Sources of brand personality = Consumers' perceptions of a brand are formed and influenced by all the direct and indirect contact moments with a brand or through other consumers. - Direct sources: the set of human characteristics associated with the stereotypical brand user (company employees, CEO and brand endorsers), they are always person-based. - Indirect sources: all decisions made about the functional, physical, and tangible aspects that can be experienced by the consumer (visual style, price, distribution and promotion).  Dimensions Traits Behaviour Brand personality and consumer-brand relationships are closely linked, with the brand's personality shaping its interactions and the depth of its relationships with consumers. Relationships with sincere brands deepen over time, and relationships with exciting brands have the evolutionary character of a short-lived fling. Research highlights the risks of mismatches between brand personality and behaviour, emphasising the dynamic nature of these relationships. Effective brand management requires aligning personality traits with consumer expectations and ensuring consistent delivery to strengthen relationships over time. Tutorial 6: Relational Approach =============================== - In the context of the relational approach, how are reality and validity defined? - Describe the difference between life themes, life projects, and current concerns. - The customer-brand relationship can take many forms. Choose three forms and describe them using your examples. - Which factors influence brand relationship quality? - In which research tradition is the relational approach grounded? Which research methods are used under the relational approach? - Should you as a researcher attempt to base your study on as many questions as possible? - How should you avoid becoming the enemy in the eyes of the consumer? - Explain why the relationship approach indicates a paradigm shift. - Is the relational approach equally applicable to products and services? Are there specific industries where the relational approach works better than in others? Main assumptions ---------------- The relational approach is grounded in phenomenology (qualitative research tradition emphasising the assessing of an 'inner reality' and the validity of 'lived experience'. It focuses on the inner world of people, not the outer world. Meaning = stems from the inner reality, life and identity of the consumer. Information = external stimuli to the consumer. Phenomenology does not perceive consumption as a behavioural response to information (external stimuli) but as a meaning-directed behaviour driven by emotions, feelings and fantasies). This is the first meaning-based approach. The way phenomena are perceived by the consumer is the real-world reality, even though cameras or video tapes can prove otherwise. If the consumer experiences something a shopping experience as hurtful, the shopping experience was hurtful, even though witnesses are proving that no harm was done to the customer. There is a shift in how the consumer is understood in comparison to the consumer-based approach, wherein the information-processing perspective is explained. The focus is not on the mere transaction or the exact moment of choice but on the intricate meanings that lie behind consumption choices. The consumer's whole identity (as perceived by the consumer himself) is to be understood if one wants to gain insight into brand consumption. The brand is not the main character but merely a factor like many others. Research also considers consumers' individual life worlds, social interaction with other consumers and cultural context. The relational approach is concerned with understanding the identity project of consumers. It is important to notice that it is the 'individual' identity projects that are investigated in this approach. The cultural approach looks at the collective identity. (Maybe relational = individual self, cultural = social self??? From personality approach) Brand consumer exchange the brand relationship theory is based on a dyadic brand-consumer relationship, implying an equal exchange between brand and consumer. Both parties contribute to brand value creation, which takes place in an ongoing meaning-based exchange. The brand-consumer relationship is a never-ending process, influenced by the same parameter changes in human relationships. Theoretical framework --------------------- Applying the relationship metaphor to a brand-consumer construct requires an abstraction towards regarding the brand as something human. 1. Supporting theory: animism Animism: the human propensity to endow inanimate objects or mental constructs with human characteristics. Brands can be animated, humanised and personalised. 2. Supporting theory: (human) relationship theory Relationships are constituted of our continuous reciprocal exchanges between interdependent relationship partners. For a relationship to exist, active interchanges between relationship partners are required. Relationships can be described as purposive because they add and structure meaning in people's lives. The meaning added and structured by relationships is of a psychological, sociocultural and relational nature: - Psychological: brands are used to solve this - Life theme: the core theme of our life, deeply rooted in personal history, difficult to verbalise and fundamental. Example: free vs not being free. - Life projects: fluctuate more than life themes. Changes in circumstances, life cycle, and relationships are influenced by the construction, maintenance and dissolution of key roles in life. the most significant choices in our lives, education, profession and family priorities. - Current concerns: most practical relationships as they are directed toward the completion of everyday tasks. Example: hairdresser, employees