Brand Associations

Akash C.MathapatiAsst Professor – Marketing Area

Kirloskar Institute of Advanced Management Studiesakashcm@gmail.com

Associations, Image & Positioning

Akash C.Mathapati

• Positioning is closely related to the association and image concepts except that it implies a frame of reference, the reference point usually being competition

Akash C.Mathapati

The Value of Brand Associations

Akash C.Mathapati

AssociationsAssociations

Help Process/Retrieve Information

Help Process/Retrieve Information

Differentiate/PositionDifferentiate/Position

Reason-to-BuyReason-to-Buy

Create Positive Attitudes/Feelings

Create Positive Attitudes/Feelings

Basis for ExtensionsBasis for Extensions

Types of Associations

• What does these brands mean to you ?

Akash C.Mathapati

Types of Associations

• Product Attribute– Most used positioning strategy is to

associate an object with a product attribute or characteristic

– Positioning problem is usually to find an attribute important to a major segment & not already claimed by a competitor

Akash C.Mathapati

• Intangibles– Companies love to make brand comparisons

• Problems with such specmanship– Brand position based upon a specification is

vulnerable to innovation– When firms start a specification shouting

match, they all eventually lose credibility– People do not always make decisions based

upon a particular specification anyway

Akash C.Mathapati

• Regis McKenna, an advisor to silicon valley firms– “intangible factors are more effective

associations to develop than specific attributes.”

– Perceived quality, technological leadership, perceived value or healthy food

Akash C.Mathapati

Customer Benefits

• Most product attributes provide customer benefits, there usually is a 1 to 1 correspondence (crest, BMW)

• A rational benefit is closely linked to a product attribute and would be part of a “rational” decision process

• A psychological benefit, often extremely consequential in the attitude-formation process, relates to what feelings are engendered when buying and/or using the brand (e.g., Avanti)

Akash C.Mathapati

Relative Pricing

• Relative price, is so useful & pervasive that it is appropriate to consider it separately. In some product classes there are 5 well-developed price levels– Saks fifth avenue, Neiman Marcus,

Bloomingdale’s– Macy’s, Robinson’s, Bullocks, Dayton’s etc– Sears, Montogomery Ward, j.C Penney– K Mart

Akash C.Mathapati

• Positioning with respect to relative price can be complex. The brand usually needs to be clearly in only one of the price categories

• The job then is to position its offering away from others at the same price point

Akash C.Mathapati

Use/Application

• Associate the brand with use or application – Reach out and touch some one

Akash C.Mathapati

User/Customer

• Associate a brand with a type of product user or customer

• User positioning strategy is effective because it can match positioning with a segmentation strategy

• Identifying a brand with its segment often is a good way to appeal to that segment– Cadbury – adult soft drink market

Akash C.Mathapati

Celebrity/Person

• Linking a celeb with a brand can transfer those associations to the brand

• One characteristic important for a brand to develop & manufacture a product

Akash C.Mathapati

Life-Styles/Personality

• Every person, of course possesses a personality and a life style that is rich, complex & vivid and distinctive as well

Akash C.Mathapati

Product Class

• Some brands need to make critical positioning decisions that involve product-class associations– 7 up, maxim freeze-dried coffee

Akash C.Mathapati

competitors

• Positioning strategies, the frame of reference, whether explicit or implicit, is one or more competitors

• It is useful to consider positioning with respect to a competitor for two reasons– The competitor may have a firm, well-

crystallized image, developed over many years, which can be used as a bridge to help communicate another image referenced to it

Akash C.Mathapati

– Sometimes it is not important how good customers think you are; it is just important that they believe you are better than a given competitor

• Positioning with respect to a competitor can be an excellent way to create a position with respect to a product characteristic, especially price quality

Akash C.Mathapati

Creating Associations

• Identifying and managing signals– Customers often discount or disbelieve

factual information– They cope by using signals or indicators,

one attribute or association can imply others

– E.g., healthy cereal, caterpillar

Akash C.Mathapati

Providing credibility in the High-Tech World

• Ben Rosen (Sevin Rosen Funds) – Compaq, Lotus

• Having alliance

Akash C.Mathapati

Understanding Unanticipated Signals

• Millers diet beer failed because of perceived taste problems– Associations with low calorie, diet

products was avoided

• Pringles

Akash C.Mathapati

The Role of Promotions

• Strengthening Associations & Brand Awareness– Leather Strapped luggage tags – Amex– Terrycloth robe – Polo Cologne– Belts, Handbags – Levi’s– Outdoor Gear & 2 mountain bike – Jeep

Akash C.Mathapati

Akash C.Mathapati

Role of Publicity

• Creating associations and recognition need not to be expensive

• Advertising sometimes is extremely difficult and expensive because it lacks both credibility & interest value

Akash C.Mathapati

Involving the Customer

Akash C.Mathapati

Changing Associations

• Changing associations (repositioning) often is a delicate job because of the existing associations

Akash C.Mathapati

Maintaining Associations

• Be consistent over time– Changing associations is wasteful when

associations that have been nurtured over a long time-period are allowed to dissipate when a new association is emphasized

• Be consistent over elements of the marketing program– E.g., E.J Korvette, a pioneer discounter

(Eugene Ferfauf, 1948)Akash C.Mathapati

Managing Disasters

• Suzuki Samurai• Tylenol• Nestle• AT&T

Akash C.Mathapati