Project on Effect of Branding on Consumer Buying Decision

EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOR

INTRODUCTION 1.1 Introduction “Brands are like human beings. They are born, fed and nurtured, made strong and responsible so that they can be faithful friends of the people (customers), form mutually beneficial and satisfying relationships with them and become their companions for life. Such brands, make their parents (organization or corporate) proud of them. The best brands are the ones who help in forming and sustaining strong long term “parent- brand-people” relationships. These brands form the potential for present growth and future expansion. They help the organizations conquer peaks at the time of booms and stay afloat and swim at times of depression. ”We come across a number of brands in our daily lives. Our morning starts with using a toothpaste (Colgate,Pepsodent or Close-up), using a bathing soap (Lux, Fairglow or Cinthol) and shampoo (Clinic All Clear or Vatika), wearing clothes ( Allen Solly, Levi’s or Raymond’s), breakfast bread (Britannia or Modern) and butter (Amul) or jam (Kissan), lunch and dinner (Nature Fresh or Pillsbury flour and Safal vegetables),morning and evening tea and coffee (Tetley, Nescafe or Bru), going outin a car (Hyundai Santro, Honda Accord or Mercedes Benz). Talking on the cell phone (Motorola, Nokia, Siemens or Samsung), watching television in the evening (LG, Sony or Philips) or listening to music (Philips or Apple) etc. But how often do we think of what all a company does to put a positive imprint (fight for a shelf space) in the mind of the customer? Today nearly all the companies are focusing more and more on building strong brands. The concept of brand equity and its management has come to the fore like never before. More and more companies are refocusing on select strong brands. This project is thus a timely stuffy of the importance of brands, what it takes to build them, what benefits do they give to different stakeholders (organization, distributors and customers), how can they be leveraged, what is the impact of modern technology on branding, branding on the web, branding in mergers and acquisitions etc. examples have been given and cases discussed at every suitable point to bring out an application oriented understanding of “building and managing brands” WHAT IS BRANDING? A brand is the idea or image of a specific product or service that consumers connect with by identifying the name, logo, slogan, or design of the company. Branding is the idea or image that is marketed so that it is recognizable by more

and more people, and identified with a certain service or product since there are many other companies offering the same service or product. Branding is also a way to build an important company asset, which is a good reputation. Whether a company has no reputation, or a less than stellar reputation, branding can help to change that. Branding can build an expectation about the company services or products, and can encourage the company to maintain that expectation, or exceed them, bringing better products and services to the market place. Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc. Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc. Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc. Branding is the process by which a marketer tries to build long term relationship with the customers by learning their needs and wants so that the offering (brand) could satisfy their mutual aspirations. It can be used as a differentiation strategy when the product cannot be easily distinguished in terms of tangible features (which invariably happens in case of many services, durables etc.) or in products which are perceived as a commodity (e.g. cement, fertilizers, salt, potato chips etc.).Brand building is a conscious customer satisfaction orientation process. The brand owner tries to retain customers to its fold over their competitors by a mix of hardware software because when a customer feels satisfied he she develop a kind of loyalty for the same. In modern day branding, the creation of tangible values as well as intangible values isquintessential in allowing customer the means to distinguish one brand from another (Hankinsonand Cowing, 1993). The reader will appreciate that it is this ability in particular, that separates a“brand” from a mere “product”. King (1991) captures this by defining a product as a factory-made tangible that can readily be copied by competitors. King (1991) continues with hisdistinction by clarifying that a brand is an intangible asset that is unique and timeless. Thissimple yet powerful definition insinuates that a brand is the core identity of a product. Kotler (1999) expands on the concept of identity by stating that a brand is capable of conveying up tosix different levels of meaning to a targeted audience. This is known as the “Six Dimensions of The Brand”

Attributes A brand will communicate specific attributes, such as prestige Benefits A brand strengthens a product’s attributes by communicating aset of benefits that makes it more attractive Values A brand represents a company’s core values and belief system Culture A brand is representative or target a target audiences socio-cultural characteristics Personality A Brand can project behavioural personality patterns of targeted consumers User The brand, in some cases, can emulate the end user

