Brand Evaluation and Patronage intentions in CB

Presented by: Arun gupta - 10 Priyanka - 29 Sheenam - 33

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BRAND
The American Marketing Association (AMA) defines a

brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.

OBJECTIVES OF A GOOD BRAND

Delivers the message clearly
Confirms the credibility Connects the target prospects emotionally Motivates the buyer Concretes User Loyalty

BRAND TYPES
Generic Product : item characterized by plain label, with no clear
differentiation e.g. Xerox, Bisleri

Manufacturers brand name owned by a manufacturer or other Brand : Producer e.g. Coca Cola

Private Brand

brand name placed on products marketed by wholesalers & retailers e.g. Stop garments from Shoppers Stop
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Family Brand

brand name that identifies several related products e.g. Kissan Anapurna atta , jams , biscuits etc..(Food category)

Individual Brand

unique brand name that identifies a specific offering within a firms product line and that is not grouped under a family brand e.g. Dove soap from HLL

BRAND EVALUATION
Brand

evaluation is crucial in effective brand management. This process enables marketers to obtain a more accurate idea about how powerful a brand name is. In turn, this will help marketers decide what their future marketing strategy would be. To succeed in branding marketer must understand the needs and wants of the customers and prospects. Marketer do this by integrating brand strategies through company at every point of public contact.
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OBJECTIVES
The main objective of a brand evaluation is to help the

organization or company to identify the current changes that need to be made to revitalize the brand. It helps an organization or company to develop their brand based on the core values and beliefs of the brand. A brand evaluation plays an important role during brand building and planning stages and is critical to the process of building and sustaining brands.

IMPORTANCE AND NECESSITY OF EVALUATING BRANDS

The necessity of evaluating brands resides both in the companys and in the marketing environments interests,especially those organizations or persons who are interested in the companys and its brands financial performance. It is about the companys stakeholders(suppliers, investors, financial institutions, distributors, employees, customers etc.) and the competition.

The situations in which brand evaluation is essential could be categorized as it follows : Mergers and acquisitions Informing financial partners (investors, shareholders, banks, insurance companies etc) Brand licensing Compensation establishment in cases of unauthorized usage of brand names Elaborating marketing strategies and plans and evaluating the efficiency of implementation

MERGERS AND ACQUISITIONS

Nowadays,

the main determinants of mergers and acquisitions are not only facilities or technologies, but even more important, the value of brands.A few examples could comprise: Rowntree Macintosh acquisition by Nestle in 1988 for a price of 2.75 billion , three times the companys capital market value and 26 times its profits; Kraft Foods acquisition by Philip Morris in 1988 for a price of 12.9 billion USD, of which 90% represented Kraft Foods brands value.

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INFORMING FINANACIAL PARTNERS

Financial partners perceive brand value as a reference

when establishing the extent to which they are willing to take risks and finance the company that possesses the brand. The interest of the brands proprietor is to overestimate the value of its brand. This situation could be avoided through using a formal method of evaluation implemented by an acknowledged third party

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BRAND LICENSING
Brand value is a reference in negotiating the price of a

brand licensing contract or the fee paid in order to use the brand name. It is important to consider in this case the potential future market and financial outcomes generated by the power of the brand. Negotiation partners opposite interests of over/under-valuing could be harmonized through using a formal method of evaluation agreed by both parties

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COMPENSATION ESTABLISHED IN CASES OF UNAUTHORIZED USAGE OF BRAND NAMES

Strong brands proprietors are exposed to brand piracy

which basically leads to weakening the brandsvalue. Compensation establishments can be done considering: the difference between the brands value before and after the piracy act, a retroactive brand name usage fee, or the share of the pirates profit earned due to using the brand name. All of the considerations above imply a brand evaluation process

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EVALUATING MARKETING STRATEGIES AND PLANS

Brand portfolio evaluation can lead to identifying:

weaknesses and strengths among brands determinants, ways of restructuring the brands mix, key-brands management, strategies and plans implementation efficiency through after-before evaluations.

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BRAND EVALUATION METHODOLOGIES

Since brand evaluation appeared as a response to the necessity of introducing their values into the financial reports of the companies, the most popular methods of evaluation are those based on different financial indicators. Three main brands evaluation methods are well known : Economic income approach Market comparable approach Cost approach

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1. Economic income approach

This method is based on projected incomes conversion into a

unitary sum, subsequently adjusted based on different factors that lead to determine a final value of the brand.

2. Market comparable approach

This method is based on evaluating the brand by comparing it

with the selling values of similar brands and the use of some different factors based ratios, such as the price earning relationship.

3. Cost approach
This approach is based on brand evaluation throughout

determining base costs necessary for the creation of a similar brand and their introduction in an equation which allows for a brands final value determination.
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DIMENSIONS OF BRAND EVALUATION

The corporate brands can be evaluated along

the five dimensions:

Competence (factor 1)

Exuberance (factor 2)
Credibility (factor) Forcefulness (factor 4)

Sincerity (factor 5)

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 Competence : It is a cluster of related abilities, commitments,

knowledge and skills that enable a brand to (or an organization) to act effectively.
Exuberance

: It is a joyful enthusiasm that a brand shows.

