Brand Salience or Image - A Beta Solution

1. Brand Salience or Image- A Beta Solution by Professor Roger Sinclair University of the Witwatersrand

2. Agenda Problems with marketing Two schools of thought A useful continuum From Finance theory The marketing Beta in action

3. According to The Economist �business is awful for producers of branded goods� Generics and private labels Falling prices Squeezed margins Crowded markets Cost of innovation Channel power

4. Evolution of buyer needs Consumers looked for assurance and reliability ; brands were a means to an end � �keeping up with the Jones�s� Consumers now use brands to satisfy broader variety of goals, e.g. Environmentally friendly Doesn�t cost too much Efficient

5. Discrepant Andrew Ehrenberg Weak Theory of Advertising Double Jeopardy More customers who buy more frequently Brand salience Big and small,not strong and weak No benefit to innovation � a leveller Market penetration

6. The Image Boys Salience equals short term-ism Creates price sensitivity not brand loyalty Trend to promotions reversed No clear agreement on salience � but: 12 second selection decision 1,2 brands examined It�s all in the mind!

7. Consideration Set From 2,2 air fresheners to 6,9 beers These match evaluative criteria

8. All Wrong � All Right? Salience achieved by promotional support Image achieved by Advertising A salience � image continuum?

9. Promotional Mix Marketers need both - but what balance? In 1977 = advertising took 42% In 1994 = advertising took 25% SA is not much different

10. Why is this? Balance of channel power Brand parity and price sensitivity Reduced brand loyalty Reduced media effectiveness Brand management short term-ism Consumer responsiveness to promotions

11. Starting to Change Promotions harm brand image Brand equity is an asset Brand image is a corner stone of Brand Equity