A critical review of literature on the importance of social media in branding

1.0 Introduction The aim of this chapter is to provide a broad overview of both literature in social media and the intended research. It offers a platform that would enable the reader understand the need for this research and also provides a gist about recent developments both in the industry and in research circles with respect to social media branding. The rapid development of technology and the reach of such technologies at affordable costs have revolutionized the way businesses operate. The World Wide Web and the Internet are being used by millions of people today. These technologies have led to a paradigm shift in the way communication happens and most business reputation and presence in a market is more driven by ‘social media’. (Tuten, 2008) It can also be noted that the shift and focus on social media has been drastic and many businesses were caught off-guard. However, the use of social media has created opportunities for online marketers to be able to engage with customers that they wouldn’t otherwise be able to using traditional methods. This reach though has posed many challenges to businesses that started looking at social media like other traditional media like magazine or television thus causing more gaps rather than bringing them closer to the customers (Qualman, 2012). On the contrary it can be said that more and more retailers and business are becoming increasingly aware of the social media and are waiting to exploit the potential that social marketing offers (Olivas-lujan, 2013) 1.1 Background Spend on social media by the businesses are on the rise. Recent study by the IAB (Internet Advertising Bureau) shows that in the first half of 2014 in the UK alone, there has been a rise of 53% in the spend on social media by businesses with a total contribution of ?242.5 million (Somerville, 2014). Another study by IAB on FMGC sector consisting of more than 4500 survey responses and 800 interviews showed that 90% of the customers would use social media to refer the brands to peers, 4 in 5 customers would buy products that have good social media coverage and 83% would be willing to try products that are popular in social media (Anon, 2013). Similarly, a research conducted by Mass Relevance that provides social media curation platform to clients found that 59% of the consumers will more likely trust a brand that has presence in the social media and 64% of the consumers interviewed have already made purchases based on social media presence and reviews (Chaney, 2012). Appendix 1 shows t he social media advertising effects on consumers (Source: Neilsen Survey: Anon, 2012) 1.2 Motivation From the above, it can be understood that social media has a profound impact on the consumers’ choice of brands and that it is key to engage effectively with customers. There is a lot of literature that discusses about the social media impact on consumers, why businesses should engage with customers, exploiting social media to provide value add etc. The main aim of this research is to look into various key researches in this area and to provide a critical review on the literature. The critical review aims to see if: The problems are identified clearly The literature provides a balanced view There are gaps in the literature 1.3 Research Process The success of the research is admittedly determined by measuring the extent to which each of the research objectives is met. The following steps are followed during this research to ensure its success. These steps are as follows: Firstly, a background into the research and its motivations is given. Following this, the key literature in this area is thoroughly investigated. This is intended to ensure that all aspects of the research are identified and that the challenges or gaps in the current literature are clearly understood. Next, the literature is critically analysed to see if the problems are identified and if it provides a balanced view of the topic. It also looks into the research methodology to see if the methods used are consistent with the qualitative and quantitative methods and also checks for what has not been provided. Finally, this research concludes by providing a conclusion that is supported by evidence presented in the literature. It also makes recommendations where appropriate. In summary, this chapter has provided a brief overview of the research, addressed the key challenges or gaps in the literature and justified the need to conduct this research. This chapter has also set the background and motivations for the research in order to enable the reader to better understand the subsequent chapters. The central question for the research has addressed here, and the reader now also understands the problem statements that have led to this research. 2.0 Literature Review This research discusses about social media and its effect on branding and consumers. But what is social mediaThe term social media can be defined as â€Å" Many online tools that allow people with similar interests to share information, learn from others, or network in an open process. The information found on these sites is commonly referred to as ‘user-generated content’, which means anyone is able to post with minimal restrictions or oversight.