EVOLUTION OF BRANDING The word "brand" is derived from the Old Norse brandr meaning "to burn." It refers to the practice of producers burning their mark (or brand) onto their products. The oldest generic Brand, which is in continuous use in India, since Vedic period, 9000–10000 years ago is known as 'Chyawanprash'. It is widely used in India and many other countries and is a herbal paste of 45 herbs made for revered Rishi named Chyawan.[5] This brand was developed at Dhosi Hill in North India, on an extinct Volcanic Hill. The Italians were among the first to use brands, in the form of watermarks on paper in the 1200s. We tend to think of branding as a modern day phenomenon. Certainly,d u r i n g t h e l a t e 1 9 9 0 s a n d t h e e a r l y 2 0 0 0 s , b r a n d i n g e m e r g e d a s a significant area of emphasis not only for companies and their products, but also for municipalities, universities, other non-profit organizationsand even individuals. Branding became ubiquitous. Many of us alsok n o w t h a t P r o c t o r & G a m b l e a n d o t h e r c o n s u m e r p r o d u c t c o m p a n i e s began branding their products in earnest in the mid-to-late 1800s. Butm o r e i n t e r e s t i n g t o m e i s h o w f a r b a c k i n t i m e b r a n d i n g g o e s . F o r instance, companies that sold patented m e d i c i n e s a n d t o b a c c o b e g a n branding their products as early as the early 1800s. Around the sametime, some fraternities and sororities branded their pledges (literally)during initiation rites as a form of identification and bonding, a practicethat has long since been identified as hazing and therefore abandoned.But that is still recent history -- relatively.Between the 1600s and 1800s, criminals were branded (again literally)as a form of punishment and identification. For instance, in England,they branded an S on a person's cheek, while in France; they branded af l e u r d e l i s o n t h e s h o u l d e r . A s r e p u g n a n t a s i t m a y b e to us today,s l a v e s w e r e a l s o b r a n d e d r o u g h l y d u r i n g t h e s a m e t i m e p e r i o d t o connote ownership. In the 1 2 0 0 s , E n g l a n d r e q u i r e d b r e a d m a k e r s , goldsmiths and silversmiths to put their marks on goods, primarily toinsure honesty in measurement. In the Medieval times, printers also. u s e d m a r k s a s d i d p a p e r m a k e r s ( w a t e r m a r k s ) a n d v a r i o u s o t h e r c r a f t guilds.

IMPORTANCE OF BRANDING A brand is usually associated with the logo, sign, name, or other image that consumers associate with your company and product. But in fact, brand also incorporates other factors, and encompasses those unique characteristics that distinguish your product, and sets it apart from the competition. It also relates to the quality of your product, the way you do business, there is no denying the importance of branding, especially for the small business. Consumers are always willing to buy products they know and trust. A strong, well defined brand, gives you a competitive advantage in the market. It allows you to charge more for your product, knowing that consumers will remain loyal, and buy it at the higher cost. That is the result of consistent reinforcing of the brand, which enables positive responses from the consumer. The 5 key objectives that a brand achieves are:

Delivers the message clearly Confirms your credibility Connects your target audience emotionally Motivates the buyer Solidifies user loyalty In order to be successful in branding you must understand the needs and wants of your target market. This can be accomplished by integrating your brand strategies through your company at every point of public contact. Social media is an extremely useful tool to accomplish this with. Your brand must be in the heart and minds of your target market. It results from the experiences and perceptions of you, some of which you can influence, and some that you cannot.

A strong brand is invaluable in today’s competitive market. It is important to spend time investing in researching, defining, and building your brand. It is your brand that is a source of promise to your target audience. It is the foundation piece in your marketing plan.

Importance of Branding in Business: Importance of Branding in Marketing: Importance of Branding in Advertising:

Brand awareness Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, jingles and so on to certain associations in memory. It consists of both brand recognition and brand recall. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products (Keller). Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it. The brand awareness is not the simple acknowledgment of a brand. More the brand is well-known, than more consumers are inclined to buy its products. In this sense, the awareness is not just concerning the fact that a brand exists; it includes knowing and recognizing its image and product range. The recognition of a brand happens especially thanks to the logo. Other efficient tools are layouts and packaging.

Brand elements Brands typically are made up of various elements, such as: Name: The word or words used to identify a company, product, service, or concept. Logo: The visual trademark that identifies the brand. Tagline or Catchphrase: "The Quicker Picker Upper" is associated with Bounty paper towels. "Can you hear me now" is an important part of the Verizon brand. Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand. Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands. Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink. Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a famous example. Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked. Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken. Movements: Lamborghini has trademarked the upward motion of its car doors.

