The Brand Perception Impact of Advertiing for tarbuck Company - Essay Example

The Brand Perception Impact Of Advertiing For tarbuck Company The brand perception impact of advertiing for tarbuck Company Literature Review It i a common belief among the manager of multinational companie that advertiing play a pivotal role in building brand. Developing and maintaining a trong brand in the fullet ene require much more trategic thinking a brand tool convey the conceiving of a promie of value for cutomer and then enuring that the promie i kept. Building a powerful brand require determining the tangible characteritic of the offering that carry the brand name and the benefit the cutomer accrue from thoe benefit and the pychological or emotional benefit of the product. Thi notion may be decribed a what "value" mean to a typical loyal cutomer; and what, ultimately, i the eential nature and character of the brand over time. In ma-market retail talent i generally viewed a a valuable ource of brand building a quality of ervice offered by the retailer add to the pride of the brand. The companie may poition themelve for the ma market by providing outtanding cutomer interaction which may optimize profit and the core value of brand. The following dicuion in the paper analyze the influence of advertiing practice on developing brand peronality and their impact on the buying behavior of conumer. The dicuion in the paper are woven around the iue concerning advertiing a brand driver, brand typology, cognitive relationhip between the conumer behavior, communication and brand perception. The paper alo attempt to ynchronize viable propoition a managerial implication for building the brand peronality conidering the interactive cognitive variable of conumer behavior. 1.1 Brand equity in a competitive marketplace The concept of cutomer-baed brand equity may be defined a the differential effect that brand knowledge ha on conumer repone to marketing activity for that brand. A brand i aid to have poitive (or negative) cutomer-baed brand equity when conumer react more (or le) favorably to marketing mix activity for the brand, a compared to when the ame marketing activity i attributed to a hypothetical or unnamed verion of the product or ervice. Conumer repone to marketing activity for competitive brand or an alternatively named verion of the product or ervice can alo be ueful benchmark (i.e. for determining the uniquene of brand aociation and the opportunity cot of brand extenion, repectively). Cutomer-baed brand equity emerge when the conumer i aware of and familiar with the brand and hold ome favorable, trong, and unique brand aociation in memory. Conumer have only one image of a brand, one created by the deployment of the brand aet at your dipoal: name, tradition, packaging, advertiing, promotion poture, pricing, trade acceptance, ale force dicipline, cutomer atifaction, repurchae pattern, etc. Clearly ome brand aet are more important to product marketer than to ervice marketer, and vice vera. ome competitive environment put more of a premium on certain aet a well. Quality and price do not exit a iolated concept in conumer' mind and are interrelated. Reearch ha hown that deep dicount do caue the conumer to believe that omething i wrong. Frequent dicounting erve to lower the value of the brand becaue of an almot ubconciou reaction by the conumer who believe that quality alo ha been lowered (remember hirt with alligator on them) or, in a "value rebound," conumer begin to perceive the everyday price a too high. The brand i then bought only on deal. Thi paper attempt to explore the variou mechanim that help building the brand peronality through marketing communication like advertiing, word of mouth etc. 1.2 Brand equity and cutomer relationhip trong brand equity allow the companie to retain cutomer better, ervice their need more effectively, and increae profit. Brand equity can be increaed by uccefully implementing and managing an ongoing relationhip marketing effort by offering value to the cutomer, and litening to their need. Diregarding the edge that the brand-cutomer relationhip offer in the market place and not utilizing the benefit and goodwill that the relationhip create will urely lead to failure in the long run. The central brand idea may be tatic among the entire cutomer and propect bae, but the total um of the brand idea or perception i rooted in the cutomer' experience with the brand itelf, all it meage, interaction, and o on. In the market a trong brand will be conidered to have high brand equity. The brand equity will be higher if the brand loyalty, awarene, perceived quality, trong channel relationhip and aociation of trademark and patent are higher. High brand equity provide many competitive advantage to the company. The brand equity may be undertood a the highet value paid for the brand name during buy-out and merger. Thi concept may be defined a the incremental value of a buine above the value of it phyical aet due to the market poitioning achieved by it brand and the extenion potential of the brand (Tauber, 1998, 99). 