Page 24 - Marketing the Basics 2nd

16 Marketing: the Basics
consumers’ minds when considering a purchase within a given product category. These are sometimes those brands that came first to the market and have first-mover advantage. For example, when consumers are in the supermarket and remember to buy tissues, they will immediately think of Kleenex. This is not always the case. For instance, for personal Mp3 players, Apple was the late entrant with its iPod collection, when Sony and Compaq were the dominant players in this market. Yet, after its release in 2001, its success became so wide and built such a strong brand presence in the marketplace that today, whenever one thinks of Mp3 players, the dominating answer will undoubtedly be Apple and its iPod.
Brand image, the second source of brand equity, is a consumer perception of a brand based on the associations that they have of the brand. For Coca-Cola, the brand image is that of celebrating the American culture, and longevity based on the associations they have of it being the same American product for the past 120 years. To build this brand image, one must then create strong, favourable and unique associations to the brand in consumers’ minds. These brand associations can be created in several ways (including what will be described in this book): direct experience with the product, word-of-mouth, as well as inferences made by consumers that are based on the product’s parent company, country-of-origin, place of distribution, etc. However, it must be noted that the strongest associations created in a consumer’s mind are made when the consumer has had a direct contact or experience with the product. The associations can be created as well through marketing programs, which we explain in other sections of this book.
In summary, brand equity exists when consumers have a high level of awareness and familiarity with the brand, as well as when consumers hold strong, favourable and unique associations with the brand.
SUMMARY
• Marketing has two aims: attract new customers and retain them by offering products satisfying other needs and wants.
• The fundamental principle underlying marketing theory is that humans experience periods of deprivation. This sense is