Consumer Behaviour and Brand Image - Assignment Example

CONSUMER BEHAVIOR (Name) (Course (Tutor) (University) (City/State) (Date) Questions for Case 1: A brand of a product is a name or symbol used to identify a particular product. Every product undergoes the branding process, and if the yield results turn out to be positive, then that product retains the brand. Therefore, brand equity is the process of acquiring an identity for a product as stated by Fan (2002) in the international image of global brands journal. Brand equity is procedural concept, which takes time; as a result, any developer must exercise patience. While considering having brand equity, it is important to consider the tangible and intangible values relating the business, positive and negative effects of branding, and consumer catalysts. Brand equity can ‘kill’ the business or make it thrive depending the type of information it is trying to convey to the customers since it is a factor to the contribution of consumer perception of the product. In order for Aussie icon to reach its customers, it does not have to utilize all the underlying marketing strategies to reach the customers. Instead, this report recommends that the company use simplest method way to reach its customers like social media. This will also help it the company saves money, which it can invest in other activities instead of marketing (Ryan and Graham, 2014, 121). While choosing a marketing strategy, it is important for the company to consider its target group as it might have been the cause of failure. One of the concepts of brand equity used is the determination of the target group. In this case, they are men. Implementation of brand equity involves introduction of the product brand, elaboration, and fortification. Brand elaboration involves the nature and the target group of the product while fortification creates an image that attracts the attention of the target group (Fan, 2002, 187). To receive a positive taste in branding, the project recommended the use of effective marketing strategies. Some recommended marketing campaigns involved participation of the public and ensuring that the brand meets their expectation. The use of different marketing campaigns helped meeting the customers at the local level and national level, thereby offering a wider campaign scope. The marketing strategies enforced include speaking at community events and offering the customers free samples of the products and noting their comments on the product. The issues addressed during the discussions with the audience mainly revolve on how to make the brand meet international standard and their view on the product. Several factors affect consumer spending (Ryan and Graham, 2014, 127). The internal factors influencing the purchasing power of consumers are the availability of disposable income and employment opportunities. Availability of employment opportunity with good rewards leads to increase in the disposable amount by the consumers. On the other hand, the external factors influencing how consumers purchase their products include currency considerations and the prices of products. Most products sold by Aussie icon are cost effective; therefore, most people can afford the products. Stabilized currency helps to attract foreign investors, hence, influencing the purchasing power of the consumers. Questions for Case 2: Brand image is the perception that the consumers have a particular product or a set of beliefs that consumers have about a particular product (Turner and Raymond, 2015, 207). Brand imaging is the responsibility of the business itself, therefore, to ensure the success of the company; it is important to reduce the negative gap between brand identity and image. This difference often leads to reduced sale within various companies. Brand imaging determines the products position, which is marketing strategy communicating the attributes of a product to the customers (Trim, 2007, 27). Brand positioning entails differentiating one product from those of competitors in order to gain differential advantage. According to the findings of this report, Bankwest employed positive elements of brand image. These elements included a unique logo that drew the attention of the customers upon reflecting on the image of the business. Another element was the business’ slogan that gives a brief description of the activities carried out by the business and finally the brand identifier, which supports the important values of the business. The ‘cast of characters’ is a modern management team (Trim, 2007, 30). It brings together corporate or field marketers and marketing operators. The field marketers ensured that all the customers received information about the product through investing in online marketing strategies to ensure that the information reached many people. Marketing operators ensured the clearance of all negative perceptions about the services by Bankwest. A universal symbol is a sign globally recognized by most people irrespective of one’s language. An example of a company that uses a universal symbol is the Apple Inc. Whose Mac application shows that they can on both Intel and power computers? Some of the factors influencing consumer purchasing power are beliefs, motivation, economic situation, and occupation. Internal factors like individual’s belief and motivation may influence their ability to invest in Bankwest. Some people believe that keeping the money in the bank