at child daycare. - Sociocultural: age, life cycle, gender, family/social network and culture all influence how consumers approach relationships. Relationships change as life does. - Relational: all relationships are part of a network of other relationships. Any relationship is affected by contextual influences. Relationships grow with us, adjust to our changing lives and influence the changes in our lives as well. Relationships are process phenomena as they are constantly changing. In sum, relationships add and structure meaning in our lives. Remember that the meaning is of a psychological, sociocultural and relational nature. Furthermore, relationships never stand still and are influenced by an infinite number of contextual factors. Relationships take place between human beings. However, since people tend to endow brands with human-like personalities, the characteristics of a relationship can be applied to brands as well. 3. Core theory: brand relationship theory Some brand relationships last all life and express some of its users' core values and ideas; others mean a lot (the consumer displays brand loyal behaviour), but their consumption changes as life progresses, while others deliver on current concerns without being a fundamental part of the consumer's consumption pattern. 15 different relationship forms wherein relationships are categorised and their characteristics. Two different kinds of relationships with distinctively different relationship norms: - Exchange relationships: economic factors with which people in the relationship expect money in return for a favour or a comparable favour. - Communal relationships: social factors with which money I return is not expected and benefits are not compared. These relationship norms should not be mixed as this harms the brand-consumer relationship. In this, the brand is evaluated as a potential relationship partner similar to a human member of society. Certain relationship norms are identified in a brand relationship, as they would be in a human relationship. People keep track of the benefits they receive and the costs they incur to decide whether this relationship delivers what they expect it to. Brand relationship quality focuses on the quality, depth and strength of the consumer-brand relationship. Six important factors: love/passion, self-connection, interdependence, commitment, intimacy and brand partner quality all influence the durability and quality of the relationship. The relationship is meaning-based, reflecting the reciprocal nature of a relationship. The relationship quality is an ongoing interplay between actions by the brand and the consumer. Relationships are constantly changing as the process phenomena they are. Contextual changes, as well as changes in the relationship per se, determine the stability/durability of the brand-consumer relationship. Methods and Data ---------------- Phenomenological (in-depth) interviews and life story methods where the participant's own statements on life transactions and so on are recorded and intertwined with other statements to deepen the holistic understanding of the consumer's life world. Depth is preferred to breadth when using this type of data collection. Memory elicitation method This discusses earliest memories (EM) and defining memories (DM) to gain access to really deep and instrumental insights into layers of consumers\' inner realities. People tend to reconstruct their EMs to fit the values and ideas of their adult self, they tend to be more of a reflection of their adult self than a truthful memory. Managerial implications ----------------------- The personality of the brand, as well as the norms and values of the consumer, strongly influence the evaluation of the brand's actions. By investigating the meaning consumers ascribe to certain brands or consumption objects, one can create meaning-based segmentation, opening up for meaning-based brand management based on insights other than traditional segmentation. The opportunity to go beyond brand loyalty is there due to the chance to develop a relationship. With the data collection methods, the marketer has a risk of information overload. Not asking if the brand is consumed continuously rather ask how and why. Tutorial 7: Community Approach ============================== Main assumptions ---------------- Web 2.0 = the move from servers and networks to applications, services and social interactions with users creating content as opposed to developers and marketers. The brand communities are social entities that reflect the brands in the day-to-day lives of consumers and the way in which brands connect consumers to brands and consumers to consumers. 1. Brand-consumer exchange -- brand triad The triadic brand relationship means that there is social interaction among dedicated brand consumers, and this creates brand value. The social benefits experienced by consumers in brand communities add significantly to brand loyalty. Community consumers are extremely loyal and enthusiastic, but at the same time, communities of consumers are also autonomous consumers capable of collectively rejecting marketing actions. Many of the advantages associated with consuming the brand are created/enhanced among the community members, leaving the marketer with limited options for influencing brand meaning. This shift in negotiation power influences the creation of brand meaning and brand equity as the negotiation primarily takes place on consumers' terms. Communities are difficult to manage as consumers can 'hijack' a brand with meaning that the marketer never intended. 2. Sociocultural perspective Ethnography = focusing on the consumer as a cultural player in a social setting using the consumption experience as the source of important personal social experiences.  