1.3 Diagnoing brand peronality Brand peronality i an attractive and appealing concept in the marketing of today. Aaker (1996) decribed it a one of the core dimenion of the brand identity and perhap a the cloet variable to the conumer' deciion making proce on buying. The peronality idea repond to the tendency in contemporary ociety to value peronal relationhip. It alo refer to the idea that relationhip are important in ocial life. In term of Malow' hierarchy of need, it trie to lift product to higher level of need atifaction, like belongingne, love and eteem. Brand peronalitie are created in different way and with different tool. However, the creation alway involve active communication on the ide of the firm: the peronality ha to be dieminated to be alive. Brand equity reearch i an attempt to put a value on the trength of a brand in the market, in the ame way that the hare/tock put a value on the trength of the corporation in the eye of the invetor. Indeed, brand equity reearch ha hown that the two are related - the growth in brand equity correlate with the growth in tock value, and alo ale, profit, price premium and employee atifaction. The brand equity reearch ha two element: 1. Brand profiling - where your brand and it competitor are profiled againt a et of indicator and attribute. The indicator are uually fixed within the model, but attribute may be pecific to the brand or it category. 2. Converion model - where the model aee the degree of trength or vulnerability you have in your cutomer bae in relation to competition. Credit card companie ue thi to identify which competitive cutomer they hould approach a they are open to alternative offer, and which they hould not wate their time on becaue they are loyal to their exiting upplier. 2. Advertiing a a brand driver Advertiing i heavily ued in thi proce of peronality creation. Thi follow logically from the fact that peronalitie are particularly ueful for the creation of brand aociation. Brand aociation influence the "evaluation of alternative" tage in baic conumer buying behavior model. At thi tage, and for thee goal, advertiing i conidered to be the mot effective communication tool. Perhap the mot viible and bet known way of peronality creation i by mean of celebrity endorer. Public heroe, port people, pop tar and movie tar have been hired to lend their peronality to a brand for a long time and thi practice i till growing in popularity today. Yet, baically all advertiing influence the brand peronality, not only when an endorer i ued. In the proce of peronality creation, in reference to advertiing and marketing, communication approache are largely ued to create brand peronality. Many reearcher including Braington and Pettitt (2003), Erdogan and Baker (2000) and Redenbach (2000) have found that brand are enitive to the communication and anchor which catalyze conumer behavior. It may be oberved that a general model of advertiing ha been integrated with a model of brand peronality creation a dicued in ome of the tudie. Baed on that model a number of propoition are derived and preented thorough analye of the role of brand peronality in the creation of brand equity, thereby linking the core iue to one of general and increaing importance. Brand management ha developed to take advantage of new loyalty marketing vehicle. Baldinger and Robinon (1996) have oberved that, brand manager are upplementing their ma-media advertiing with more direct communication, through direct and interactive method to build and maintain conumer loyalty. imultaneouly, however, brand manager have to face more threat to their brand, epecially parity repone from competitor. Brand loyalty can yield ignificant marketing advantage including reduced marketing cot, greater trade leverage, reitance among loyal conumer to competitor' propoition, and higher profit. Preference for convenience, novelty, chance encounter and repertoire buying behavior are but ome reaon for thi. A new approach for meauring, analyzing, and predicting a brand' equity in a product market define the brand equity at the firm level a the incremental profit per year obtained by the brand in comparion to a brand with the ame product and price but with minimal brand-building effort. At the cutomer level, it determine the difference between an individual cutomer' overall choice probability for the brand and hi or her choice probability for the underlying product with merely it puh-baed availability and awarene. The approach take into account three ource of brand equity - brand awarene, attribute perception biae, and non-attribute preference - and reveal how much each of the three ource contribute to brand equity. In addition, the propoed method incorporate the impact of brand equity on enhancing the brand' availability. The method provide what-if analyi capabilitie to predict the likely impact of alternative approache to enhance a brand' equity (Na et al., 1999; Knox and Walker, 2001; Rajagopal and anchez, 2004, 756). Inter-relationhip of conumer and brand peronality Conumer often anthropomorphize brand by endowing them with