BRANDING & CONSUMER BEHAVIOR STUDIES

SYNOPSIS Introduction to branding What is brand? Branding Essentials of a good brand Success of a strong brand Benefits of a strong brand Types of brands Reasons for branding Reasons for branding an individual product Condition unfavourable to branding Brand mark Functions Kinds of brand name Elements of branding Brand identity Brand image Brand position Brand equity

 Value of brand equity Advantages of branding To the producer To the wholesalers/retailers To the consumer Desirable conditions to branding Undesirable characteristics of brand Introduction to consumer behaviour studies Definition of consumer behaviour The birth of buyer idea Categories of buyer What is buyer behaviour? Importance of consumer behaviour Types of buyers Six Os approach Determinants of consumer buying behaviour Buyer behaviour model Outside stimuli Buyers black box Buyers response Factors influencing consumer behaviour Internal

 External Diagram for internal & external influence Why focus consumer value? Conclusion INTRODUCTION TO BRANDING
Branding is the process by which companies distinguish their product offerings from competition. Marketers develop their products into brands which help to create a unique position in the minds of customers. A brand is created by developing a distinctive name, packaging and design, and arousing customer expectations about the offering. By developing an individual identity, branding permits customers to develop associations like prestige and economy with the brand.

WHAT IS BRAND?
A brand is a name, term, symbol or design to identify the goods or services and to differentiate them from those of the competitors. American marketing association defines a brand as, the use of a name, term, symbol or design, or some combination of these, to identify the product of a certain seller from those of competitors . A brand identifies the product for a buyer. A seller can earn the goodwill and have the patronage repeated.

BRANDING

It is the practice of giving a specified name to a product or group of products of one seller. Branding is the process of finding and fixing the means of identification. In other words, naming a product, like naming a baby, is known as branding. Parents have children and manufacturers too have children i.e., products. As parents, the manufacturers also are eager to know the character and capacity of their products on their birth, but not on their names. Thus branding is a management process by which a product is named i.e., branded.

ESSENTIALS OF A GOOD BRAND

Robertson and others are of full view that brand names selected are simple and easy to pronounce, familiar and meaningful; and are different, distinctive and usual. There is no hard and fast rule to the selection of a brand name. Some of the essentials of a good brand are, 1. Brand should suggest something about the product purpose, quality, benefit, use, action etc. for example, tiger locks, godrej type-writer etc. 2. It should be simple, short and easy to pronounce and remember. For example, lux, hamam, Philips etc. 3. It should be unique, attractive and distinctive. For example, maggi, boost etc. 4. It should not be a general or common name. For example, kerosene, band-aid etc. such identification is dull and flat because of their over-use. It causes confusion in the mind of consumers. 5. It should be capable of being registered and protected legally under the legislation. 6. The brand is properly positioned. 7. The pricing strategy is based on consumers perception of value. 8. The brand name should be acceptable to the social settings.

9. It should be easy to advertise and promote. 10. Brand and trademarks must be suitable to markets, buyers and products. 11. It must be original. 12. It must have a pleasing sound to the ear, when pronounced. 13. It should be economical to reproduce. 14. It should not be offensive. 15. It should create a good image.

SUCCESS OF A STRONG BRAND

Brand success comes through differentiation. Buyers differentiate products based on specifications, delivery terms and quality. THE BENEFITS OF A STRONG BRAND ARE: 1. A strong brand name is companys most valuable asset. No one can take away the brand from the company. 2. A strong brand can command a premium price. 3. It helps the buyers in taking quick purchasing decision. 4. It creates trust and emotional attachment to your product and the company. 5. A strong brand will help your customers to trust you and your product, without even knowing the product features. 6. Your customers will automatically think you at first when they think of your product category. 7. A brand builds a good name for your product and the company.

8. A brand impresses the firms identity upon potential customers, not necessarily to capture an immediate sale but rather to build a lasting impression of you and your products. 9. A strong brand signals that you want to build customer loyalty, not just to sell product. 10. A strong brand will help your customers to trust you and create a set of expectations about the company.