Theoretical framework --------------------- 1. Supporting theory: community theory Characteristics of types of brand communities: - Consciousness of kind: members feel an important connection to the brand but a stronger connection towards each other. They feel like they know each other even though they have never met. Legitimacy (feeling like other members are there for the wrong reasons) and oppositional brand loyalty (sharing a dislike for competing brands). - Shared rituals and traditions: shared consumption experiences with a brand. Storytelling is a strong aspect of creating and maintaining a community - Sens of moral responsibility: a sense of duty to the community as a whole. It produces collective action and contributes to group cohesion. Purpose: integration and retention of members and the assistance of members in the proper use of the brand. If these are present, a community exists. Before this, communities were geographically bound. 2. Supporting theory: subcultures of consumption See core theory 3. Core theory: the brand community - Brand fests: the proactive marketer establishes consumer interaction that can facilitate the evolvement of a brand community. Often used for recruitment of new members, while the existing communities typically consist of die-hard brand enthusiasts. - Community brands: no marketer exists, but still, all mechanisms of the community approach apply, Wikipedia, for instance. - Brand communities: typical brand communities run by enthusiasts, as we know them.  These are very much influenced by subcultures of consumption (= a distinctive subgroup of society that self-selects based on a shared commitment to a particular product class, brand or consumption activity. Markers of a subculture are: - Hierarchical social culture - Ethos manifested in shared beliefs and values - Unique jargon and rituals - Unique modes of symbolic expressions Differences between subcultures of consumption and different types of brand communities: Subcultures of consumption - Brands have a fixed meaning and are delivered from consumer to consumer. - Members are more individually focused on the transformation of self. - Members tend to define themselves in opposition to the broader culture. - More demanding. Brand communities - Brand meaning is socially negotiated. - Social constructionist perspective - Does not define itself in opposition to the broader culture. - Brand communities do not typically reject aspects of the surrounding culture's ideology; they embrace them 90-9-1 principle 90% are passive 'lurkers', 9% are 'contributors' posting and participating moderately, and 1% are 'super-users' and produce the major bulk of community content. Brand triad is still applicable as you are influenced by or actively participate in consumer-consumer communication. A shared co-authored brand without strong ties among consumers. Brand publics result from an aggregation of many isolated expressions that have a common focus. Contrary to brand communities, they do not build on sustained forms of interaction or any consistent collective identity. They are online co-authors of the brand that every marketer must consider daily. Brand communities can be broken down into three groups based on how much they relate to the brand. - Pools - Webs - Hubs Web 2.0 and social media The reality of the original idea of brand community has been overtaken, and the potency of it has been amplified tremendously by a world transformed by Web 2.0 and social media. WOM and crowdsourcing are central aspects of understanding the potential of the community approach. The nature of different 'online creative consumer communities' has been divided into four types based on two discriminators: 'collective innovation orientation' (very goal-oriented vs community-oriented) and 'collective innovation concentration' (few specialised members vs many less-specialised members). Methods and Data ---------------- Qualitative and quantitative research methods. Quantitative: the spread of online WOM campaign Qualitative: [Ethnography] is a research method that studies people's behaviours, cultures, and social interactions in their natural environments over an extended period. It is often used in marketing to understand consumer behaviour and how individuals connect within communities. There are almost no limitations with this type of research. A more modern (online) version is netnography. [Netnography] = the online version of ethnography, that does community research online. Used for gaining insight into internet-shared brand meaning on community websites and can also be used in combination with a more traditional ethnography research design. Five main characteristics: - Naturalistic: data collection takes place in the natural environment. - Immersive: participation is key, the researcher must become a member. - Requires the ability to translate inside information into valid objective data and creative skills to convey the intense meaning of social life. - Myriads of methodologies: interviews, observations and quantitative data. - Adaptable: the study needs to adapt to the nature of the (digital) social world under investigation. Managerial implications ----------------------- Communities were often built around high-involvement brands, brands threatened by competition, expensive brands, brands with considerably low maintenance costs or very technical/complicated brands. Now, it is also possible for low-involvement brands. In the case of these not-so-obvious brands, a community should be based on a deep understanding of the consumption context rather than the brand itself. The marketer should be aware that the community members don't like intentional marketing and the feeling that they are being spied on. The party-crashing brand manager is met by and with: - The social collective: Web 2.0 is a powerful source of social collectives. Likeminded