Total Flashcards by Makenna Duchene

The set of human traits associated with a brand:
Gender
Age
Personality traits
Socioeconomic class
Values

What is brand personality?

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Demographics
Values
Psychological traits

How can brands be described as a person?

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What are the 5 dimensions of Aaker’s brand personality scale?

Sophisticated
Rugged
Sincere
Exciting
Competent

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(upper class, glamorous, charming, sexy)

Sophisticated

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(tough, strong, outdoorsy)

Rugged

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(down to earth, honest, family-oriented, wholesome, cheerful)

Sincere

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(young, modern, daring, spirited, imaginative)

Exciting

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(reliable, intelligent, efficient)

Competent

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Helps a consumer express their actual self
Helps a consumer express their ideal self
Can be the basis of a relationship between the customer and the brand

What are the benefits of a brand personality?

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Can be formed and influenced by any direct or indirect contact that a consumer has with the brand

How is brand personality formed?

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Factors that effect brand personality

Users of the brand
Company employees
CEO
Brand name
Symbol or logo
Adverting style / tone
Price
Distribution channel
Celebrities
Brand spokespersons

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Relationships with ____ brands deepen over time (like friendship)

sincere

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Relationships with _____ brands weaken over time (like a fling)

exciting

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What is a transgression?

Violation of the implicit or explicit rules guiding relationship performance and evaluation
Example: google drive deletes all your files

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How does habit differ from loyalty?

Habit is a behavioral response to a cue; loyalty is driven by emotion with repeat purchases as the result. Loyalty means faithfulness and unswerving devotion

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“Rich affective grounding reminiscent of concepts of love and interpersonal domain, the affect supporting brand relationship endurance and depth was much greater than implied in simple notions of brand preference”

What is at the core of strong brand relationships?

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Information sharing should be reciprocal; make the customer feel listened to and respected
Dependability
Accountability

What are the relationship expectations that consumers have for brands to which they are loyal?

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Customers tend to spend more time with you as their incomes increase and they feel more attached
They feel the brand is theirs
They feel the offering is more superior
More likely to spread + WOM (putting their reputation on the line)
More likely to bring new customers to the brand
More likely to talk about the brand as “relationship partners”

Loyalty value

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Aggregate or individual sales date can be used for
Forecasts
Understanding consumption patterns
Customizing offerings
Identifying needs / preferences and changing
Identifying upcoming life changes
Customer data is a “loyalty programs most valuable asset”
Assume that a customer bringing information is speaking on behalf of others (positive or negative)

Information value

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Communication from the company to customers and
positive WOM
Sharing news
Sharing products
Sharing discounts
Customers communicating with other customers, especially important with:
Customers who are part of large social networks where peers are influential
Customers who are particularly influential (wealthy, well connected people)
Services / experiences where people seek WOM before buying

Communication value

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Sources of income, generation of sales, funds, profit
Old customer retained is worth more than new customer won
Loyal customers tend to spend more
Customers can be incentives w/ loyalty programs
Reduction of costs
Repeat customer can be less expensive to serve
Costs to acquire new customers is high
CLTV may be calculated to determine expected economic value of a customer to the firm

Monetary Value

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Michael Kors purse

Loyalty

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Targets pregnancy predictor score, asking chat rep to clarify return policy

Information

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positive WOM, sharing news, sharing products, sharing discounts; Important communicators: pediatricians, hair stylist, spas

Communication

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Starbucks loyalty targeting

Monetary

Behavioral segmentation strategy (silver, gold, platinum) Higher CLTV, higher marketing budget can be to acquire each customer Aim of loyalty programs is often to identify and nourish those customers w/ high CLTV

How do companies use CLTV to make decisions?

Pareto principle (80-20 rule)

20% of customers provide 80% of orgs revenue

Updated 20-200 rule

20% of customers provide 200% of revenue

Additional purchase requires ongoing or additional purchases (razor & blades)

What are two-stage products?

“A process whereby a smaller company with fewer resources is able ot successfully challenge established incumbent business by successfully targeting those overlooked segments gaining foothold by delivering more suitable functionality at a lower price”

What is disruption?

Brand presents itself as the scrappy challenger or outsider fighting against larger more established brands

What is underdog positioning?

Consumers react positively to underdogs when they see the underdog aspects of their own lives reflected in branded products Produces ego expressive value & social value → higher preferences, purchases & loyalty

Creating underdog positioning

With which type of purchases is underdog positioning most impactful?

Everyday lifestyle products, passion purchases, commoditized markets, millennial & gen z targeted products

Create a customer experience of “belonging to the club” Direct access to costumers Better “storefront” experience

What are the advantages of a direct-to-consumer (DTC) model?

When is radio advertising most effective?

Largest reach with Gen X and older Millennials

Selective targeting Repeated exposure More memorable: sound is more effective that written ads Time efficient & cost effective

What are the advantages of radio advertising?

