Brand equity is defined and a comprehensive framework is described that incorporates recent theoretical advances and managerial practices in understanding and influencing consumer behavior. This framework identifies sources and outcomes of brand equity and permits tactical guidelines as to how to build, measure, and manage brand equity, as will be developed further in other sections of the article. Customer-Based Brand Equity Understanding the needs and wants of consumers and customers is at the heart of marketing. A brand equity framework should therefore recognize the importance of the customer in the creation and management of brand equity. Accordingly, customer-based brand equity is defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand. A brand is said to have positive customer-based brand equity when customers react more favorably to a product and the way it is marketed when the brand is identified as compared Continue reading
Marketing Concepts
Diffusion of Innovation Theory
Diffusion of innovation theory was developed in the early 1950s by Everett Rogers. It seeks to explain the spread of new ideas through individuals and members of a social system. This theory is still widely used now to spread innovations and ideas from the scientific world to the political sphere. According to Rogers, the diffusion of innovation is the process by which an innovation is communicated through certain channels over time among the members of a social system. To understand that definition you must first understand some key terms. Innovation is used more generally here to mean an item, thought, or process that is new. Good examples of innovation would be automobiles, brain surgery, and a new kind of running shoe. It is important to realize that something can be an innovation in one place and have already been accepted in another. The other key term in the definition is Continue reading
Sigmund Freud’s Psychoanalytic Theory of Personality
Sigmund Freud is considered by many to be the greatest psychologist in history. Opinions vary greatly on the validity of this, though all must agree that he is one of the most well known psychologists in history. He was well know for his research into the science of the mind, and is famous for his theories about the functions of the mind and the human psyche. One of Freud’s most famous theories is that of his views on the human personality, and the various psychological elements that play into it. An iceberg model is often used to describe Freud’s understanding of the mind. The conscious is the tip of the iceberg, barely above water. It is composed of our thoughts and perceptions. It is everything of which we are aware. The preconscious is just under the water. It is composed of our memories, stored knowledge, fears, and doubts. We are Continue reading
Qualities of a Good Advertisement Copy
The advertisement copy refers to the written contents of the advertisement including its text and head line. It can be referred to as the heart of advertising and should be drafted with utmost care; otherwise all the money invested in carrying out the advertisement campaign will go waste. In the words of William J. Stanton “The copy in an advertisement is defined as the written or spoken material in it, including head line, coupons and advertiser’s name and address as well as the main body of the message”. Simply stated advertisement copy means the total structure relating to the message which the advertiser wants to convey by using any medium of advertisement. The importance of a good advertisement copy can hardly be overemphasized. All the planning, research and expense would go waste if proper care is not taken in drafting an advertisement copy that will achieve the purpose of advertising. Continue reading
Importance of Marketing Research in Marketing Process
Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. The marketing management process responsible for identifying, anticipating and satisfying customers’ requirements profitably. Market research is about understanding the broader marketplace in which we intend to compete. Marketing research, on the other hand, is about understanding what ‘package’ of marketing elements (i.e. the product, price, promotion and distribution factors) the country will need to put together in order to meet customer needs and to succeed in the marketplace. Market research is the more encompassing/broader concept of understanding the market environment in which you will be competing, while marketing research is the more specific/focused view of Continue reading
Difference Between Commercial Marketing and Social marketing
Man is a social animal dwelling within the confines of a social set up and interacting with the other members of the very same social set-up in order to fulfill his needs be it basic or otherwise. Every activity carried out in society serves a certain need in exchange of a benefit in kind or monetary terms which is the universally accepted mode of exchange thus creating trade and marketing activities. With progress and advancement the comprehension of market and marketing has assumed new dimension and character. Marketing activities and several strategies related to it could be very well bifurcated into Commercial Marketing and Social Marketing. Commercial Marketing has been in existence since time immemorial. The process was initially strictly understood as offering a product or service with intent to generate and maximize profit. Earlier, the commercial world lacked intense competition and hence the market being a sellers’ market ended Continue reading