consumers can seamlessly connect to share and create meaning in all areas of life. - Transparency: examples of companies not being able to hide unwanted information are countless - Criticism: the democratic access to publicly evaluating every action of any company has created a dramatic shift in the power relationship between marketer and consumer. - Parody: friendly jokes or highly political online attacks on brands and their communication. The marketer is advised to adopt a behind-the-scenes approach. Caution and discreet presence are essential. The social interaction around the consumption of the brand is that creates brand loyalty and contributes to the building of brand meaning. Traditional advertising is more effective when it comes to brand building and customer acquisition (start-ups and small companies), effects which are amplified by brand-to-consumer social messages. Traditional advertising also stimulates the volume and valence of the customer-to-customer social messages. [Echoverse] = a holistic system of reverberating (continuing and serious) relationships. It has three actors: - Firms: social media posts, advertising and press releases - Consumers: online WOM, attitudes and behaviour - Traditional news media: volume and valence (power) Managing an echoverse is all about creating and amplifying the right echoes between the chosen sources of communication. It is also about being open to adjusting the focus of the echoverse to a rapidly changing world, making online marketing increasingly a brand communications centrepiece. The ownership of the brand is severely challenged (or changed) by this approach. Communicating to and with groups of customers changes the game: 'homo connectus' is never alone and is, therefore, a desirable friend and a terrifying friend. Consumer activism and collective rejection of marketing activities are great challenges for marketers.\ Homo Connectus = the ability and need to be connected (online and with technology is this realised). He participates in an infinite number of meaningful exchanges with an infinite number of networks. Brand communities are not managed as they come into existence outside corporate control but have been game-changing forces and, as such, something you have to consider -- either as a collaborator, a competitor or a new medium. Many of the community brands are so-called platform brands, simply facilitating online interaction among people. Finding the right balance between the networked, coauthored brand and the stable brand is carefully communicated by the marketer. The right mix of stable and unstable elements is essential and will be different from company to company and brand to brand. Neither selling nor recruiting new members should be attempted, and managerial discretion is key. The focus should be facilitating the sharing of consumption experiences and value-creating practices between consumers. Tutorial 8: Cultural Approach ============================= Main assumptions ---------------- Marketers can deliberately use cultural forces to build a strong brand (ultimately brand icons). It is consumer culture rather than individual consumers that is researched in the cultural approach. Brand icon = brand that have managed to integrate themselves in culture more skillfully than others. In contrast to research in the community approach, this focuses on brand co-creation where brands are not the central focus' thus, it is necessary to unpack the meanings and sociocultural processes that continually problematise and ensure a brand's legitimacy to its various consumer groupings. Consumer Culture Theory (CCT) explores how consumers\' actions, the marketplace, and cultural meanings interact. Unlike traditional views that focus on national cultures (like Danish or American), CCT examines the diverse and overlapping cultural groups and meanings shaped by globalisation and market capitalism. It highlights how people from different backgrounds interpret and engage with brands in unique ways. The cultural brand perspective adds the exchange between narco-level culture and brands to the picture. Marco-level is the social culture; it applies findings for the culture around us to branding. The identity approach also mentions culture, but this is micro-level as it only touches upon organisational culture. Through common understandings (specific meanings and values), a culture exists. 1. Brand-consumer exchange The consumer is assumed to be embedded in and influenced by the surrounding culture. the collective brand meaning creation is important and relevant to the consumer: Homo means, or market man is deeply embedded or trapped, depending on the pov in consumer culture (the consumer of this approach). Created from the interaction between: - Technologies of product: allows us to transform and manipulate things. - Sign systems: allows us to use meanings, sybols or significations. - Power: direct the conduct of individuals - The self: allows us to affect our way of being -- reach a certain state of being. The role of the marketer implies a bird perspective, and brand value is created through playing an active role in mainstream culture. The brand is subjected to social and cultural change and thereby influenced by changes completely outside the brand manager's control. The marketer is not the only author behind brand meaning, but if the marketer understands the culture well, he can provide the consumer with the appropriate web of cultural meanings. So, the role of the marketer is to endow the brand with cultural meaning. Theoretical framework --------------------- 1. Supporting theory: cultural consumption Brands are cultural entities, storied products able to tell relevant, interesting stories instead of being restricted to commercial communication.  