TYPES OF BRANDS
Individual brand Family brand Company brand Combination device Private or middlemens brand

REASONS FOR BRANDING

It is an instrument for sales promotion in the market. It facilitates easy advertisement and publicity. It creates special consumer preference over the product. Sales can be increased through brands. It arrests the immediate attention of buyer. It differentiates the goods of a producer from the goods of competitors. It ensures standard quality and satisfaction to buyers.

REASONS FOR BRANDING INDIVIDUAL PRODUCTS

Advertising can be directed more effectively and linked with other communications programmes. Branding leads to a more ready acceptance of a product by wholesalers and retailers. The importance of price differentials may be diminished. Self-selection is facilitated a very important consideration in self-service stores. Branding makes market segmentation easier. Brand loyalty may give a manufacturer greater control over marketing strategy and channels of distribution.

CONDITIONS FAVOURABLE TO BRANDING

The product should be easily identifiable by a brand and lend itself easily to conspicuous marketing. The demand for the general product class should be large and strong enough to support a profitable marketing plan, involving additional promotion cost. The brand must be economies of large scale production, whenever additional production is undertaken as a result of expanding sales volume. The brand must carry through to the ultimate consumer. The quality of the product should be best and it should be easily maintained. There must be consistent and wide spread supply of the product.

 The ideal brand is the one which becomes universally well known but at the same time retains a clear and independent identify. The brand can command a premium price owing to the valuable psychological intangibles associated with its name.

BRAND MARK
It is a part of the brand which appears in the form of a symbol, design, or distinctive colouring or lettering. It is recognized by sight, but not pronounceable. It is designed to easy identification of product. For instance, the symbol of anacins four fingers, increment syrups giraffe, Murphy radios baby etc.

FUNCTIONS
Brand facilitates distinctiveness from the rival products in the market. Branded products possess individual identification. Branded goods create a satisfactory or standard quality in the minds of the consumers. Branding reduces the price comparison, because two similar items with two different brands may not be compared. Brand differentiates the product, and facilitates advertisement to be more effective and successful. Brands help or facilitate consumers shopping. Repeated sales are facilitated with minimum effort through brands. A good brand signifies prestige, ensures legal right, forms the basis for successful demand, creational activity, sales-stability, and widening the market area etc.

KINDS OF BRAND NAME

1. Descriptive name 2. Suggestive name 3. Arbitrary name 4. Coined name

ELEMENTS OF BRANDING
Brands are unique. Each brand has its position in the customers mind and delivers a set of values perceived higher than these of other competing brands. Looking at the fundamental nature of the brand management. Some elements of branding are, 1. Brand identity 2. Brand image 3. Brand position 4. Brand equity

BRAND IDENTITY
It refers to an insiders concept reflecting brand managers decisions of what the brand is all about. Brand image reflects the perceptions of outsiders, that is customers about the brand. Definition: aaker defines brand identity as, a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members.

According to kepferer, a brand is complex symbol and capable of conveying up to 6 meanings or dimensions. i. ii. iii. iv. v. vi. Physique Personality Culture Relationship Reflection Self-image

BRAND IMAGE
It is the key concept intervening between the brand and its equity. It is the driver of brand equity. The image of a brand can adjust brand value upwards or downwards. When the coconut oil is prarchute, its value moves upwards. This is the result of brand name. A brand exists as a complex network of association s in a consumer mind. Alexander proposed that types of brand association can be hard and soft and brand sub-images consists of three elements : image of provider, image of product and image of user.

BRAND POSITION
The manager needs to establish communication objectives and plan the creative execution strategy. The beginning of an execution strategy is the brand position statement. Brand position is that part of brand identity and value proportion that is to be actively communicated to the target audience. Creating a unique position in the market place involves the careful choice of

target market and establishing clear differential advantages in the minds of customers. This can be achieved through brand name and image, service, design, guarantees, packaging, delivery etc.

BRAND EQUITY
Brand equity is one of the popular and potentially important concepts in marketing that emerged in the 1980s. it has raised the importance of the brand in marketing strategy. Aaker defines brand equity in the following words, brands have equity because they have high awareness, many loyal consumers, and a high reputation for perceived quality, proprietary assets such as access to distribution channels or to patents, or the kinds of brand associations.