Credibility : It is the quality of being believed or trusted. Forcefulness : Something that is forceful in a brand and has a

very powerful effect and causes you to think or feel something very strongly. Sincerity : It is the quality or condition of being sincere; genuineness, honesty, and freedom from duplicity.

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EVALUATING THE BRAND STRENGTH ON THE MARKET

To evaluate brand strength, whether it is of a consumer product, a

business service or a public sector organisation, there are different questions which can be asked to the client are:What is unique about the function or purpose of your brand or organisation ? What are your service or performance targets ? What are the characteristics you want to associate with it ? How do you position yourself against the competition ?

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What we can actually measure are: Functional benefits performance based on defined service factors Emotional benefits based on how closely customers identify with the brand, its status and its reputation Loyalty to the brand or organisation (where relevant), or readiness to switch supplier Advocacy how ready people are to recommend the product or service Using these measures we can identify which factors are the most important in defining the market value of the brand. These may concern levels of service, familiarity, or perceived quality the analysis will identify where investment may be made to improve the position of the brand in the market.
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PATRONAGE INTENTIONS / MOTIVES IN CB

MOTIVES
Needs which are unsatisfied are motives
Consumers buy goods/services because

of some motives Motive can be a strong desire, feeling, stimulus or emotion which play vital role in consumer buying decisions.
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CLASSIFICATION OF BUYING MOTIVES

Reasons why a person buys a particular product. 1. Innate and Acquired Motive 2. Primary and Secondary Motive

3. Conscious and Unconscious motive

4. Positive and Negative Motive 5. Product and patronage Motive 6. Rational and Emotional Motive
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BUYING MOTIVES

PRODUCT MOTIVES

PATRONAGE MOTIVES

EMOTIONAL

RATIONAL

EMOTIONAL

RATIONAL

BUYING MOTIVES

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 Product motives

related to product, its price, size, quality etc.

Patronage motives

related to the physical evidence of the store, goods/services

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Why do buyers purchase from certain

specific shops? Considerations/factors persuade the buyer to display his store patronage Emotional - to gain social recognition , to imitate others , favorite/most preferred shop based on subjective reasons Rational - logical reasoning (offer a variety of products , latest design stock, prompt delivery, assure good after sales services)
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EMOTIONAL MOTIVES
Selection of goods acc. to the personal and

subjective criteria, e.g. pride, fear, status, affections etc. These impulses persuade to purchase products spontaneously & without fore thinking on the consequences. Buyer let the heart rule over the mind e.g. parents purchase cloths, toys to their child.
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RATIONAL MOTIVES

Consumer select goods based on total objective criteria such as size, weight, price etc. Involve careful reasoning & logical analysis of purchase. Carefully consider diff. alternatives & choose one which gives him greater utility e.g. Furniture purchase for house suitability to home envt., durability, economy
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Product Emotional Buying Motives: 1) Pride 2) Fashion or Imitation 3) Gender 4) Habits 5) Love and Affection 6) Comfort 7) Praise
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Product Rational Buying Motives : 1. Safety or Fear 2. Suitability 3. Durability 4. Economy 5. Convenience 6. Versatility 7. Hobbies
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There are four types of approach/avoidance behaviors including:1) physical, related to store patronage intentions 2) exploratory, related to in-store search and exposure (response to emotional states) 3) communications, related to personal interactions 4) performance and satisfaction, related to repeat shopping and time/money expenditures.
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As

with brand loyalty, store loyalty concerns a consumers intentions and behaviors toward a particular store. Retailers are interested in store image and store atmosphere because they focus on the influence of store attributes on consumers affect and cognitions. A common conflict between manufacturers and retailers centers on brand loyalty versus store loyalty.
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Model
Perceived Service Quality
H1

Perceived Merchandise Quality Perceived Merchandise Price Perceived Merchandise Assortment

H2

H3

Perceived Shopping mall Value

H5

Store Patronage Intention

H4

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Measure Interaction Quality

Items

Measurement Scales

Service Quality

Responsiveness toward customers questions and complaints Employees willingness to Help customers Employees friendliness and politeness

Physical Environment Quality

Employees efforts to provide accurate product and service information

Employees efforts to provide conveniences in searching, ordering, order cancellation and processing. Employees efforts to accept customers wants

Outcome Quality

Employees efforts on visual and page design in providing product and services
Employees efforts to maintain security on customers private information and payment Employees willingness to help customers in solving their problems and complaint s after sale

Overall Service Quality Perceived Merchandise Quality

Service quality comparing to competitors Reasonable level of service

Merchandise quality Quality differences between the displayed merchandise and the merchandise 34 delivered

Measure Perceived Merchandise Price Perceived Merchandise Assortment

Items Reasonableness of Price

Merchandise variety Merchandise update interval Brand variety

Perceived Value

Value for merchandise variety, quality, and conveniences Willing to recommend shopping mall value for the money

Willing to recommend shopping mall value for time and search effort
Patronage Intentions Visit frequency Repurchase intentions
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PATRONAGE MOTIVES
1. Patronage Emotional Motives :

1. Appearance of the store 2. Recommendation of friends and relatives 3. Imitation 4. Prestige 5. Habit
2. Patronage Rational Motives :

1. Proximity 2. Widest Assortment 3. Credit Facilities 4. Treatment 5. Services Offered

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THANK YOU

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