 |
Drivers of Brand Value
Businesses rely on branding to stimulate demand and support price. By identifying what it is that drives demand in your company's specific sector, it's possible to estimate the contribution made by your brand. This is often achieved by using a form of trade-off analysis.
Trade-off analysis is a market research approach, which seeks to isolate and quantify the impact of branding on the consumer decision. It is used by commercial organizations to understand, in quantitative terms, the factors that determine consumer behavior.
There are plenty of examples where previously successful companies did not listen to the market, ignored research and missed big opportunities. Understanding how, and forecasting when, changes occur is a great skill. Many get it wrong. Constant monitoring of changes in levels of needs and desires is important to building your brand.
These changes in levels of needs and desires are known as drivers of value. AbsoluteBrand can help you to identify the drivers of your brand value, which may include the following:
-
Customer Retention. As markets mature, keeping existing customers becomes as important as winning new customers. On average, existing customers are more profitable and buy more than new customers. Either type, keep them for life and success beckons. Market orientation embraces lifetime customer loyalty.
-
Buyer Behavior. AbsoluteBrand appreciates the potential complexity of buying behavior. Why do consumers make the choices they do? We categorize your
customers' buying situations into High and Low Involvement and analyze from extensive problem solving to limited problem solving to routinized response behavior. We create buying models including a problem solving model and a simple stimulus -response model. We determine whether to focus on consumer or organization buying habits. Then, we explore the major factors of influence in buying behavior, including, social, cultural, psychological, personal, geo-demographic, environmental, organizational, and political.
-
Competition. There are forces that govern your competition. As your market matures and you compete globally, competition becomes more intense. No market is safe. Competitors are planning entry into new markets, yet the competition may be indirect. The nature of competition is often determined by the nature of the market. AbsoluteBusiness can help you understand the forces governing your competition.
-
Product Decisions.
How do your core, tangible and intangible product layers change as your markets change? How does product quality affect your repeat business? We
list criteria for measuring quality and attempt to quantify costs and where the marginal propensity for quality begins to fall off. We also analyze your product lines and product mixes.
-
Service Decisions. Services are one growing fast. How do your customers view your services? Do you charge for services or are they included gratis? Is it possible to provide value-added service and charge for it or will it damage your brand? We list at least five criteria for evaluation the quality of your services and attempt to quantify how it affects your brand.
-
Pricing Decisions. The 'price-quality' relationship integrates with your marketing mix and affects the value of your brand. Prices determine the level of sales, profits and market share. The trick is to optimize your price without affecting quantity. We can help you to find the optional balance. Price elasticity analysis can help determine the best price.
-
Costs. We consider your fixed, variable, total, marginal and full unit costs to determine how they affect
your brand value.
-
Price Competition. Is your company in an industry that plays "follow the leader?" We analyze your price competition to determine how changes in your competitor's prices affect your brand's value.
-
Distribution. Distribution can affect sales, profit, customer relations and competitiveness. By analyzing your existing distribution channels and other available options, we can determine how your distribution affects brand value. For example, are
expensive distribution channels, i.e. the Internet, available to your brand? How will integration of new channels affect existing channels?
-
Logistics. Are you distributing exactly the right amount of goods to exactly the right place at exactly the right time, in good condition? Unreliable logistics can reduce customer satisfaction and affect brand value. Proper logistics involve careful calculations including analysis of JIT systems, transport trade-offs, economic order quantities, IT and physical limitations.
NEXT: BRAND
ANALYSIS
|
|
|
|
