The Consumers Relationship With Brands

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The Consumers Relationship With Brands

• Why Is It Relevant and Why Is It Useful

29 March 2006
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Managers ask questions such as
Q Is my brand a strong one and with a good
potential?
A Check how many consumers are aware of it and
use it. Check latest growth. Check brand image
consumers perceptions about the brand.
Check what the relationship between consumers and
your brand is
Q Are my consumers loyal?
A Check how frequently people buy it.
Q What should I do to make the brand stronger
and ensure its growth?
A Choose a good positioning and make sure you
communicate it properly. Make sure that you have
a good marketing mix
Capitalize on the strengths and correct
weaknesses of the brands relationship with
consumers
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Relationship with consumers can be tighter or
more loose
Do consumers know about it?
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Do consumers know about it?
Young actresses I know? Penelope Cruz, Katie
Holmes
I know she had a role in a teens series
I met her at a party
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Relationship with consumers can be tighter or
more loose
Is it relevant to their needs so that they dont
reject it?
Do consumers know about it?
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Is it relevant to their needs so that they dont
reject it?
Not my kind
Hello, people! I have a boyfriend!
People would think I have unsophisticated tastes
Too young for me
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Relationship with consumers can be tighter or
more loose
Does it deliver?
Is it relevant to their needs so that they dont
reject it?
Do consumers know about it?
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Does it deliver?
Doesnt cook
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Relationship with consumers can be tighter or
more loose
Does it hold advantages to other brands?
Does it deliver?
Is it relevant to their needs so that they dont
reject it?
Do consumers know about it?
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Does it hold advantages to other brands?
Sweet and sexy
Very sexy
Growing popular
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Is it the best choice?
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Relationship with consumers can be tighter or
more loose
Is it the best choice?
Does it hold advantages to other brands?
Does it deliver?
attitudinal loyalty vs. behavioural loyalty
Is it relevant to their needs so that they dont
reject it?
Do consumers know about it?
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How close are consumers to your brand?
Relationship
Share of wallet
Is it the best choice?
Does it hold advantages to other brands?
Does it deliver?
Is it relevant to their needs so they dont
reject it?
Do consumers know about it?
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A proven link between strength of consumer
relationship and market share movements
Probability of Share Increasing in the next year
61
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14
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Probability of Share Decreasing in the next year
52
Low score
High score
Average score
Source Millward Brown Analysis of 153 brands
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What if the brand is not really known?
Brand A (regional brand, hardly advertised, with
good quality/ price ratio, good distribution)
Brand B (competitor of A, national brand, some
advertising, not so good distribution)
Is it the best choice?
Does it hold advantages to other brands?
Does it deliver?
Is it relevant to their needs so they dont
reject it?
Do consumers know about it?
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What if the brand doesnt have wide relevance and
many consumers reject it?
Brand C (premium brand, long presence on the
market, clear and consistent advertising)
Brand D (competitor of C, economy brand, grew
fast based on low price and acceptable quality)
Is it the best choice?
Does it hold advantages to other brands?
Does it deliver?
Is it relevant to their needs so they dont
reject it?
Do consumers know about it?
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What f the brand is big, but does not hold many
or unique advantages as compared to competitors?
Brand E (leader of a market characterized by low
loyalty levels, long presence on the market,
heavy advertising)
Is it the best choice?
Does it hold advantages to other brands?
Does it deliver?
Is it relevant to their needs so they dont
reject it?
Do consumers know about it?
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Conclusions

• Attitudinal loyalty is a stronger indicator of
  the potential of the brand, as compared to
  behavioural loyalty.
• Beside basic measures, such as degree of
  awareness and usage, understanding the strong and
  weak points of consumers relationship with your
  brand can give you some extra insight into the
  brands health,.
• Understanding consumers-brand relationship can
  give you some strategic hints regarding how you
  can strengthen the brands position and help it
  grow.

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Thank you for your attention!