account is a waste of time, or the bankers are out to be rich at their expense. While other, get the motivation from keeping the money in the bank due to the earned interest. External factors like employment opportunity reduce the disposable amount by the clients (Trim, 2007, 82). Similar, this applies to the economic situation in which hard times may not encourage savings by the clients. Economic factors also influence the interest rates by the banks. Consequently, higher rates discourage the consumers to borrow from the bank considering the level of income. The banks influence the ability of the clients to borrow. This is through setting strict rules and requirements set by the management for borrowing. As a result, the clients were also discouraged from further borrowings. Questions for Case 3: Involvement theory is a set management strategy that determines the inclusion of all the stakeholders in the operations of the business especially the managerial duties. It incorporates both the physical as well as psychological mechanisms in the running of a business premise. An active involvement of the stakeholders promotes efficient operations of the business. This is because it give an employee an opportunity to interact freely with other staff members, hence, building a strong bond of relationship among them (Schmidt and Ludlow, 2002, 131). This helps in improving the profit margin of the organization. Conversely, absence of interaction in a firm creates a rift and, therefore, breaks the channels of communication, which eventually lead to the failure of the business. Several factors relating to the involvement theory determine the buying behavior of customers. Factors such as culture, society, individual perception, and psychology affect the buying patterns of many customers. Consumers, therefore, develop a preference for some products or brands depending on such factors. Even though, the marketers may not have full control over such, involvement of a marketer during the period of buying makes the buyers develop preference towards the target product or service. Most consumers involve in some decision making within themselves during purchases. Any aid such as problem, information search, evaluation of alternatives, purchase decision-making, and post purchase behavior determines the motive the customers to buy a given product. Similar factors have an influence how what services consumers choose resulting into various of preference for that same product or service. Understanding the cultural, social, psychological, and personal characteristics of a buyer, the marketer can design a better marketing tactics attractive to the target customers. As an attempt by Yorkshire tea in becoming the second in the rank of the most preferred tea in the market, they traversed beyond their heartland with an objective of attracting customers. Yorkshire set out their marketing strategies like involving their fans on social media to find out their views on the general quality of the tea products that the produce. Fortunately, the outcome of consumer involvement realized that the raw material, Brit, does not provide a preferred taste in the foreign market. In countering this effect, the factory intervened by replacing it a new raw material, Little Urn, that transports the proper brew of tea to people who need it most. Yorkshire eventually records a 9.5 percentage rise in the sale of its tea. Nationally, the market shares of the Yorkshire Tea rose to 13.9%. The indifference of the difference in the preference of the consumers arises, as more buyers prefer drinking coffee to tea. This adversely affected the sales of the Yorkshire Tea. The management of the factory addressed through the incorporation with other stakeholders like farmers and national buyers. This incorporation aided in the determination of the production which the consumers preferred most as well setting their target customers right (Schmidt and Ludlow, 2002, 192). Factors both internal and external affect consumer spending. The organizational system and the strength of the employees affect the operations of a firm and, therefore, the consumer spending. Motivated, talented, and hardworking employees do produce good results. External factors such as competition and socio-economic status affect consumer purchase. Firms operating on the same product compete for raw materials and customers. In addition, the degree of purchase depends on the income status of the targeted customers. References Fan, Y., 2002, "The National Image of Global Brands," Journal of Brand Management. Upper Saddle River, NJ: Prentice Hall. 9:3, 180–192 Meyers, H. M., & Gerstman, R., 2005, The visionary package: using packaging to shape effective brands. Houndmills, Basingstoke, Hampshire, Palgrave Macmillan. Ryan, K., & Graham, R., 2014, Taking Down Goliath: the Digital Marketing Strategy for Beating Competitors with 100 times spending power. Cambridge: The MIT Press. Schmidt, K., & Ludlow, C., 2002, Inclusive Branding: The way of holistic approach to brands. Houndmills, Basingstoke, Hampshire, Palgrave Macmillan. Trim, P., 2007, A Strategic Marketing: Intelligence Framework Reinforced by Corporate Intelligence. Chichester, England: Wiley. Turner, J. F., & Raymond, M. A., 2015, Principles of Marketing- NYTimes.com Retrieved from; http://www.nytimes.com/2012/08/08/business/economy/in-outsourcing-attacks-tired-rhetoric-and-no-political-leadership-economic-scene.html?_r=0 Read More