This document is a clear and simple of all information necessary for the Brand Management exam 2018 at Maastricht University. Contains all Branding Approaches and obligatory articles.
Desiree Miltenburg Brand Management
International Business Economics Summary 2018
CH 4: Economic Approach
Assumptions Theory
1. Brand can be controlled and managed by the company 1. Transaction cost theory
→ If company gets marketing mix right, brand strong and successful (4 P’s) • Consumer behavior does not always display utility maximizing
2. Consumers are +/- passive receivers of marketing messages, and behavior
perceive/evaluate them rationally (Economic man) o Don’t have perfect information and accessibility to all
→ Consumers always make best rational decision possible choices available
o Not able to make rational choices
Assumptions result from: • Transaction costs are barriers to utility maximization
(1) Microeconomics o Goal in this approach: eliminate transaction costs
• Invisible hand: Allocates resources such that optimizes both ind. and soc. o By providing right information about product through 4P
(2) Economic man 2. Four P’s
• Assumptions: • Assumption: able to control consumers brand choice by
o Human behavior is guided by rational parameters ensuring an optimum mix between the Four P’s
o Humans maximize own satisfaction and strive for max utility • Product: Satisfy a functional demand
o Humans have perfect information about alternatives • Price: Total cost of manufacturing, distributing, and advertise
o Exchange between two parties is an isolated event • Place: Make goods available in right quantities at right loc.
o Consumers have limited income: Ensure to get the most out of it • Promotion:
• Consumers go for the deal that optimizes utility compared with price o Signaling theory: What most efficient to reveal
• Consumers can oversee all available choices and choose rationally unobserved product qualities of a brand?
(3) Brand-consumer exchange and transaction theory 3. Marketing mix
• It is equally important to: • Purpose: to produce/promote/distribute goods that are
o Supply the best deal attractive to consumers because they deliver the best deal
o Minimize transaction costs (search, purchase, consumption) measured by utility, compared with the utility of competitors,
• Relationship of company with market focusses on price, demand, supply related to the price consumers are willing to pay
• Key instrument for understanding and facilitating transactions
between company and market
Support:
Support:
Transaction
Four P's
cost theory
Core:
Marketing
mix
Methods and data Managerial implications
1. Data collection 1. Primary focus:
• Gather data to identify the exact marketing mix that will deliver optimal Eliminate barriers to exchange, facilitate next transaction
brand performance 2. Marketing mix is the best toolkit
o Mostly quantitative 3. ST focus resulting from the marketing mix as primary tool
o Analyzed by micro-economic techniques 4. Exchange between brand and consumer is an isolated event
→ Focus: Effects of marketing on demand 5. Different to catch sight of brand-building qualities
2. Methods 6. Push approach to the marketing of brands
• Objective: to investigate how changing marketing mix will affect br. choice 7. Marketer is concerned with “hooking new clients” and sales figures
• Output and managerially oriented 8. Model is purely theoretical rather than empirical
• Mathematical models 9. Criticized for not portraying the world of consumption adequately
3. Data analysis How the approach (not) deals with consumers
• Large quantities 10. Individual preferences violate utility theory
• Replicable and representative
• Objective
• Regression analysis
• Difficult to understand why variables are correlated
• Based on positivist research ideal
, Desiree Miltenburg Brand Management
International Business Economics Summary 2018
CH 5: Identity approach
Assumptions Theory
1. Focus on creation of a unified, visual, and behavioral identity Brand identity
2. Consumers attribute identity characteristics to companies • Made up of four components:
3. People form images of companies based on the total experience of (1) Corporate identity
the company Created/maintained internally
(2) Organizational identity
→ Places company and employees at center of brand equity (3) Corporate image
creation (4) Reputation Created/maintained externally
Results from: 1. Corporate identity
(1) Identity perspective • Exchange between brand and stakeholder from a visual/strategic pov
• Assumption: • Focus on: Creation of visual coherent identity with internal
All marketing and communication activities should be • Key determinant of success: Ability to control all communication
integrated/aligned/elevated from a product-focused and tactical • Aim: Create an enduring/distictive/stable brand identity linearly to all
level, to corporate, strategic level. stakeholders
• Identity is something initiated from inside the company • Two perspectives on how to create an manage corporate identity:
(2) From product to corporate branding (1) Visual perspective: outward signs of inward, logo/name/col.
• More integrated relationships between internal and external (2) Strategic perspective: Strategic vision
stakeholders linking to top 2. Organizational identity
management/employees/customers/other stakeholders • Behavioral and cultural aspects affecting brand identity
• One unified message across all functions will elevate brand • Key concepts: org. behavior, culture, structure
management • Originates from the idea that people base their evaluations on total
• LT brand idea experience of a company
(3) Brand-consumer exchange • Employees deliver content/promise in LR → image and reputation
• In this approach, key determinants of brand choice are image and = “Living the brand”
reputation 3. Corporate image
• Expanded to a focus on all potential stakeholders, not only • Aim: project a single image to all stakeholders (consistent perc.)
consumers • Mosaic of brand associations held by stakeholders projected by c.
• Short term
4. Reputation
• Opposite to image (static/visual → dynamic/complex/social)
• LT gathering of impressions/evaluations of image stored in LT memory
of stakeholders
• Used externally: Measure customer evaluations
• Used internally: Guide employee behavior
• More effective when communicated by independent 3rd party
• Frameworks:
(1) Corporate brand toolkit: vision, culture, image
(2) AC4ID:
Actual/Commun./Conceived/Cultural/Covenant/Ideal/Desired
Methods and data Managerial implications
Methods vary depending on the supporting theme to be studied: 1. Building and managing brand identity is a complex management task
1. Corporate identity 2. Align vision and culture in practice
• Data about how visual expression has evolved over time • Observe and analyze interplay between the four subthemes
• Historical sources/Brand records/Interviews/Storytelling/Heurist. • If not all work to achieve the same goal: difficult to build identity
2. Organizational identity 3. Detect identity gaps (between image and vision/culture)
• Qualitative interviews • Occur if employees don’t deliver on the brand promise
• If not enough: interaction/immersion with culture to interpret • Effective, continuous interaction/communication with StH required
• Three perspective approach: 4. Align identity gaps
(1) Integration perspective: Consensus and consistency • Five cyclical steps:
(2) Differentiation perspective: Subcultures within org. (1) Stating: State vision/identity
(3) Fragmentation perspective: Multitude views (2) Organizing: Link with culture and image practices
3. Corporate image and reputation (3) Involving: Involve StH and employees
• Surveys and laddering techniques, cognitive/social psychology (4) Integrating: Align identities across internal functions
• Key elements to be studied: (5) Monitoring: Track gaps and performance
(1) Perception: Meaning creation 5. Challenges when building brand equity
(2) Cognition: Mental images ensuring recognition • Objectives must be clearly defined and results measured against it
(3) Attitudes: General evaluations • Consider whether org. structure suits aim of brand identity
• Image: Result of ST efforts • Ensure daily involvement and comitment
• Reputation: LT evaluation of brand actions
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