Brand Value and Consumer Behavior in Advertising
Brand Value and Its Impact
Brand Definition and Elements
A brand is a name, symbol, design, or a combination thereof, used to identify and differentiate a product or service from the competition. It consists of three key elements:
- Name: Identifies the product or service.
- Logo: Visual representation of the brand.
- Psychological Element: Consumer perception of the brand’s characteristics and attributes.
A positive brand image adds value to the product, justifying premium pricing.
Brand Utility and Protection
According to Murphy and Rowe, brands provide several utilities:
- Product identification and differentiation.
- Value addition to the company.
- Company asset.
Trademark and patent protection requires registration with the relevant industrial property office, granting exclusive usage rights for renewable 20-year periods. International registration is handled by the International Office of origin.
Building a Strong Brand
A strong brand connects with individual values, establishes an emotional bond with consumers, fosters credibility and trust, and signifies quality and differentiation. It also provides consumer satisfaction and status.
Creative, authentic, and targeted advertising enhances brand image. Public relations activities further strengthen the brand.
Calculating Brand Value
Brand value can be estimated by considering the cost and time required to rebuild market share and infrastructure. This includes advertising/marketing investments and years invested to achieve current market position.
Financial World Brand Valuation
Financial World magazine publishes an annual brand value study based on net income and parameters like leadership, stability, international presence, support, rights, and trends.
Counterfeit Products and Their Impact
Counterfeit products distort competition and employment. The European Union absorbs 37% of global imitations, with 45% originating from developing countries. Companies combat counterfeiting through dedicated departments, alliances, trademark registration, and fraud investigations.
Consumers and Advertising
Advertising Objectives
Advertising targets consumers with three main goals:
- Inform: Publicize new products and brands objectively.
- Persuade: Influence consumer behavior towards a brand or product rationally, emotionally, or unconsciously.
- Remind: Maintain brand loyalty and encourage repeat purchases.
Advertising Messages
Advertising messages convey product/service information through various creative expressions and media channels, aiming to stimulate the receptor.
Factors Influencing Consumer Behavior
External Factors
- Family: Attitudes and behaviors learned within the family influence product preferences.
- Social Groups: Interactions with family, friends, neighbors, etc., shape consumer behavior.
- Social Class: Cultural and educational level, purchasing power, and occupation influence consumption patterns.
- Culture: Shared values, ideas, and behaviors within a society impact consumer choices.
Internal Factors
- Personal Situation: Family, economic, and professional circumstances affect consumer behavior.
- Perception: Individual interpretation of stimuli received through senses.
- Learning/Knowledge: Experiences that modify behavior.
- Attitude: Predisposition towards a person, object, or situation.
- Motivation: Reason or cause for purchase.
Motivation Theories
Mc Dugan and Mark Dougan’s theories explore motivation. Dougan emphasizes instinct as the driving force behind human actions, while motivations are linked to individual needs and desires.