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The internet has turned the tables on how consumers and brands engage
with each other. The internet is transforming branding strategies as well as
business models around the world. What was standard just a few years
ago is practically obsolete. For todays marketers, the old way of doing
business is unsustainable.
Consumers still desire a clear brand promise, enjoying the products and
services they value. What has changed is how and when the consumer is
influenced by a brand as it interacts with them at various touch points.
In the past, brands concentrated most of their efforts and budget into
building brand awareness, having consumers then open their wallets at the
point of purchase. And it worked pretty well until the growth of the
internet.
Touch points and consumers have changed in both number and nature,
requiring a major adjustment in a brands strategy and budgets, solely
based on where consumers are actually focusing their attention.
How Does Branding Affect Customer Behavior: The Five Key Stages
Successful brands understand and nurture the customer decision journey,
which is now composed of five distinct stages:
Paying Attention
Evaluation
Purchasing
Enjoying
Advocating
Because all brands are attempting to gain more Attention in a highly-
competitive world, most brands are losers in succeeding to gain an
abundant amount of consumer attention for their brand.
In the Evaluation stage, consumers now look to their peers and other third
party information to determine which brands on their list will be purchased.
It is at this stage when more brands lose out, as most do not have a
strategy to ensure that their brand is properly represented with high-quality
to assist the customer with their evaluation.
In the past, this stage was short and not that involved. But as the internet
grew in size and influence, so did grow the consumers ability to visit
trusted locations containing reviews, good or bad, videos from YouTube
commentators, and independent bloggers. All of these factor are now
shaping the brands identity; important factors not under the brands control.
Better, more in-depth evaluations of brands were being conducted online
by the consumer and this left most brands losing out on the consumers
interest.
With now even fewer brands left at the Purchasing stage, many of their
branding and sales strategies were weak with poorly designed packaging,
awkward pricing, or sales people who could not clearly explain the brands
features and benefits. Or the brands sales team simply failed to adequately
close sales.
After purchase, a deeper connection begins where the customer is
now Enjoying the product/service along with additional online touch points
with the brand. When consumers are pleased with a purchase, theyll
advocate it with word-of-mouth, creating consumer generated content. In
turn, Advocating invigorates a brands potential by now helping other
consumers to pay attention and evaluate the brand. And so a new
sequence of the customer decision journey begins with even more
potential customers, As we all know too well, would-of-mouth leads to a
brands best new customers.
Few companies have created the roles and systems needed to manage
their content supply chain and create a coherent consumer experience at
all 5 states of the consumer decision journey. And for those brands that
do adapt to how the internet has changed customer behavior, they will
dramatically grow market share in this new digital economy.
Rationale
The proposal is going to evaluate the causes and effects of branding and
how they are fashioned. This will be an evaluation of the types of features
and styles a company may use to come up with a brand. Some companies
brand through use of logos, names and, or slogans (Walker, 2008).
Companies choose considerably the different colors and designs they can
use for branding. There are reasons why different companies use specific
colors to represent their brands (Bleicher, 2012). The proposal will evaluate
the different significances placed on choice of branding symbols. This is
because different companies use different combination of branding choices
and technologies to come up with their own brands (Klein and Barber,
2011). The mode of evaluation of the effects of the different types brands in
the current world market and evaluate the combination of aspects and how
they have influence the customers. Of the brands that are in the market,
the evaluation of their shapes and sizes impacts on consumers will be
evaluated so as to inform the conclusion on the effects they have on
consumers purchasing decisions (Lury, 2004). Also of importance in the
research will be the evaluation of the uses of names and slogans in the
branding in different cultural settings. This will evaluate how different
cultures influence, through their preferences, choices of names and
slogans that are used to brand commodities.
Proposal objectives
This involves the may purposes of carrying out research on the effects
branding has on consumers purchase decisions. It evaluates all the
impacts branding have on the way a customer chooses to make decisions.
The objects of this proposal will be as follows;
Research questions
What are the most attractive branding features that can be used to create
brand of a new product in the market?
How do different cultures affect the choices of names, slogans or logos for
a new product in the market?
Hypothesis
The features of a brand reflect the culture of the people in the market
where that product is sold (Kumar, 2011)
Customer develop loyalty of products which interests them and attract other
customers to buy products
Theoretical Framework
Customers
view products
Display of
products
Branding
products
Invention of
Products
Customers
invite others to
buy
Customers
love products
Customers
become loyal
Customers buy
products
Methodology
Target Area
Target population
Sampling Procedure
The population for this research will be defined as the total industries
producing similar products within the world. Because of the large number of
companies producing similar products within the world, a small well
selected sample will be used to represent the larger population. The
selected sample will have all the characteristics of the other population
(Wang, 2008).
Various sampling methods that can be used are categorized as probability
or non-probability (Ardilly, and Tille, 2006). In probability sampling, every
member of the population stands a chance to be selected but still they have
a non-zero probability not to be picked. Some methods in this category
include stratified sampling, random sampling, and systematic sampling
(Bluman, 2005).
