Brand Equity

When branding a product, it is very important to have a lot of value in the brand strength in the market. Having a quality brand name is key in maintaining a successful business operation. The more well-managed a brand is, the more of an asset it is to the organization, and this is called brand equity. There are 4 main elements that contribute to brand equity: brand name awareness, brand loyalty, perceived brand quality, and brand associations.

Brand name awareness is very important for a company because the more familiar a customer is with a product, the more likely they are to purchase that product of a competitors'. For example, a customer is more likely to buy a Coke or Pepsi product because they are very familiar with both companies and have most likely grown up watching a plethora of celebrities endorse both products. I believe this also ties in with brand loyalty, since the more familiar a customer is with a product and they more likely they are to buy it and enjoy it, the more they will become loyal to the company. If a customer enjoys a product a lot and feels that they are getting a good deal on the product, they are probably likely to become brand loyal. Many people are brand loyal to Coke over Pepsi, or vice versa, based on taste.

Coke and Pepsi can also be applied to perceived brand quality because they have been around for a very long time and continue to each own a huge percentage of the soft drink market share. The high quality soda that they deliver keeps customers coming back to buy more and more of their drinks. The reason many customers continue to buy a product could be because of a brand association. Many people grew up drinking Coke or Pepsi and every time they sip one, it reminds them of their childhood or another fond memory that makes them happy. This could be why brand association can be so important. Do you think any factor is more important than another? Why or why not?

In response to Michelle's post...

In Michelle's recent post about branding, she said: "I believe that if you find a brand that you like (weather it is with shoes, clothing, or even food) you stick with it because it is safe and reliable. What brands do you stick with?"

I completely agree with Michelle in that if you find a product brand that you like, you are more likely to stick with it. This is not to say that that will be the only company I ever buy from, but it means that between that company and another at a given price for a similar product, I would go with the company that I enjoy and because I have had good experiences with in the past and that I know is safe and reliable. One of my favorite foods is peanut butter. I put peanut butter on many things and find it goes great with a myriad of food. I used to only buy Skippy peanut butter, as it was on the cheaper side and was convenient and found everywhere. A couple of years ago I decided to try an all natural peanut butter, and saw Teddie brand. Ever since I bought that peanut butter, I have never bought another brand. I think it is more delicious, has more flavor, is more healthy, and only has one ingredient. I know this brand is safe and reliable to give me high quality peanut butter every time, so I stick with Teddie.

I also like to stick with Google products. I have always used the Google search for anything I needed to look up, and due to my success with the search, I have began using its other products. I recently began using Chrome instead of Internet Explorer, Picasa instead of Microsoft Photo editor, and Google maps instead of MapQuest. I have had great success with these products and will continue to stick with Google for any other products they may come out with. I believe that having a good, recognizable brand name with the reputation to back it up plays a crucial role in using a company's product. Do you agree with me and Michelle in that many consumers have brand loyalty and stick with a particular company?

Product Pricing

The price of a product may be one of the most influential decisions that a consumer has to decide on when buying a product. Although it may not be the first thing that a customer sees (as the product is usually first), it is often the last thing a customer sees before deciding whether or not to purchase a product. First, a customer will decide if they like the product by looking at the product, the colors, the features, and benefits or extras that may come with it. After a customer decides that they like the product enough to buy it, they will look at the price and make a final decision at whether the price listed is a price that id fair, they are willing to pay, and have the ability to pay.

Much goes into the price of a product, rather than simply supply and demand (although this may play a factor). Companies go to great lengths to determine a proper price that will allow them to try and sell more of their product than their competitors. It is very important to know a competitors prices at all times and to know whether or not they may be holding a sale or discount in the future. This will allow the company to adjust their prices so that they do not overcharge and not sell as many products. Sometimes, however, a company will purposely set their prices higher in order to promote high quality. BMW, for example, typically has a higher price tag than most other car makers, such as Ford and GM. This promotes the high quality offered to the consumer, that may be willing to pay more for this car.

Price can play an important, if not final, decision in whether or not a customer buys a product. Do you think price is always an important role? Or does it sometimes not matter? How important is it for a company to scout out competitors prices and adjust as needed?

Product Branding & Logos

I believe that product branding is one of the most important selling points that a company can use for its products. Often times a product's brand name can become so popular that it is used to describe the product. This is the case in Kleenex (instead of tissues), Q-Tip (cotton swab), and some other products as well. This gives these companies a huge market share and allows them to keep profits up through a successful marketing campaign in the past. Consumers are willing to pay more money for these brand names even though they may be no different than a generic brand or another company's identical product.