†(Wilson, 2010) Drury (2007) discusses how marketers of various businesses can effectively engage in social media marketing. The paper gives a fairly comprehensive view on what social media is and the role of marketing in social media. It discusses about how social media can be monetised by the marketers. The paper lists out opportunities that can be tapped for commercial benefits and also emphasises on the mobile marketing strategy and describes the success criteria for measuring success. The paper however has the follow ing drawbacks: It is very much general and has no qualitative or quantitative measures to define the success criteria. It gives a good overall picture but it would have been better if the context of the paper was more towards assessing the impact or the Return on Investment (ROI) of a specific sector or business. It lacks specific examples and also does not mention any strategy for implementation or even list challenges that organisations face while implementing good strategies for social media marketing. Michaelidou et al (2011) in their research discuss about social media marketing’s impact on small and medium B2B brands. They discuss in detail the adaption of social media networking as a marketing platform to be able to achieve the brand objectives and also the perceptions around the barriers of using social marketing networks. The research paper makes use of email surveys to understand the usage of social media by small and medium scale businesses that operate in the UK a nd the main drivers that motivate SMEs to adapt to the new channel of marketing. It clearly states the motivation of the research, giving appropriate background to the research and the method used for the research is depicted concisely. The research analyses the findings from the email survey and discusses the methods used for analysis. It provides a broad range of information and also clearly identifies the shortcomings in the business implementation of social media networking practices. It discusses how these pitfalls can be overcome and provides details for further improvement areas and scope for additional research in the future. The drawbacks of the paper are: Sample size: The sample size of the survey could have been more and also various other methods for obtaining the review could have been used. This would have ensured that the B2B base was thoroughly covered. Focus: The focus is on B2B businesses alone. It would have been interesting to see the results if the research was extended to B2C as well for small and medium scale enterprises. Some researches focus specifically on skills gap in digital marketing within specific industries. One such research concentrates on the communications industry (Royle and Laing, 2014). The research discusses the need for having the necessary skills in digital marketing arena and stresses on the growth and popularity of digital/social media marketing. The research explores the various gaps in the industry for digital marketing with a specific emphasis to communications sector and provides a best practice guide for the industry. It details the challenges that organisations face while implementing social media marketing and discusses the need to have evaluation criteria and metrics to critically analyse the success of social marketing strategies and campaigns within organisations. The paper talks about the key challenges that businesses face while trying to merge traditional marketing practices with that of social marketin g. The rationale for the research is clearly mentioned and the literature review is comprehensive. The conceptual framework is clearly detailed and the methodology used for developing the framework is precise. The research makes use of focus groups and interviews to be able to gauge the skill gap in the industry. The drawbacks of this research are: Limited sample size: The research could have used more samples to be able to analyse effectively the findings. Given that the research has already narrowed down by industry, it would have been good to get a more detailed view of the industry and a larger sample would have facilitated this. A study by Harvard Business Review (Edelman, 2010) discusses how the internet and the social marketing has changed not only the way businesses operate but also how consumers choose their products. It takes the reader through the funnel metaphor which was earlier being used by marketers to understand how consumers choose their products and how this has m oved to a more open-ended approach whereby consumers no longer follow a methodical approach of selecting products. It stresses how important it is for brands to be able to connect with the consumers and studied the consumers’ decisions across five different industries namely automobiles, skincare, insurance, mobile telecommunications and electronics in three different continents. Based on the results of the study, it proposed a four-stage model that focuses on today’s consumers using social media for advocating products and also purchasing based on the reviews and advocacy received. The research takes the reader through the entire customer journey and tells the businesses what it should not focus its energy and resources on. Providing statistical information about various surveys enables the businesses to identify the key areas that it should concentrate on to be able to build a good brand image online. Though the research is comprehensive it lacks in the following: Fr amework: It does not suggest what needs to be done and a framework for implementing those. The key focus is on what not to be done and it leaves it to the businesses to work on the best strategy. Sample size and analysis: The research does not disclose the sample size or indicate clearly the analysis method used to come to the conclusion. This section worked on identifying key research in the literature and also provided a critical review of each of the researches identified. 