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Types of Brands in Retail

By “Retail concentration” we mean the market-share belonging to generally the top 4 or 5 firms of the Great distribution present in a regional market, as a percentage on the total. A number of different types of brands are recognized. A “premium brand” typically costs more than other products in the same category. An “economy brand” is a brand targeted to a high price elasticity market segment. A “fighting brand” is a brand created specifically to counter a competitive threat. When a company’s name is used as a product brand name, this is referred to as corporate branding. When one brand name is used for several related products, this is referred to as family branding. When all a company’s products are given different brand names, this is referred to as individual branding. When a company uses the brand equity associated with an existing brand name to introduce a new product or product line, this is referred to as “brand leveraging.” When large retailers buy products in bulk from manufacturers and put their own brand name on them, this is called private branding, store brand, white labeling, private labelor own brand (UK). Private brands can be differentiated from “manufacturers’ brands” (also referred to as “national brands”). When two or more brands work together to market their products, this is referred to as “co -branding”. When a company sells the rights...

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The Consumer-Centric Business

The Consumer-Centric Business There are a many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for “Growth Opportunities” in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges. The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 4Ps. Real-life marketing primarily revolves around the application of a great deal of common -sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven. Thus,for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non -runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by ‘gut -reaction’, to ensure that it is reasonable. For most of their time, marketing managers...

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The Consumer Motivation Process

The Consumer Motivation Process Motivation refers to the underlying forces (or motives) that contribute to our purchasing actions. These motives stem from the conscious or unconscious goal of satisfying our needs and wants. Needs are the basic, often instinctive, human forces that motivate us to do something. Wants are “needs” that we learn during our lifetime. Motivation cannot be observed directly. When we see people eat, we assume they are hungry, but we may be wrong. People eat for a variety of reasons besides hunger: They want to be sociable, it’s time to eat, or maybe they’re nervous or bored.   People are usually motivated by the benefit of satisfying some combination of needs, which may be conscious or unconscious, functional or psychological. To better understand what motivates people, Abraham Maslow developed the classic model shown in Figure 2.6 called the hierarchy of needs. Maslow maintained that the lower physiological and safety needs dominate human behavior and must be satisfied before the higher, socially acquired needs (or wants) become meaningful. The highest need, self actualization, is the culmination of fulfilling all the lower needs and reaching to discover the true self.   The promise of satisfying a certain level of need is the basic promotional appeal for many ads. We all have needs and wants, but we are frequently unaware of them. Before the advent of the laptop computer,...

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Advertising Likelihood Model

The Elaboration Likelihood Model Researchers have identified two ways promotion communication can persuade consumers: the central and peripheral routes to persuasion. Like learning theory, each depends on the consumer’s level of involvement with the product and the message. When the consumer’s level of involvement is higher, the central route to persuasion is more likely. On the other hand, the peripheral route to persuasion is more likely when consumer involvement is low.   Central route to persuasion: In the central route to persuasion, consumers have a higher level of involvement with the product or the message, so they are motivated to pay attention to the central, product-related information, such as product attributes and benefits or demonstrations of positive functional or psychological consequences. Because of their high involvement, consumers tend to learn cognitively and comprehend the ad-delivered information at deeper, more elaborate levels. This can lead to product beliefs, positive brand attitudes, and purchase intention.   Peripheral route to persuasion: The peripheral route to persuasion is very different. It’s more like stimulus response learning. People who are not in the market for a product typically have low involvement with the product message. They have little or no reason to pay attention to it or to comprehend the central information of the ad. As a result, direct persuasion is also low, and consumers form few if any brand beliefs, attitudes, or purchase...

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How Consumers Process Information

How Consumers Process Information Learning is a relatively permanent change in thought process or behavior that occurs as a result of reinforced experience. Like perception, learning works off the mental files and at the same time contributes to them. Learning produces our habits and skills. It also contributes to the development of interests, attitudes, beliefs, preferences, prejudices, emotions, and standards of conduct all of which affect our perceptual screens and our eventual purchase decisions.   Theories of Learning There are numerous theories of learning, but advertisers classify most into two broad categories: cognitive theory and conditioning theory—depending on the level of consumer involvement (high or low) required to make a purchase. Cognitive theory views learning as a mental process of memory, thinking, and the rational application of knowledge to practical problems. This theory may be an accurate description of how we learn from the experience of others, such as our parents, and how we evaluate a complex purchase such as insurance, stocks and bonds, or business products. Conditioning theory is also called stimulus-response theory as treats learning as a trial-and-error process. Some stimulus (perhaps an ad) triggers the consumer’s need or want, and this in turn creates the drive to respond. If the consumer’s response reduces the drive, then satisfaction occurs, and the response is rewarded or reinforced. And that produces repeat behavior the next time the drive is...

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