peronality trait, and marketer often create or reinforce thee perception by their brand poitioning. Brand peronality trait provide ymbolic meaning or emotional value that can contribute to conumer' brand preference and can be more enduring than functional attribute. uccefully poitioning a brand' peronality within a product category require meaurement model that are able to dientangle a brand' unique peronality trait from thoe trait that are common to all brand in the product category. Conumer perceive the brand on dimenion that typically capture a peron' peronality, and extend that to the domain of brand. The dimenion of brand peronality are defined by extending the dimenion of human peronality to the domain of brand. Brand and conventional knowledge Brand are alo ucceful becaue people prefer them to ordinary product. In addition to the pychological factor already mentioned, brand give conumer the mean whereby they can make choice and judgment. Baed on thee experience, cutomer can then rely on choen brand to guarantee tandard of quality and ervice, which reduce the rik of failure in purchae. Today' world i characterized by more complex technology, and thi can be extremely confuing to the people who are not technology minded. Brand can play an important role here by providing implicity and reaurance to the uninitiated, offering a quick, clear guide to a variety of competitive product and helping conumer reach better, and quicker deciion. Fournier (1998) ha decribed animim a another proce mechanim that directly explain the pecific way in which the vitality of the brand can be realized. Over time, the peronalitie of the pokeperon are tranmitted to the brand. Obviouly, thi apect i much le under the control of marketer. Indirectly, the brand peronality i created by all the element of the marketing mix. Batra et al. (1993) ugget that the peronality of a brand i created over time, by the all contituent of marketing-mix. Reach of the brand The "voice of a brand" i part of the promie and experience of a brand. Cutomer hear the voice in automated ervice ytem, at retail, in the media and elewhere. The tone, content and nuance of that voice are critical. The meaning or uer undertanding on the product i alo an important ource of brand peronality creation in the advertiement or any type of media communication. The communication repreent the product' meaning - the claimed image of the product. Although the definition of advertiing from a emiotic perpective tate that the advertiement repreent the actual product image, the advertiement repreent the product only when there i harmony between the actual and the claimed image of the product. The pokeman or anchor in advertiing provide the mot direct way to build thi relationhip with conumer and bridge the brand and the mind of the conumer. Thi i the conumer-brand fuion proce that lead to the brand behavior in the market in the hort and long-run dynamic. The key function of advertiing i to communicate the brand and the promie that can be delivered to the cutomer. The advertiement of a product ha two dimenion - repreenting the core promie of the product and creating the conumer peronality by tranferring the peronality trait. Thi proce enhance the cutomer-brand relationhip. Peronification of brand through advertiement or market communication i actualized when there i match between the peronality of the advertied product and of the cutomer. Communication enitivity and brand peronality Brand-extenion trategy in a competitive environment i compried of two crucial trategic deciion: againt which competitive brand to poition the new product; and how to poition the new product. Hauer and hugan (1983) dicu that the firt deciion that enviage the competitive-target deciion require an undertanding of the competitive tructure and an analyi of the opportunitie and threat aociated with electing a certain poition and the latter i concerned with the election of product attribute or benefit that provide a differential advantage for the new product compared to the competitive offering. The poitive advertiing and communication help in building and nurturing the brand peronality in the competitive ituation in a market. The intimacy theory of communication build the brand peronality more effectively acro varied conumer ituation than exchange or eduction theory. Drawing from pychology and ocial pychology, it preent intimacy attribute relevant to ervice marketing - the five C of communication, caring, commitment, comfort, and conflict reolution, which play a vital role in brand peronality. The concept of enitivity of communication maybe decribed a the brand peronality i perceived by the conumer when the advertiement i poitive to their own peronality and endore the intimacy attribute with the communication. Cognitive dimenion in branding The cognition and emotion form a complex and ineparable relationhip within higher-order human cognitive behavior. Higher-order image proceing exit in emotion. In the central route of the elaboration likelihood model, emotion play a ubtantial role in undertanding product