Unconventional marketing that uses surprise, creativity, or boldness to promote a product or brand in public spaces

What is guerrilla marketing?

What does guerrilla marketing aim to achieve?

Produce great results for cheap Grab public attention in a more personal and memorable way

___% interaction and listening ___% pushing the brand

80% 20%

How do you interpret a marketing funnel?

Top – visibility Middle – nurturing and persuasion Bottom – action and loyalty

What are the 5 categories of social media influencers?

Celebrity Mega Macro Micro Nano

Motivate the distribution channel to sell to consumers Effective with lower cost products, lesser-known brands, and impulse purchases L&N used discounted invoice prices to distributers, free cases w/ min orders, shelf talkers

What is push marketing?

Build demand at consumer level Effective with highly visible, well-known brands L&N used contests, give aways, and digital coupons

What is pull marketing?

Graphic warnings on cigarette, research found these images had little effect Had boomerang effect – viewers disengaged and blocked out the message Excessive fear-based tactics can backfire

What is fear’s boomerang effect?

Method companies use to evaluate the effectiveness of their marketing communications before launching them Consumers are shown the marketing message in a simulated or real environment Their reactions are captured and analyzed using various techniques

What is copy testing?

Dominates the market Organizations (lawyers, accountants, construction, retail) apply a set markup to the cost of production OR what they buy the product for Often used by established companies

What is cost-plus pricing?

What is prestige pricing and how does it affect consumers’ emotions?

Higher end stores and brands use it → $-.00 The decision is context is driven by feelings The item is purchases for a hedonic purpose Encourage reliance on consumers feelings “it feels right”

marketers are likely to benefit from pricing the products at rounded prices.

More emotional

marketers are likely to benefit from pricing the products at non rounded prices.

More cognitive

What is a good-better-best pricing strategy?

Good – low-cost, stripped down Better – standard Best – premium, feature rich version

Price-sensitive customers: want a more affordable option

good

Mainstream customers: stick with the current standard

better

High spenders/value seekers: want premium features and will pay more

best

How many people opt for the “Best”?

Up to 40%

what options do companies have? Grow revenue and attract new customer segments Benefits More revenue, market expansion, brand elevation

Offensive plays

how and why would companies use this as a defensive strategy? Protect against low-cost competitors or price pressure Benefits Call customers bluff, avoids devaluing core offerings

Defensive plays

plays – what are they? Leverage psych to increase conversion and average spend

Consumer Behavior

Good should not be more than __% below better Best should not be more than __% above better

25, 50

Payments near consumption increase usage due to fresh cost awareness Payments made far in advance or after consumptions reduce pressure to use the product

How does timing of payment matter?

Bundling blurs the cost-benefit link, weakening sunk cost effects Unbundled prices create clearer link, increasing usage

How does price bundling affect the perception of sunk costs and therefore consumption?

When a brand is seen as typical of its category or tradition Adheres to established norms

Type authenticity

Driven by sincere values or a mission Reflects genuine care, ethical commitment, or transparency

Moral authenticity

Both boots customer ratings and WTP Moral authenticity has a stronger effect: Customers are willing to pay more when brand is perceived as morally authentic Type authenticity had positive effect but to a lesser degree

How did each type of authenticity correlate to higher ratings and WTP?

What were the key takeaways of the case? (snapple)

Example of the power of effective IMC (Importance of distribution network : Can help you or take you down) Interplay between the challenges a brand faces and the corporate culture is key When out of sync, both the brand and company suffer Brands can be saved with the right management

being independent and willing to take risks within boundaries without conforming

Autonomous

being “real” in and genuine to the company’s mission

Authenticity

the “coolness” or “suave” associated with being authentic and autonomous

Attitude

ability for someone to be cool because of their usage or association to

Association

How likely are you to recommend (brand) to a friend or college? Scale 0-10 10 = extremely likely, 5 = neutral, 0 = not likely at all 9 or 10 = promoters 7 or 8 = passively satisfied 0-6 = detractors

NPS

Typical NPS score falls between

10-30

Average NPS score is

NPS Range

-100 to +100

high extroversion

prefer exciting brands

high openness to expereince

prefer exciting brands

high conscientiousness

prefer competent brands

high agreeableness

prefer sincere brands

The customer becomes aware of the brand or product. Example: Seeing a social media ad or a billboard

Awareness / Exposure

The customer starts showing interest and wants to learn more. Example: Clicking on the ad to visit the website.

Discovery

The customer is actively comparing options and evaluating. Example: Reading reviews or comparing features.

Evaluation

The customer shows signs of planning to purchase. Example: Adding a product to their cart or signing up for a discount.

Intent

The customer completes the transaction. Example: Buying the product.

Purchase (Action)

After a good experience, they stick around and may become repeat customers. Example: Subscribing, joining a rewards program, or leaving a positive review.

Loyalty

Total Flashcards

(82 cards)