3.0 Conclusion Though there is a lot of literature on various aspects including but not limited to effects of social media on small and medium scale enterprises, identification of skill gaps in social media with specific emphasis to certain industries, general study on implementation challenges, perception of social media on businesses, barriers to adaptation of social media by businesses etc. it can be found that there is not much literature that specifically talks about a common framework for adapting to social media marketing along with the challenges that businesses might face and the evaluation criteria. Similarly while most of these researches make use of one or more methods for data collection, it is not very comprehensive. There is a gap in the current literature in terms of data collected from a wide range of sources using a bigger sample set. Given that technology has enabled a higher reach to customers, it would be good to get a larger sample to be able to effectively analyse the results . In many cases, the limitations of the research scope could be worked on to be able to get more information on the above mentioned areas. In short, it can be said that the social media marketing and the research around it are yet to attain the maturity level and there is a lot of scope for research that would aid businesses to effectively handle and manage social media marketing concerns and overcome challenges in a seamless and stress-free manner. 4.0 References Tuten, 2008: Advertising 2.0: Social Media Marketing in a Web 2.0 world, Greenwood publishing group. Qualman, 2012: Socialnomics: How social media transforms the way we live and do business, John Wiley & Sons Livas-Lujan, 2013: Social Media in Strategic Marketing, Emerald Group publishing limited Somerville, 2014: 18 Digital Marketing Trends you may not have heard about, The Fresh Egg blog accessed at: http://www.freshegg.co.uk/blog/18-digital-marketing-trends-for-2014 Anon, 2013: IAB Social Media Effectiveness Research, IAB UK accessed at: http://www.iabuk.net/research/library/iab-social-media-effectiveness-research Chaney, 2012: Brands should use social media to engage consumers, amplify messages and promote trust, Digital intelligence today accessed at: http://digitalintelligencetoday.com/brands-should-use-social-media-to-engage-consumers-amplify-messages-and-promote-trust-survey-says/ Anon, 2012: State of the Media, The social media report, Neilsen Wilson, 2010: Social Media and Small Business Marketing, University Business Printing and press, USA Drury, 2007: Opinion Piece: Social Media: Should marketers engage and how can it be done effectively?, Journal of Direct, Data and Digital Marketing Practice Michaelidou et al, 2011: Usage, Barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands, Elsevier Royle and Liang, 2014: The digital marketing skills gap: Developing a digital marketer model for communication industries, Elsevier Edelman, 2010: Branding in the digital age: You’re spending your money in all the wrong places, Harvard Business Review

Canadian Blood Services

Company Environment The company Customers Competitors Regulatory Situation Global Environment Major developments and general industry Trends Opportunities and threats Marketing Strategies Mission and Corporate Values Objectives Strategies Marketing Functions Product Price Promotion Place Analysis and Suggestions M analysis G analysis Conclusion Bibliography Appendix Global Environment Major Developments General Industry Trends According to a survey conducted by the Pet Products Manufacturer Association, more than 71. 1 million or 63% of U. S. ouseholds have a pet. (Gundersen, 2008) The pet food market has proven to be a very attractive market, according to the 2009-2010 American Pet Products Association, it is estimated that US$47. 7 billion was spent on pets in the US in 2010, with US$18. 28 billion being spent on pet food alone. The strong spending comes amid price increases in nearly every pet food category, the result of rising costs of fuel, ingredients and transportation for ma nufacturers. (Taylor, 2010) Opportunities: One of the biggest advantages NPP has is that it is a subsidiary of Nestle.What this means is that NPP can rely on the substantial and large funds of its parent company in order to expand its line of products, do some more aggressive marketing and pricing and have a cushion to fall back on in case of having sales decrease. The second great opportunity for NPP is the fact that pet owners are seeking for more luxurious products for their pets and they’re getting greater interest in what they feed their pets with. What this means is that the pet food market is expanding rapidly, especially in North America. According to a survey conducted by the Pet Products Manufacturer Association showed that in the U.S. more than half of the households have at least one pet in their houselod. (Gundersen, 2008) Threats: As in any business, one of the biggest threats is having numerous competitors; this is a big concern to NPP considering that they are not the leading company in the pet food industry. Not only NPP has to compete against the already established big pet care companies but there is a trend that all major pet care retailers are starting their own line of products. Having all these product lines and competitors only mean lower sales as more consumers decide to switch brands.Although North America is a well-established and growing market for pet care products, there are some other markets where customers are not well educated about the products and this may be an obstacle. An example provided by the Datamonitor report about NPP gives an example of owners believing home meals are more nutritious for their pets than commercially prepared food for pets. This is a common misbelief in emerging markets. Company environment The Company: The company we decided to research is Nestle. Nestle is currently the largest food and beverage company in the world.This company has a wide range of products such as milk based products, ice creams, prepared dishes and pharmaceutical products as of beverages. Its top brands or the ones that contribute the most to