Scarica Global Brand Management e più Sintesi del corso in PDF di Brand Marketing solo su Docsity! In an economic world characterized by a crowded market and consequent high competitiveness in selling products and services, it has been and continues to be necessary for companies to diversify their work. Indeed, the overabundance of products entails consumers to choose between various alike goods, which could seem identical in both quality and price (Chernev, 2014). Hence, companies trying to increase the commodification of their products and obtain a significant commercial force have begun to focus not only on the production itself but also in directing company policy towards creating a brand; namely a mixture of unique graphic and communicative elements (Kay, 2006). Firms decide how to establish their own brand depending on what kind of values they want to communicate, and what target of customer they want to attract. The goal of a brand is not just to convey the qualities of the product and of the company, but also to establish an identity that instils confidence and good perceptions on part of consumers. Consumer’s perceptions prove to be essential to understand many sales and market logics, as customers generally tend to purchase a product they believe to be of high quality and a competitive price on the market (Alizadeh et al., 2014). Market rules are complex because there is not a common idea among all consumers about the concepts of quality and convenience. Indeed, the judgement of consumers depends on their cultural background, socio-economic status, product knowledge and many others variables. For instance, in Ghana it is considered an endorsement of quality if a product appears to be one of the most commercialized and sold (Agyekum, Haifeng and Agyeiwaa, 2018). Alternatively, other consumers classify the quality of a product according to its origin, for example if a car is German it is considered a mark of quality and value (Malhotra,2017). Market rules may vary according to two variables: consumer behaviour and strength of the brand (Alizadeh et al., 2014). To understand customer-purchasing decisions in a product category, it is essential to analyse the consideration and emotion that the good evokes in consumers. Indeed, depending on the general importance given to a category of products some market rules change. For instance, for those goods that consumers believe that there is not a substantial quality difference depending on which company they acquire the product from, or for those goods towards which they are scarcely interested or involved, the influence of brands on purchasing decisions will be low or null. It can be argued that in products like eggs, iron and sugar, consumer choice will be oriented to purchase depending on price or freshness rather than brand reputation (Alizadeh et al., 2014). Nevertheless, for most products consumers perceive a clear difference in quality, prestige and meaning or emotional connection depending on which company produces the good. Therefore, it follows that brands often have a strong influence on customers purchasing decisions in the case of expensive or otherwise highly valued products. The strength of a brand can be improved in various ways: brand awareness and brand image are two examples of it (Keller, 1993). Brand awareness indicates whether a consumer can identify a specific trademark among various brands, whereas brand image indicates which way a trademark is perceived by customers. If customers have both an excellent knowledge and perception of the company, then the brand would have effective influence on their purchasing decisions (Keller, 1993). A valid example is the Danish brand Lego, which is one of the most successful toy firms in the world. Since its debut on the global market, Lego has always prioritised the quality of its products rather than price competitiveness, highlighting its internal business aspiration with the motto “Only the best is good enough” (Pride et al., 2014, p.492). Specifically, producing goods for a very young clientele (age between 7 and 12 years old) Lego's priority has always been to try to reassure the real buyers, or rather the parents of the quality and safety of the product (Pride et al., 2014). Therefore, many consumers, placing a priority on the protection of the health of young people, feeling safeguarded by Lego's history and quality, prefer to buy a good produced by this brand rather than by competitors (Ro, 2015). A strong brand utilising its high reputation has the ability to start a new wide range of goods on the market using the same brand. This brand strategy is particularly effective in case of a downscale extension, such as luxury brands starting to produce and sell line of cheaper commercial goods, which are often perceived by consumers equally prestigious. An interesting business case can be the luxury brand Giorgio Armani that successfully introduced the more commercial brand Armani Exchange (Chernev, 2014). Although brand awareness and image are useful in gaining commercial advantages, the biggest trademarks do not always prevail over local brands i.e. those brands that are only marketed nationally or with a limited international extension (Jolibert et al., 2012). Local brands can sometimes win the competition by attempting to emphasise how the offered product brings intangible benefits, which depend on consumer social, emotional and non-material perceptions in using that particular