Brand marks and logos can also be very important in a company's success. I know that many successful companies have very recognizable logos, such as the McDonald's golden arches, the Nike swoosh, and Apple Computer's bitten apple. These logos have been around for a long time and represent success and a familiar sight that allows customers to know that they are purchasing a quality product. Many times on Nike clothes, shoes, equipment, etc, it will only show the swoosh and does not even say Nike on it. On the back of my iPod, it only contains Apple's bitten apple logo and does not say Apple anywhere on the back.

I believe that establishing a recognizable name and logo are crucial for a company's marketing success. The name should be easy to say and have an interesting logo that consumers will be able to notice as the company becomes more popular. Do you think that having a recognizable brand name and logo are important in a company's marketing success? Can you think of any other brand names that are used to describe a product (e.g. Kleenex)? Why do you think many people buy more expensive recognizable brand names?

In response to Kelcy's post...

In Kelcy's comical post, she posed the question:

I think that I would stick with a company, such as Vaseline, that has had a strong reputation and I know will work well. Although Butt-Paste is a brand name that describes exactly what the product will be used for, I don't think that it is a good brand name. This name could cause some controversy and even offend some people and may actually hurt their sales. Since both products are the same price, have the same ingredients, and work just as well, I would have to stick with a brand name that has a good name running.

In my post about product branding, I believe that having a good, catchy, easy-to-say brand name is key in how well the company performs in terms of sales and how easy it will be to market their product. Brand names like Vaseline and Chap-Stick are names that are widely used to describe the product (rather than petroleum jelly and lip balm). This shows that the company is reliable and has been around for a long time, which is why I would choose Vaseline over Butt-Paste and day of the week. Do you think that brand names actually play a role if the product is identical, has the same ingredients, and costs the same?

Situational Influences on Consumer Buying

I believe that when a consumer is buying a product, that one of the most important ones at play are the situational influences. These factors can influence a buyer's purchasing decision and may cause the buyer to shorten, lengthen, or terminate the process.

The first influence is physical surroundings. These come into play a lot at stores when people see signs displaying "SALE" or "50% OFF." I believe that even if the prices of these products are already jacked up, the consumer will believe that they are getting a good deal and are more likely to buy that product. Another influence is the customer's social surroundings. The people that are around a consumer when they are looking to buy a product can play a big role. For example, if you were at a restaurant and almost always ordered a huge cheeseburger, fries, and a dessert, you may want to reconsider ordering all that food if you were on a first date. Ordering all that food and wolfing it down may not be attractive to the date, and as a result may lengthen the amount of time the consumer spends on making their purchase.

Time perspective plays a significant role in a consumer's decision making process. If a person is in a rush at the supermarket, they may not pay much attention to price or brand, but rather will just grab whatever product is closest to them and that they can grab the quickest, which shortens the amount of time spent on the purchase. Another influence is the reason for the purchase, which is also a significant factor at a supermarket. Many times a customer will pick up something at the register as an impulse buy and will not think about what they are purchasing, they only pick it up because it looks appealing at the moment. This severely shortens the amount of time a customer spends on buying a product, while a larger more expensive product is more likely to be researched and not bought as an impulse.

These factors can play a large role in a consumer's decision about a purchase. Do you believe that any one factor plays a larger role than another? Do these factors have influence in your life?

In response to Laura's post...

In Laura's post about online privacy, she posed the questions: "Should we be more careful when it comes to sharing information online? Or do you think that this information will inevitably be found when scouring the web? And do you share/post a lot of your own personal information online? Why or why not? "

I believe that in today's world of phishing, scamming, hacking, and all other forms of identity theft, everybody should be more careful about sharing their information online. Since hackers and other scammers are becoming more and more prevalent, this means that when posting information online, one should be more selective about what information is made available. Many social networking websites, such as FaceBook and Myspace allow users to create a profile and post information, pictures, etc. about themselves which can be shown or chosen to be hidden. The problem with this is, many times a user does not know their privacy and account settings.

Until recently, I was unaware how much of the information on my profile was able to be seen by outsiders, and others I didn't know. This shocked me, when I read about Facebook's new security settings, and as a result I have changed my account settings. I think that this information may be able to be found regardless, as often times some websites require certain information. I have an eBay account, which requires my birthday and other information, which may be able to be stolen by a hacker or scammer. I believe that as soon as you enter information online, it can always be found. Regardless of how careful you are, how many security settings are in place, etc., once you put your information online, it stays there forever. This is why I try not to put a lot of my personal information online, to try and protect my privacy. Do you agree that once you put your information online it stays there forever? Do you take similar steps (if any) to protect your privacy?