What do we want to achieve?
What are we going to do then?
How are we going to do that?
Marketing com. plan: Getting in contact with the customers
(to realize marketing goals?)
Not for us.
Important: low & high involvement goods.
CHAPTER 1 Marketing Communication and other marketing tools Why is a strong brand important for a company?
A strong brand is worth a fortune. Possessing one or more strong brands is becoming more and more
important to companies. It is not just products that carry a brand name nor services. A brand may
also represent a company or a non-commercial organization.
Name two functions of a brand for consumers
-Convenience when buying
Convenience when buying:
Brand awareness means that consumers (especially those who have bought the brand before) know
exactly what to expect from the product or the supplier. They know the product features or the
supplier and can easily make a choice. If the brand has satisfied them, they need not look any
further. Considering the ever-increasing number of products and brands in shops, this is an
important function of the branded article. The brand creates the certainty among consumers that
they will actually get what they want. And in the unlikely event that this should not be the case, they
know where to take their complaints.
A brand often has a psychological function for consumers. It helps them to achieve a desired form of
self-expression. Nike, for instance, stands not only for sportsmanship, but also for a certain lifestyle.
By buying a certain brand, consumers show others what type of person they are (or want to be).
Some consumers want to display their wealth, by buying expensive brands such as Armani or
Versace. Others reject such ostentation and prefer to buy unknown brands or unbranded clothing.
Brands, by the way, not only have an expressive function; they can also impress. Finally, buying a
specific brand may give consumers a good feeling about themselves. By using an iPhone someone
may feel that he is modern and ‘with it’.
Functions of a brand for companies
-Easier product introductions
-Greater independence as regards the retail trade
A brand helps organizations to distinguish themselves from other suppliers of similar products.
Because of this distinction the own brand becomes less vulnerable to competition. Especially when
technical and instrumental differences between various products or companies are minimal, the
psychological (emotional) surplus value of a brand may create the desired distinction. The products
and services which banks offer hardly differ from one another. Yet, in the minds of consumers, ABN
AMRO Bank is an entirely different bank from the Rabobank. The psychological differences are much
greater than the instrumental differences. Because of these psychological differences a brand can
create something of a monopoly position.
Strong brands result in continuity because satisfied consumers keep buying the product. Brands such
as Bols, Bavaria and Douwe Egberts have been in existence for hundreds of years. Brands such as
Kellogg’s, Campbell’s, Goodyear and Colgate have been market leaders in their product categories in
the United States for more than 50 years. A large number of loyal customers means constant
Creating a strong brand requires large investment in product development and marketing
communication. A brand that succeeds in creating psychological surplus value can demand a higher
price than other brands. As long as the price differences do not become too great, consumers are
willing to pay this higher price. The beer market is a case in point. Lager brands like Heineken and
Grolsch are able to command a higher price than other brands of similar quality. However, price
differences must not become excessive, as Albert Heijn discovered. This supermarket chain had to
lower its prices drastically when, partly due to economic conditions, it lost market share to cheaper
Easier product introductions
A company that has built up a good reputation among its customers finds it easier to put a new
product on the market than a company that is unknown. When Sony launches a new electronic
product, consumers are more willing to try it out than the product of an unknown Korean company.
The advantage of a strong brand is also valid when a company embarks on an entirely new activity.
The British Virgin brand, for instance, represents much more these days than a record label. Under
the same brand Virgin sells travel, operates an airline, puts cola on the market and develops all sorts
of other activities. These product introductions under the same brand are known as brand
Greater independence as regards the retail trade
A producer who succeeds in giving his brand a strong ‘brain position’ (image) among customers will
become less dependent on retailers. Retailers are almost forced to include the brand in their product
range. If they do not, customers may well go to a different shop.
It is of the greatest importance for products or companies to have a good brand image. This brand
image is the mental picture that (potential) consumers have of a brand. Hearing or seeing a brand
name evokes a number of associations in consumers. All these associations together form the brand
image. They may be positive or negative associations; they may be instrumental or psychological. In
the case of instrumental associations it is about the presence of certain product features.
Instrumental associations example:
-Air France-KLM brand may evoke associations with reliability and modernity.
-In case of the Bokma brand many consumers immediately think of the square bottle.
Psychological associations example:
-In the case of Douwe Egberts consumers think of coziness.
-In the case of Blue Band of care for growing children.
Network of associations:
Consumers’ experiences of a brand and the opinions of others may have a strong influence on the
brand’s image. If consumers have bought the brand before and are happy with it, this will have a
positive influence on the brand image.
Factors influencing a brand image:
CHAPTER 1 Marketing Communication and other marketing tools
CHAPTER 2 The communication mix of a company
CHAPTER 4 Components of the marketing communication plan
CHAPTER 5 Research into consumers, products and competition
CHAPTER 6 Marketing communication target groups