Consumer Psychology and Brand Management
Dr. B.B. Singla
In a world where the consumer is confronted with a variety of alternatives to choose from, a strong brand can have a dramatic impact on his/her purchase decision. While it is often possible to imitate manufacturing processes, the beliefs, attitudes and associations established in the consumer’s mind cannot simply be imitated. Thus more and more firms and organizations of all types have realized that the brand name associated with their products or services is one of the most valuable assets they own. Branding is an obligatory master course that builds upon the lessons learned in marketing core courses and provides deeper insights on two interrelated issues, consumer psychology and brand management. The concepts of branding taught in this class are relevant for any type of organization (public or private, large or small, etc. 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 origination of branding can be traced to ancient times, when specialists often put individual trademarks on hand-crafted goods. The branding of farm animals in Egypt in 2700 BC to avoid theft may be considered a form of trade marking. In 1266, English bakers were required by law to put a specific symbol on each product they sold. Branding became more widely used in the 19th century, through the industrial revolution and the development of new professional fields like marketing, manufacturing and business management .Brand management begins with having a thorough knowledge of the term “brand”. It includes developing a promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining the brand. Branding makes customers committed to your business. The aim of branding is to convey brand message vividly, create customer loyalty, persuade the buyer for the product, and establish an emotional connectivity with the customers. Branding forms customer perceptions about the product. It should raise customer expectations about the product. The primary aim of branding is to create differentiates your products from the competitors. It gives a quality image to your business. Strong brands reduce customers’ perceived monetary, social and safety risks in buying goods and services. The customers can better imagine the intangible goods with the help of brand name. Strong brand organizations have a high market share. The brand should be given good support so that it can sustain itself in long run. It is essential to manage all brands and build brand equity over a period of time. Here comes importance and usefulness of brand management. Brand management helps in building a corporate image. A brand manager has to oversee overall brand performance. A successful brand can only be created if the brand management system is competent. Evolution of Branding in India
More and more firms have come to realize that one of the most valuable assets they own are not the bricks and mortar that are shown on the balance sheet but an off-balance-sheet item, ‘brands’. For decades the value of a company was measured in terms of its buildings, land, and tangible assets (plant and machinery). It is only recently that it has been realized that its real value lies outside the business itself, in the minds of potential buyers. Brand awareness, image, trust and reputation, all painstakingly built up over the years, are the best...
References: Aaker. David A. (1991), Managing Brand Equity, New York: The Free Press.
Ambler, Tim (1997), “Do Brands Benefit Consumers?” International Journal of Advertising, Vol. 16, No. 3, pp. 167-198.
De Chernatony, Leslie (1996), “2001- The Brand Management Odyssey”, Journal of General Management, vol. 21, No. 4, pp. 15-30.
Low, George S. and Ronald, A. Fullerton (1994), “Brands, Brand Management, and Brand Manager System: A Critical Evaluation”, Journal of Marketing Research, Vol. 31, pp. 173-190.
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