Branding in today’s Markets A central function of branding is the facilitation of the consumer choice process. Due to the complexity of having to select a product amongst thousands of similar offerings, consumers will instinctively attempt to simplify their choice process by selecting brands that have satisfied them in the past. Thus, one can conclude that pleasant past experiences is highly conducive to consumers associating benefits to a brand. One can conclude that a central function of branding is its ability to negate the need for a consumer to seek out information when a need or a want has been recognized, but rather, lead him to a brand that has been satisfying in the past. One must acknowledge however, that frequent purchasing of a brand cannot always be linked to previous experiences, but can alternatively be formed by embedded perceptions. A consumer might strongly favor a brand with no prior purchasing experience. This type of consumer behavior is based on stimulus provided by direct exposure to advertising campaigns, a company’s PR efforts or even a high concentration of local distribution in an area that is in close proximity to a consumer. In terms of companies’ views on branding, it can induce the natural differentiation of their offerings, which ultimately, will produce a state of competitive advantage. Differentiation can only allow for competitive advantage if the cost of differentiating is significantly lower than the revenue earned by the sales. Differential advantage allows companies to showcase their offer in respects to other competitors in the same market place.

UNDERSTANDING CONSUMER BEHAVIOR

Definition Consumer behavior refers to the mental and emotional process and the observable behavior of consumers during searching, purchasing and post consumption of a product or service Consumer behavior involves study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, socio psychology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general .Buyer behavior has two aspects: the final purchase activity visible to any observer and the detailed or short decision process that may involve the interplay of a number of complex variables not visible to anyone.

Solution on How to Brand Yourself and Your Company

What is your budget for developing a marketing plan? Marketing is an investment. Of course, your budget will also determine the components you use in any of the Internet marketing strategies you might develop. A website will require you to choose a domain name and register it and to purchase a web hosting service for your website.

Once this is done, you’ll need a design and content for your website, which you will either provide yourself or pay to have a web content professional and/or web designer handle it for you.

After your content and design are in place, you’ll want your site to be found, so you’ll want to learn about search engine optimization (SEO), which is an important part of strategic internet marketing. You can either do this yourself or pay someone else to do it for you.

Ideally would be if you have a place where you can purchase your domain name, register it, design your website and find relevant content so that it will position your content on the first page of Google, so that you can get the most out of SEO. A system that will automate this whole marketing process will save you time and in the long run, money.

Revisit your marketing plan every quarter. Make sure you are on target or do you need to revise it? Keep track of what is working and what is not. Remember that patience is a virtue when it comes to tracking. Search engines aren’t likely to find

you overnight and your strategies may not generate revenues right away. However, a well-managed strategic Internet marketing plan can increase your chances for success.

QUESTIONNAIRE

1. Are you a brand loyal customer?

|

Yes

| No

Which attributes did attract you to purchase branded products? Rank these attributes in order of their importance to you. |

Brand Name

|

Price

|

Easy Availability

|

Transparent

|

Cleanliness

|

Others

What was the reason for the delay between the purchase decision and the actual purchase? |

Financial constraints

|

Waiting for more innovative product

|

Waiting for market response

What influenced you to buy the above stated brand(s) ? |

Advertising

| Shop Display

|

Word of mouth

| Family/Friend/Relatives

|

Attractive packaging

|

Dealer

| Any Other

Influence of Brand name on purchasing decision |

Agree

|

Strongly Agree

| Disagree

| Strongly disagree

6. Influence of Quality on Purchase Decision

|

Agree

|

Strongly Agree

| Disagree

| Strongly disagree

7. Influence of Price on Purchase Decision

| Agree

| Disagree

| Strongly Agree

| Strongly disagree

Influence of Product features on Purchase Decision |

Agree

|

Strongly Agree

| Disagree

| Strongly disagree

Influence of Family members on Purchase Decision |

Agree

|

Strongly Agree

| Disagree

| Strongly disagree

Influence of Peer group on Purchase Decision |

Agree

|

Strongly Agree

| Disagree

| Strongly disagree

11. Influence of Advertisement on Purchase Decision

|

|

Agree

Strongly Agree

| Disagree

| Strongly disagree

12. Will you like to switch your brand preference if you get some promotional scheme with another brand?

|

Yes

| No

13. Do you think branded products are better than unbranded products?

|

Yes

| No