It is important to notice that cultural consumption is not about the consumption of cultural objects (books, music), but it is applied to all consumer goods that are regarded as equal circulators of meaning. The cultural meaning is mobile, flowing and always in transition. Meaning is transferred from the culturally constituted world into consumer goods and through the consumption of goods integrated into the lives of consumers. So, cultural meaning is integrated into the lives of consumers through consumption. Consumers are part of a culture (a man, a woman, middle-aged, elderly, a parent), and because of this, they consume the cultural materials that fit with this. They realise the notions of their own life. Semiotics -- the study of signs and symbols in communication as they are considered to be able to communicate meaning differently than the word or picture itself. The interpretation depends heavily on what culture the consumer belongs to. 2. Core theory: cultural branding Brand icon = an identity brand coming close to the identity value of a cultural icon. A brand whose value to consumers derives primarily from identity value. Identity value = the aspect of a brand's value that derives from the brand's contributions to the self-expression of the consumer. Identity brands contain very high value, but brand icons have the greatest value of all the brands in that industry such as Apple and Nike. Or maybe not even in the industry but they provide such a value to the consumer that they are considered a brand icon. What makes communications of iconic brands stand out: - Target a cultural contradiction: cultural branding works when the brand's stories connect powerfully with particular contradictions in society. - Act as a cultural activist: icons act as cultural leaders, as activists encouraging people to think and act differently through their stories. - Create original expressive culture as an artist: managed to provide their own unique visual expression and provide consumers with something entirely new and original. Lead the way and not follow trends. - Develop an authentic populist voice: the brand must display a deep understanding of the pov it represents. Perceived as a credible representative of a non-commercial place (subculture, social movement). Mind-sharing branding creates red oceans, while cultural branding can create blue oceans and is proposed to be a better strategy than trying to grow traditional innovation. The culture strategy has a six-stage strategic framework, interpreting the findings from 'How Brands Become Icons'. 1. Map the category's cultural orthodoxy: get an overview of the industry\'s cultural expression (myth, ideology and cultural codes). 2. Identify the social disruption that can dislodge the orthodoxy: get a hold on the conflict in society, here you find the changes that can potentially change the ideology of the industry. 3. Unearth the ideological opportunity: unearthing the identity projects of the relevant consumers (look for collective desires and anxieties). 4. Cull appropriate source material: gather relevant materials to energise the strategy. Cultural expression lurks in social movements, subcultures and media myths. 5. Apply cultural tactics: powerful tactics have now been established. 6. Craft the cultural strategy: cultural briefs are different from traditional branding briefs, and briefs are full and detailed descriptions of the cultural strategy (= detailed documents that specify nuanced direction in terms of ideology, myth and cultural code. In cultural innovation, details matter. Methods and Data ---------------- Semiotics -- the study of signs and symbols in communication as they are considered to be able to communicate meaning differently than the word or picture itself. The interpretation depends heavily on what culture the consumer belongs to. Commercial communications (logos, advertisements, print ads, package designs and shopping malls) are the object of study. The object should be made strange and unfamiliar to go beyond meaning. Semiotic codes should be then decoded and the intertextual strings and signs deconstructed. intertextuality is an important aspect in semiotics. The commercial message (the brand in this case) is regarded as a cultural 'text' like other cultural expressions. Intertextuality is the idea of texts referring to other texts. For instance, a cosmetics brand signs a famous actress as their face, the brand becomes related to the movies the actress has starred in these movies are linked with their cultural 'texts', such as the book behind the script, other actors and the famous director who once won an Oscar and so on and so on. Other data collection methods are: - Ethnography: requires immersion and no delimitations regarding data sources. The researcher is supposed to participate in consumption practices and not delimit himself from any kind of data source. - Phenomenological interviews: Phenomenological (in-depth) interviews and life story methods where the participant's own life stories are recorded and intertwined with other statements to understand the consumer's life-world and their use of brands. - Case methods: a relatively small group of participants is studied closely through loosely long, structured interviews and observations in their homes, for instance. Mirco-level data (people's stories about their everyday lives) is used to investigate macro-level constructs. The methods and data seem to be similar to other approaches, but the one main difference is that this is conducted on a macro level. Doppelgänger brands = an assembly of the disapproving negative stories or images of a brand circulated in popular culture in a loosely organised network of consumers, brand activists and opinion leaders. No logo = a book focused on branding and addresses the deeds and misdeeds of big multinational brands. It describes movements