the company are Nestle, Nespresso, Maggi, KitKat, Purina and Friskies among others. Nestle is a Switzerland based company that was surged back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. One year later, Henri Nestle, a trained pharmacist, launched one of the world’s first prepared infant cereals ‘Farine lactee’ in Vevey, Switzerland.The two companies merged in 1905 to become the Nestle  you know today, with  headquarters  still  based in the  Swiss town of Vevey. The company is currently employing over 328 000 employees worldwide and has factories or operations in almost every country in the world. For the purpose of the marketing review, we decided to talk specifically of one of the many brands that Nestle owns, being this â€Å"Nestle Purina PetCare Company† or NPP. This subsidiary is one of the most influential brands of Nestle and its main focus and line of products rely on the manufacturing of pet food products.The headquarters for this branch of Nestle are located in St. Louis, Missouri in the United States of America. Customers: Nestle Purina PetCare Company operates in North America, Asia Pacific, Europe, Central America and South Africa, what this means is that NPP is able to reach several different markets around the world and a great deal of possible consumers. Competitors: Considering Nestle Purina PetCare operates on a global market, it also has several competitors. Some of its strongest competitors are Mars Inc, Colgate-Palmolive Co. and Procter & Gamble Co. Their main competitor is Mars Inc. hich is the only company that has been able to surpass Nestle in pet food sales; having sold approximately US$13. 3 Billion compared Nestle’s US$12. 9 Billion. Regulatory Situation: The pet food industry is heavily regulated by agencies such as the Food and Drug Administration (FDA), United States Department of Agriculture (USDA) and the Association of American Feed Control Officials (AAFCO) in the case of the United States. However, all Purina’s North America facilities have on-site quality assurance laboratories and staff. One of the means by which Purina try to maintain its quality standards is by having 99% of the roducts sold in North America manufactured at Purina-owned U. S. manufacturing facilities. Also, Purina ingredient sourcing and processing meets or exceeds all the regulations implemented by the agencies mentioned above. Distribution/Sales Channels Nestle Purina Petcare uses a multichannel distribution approach in order to make it easier for consumers to get their product. One example and, for some the most convenient, is purchasing their products through Purina’s website. Customers avoid any sort of middleman and they get the product delivered directly to their front door.This is an example of direct distribution, which is having the manufacturer dealing directly with the consumer. On the other hand, NPP also uses an indirect distribution approach which consists in having one or more intermediaries work with manufacturers to provide goods and services to consumers. This is the most common way by which people purchase products as it is the case when consumers go to retailers to buy a product that the retailer bought from the manufacturer. In other words, when a consumer goes to their local grocery shop and they buy Purina products, they are purchasing through indirect distribution. Grewal, 2012) General Strategy Business Mission: Nestle's mission is to satisfy each customer needs by offering and selling high quality food, worrying about nutrition and health of their customers to provide good food for good life. â€Å"At Nestle, we believe that research can help us make better food so that people live a better life. Good Food is the p rimary source of Good Health throughout life. † (Nestle, 2012) â€Å"Nestle’s objectives are to be recognized as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry. † (Nestle, 2012) Corporate valueNestle is focused on certain values within the company that make them unique in the global market. They are focused on health, wellness and nutrition of each customer through every product but it is also important the security and safety of each product has high quality. Moreover, it is also important to note that in Nestle is always looking to have open communication with clients and they respect the privacy of them. (Nestle, 2012) In organization is important to respect human rights within and outside the organization but Nestle is not only worry to respect human rights but also the environment in which employees are in this company.It also is important to prevent acci dents, injuries and illnesses within the company, which Nestle has a document that explains each of the regulations of health and safety policies. (Nestle, 2012) The relationships between the company and suppliers are very important which is why Nestle has a code of suppliers which explain how have to the relationships, always demonstrating honesty and respect between them. (Nestle, 2012) Nestle will help rural communities and farmers to obtain a production system that cares about the environment.It is also important use products that are friendly to the environment, as well as the conscious use of water that is necessary and vital to every human being. (Nestle, 2012) Objectives (short and long term) * â€Å"Be recognised as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry†. (Nestle, 2012) * Provide a safe environment and social responsibility. * Understand local and global n eed. â€Å"Achieve leadership and earn that trust by satisfying the expectations of consumers† (Nestle, 2012) and create close and long relationship between their brand and customer. * â€Å"We are investing for the future to ensure the financial and environmental sustainability of our actions and operations: in capacity, in technologies, in