MKT Week 6 Discussion Questions - Essay Example

Market Week 6 Discussion Questions Table of Contents Part 3 The Factors Influencing Consumer Purchasing Decisions 3 Cultural Factors 3 Social Factors 3 Personal Factors 3 Psychological Factors 4 Most Important Factors Influencing Purchasing Decision 4 Ways of Market Segmentation 4 Part 2 5 Some Brands That Have High Brand Equity 5 Key Elements of the Recognizable Brands 5 Brand Position 5 Brand Promise 5 Brand Story 6 Brand Association 6 Is It Crucial To Manage Brand Equity? 6 Part 3 7 The Advantages of Brand Equity for a Company 7 References 8 Part 1 The Factors Influencing Consumer Purchasing Decisions Cultural Factors Human conducts are learned to a great degree by inculcating diverse things from people around or certain institutions.

An individual generally is open to a variety of values: competence and expediency, attainment and conquest activity and participation, physical fitness, advancement and self-determination. Every individual has an appropriate cultural influence on his purchasing ability as factor of variance depending upon economy to economy (Talloo, 2007). Social Factors Buyers’ purchasing ability is also inclined by factors namely family unit, groups, and status of the individual and social responsibilities (Talloo, 2007).

Personal Factors Personal characteristics play a principal role in determining consumer’s verdict. Characteristics may be in terms of age of the buyer, self perception, livelihood, profession and personality (Talloo, 2007). Psychological Factors The emotional aspects for example: attitudes, inspiration, values and insight are also said to direct the purchasing ability of the consumers (Talloo, 2007). Most Important Factors Influencing Purchasing Decision Considering all the above mentioned facts the cultural, social and personal factors are of paramount significance.

Ways of Market Segmentation Market can be segmented on the basis of ‘geographic, demographic, psychographic and behaviouralistic segmentation’ (Scribd, 2011). The firms take the decision of the segment to target on the basis of the nature of product and its demand in the market. Part 2 Some Brands That Have High Brand Equity Nokia, Nintendo, Audi, Burberry and Citi are few of the brands having high brand equity (Kelly, 2007). Key Elements of the Recognizable Brands Brand Position Brand position describes the basic functioning of the organisation, the unique value associated with it and how the customers draw optimal level of benefit from the product (Joint Venture Marketing Ltd, 2009).

Brand Promise Brand promise is a major aspect in relation to the business that the concern promises to bring forward for the prospective consumers (Joint Venture Marketing Ltd, 2009). Brand Story Brand story entails about the history allied with the business unit (Joint Venture Marketing Ltd, 2009). Brand Association Brand association can be stated as the prime physical attributes with regard to the respective brand. The aspects that come under the brand association are logo, tagline, imagery and colors among others (Joint Venture Marketing Ltd, 2009) Is It Crucial To Manage Brand Equity?

Management of brand equity can be stated to be a crucial factor as brands are considered to be an imperative strategic asset which engrosses investments to be incurred to develop and boost these assets. Brand names are vital component which facilitate competitive positioning. Brand equity constructs value in the customers’ mind. The chief assets under it are brand loyalty, ostensible quality, brand association and brand awareness in the mind of the customers. Brand equity management also provides benefits for a company in terms of promotion of the brands through endorsement and advertisement of the respective brands (Srivastava, 2011).

One of the recent brand crises witnessed in the automobile industry was that of Volvo (Msnbc, 2011). This crisis can be stated to be managed capably by Ford Motor Company as Volvo when compared with the other brands marketed by Ford, was facing a decline in demand, so Ford Motors lastly decided to sell off Volvo (Msnbc, 2011). Part 3 The Advantages of Brand Equity for a Company Brand equity develops awareness in the minds of the customers regarding the product Signifies quality products The product during its introduction can be used as leverage Strong brand equity curtails the risk or doubt creeping in the consumers’ psyche concerning the product Freedom to gain additional revenue by charging more premiums in comparison to competitors with lower brand equity (DSS Research, 2001) References DSS Research, (2001).

Understanding Brand Equity. What Is Brand Equity? Retrieved Online on July 20, 2011 from http://sb.aub.edu.lb/courses/mktg225/Understanding%20Brand%20Equity,%20Technical%20Paper%20From%20DSS%20Research.htm Joint Venture Marketing Ltd, (2009). The 5 Elements For Successful Brand Strategy. The Five Key Brand Elements. Retrieved Online on July 20, 2011 from http://www.jvmarketing.co.nz/perspective/The+5+elements+for+successful+brand+strategy..html Kelly, D., (2007). Best Global Brands. Bloomberg Business Week.

Retrieved Online on July 20, 2011 from http://www.businessweek.com/magazine/content/07_32/b4045401.htm Msnbc, (2011). Ford Weighs Volvo Sale Amid Industry Crisis. AP Associated Press. Retrieved Online on July 20, 2011 from http://www.msnbc.msn.com/id/27996895/ns/business-autos/t/ford-weighs-volvo-sale-amid-industry-crisis/ Scribd, (2011) Market Segmentation, Targeting And Positioning Market Segmentation. Introduction. Retrieved Online on July 20, 2011 from http://www.scribd.com/doc/6356725/MARKET-SEGMENTATION-TARGETING-POSITIONING-By-Subha-Rudra Srivastava, R., (2011). Managing Brand Equity In Business Markets.

SMEAL College of Business. Retrieved Online on July 20, 2011 from http://isbm.smeal.psu.edu/professional-development/managing-brand-equity-in-business-markets Talloo, T. J., (2007). Business Organisation & Management. Tata McGraw-Hill Education.