in resistance to consumerism and big brands. This is an attack on branding as it questions whether the iconic brands are selling something valuable or only empty images and promises. Human desires are manipulated through advertising; thereby, an authentic life is no longer possible. Managerial implications ----------------------- The brand icons are the champions of the post-modern branding paradigm (the valuable branding techniques since 1960). The pressure and criticism they are exposed to by the anti-brand movement is the beginning of the paradigm shift. Changes in consumer culture have led to changes in the marketing function, and branding techniques have changed accordingly. This creates opportunities for marketers if they understand emerging new principles by looking at the major differences between old and new. Citizen-artist brand = As consumers peel away the brand veneer, they are looking for companies that act like local merchants, as citizens of the community. The way companies treat people when they are not consumers. It is supposed to accommodate the new requirements of an increasingly critical consumer culture by supplying the relevant cultural material (already skilfully done by iconic brands) and acting as a responsible citizen with CSR. Not only is the brand supposed to deliver potent cultural material, but it also leads the way towards new dimensions in corporate citizenship. Regarding post-postmodern branding, the brand should act as a citizen-artist, meaning being able to deliver relevant cultural material while shouldering its social and civic responsibilities. Tutorial 9: Sensory Approach ============================ **Explain the idea of brand touchpoints. Why and how can brands manage these** **touchpoints?** **What are the fundamental components of a sensory identity? Discuss examples of brands with a clear visual (sensory) brand identity.** **Why has sensory marketing become so popular?\ ** Main assumptions ---------------- A sensory brand engages the consumers' senses and affects their perception, judgment and behaviour, basically consumer behaviour. The approach is all about bodily perceptions of brands, how we experience brands on a sensory level, and how these biological sensory experiences lead to the mental constructs we have thoroughly described in the previous approaches. Sensory marketing uses this to develop deep connections between brand and consumer. 1. Grounded cognition Cognition = computation or information processing of amodal symbols in a modular system. Refers to how the brain processes and interprets information, much like a computer. In simpler terms: cognition is how the brain works like a computer, using different parts to process abstract information. \- Computation or information processing: The brain takes in data (e.g., sights, sounds, or thoughts) and processes it to make sense of the world. \- Amodal symbols: The information isn't tied to a specific sense (like sight or sound) but is abstract and symbolic. For example, understanding the concept of "dog" doesn't rely on just seeing or hearing a dog---it's a broader idea in the brain. \- Modular system: The brain works in specialised areas (modules), each handling specific tasks, like language, memory, or reasoning. All approaches before this were based on mental studies, this approach focuses on the body of the consumer and how it reacts to brands. So, this cognition takes place in a different brand system than the sensory system. All mental processes involve sensory stimulation and the body plays a vital role for basic psychological functions including the processes involved when perceiving, purchasing, consuming and forming an attitude about a brand. 2. Consumer perspective: homo sapiens The perspective of homo sapiens refers to the consumer as a biological being where the five senses deliver sensory inputs as the sources for a person's experiences, affections, cognitions and behaviours. The psychology consumers use to process and interpret is that of cognition and perception. Cognition refers to the mental process by which sensory stimuli are received, organised and interpreted and generates different responses based on the previous experiences of the individual. 3. Brand-consumer exchange Priming = the consumer is manipulatable as he cannot always control sensory behaviour (hungry/craving). Prosumers = the consumer engages himself in sensory experiences, thus co-creating with the marketer. Consumers are considered active, participatory and co-producers, which means that consumers' value is created and occurs in the identity-creation processes that form the basis of the actual consumer experience. So, consumers are co-creators of the brand experience on an individual level, and the process is linear rather than dyadic. Theoretical framework --------------------- 1. Supporting theory: brand experience Experience = value creator for consumers. Consumer value resides in the consumption experience. So, the value creation depends on the ability to deliver an experience either before, during or after the purchase of a brand. 