capabilities, in people, in brands, in R;D. † (Nestle, 2012) * Make sure that they can satisfy future generation and ensure that they will have â€Å"profitable growth year after year†. (Nestle, 2012) Marketing strategies * Competitive advantages:In order to gain a competitive advantage is important to have product or brands that can differentiate from others, also be in everywhere so that people feel identified with the product. For Nestle, culture, values and attitudes of individuals are important to determining what their needs are; they try to offer unique products in each geographic point where customer are. (Netle, 20 12) * Growth drivers: Today people are more conscious about having good food and nutrition, plus a healthy life. Nestle is focused on these areas which make them to have a large market. [Everything] we do is driven by our Nutrition, Health and Wellness agenda, Good Food, Good Life, which seeks to offer consumers products with the best nutritional profile in their categories† (Nestle, 2012) * Operational pillars: Innovation is always important in any business; people are always looking for change and find better products. Nestle is always looking to innovate and renew each of their products in order to engage their customers and stay in the market; offering products that are unique and makes them different than the competition.It is also important make the process most efficient from the product development to delivery of the consumer (Nestle, 2012) Marketing functions: Product and services Nestle Purina Petcare has a wide line of different pet food products. They have speciali zed food and treats for both dogs and for cats. Among the products designed for dogs they have a wide variety of products, which classified as of Purnia’s website are: Adult Dogs, Puppy Food, Senior Food, Targeted Dog Nutrition, Dog Treat and Dog Litter and Training Pads.Among all these categories they offer 28 different products that are sold under different labels. On the other hand, their cat oriented products are classified as: Adult Cat Food, Kitten Food, Senior Cat Food, Targeted Cat Nutrition, Cat Treats and Cat Litter. On their cat food line of products, they offer 24 different products and all of these are sold under different labels. Purina offers over 50 different products for both dogs and cats and these are sold under 20 different labels.This is one of the reasons why Purina has been able to dominate in this market, as it has been able to give an option for almost every single kind of need that customers may have due to their wide variety of products. Pricing Con sidering the pet food industry is a very competitive market, NPP has been forced to change its pricing strategies to adapt to the market. Currently, NPP uses a competitor based pricing method that an approach that attempts to reflect how the firm wants consumers to interpret its products relative to the competitors’ offerings. text book citation) The biggest problem with keeping up with competitive prices is that it prevents companies to increase prices and its revenue is also decreased as they have to make greater investments in advertising which increase costs and therefore decrease revenue as well. Distribution activities Nestle Purina Petcare uses a multichannel distribution approach in order to make it easier for consumers to get their product. One example and, for some the most convenient, is purchasing their products through Purina’s website.Customers avoid any sort of middleman and they get the product delivered directly to their front door. This is an example of direct distribution, which is having the manufacturer dealing directly with the consumer. On the other hand, NPP also uses an indirect distribution approach which consists in having one or more intermediaries work with manufacturers to provide goods and services to consumers. This is the most common way by which people purchase products as it is the case when consumers go to retailers to buy a product that the retailer bought from the manufacturer.In other words, when a consumer goes to their local grocery shop and they buy Purina products, they are purchasing through indirect distribution. (Grewal, 2012) Promotion activities Coupons are largely used by NPP and its competitors in order to increase sales. Coupons provide a stated discount to consumers on the final selling price of a specific item; the retailer handles the discounts. (Grewal, 2012) Your Analysis and Suggestions Appendix: Example of the company’s promotion Research Material References: http://www. petfoodindu stry. com/6371. html Taylor 2010 http://www. estlepurina. com/History. aspx PURINA HISTORY http://www. purina. com/coupons-and-offers/couponsandoffers. aspx COUPONS AND ETC http://www. purina. com/commitment-to-quality/commitmenttoquality. aspx REGULATIONS http://www. linkedin. com/company/nestle-purina LINKEDIN PROFILE Gundersen, R. (2008). A Growing Trend: Pet Owners Who Include Animals in Their Estate Planning. Journal Of Financial Service Professionals, 62(4), 70-76. http://saveonfoods. gsnrecipes. com/Shop/WeeklyAd. aspx promotion Nestle. (2012). Nestle good food, good life. Retrieved from http://www. nestle. com/AboutUs

Brand Management Summary Essay