VALUE OF BRAND EQUITY

Brand equity needs to be distinguished from brand valuations, which is the job of estimating the total finance value of the brand. Certain companies base their growth on acquiring and building rich brand portfolios. The following are some of the methods of brand valuation, i. ii. iii. iv. v. vi. Brand contribution method Discounted cash flow method Market value method Inter-brand method Price premium method Brand goodwill method

ADVANTAGES OF BRANDING TO THE PRODUCER

Brand enables a firm to build reputation. It is a device by which a good image and goodwill are established. It facilitates introduction of new products, in a simplified process. It distinguishes products from rival firms and thus ensures constant returns. It is essential for sales promotion and building a demand. It widens the markets, through demand creation. It helps in reducing advertising cost. It brings repeated sales. It reduces the need for price comparison. Individuality of a product is established.

TO THE WHOLESALERS/RETAILERS
They require less time to get sold. Branded products pose less risk. There is a stabilized demand for the branded products. Branding aids in advertising and display programmes. Branding assist in increasing control over the market. Branding results the price comparisons and helps to stabilize price.

TO THE CONSUMER Brand distinguishes and differentiates the products of different producers. Identification is possible through brands; consumers are at ease while shopping. Consumer gets quality goods. Many people get satisfaction on certain brands, which are in great popularity. It assures quality and standard of the product. DESIRABLE CONDITIONS TO BRANDING There must be widespread supply of the products. The quality and standard of the products must be maintained regularly. Enforcement of product identification and differentiation by brands must be strictly
adhered to.

There must be enough demand from the general public. Brand must carry through the product to ultimate consumer, to be more effective. Product must have distinctive and special approach. UNDESIRABLE CHARACTERISTICS OF BRAND Brand is not likely to deceive or cause confusion. It should not be contrary to any law. It should not contain scandalous or obscene. It should not hurt religious sentiments. It should not be similar to the existing one.

CONSUMER BEHAVIOUR STUDIES

CONSUMER BEHAVIOUR INTRODUCTION
Businesses stay by attracting and retaining customers. They do this by engaging in exchanges of resources including information, money, goods, services, status, and emotions with consumers, exchanges that both businesses and customers perceive to be beneficial. WHEN COMPANIES ASK Who Are Our Customers? How Do We Reach Them? What Should We Sell To Them? What Will Motivate Them To Buy? What Makes Them Satisfied? They are asking questions that require sophisticated understanding of consumer behavior. The following provides a brief insight into the meaning and perspective of Consumer behavior as well as understanding why it is important to study consumers.

DEFINITIONS OF CONSUMER BEHAVIOUR

According to JF Engel, Consumer behavior can be defined as the activities and actions of people and organization that purchase and use economic goods and services, including the influence on these activities and actions. According to kotler and Armstrong, Consumer buying behaviour refers to the buying behaviour of final consumers-individuals and households who buy goods and services for personal consumption.

THE BIRTH OF BUYING IDEA

For instance, Mr.A owns a scooter. The scooter is causing dissatisfaction because of some defects or troubles in it. He decides to replace it with another scooter. He anticipates the idea of a trouble free and dependable scooter. He decides not to buy a scooter of the same made, because of the defects in it and lack of confidence. Thus a seed thought about a new scooter is born in him, the moment he thinks, I must replace the scooter, the buying idea comes up with thought of the benefits. And this lead to further thinking; what sort of scooter will give the benefits he wants. The benefits made the desire. He may prefer some scooter that he thinks that will be beneficial, talks to the people who own that particular make. He reads advertisements about the new scooters and he chooses one with all the possible advantages and which is wholly dependable. By this he wants to confirm his decisions. Here Mr. A is a prospective customer to the dealer.

CATEGORIES OF BUYER
There are two categories of buyers namely the individual buyer and the business buyer. Where the individual buyer buys things for his own personal and family consumption and the business buyer is a commercial buyer who buys things for manufacturing other products for reselling or for own use in running his enterprise. This distinction is substantial and it separates the two into two different entities. In buying motivation, attitude and purchase behaviour etc., of the two are different. These have been dealt with separately under the chapters a) Marketing Of Consumer Goods b) Marketing Of Industrial Goods.

WHAT IS BUYER BEHAVIOUR?