2. Supporting theory: the five senses [Sight] Visual cues of branding are what we see and go into our brains. Visual properties determine the effect and consequence of these cues: - Geometrical: shape and geometry of visual features of a product, packaging or promotional material. Make a like between certain features with different shapes. - Statistical: how people encode numeric information presented graphically. - Temporal: how changes in visual cues are encoded and perceived. - Formats: digital or pictorial and how these differences in format affect consumer judgement. - Goal: the goal of the visual element (meaning or aesthetic pleasure). - Structural: structure between visual cues most commonly used in visual communication. - Other: variety of other cues such as colour, hue, placement, tone, strength, size, light and valence. When consumers are exposed to visual properties like any of these, three processes take place: attention, imagery and neural activation. [Hearing ] The role of sound is different from the other senses because sound is experienced and affects consumers more intimately inside their heads. Objects experienced through the sense of sight are perceived outside our heads and not as an integral part of the sensory experience. Two key impact areas: - Sound symbolism and language: non-musical sounds related to the name of the brand and product. How the sound affects other elements surrounding awareness, purchase or consumption of a brand. - Music: influences consumer affection, cognition and buying behaviour. Enhances the credibility of the shopping environment and affects consumer perception about price range and and even direct consumers to buy products within a more expensive price range. [Touch] - Instrumental touch: related to the purchase. - Touch to purchase - Touch non-haptic: involves another sense. - Touch haptic: touch it further (not involving another sense). - Hedonic touch: touch without aim, just for the experience. The ability to touch increases the psychological ownership and willingness to pay for a product. [Smell ] Scented products and, in some cases, ambience can significantly impact brand recall in terms of depth and longevity of brand memory. Scent can be part of the primary product attribute (perfume, deodorant) or a secondary product attribute where the scent is not the primary function but can play an important role in differentiation and product memory. Scent [stimuli] lead to an [emotion] in the organism (pleasant or unpleasant), leading to an attitudinal or behavioural [response]. But this only happens when the olfactory stimuli are congruent with the brand or service environment (coffee shop with a coffee scent) [Taste] Taste is limited as we only have a few chemical reactions, therefore highly influenced by other senses such as smell and sight. 3. Core theory: sensory branding The five senses are the consumer gateway that the brand must cross to leave an impact in the mind, form perception, and finally ensure a positive brand response. The product is merely an artefact; the brand is a collection of symbolic meanings around which it is possible to build the sensory experiences individual consumers strive for. Multisensory brand experiences = congruence between all/multiple senses simultaneously. A powerful technique for enhancing customer experience in product branding as well as in retail settings. Understanding how each individual sense can be used either alone or in combination with other senses to improve brand perception, store design and atmosphere. Methods and Data ---------------- 1. Self-reporting Consumers are exposed to sensory stimuli of some sort, and after that, they report on how they feel, what they prefer and how they rate the brand. Process: 1. Establishing a test laboratory setting 2. Exposing participants to the sensory stimuli in a controlled environment. 3. Asking participants how they feel or think about the experience. 2. Neural responses Evaluate how consumers respond to sensory stimuli by measuring neural responses to uncover cognitive neurophysiological responses with the use of technological equipment that measures neural response through biological measures. Compared to traditional methods, this can overcome the shortcomings of our ability as humans to express accurately what we feel and think when doing market research. Managerial implications ----------------------- 1. Brand experiences Senses are often tied together into so-called brand experiences. Multisensory brand experiences = an emotional and cognitive consumer response evoked by multisensory brand-related stimuli along an interactive, continuous and experiential value co-creation process. Stage an experience is a meticulous design where you can invite your consumers into four different 'realms' of an experience, and they will be active participants in the process of creating the experience. Consumer = prosumer in this context. - Aesthetic (presence): immersion and passive participation (museum visit). - Education (learning): absorption and active participation (ski school). - Entertainment (feeling): absorption and passive participation (concert of theatre). - Escapism (doing): immersion and active participation (rafting) Rules of thumb: - Theme the experience - Harmonise impressions with positive cues - Eliminate negative cues - Mix in memorabilia - Engage all five senses Brand experience consists of: - Sensory: how are we impacted by the sensory stimuli of the brand? - Affective: are we impacted emotionally? - Behavioural: is the customer engaged in physical actions by the brand? - Intellectual: to which degree does the brand make you think? Engaging the many aspects of a brand experience will lead to stronger brand-consumer connections, so it is important to activate all senses, the intellect, emotions, and the body of the consumer all at the same time. 2. Brand touchpoints Touchpoints are found between brands and consumers in all things big and small. A wheel of three circles: pre-purchase, purchase and post-purchase. Each of these phases contains a small or large number of touchpoints. - Pre-purchase: Consumers can be influenced by ads, websites, and WOM. - Purchase: hopefully ushering them into the next phase (online/offline retail environment, service, price). - Post-purchase: product experiences, follow-ups, experiences with company's support. The number of touchpoints is potentially infinite, and the wheel can be used for a) considering if the same/coherent identity is expressed through all touchpoints and b) developing new strategies.