CHALLENGES TO THE BRAND

The impact of consumer development on brand management

Laura Bowers, Rachael Robertson, Jodie Tuley and Maria Cerenzia

Table of Contents

Overview Power of the Brand Our Challenge Silent Minority Consumer Behaviour Measuring Brand Loyalty Five Point Plan

Overview

Derived from ‘brandr’ Macro and Micro factors A brand has a life cycle which

consumers determine

Power of the Brand

Theoretical Example

Our Challenge

The main challenge facing brands of today, is not to

meet the explicit demands of the vocal minority, but to

satisfy the individual needs of the silent majority

(Adapted from Simon Knox, 1996)

Silent Minority

‘Understanding the motivators and purchasing patterns of the silent defector is the corporate

challenge’ (Knox 1996)

Marketers need to acknowledge the fact that today’s consumer lacks and pattern in their buying behaviour. Hence the need to direct and differentiate through branding consumers towardsthe product.

Consumer Behaviour

Consumers have grown more sophisticated and demanding in terms of the product experience that

goes beyond functionality

Perceptions of BenefitsCustomer Value =

Total Cost of Ownership

Consumer Behaviour

Maffesoli 1996 argues that consumers are breaking down marketers dominance by

creating social spaces in which they produce their own culture.

The emerging idea of “micro-marketing” is an attempt to focus marketing strategies on ever smaller groupings of customers

Measuring Brand Loyalty

Brand managers have the challenge of trying to

measure brand loyalty of the silent minority.

‘If the linear relationship between brand commitment and support does not provide an adequate measure of brand loyalty, how can it be re-specified to better retain information about consumers purchasing styles and to measure brand loyalty.’

(Knox 1996)

Five Point Plan

Ability to understand the values and purchasing patterns of the silent majority

Focus more on the silent minority as they hold more power and are rational

Take a more personal approach in influencing the consumer by providing them with a tangible experience.

Ensure the value offering is superior to that of the competition

Conduct more research into the potential niche markets

This is just one of the many challenges faced by brands today.

Laura Bowers, Rachael Robertson, Jodie Tuley and Maria Cerenzia