feature. From thi perpective, undertanding proce of the advertiement may be conidered a a higher order cognitive learning proce on brand which include not only reaonable undertanding of functional benefit, but alo an undertanding of benefit baed on uer and uage imagery and brand peronality. The proceing of advertiing comprie the equence of cognitive variable and doe not give importance to the contituent of it. Both impact on the conumer' attitude and behavior and the level of thi impact do not depend on the order of the advertiing procee. However, in cae of advertiing campaign with multiple and different meage, the order effect may be important. Van Oelaer and Alba (2000) dicu that though the companie have full dicretion in deigning campaign, it i all the more intereting to ee if it make a difference whether they tart building brand peronality by appealing to affective or cognitive reaction. Therefore, the brand peronality i influenced largely by the affective and cognitive attribute in the proce of the advertiing communication. Brand portfolio and advertiing It i believed that the brand portfolio trategie will help in earching for the efficient frontier for the brand et - the boundary where brand manager can maximize their return for any level of portfolio rik. However the cope of brand portfolio doe not retrict memberhip to the brand owned by the company. The brand portfolio on the contrary, include every brand that play in the conumer' deciion to buy. However, Hill and Lederer(2001) indicate in their tudy that not every brand the company own hould be the portfolio. Brand portfolio connect the nature and identity of individual brand with the market categorie they erve. Thee iue provide a company with the bai for building effective cutomer repone, profitable growth involving market categorie, and in ome cae, for buine innovation. Making a brand more valuable i a key buine objective. However, thi objective mut be driven by more than marketing integration and commitment to the promie of brand experience. The competitive environment of the given company i characterized not only by interaction among different companie within a given indutry, but alo by interaction among different brand produced by a ingle company. It i neceary to review the firm' advertiing deciion under condition of random and cutomer egment pecific ale repone to advertiing within the context of multi-brand competition in order to diagnoe the impact of advertiing on the brand and cutomer portfolio thereof. Hence, the brand portfolio of a company i developed over the competing effective marketing communication a it influence the growth of ale and conumer deciion in favor of the brand that are advertied cloe to the congruent media. Managerial implication It will be of critical importance for future reearcher and practitioner to undertand the increaingly complex variety of factor underlying and influencing the linkage between brand and cutomer relationhip. In thi context the managerial importance of the topic eem evident. Advertiing i by far the mot important communication tool in marketing, and with every advertiement brand peronality i built. Undertanding how brand peronality i created in the mind of conumer i eential for effective ue of a company' marketing tool. Effective brand management, encompaing brand peronality i of paramount importance in reaching the overall company goal of atifaction, loyalty, and profitability. The media effectivene in reference to brand peronality and cutomer repone to the brand may be tudied for building long-term branding trategie. The effectivene of any advertiement can be meaured at two different level - pre-inertion and pot-inertion of the advertiement in the media along with the brand awarene program for effective impact of communication on the cutomer egment. ummary The trength of a brand ret in it value acquired through tangible attribute like pertinence of brand name and aociated benefit thereof. Conumer perceive the brand on dimenion that typically capture a peron' peronality, and extend that to the domain of brand. The dimenion of brand peronality are defined by extending the dimenion of human peronality to the domain of brand. However, competitor attempt to put more premium on peronality iue to drive their brand competitively in the market. The creation of brand peronality involve active corporate communication and need to be adjuted to the brand life cycle variability. Hence, a company may ue advertiing trategie appealing to cutomer in the proce of creating effective brand peronalitie in reference to the incerity, excitement, competence, ophitication and ruggedne. Cutomer-centered brand equity allow the company to derive variou function of marketing-mix favourably and trong brand equity would help to retain cutomer a well a to reduce the rik of abrupt brand witching. The relationhip between the brand and cutomer i largely governed by the pychographic variable that can be meaured broadly by the cloene and farne of the peronalitie of brand and cutomer. 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