Survey tools
The research will use interviews and structured questionnaires which will
be administered to the customers of sample products around the world
(Neely, 2006). This will involve administering questionnaires on all
customers from different countries who buy similar products and from
different companies. The informants will involve all people who are at the
market place as well as those at their homes who have bought selected
products (Ind and Bjerke, 2007).
Conclusion
Brands serve several valuable functions. At their most basic level, brands
serve as markers for the offerings of a firm. For customers, brands can
simplify choice, promise a particular quality level, reduce risk, and/or
engender trust. Brands are built on the product itself, the accompanying
marketing activity, and the use (or non-use) by customers as well as others.
Brands thus reflect the complete experience that customers have with
products. Brands also play an important role in determining the
effectiveness of marketing efforts such as advertising and channel
placement. Finally, brands are an asset in the financial sense. Thus, brands
manifest their impact at three primary levels customer-market, product-
market, and financial-market. The value accrued by these various benefits
is often called brand equity. Our primary goal in this paper is to both
selectively highlight relevant research on building, measuring, and
managing brand equity and to identify gaps in our understanding of these
topics. We put considerable emphasis on the latter and suggest numerous
areas of future research.1 Five basic topics that align with the brand
management decisions and tasks frequently performed by marketing
executives are discussed in detail: 1) developing brand positioning, 2)
integrating brand marketing; 3) assessing brand performance; 4) growing
brands; and 5) strategically managing the brand. We then consider the
implications of this work for choice models. Finally, we present a simple
framework for integrating the customer-market, product- 1 For commentary
on the state of branding, see special issues of International Journal of
Research in Marketing (Barwise 1993) and Journal of Marketing Research
(Shocker et al. 1994). For a more exhaustive review of the academic
literature on brands and brand management, see Kevin Lane Keller (2002),
Branding and Brand Equity, in Handbook of Marketing, eds., Bart Weitz
and Robin Wensley, Sage Publications, London, 151-178. 2 market, and
financial-market level impact of brands and how the brand is created and
developed by company actions. BRANDING DECISIONS AND TASKS
DEVELOPING BRAND POSITIONING Brand positioning sets the direction
of marketing activities and programs what the brand should and should
not do with its marketing. Brand positioning involves establishing key brand
associations in the minds of customers and other important constituents to
differentiate the brand and establish (to the extent possible) competitive
superiority (Keller et al. 2002). Besides the obvious issue of selecting
tangible product attribute levels (e.g., horsepower in a car), two particularly
relevant areas to positioning are the role of brand intangibles and the role
of corporate images and reputation. Brand Intangibles An important and
relatively unique aspect of branding research is the focus on brand
intangibles aspects of the brand image that do not involve physical,
tangible, or concrete attributes or benefits (see Levy 1999). Brand
intangibles are a common means by which marketers differentiate their
brands with consumers (Park, Jaworski, and MacInnis 1986) and transcend
physical products (Kotler and Keller 2006). Intangibles cover a wide range
of different types of brand associations, such as actual or aspirational user
imagery; purchase and consumption imagery; and history, heritage, and
experiences (Keller 2001). A number of basic research questions exist
concerning how brand tangibles and intangibles have their effects.
Conceptual Framework
Borrowing the illustration of Simmons (2007), the conceptual
framework is constituted with four pillars. There are two dependent
variables (marketing communications and interactivity) and independent
variable (understanding customers and content). The framework is based
on the I-Branding or internet branding which can be also applied in the
retailing because it provides the intellectual interest and practical value in
marketing planners and systematic approach in selling.
Brief Review
In terms of branding literature, internet became the most common
tools to market the products and leave an influence on the consumers.
Because of the idea that the consumers are more interactive, the
manufacturers and marketers use the online environment to extend the
practice of brand management. In this case the process of consumer
choice expanded and the attributes of the product recorded and
represented in the memory of the consumers which will definitely play an
important in terms of buying.
Methodology
The applied method in the study is the use of survey and interview
which will give a comprehensive result regarding the objectives of the
study. In the first method, the survey will be conducted into the sample of
200 participants who are also consumers. The use of questionnaires under
the form of Likert Scale that can measure the importance of branding in
their buying decisions will help the researcher to understand the consumer
choice. On the second method, the interview will be conducted among the
managers, supervisors, retailers, and manufacturers of the products. They
will be asked about the importance of brands and the branding strategies
that might gain them a profit margin.
References:
Erdem, T., Swait, J., Broniarczyk, A., Chakravari, D., Kapferer, J-N., Keane,
M., Steenkamp, J.E., & Zettelmeyer, F., (1999) Brand Equity,
Consumer Learning and Choice, Marketing Letters 10(3) [Online]
Available at: http://leeds-faculty.colorado.edu/Chakrava/Published
%20Articles/Brand%20Equity,%20Consumer%20Learning,%20and
%20Choice.pdf [Accessed 23 September 2010]