The wealth of products and services produced in a country make our economy strong. Almost all the products, which are available to buyers, have a number of alternative supplies i.e., substitute products are available to consumers, who make a decision to buy products. Therefore, a seller, most of his times seeks buyers and tries to please them. In order to be successful, a seller is concerned with 1. Who Is The Customer? 2. What Does Consumer Buy? 3. When Do Consumers Buy? 4. How Do Consumers Buy? 5. From Where Do Consumers Buy? 6. Why Do Consumers Buy?

A buyer makes a purchase of a particular product or a particular brand and this can be termed product buying motives and the reason behind the purchase from a particular seller is patronage motives.

IMPORTANCE OF CONSUMER BEHVIOUR

The field consumer behaviour studies deal with how individuals, groups and organizations select, buy, use and dispose off products and services to satisfy their needs and desires. Thus, according to Webster, Buyer behaviour is all psychological, social and physical behaviour of potential customers as they become aware of evaluate, purchase, consume and tell other people about products and services.

The buyer behaviour is concerned with the study of factors that influence a person to buy or not to buy. Its concept lies in understanding the consumer and his motives and therefore, involves seeking as answers to pertinent questions like: Why a buyer buys or does not buys a particular brand or product? Does a buyer devote much time and study to comprehend the benefits of a product and its services? Does a buyer imitate others? What factors does a buyer take into consideration in the buying decision?

As a matter of fact, customer is the pivot around which the whole industrial of now-a-days revolves. Thats why according to the economists consumers are called as the kings. Consumers are just like a voter in the democracy. His/her selection of goods or services determines the fate of products and its services. Therefore in order to attract them more and more, the marketers should know their customers well so that they could treat them in the way they like to be treated, present them goods in the way they will appreciate and close a sale in such a way that consumer satisfaction is created.

TYPES OF BUYERS
The issue of the buyers style and its implications for marketing strategy has been the subject of research in the United States by Dickinson, who identified seven types of buyers: 1. Loyal buyers who remain loyal to be a source of considerable periods. 2. Opportunistic buyers who choose between sellers on the basis of who will be best further his long term interests. 3. Best deal buyers who concentrate on the best deal available at the time. 4. Creative buyers who tell the seller precisely what they want in the terms of product, service and price. 5. Advertising buyers who demand advertising support as part of the deal. 6. Chisellers who constantly demand extra discounts. 7. Nuts & Bolt buyers who select products on the basis of the quality of their construction.

SIX OS APPROACH
Marketers should approach the study of a new market by asking the following questions that may be called as 6 Os of any market

1. What Does The Market Buy? - Objects Of Purchase

2. Why Does It Buy? 3. Who Buys? 4. How Does It Buy? 5. When Does It Buy? 6. Where Does It Buy? - Objectives Of Purchase - Organization Of Purchasing - Operations Of Purchasing - Occasion Of Purchase - Outlets Of Purchase

DETERMINANTS OF CONSUMER BUYING BEHAVIOUR

A marketer is always interested to know how consumers respond to various marketing stimulations, product, price, place and promotion and other stimuli i.e., buyers environment economic, technological, political and cultural. The marketer studies the relationship between marketing stimuli and consumer response. The stimuli pass through buyers box which produces the buyers response and is shown below

BUYER BEHAVIOUR MODEL OUTSIDE STIMULI

BUYERS BLACK BOX

BUYERS RESPONSE

FACTORS INFLUENCING CONSUMER BEHAVIOUR

The main factors influencing consumer behaviour are

INTERNAL
Needs Motives Perception Attitude Learning

EXTERNAL
Family Influences Social Influences Culture Influences Economic Influences Business Influences

These Influences Are Shown Below As A Diagram

WHY FOCUS CONSUMER VALUE?

A customer is the most important visitor on our premises. He is not dependent on us, we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not the outsider in our business. He is the part of it. We are not doing him a favor by serving him, he is doing us a favour by giving us an opportunity to do so.

-Mahatma Gandhi

CONCLUSION
Thus we understood very well about the branding and consumer behavior studies from the above details and explanations. Also we understood that there is a mutual relationship between branding and consumer behavior studies. Branding plays an important role among the consumers because branding is more important to attract the consumer and also consumer behavior study is more important for branding to create goodwill for the products.