Constructs: * Consumer based brand equity: The differential effect of brand knowledge on consumer response to the marketing of the brand. It involves consumers’ reactions to an element of the marketing mix for the brand in comparison with their reactions to the same marketing mix element attributed to a fictitiously named/unnamed version of the product or service. * Brand knowledge: a brand node in memory to which a variety of associations are linked: * Brand image: set of brand associations in a consumers’ memory. It are perceptions about a brand as reflected by the brand associations held in consumer memory. Brand image is defined by: * Type of Brand associations: * Attributes: Non-product related or product related. * Benefits: Functional, experiential or symbolic. * Attitudes * Favorability, Strength and Uniqueness of Brand associations * Brand awareness: recall and recognition by consumers. It is about the strength of the brand node or trace in memory. Findings: * A brand is said to have a positive (negative) customer-based brand equity if consumers react more (less) favorably to the product, price, promotion, or distribution of the brand than they do to the same marketing mix element when it is attributed to a fictitiously named or unnamed version of the product or service. * Favorable CBBE can lead to enhanced revenue, lower costs, greater profits, larger margins, less elasticity, increased marketing communication effectiveness and licensing opportunities. * Pricing, distribution, advertising and promotion strategies stimulate CBBE. * Building CBBE requires creating a familiar brand name and a positive brand image. * Measuring CBBE can be done (1) indirectly by measuring sources of brand knowledge or (2) directly by measuring the effects of brand knowledge on consumer response to elements of the marketing  mix. * Managing CBBE: (1) take a broad and long-term view of marketing a brand (2) specify the desired consumer knowledge structures and core benefits for a brand (3) consider a wide range of traditional and nontraditional advertising, promotion and marketing options (4) coordinate the marketing options that are chosen (5) conducting tracking studies and controlled experiments (6) evaluate potential extension candidates. Implications: * Marketing activity can potentially enhance or maintain consumers’ awareness of the brand or the favorability, strength or uniqueness of certain associations. * This enables making short- and long-term decisions better and more insightful. Article 2: Esch, Franz-Rudolf, Tobias Langer, Bernd H. Schmitt and Patrick Geus (2006), â€Å"Are Brands Forever? How Brand Knowledge and Relationships Affect Current and Future Purchases,† Journal of Product & Brand Management, 15, 2, 98-105 Constructs: * Brand attributes: awareness, image, perceived quality, perceived value, personality, and organizational associations. * Brand knowledge attributes: awareness and image, where awareness is a necessary condition to build brand image. * Brand relationships: * Satisfaction: the exchange aspects of a relationship. It’s about giving vs. receiving. * Trust: the feeling that is the outcome of a communal relationship with a brand. * Attachment: a longer-lasting, commitment-inducing bond between the brand and the consumer. Satisfaction and Trust lead to brand Attachment. * Behavioral outcomes: Current purchase behavior and future purchase behavior. Findings: * Current purchases are affected by brand image directly and by brand awareness indirectly. * Future purchases are not affected by either dimension of brand knowledge directly, but brand knowledge does affect future purchases via a brand relationship path that includes brand satisfaction, brand trust and attachment to the brand. Concluding, brand knowledge is not sufficient to build long-term brand relationships. However,  relationship variables are critical for predicting future purchases as well as current purchases. * Brand awareness does not significantly affect brand satisfaction and brand trust. * Brand awareness affects brand image and both are direct determinants of current consumer purchase behavior. Implications: * Currently, brand managers measure brand awareness and brand image. They should also consider brand relationship measures and develop strategic and tactical initiatives that ensure that consumers are satisfied with the brand, trust it and feel attached to it if they wish to achieve long-term success. Lecture notes (27-08-2012): Introduction to Brand Management Once, products were un-differentiable, often sold loose, the quality varied significantly and many people made the same thing. To make buyers prefer your ‘commodity’, brands were introduced: * A name, sign or symbol intended to identify the goods & services of one (group of) sellers and to differentiate them from those of competition. It creates reputation, awareness and prominence. Organizations perceive brands as physical products, where customers perceive it as psychological products, since they want to buy brands and not simply products. A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. It consists of 4 levels: Core benefit, tangible product, augmented product and total product. * A brand is a product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. It makes products different in a rational, tangible, symbolic, emotional and intangible way. In reality, the most valuable assets are intangible ones. A brand is important for * Customers because: it’s an identification of a production source, it assigns responsibility to the maker, it reduces risk, it reduces search cost, it forms a bond / pact with the maker of the product, it is a symbolic device, and a sign of quality. * Manufacturers because: it allows identification to simplify handling or tracing, it allows legal protection of unique features, it’s a signal of quality level, it endows unique associations to products, it’s a source of competitive advantage and a source of financial returns. As long is something is perceived as different, from the product category, it is branded. It should be given a label and provided a meaning. Types of things that can be branded: 1) Physical goods 2) Services 3) Retailers & Distributors 4) Online products and Services 5) People and Organizations 6) Sports, Arts and Entertainment (experience goods like Walt Disney and Pixar) 7) Geographic Locations 8) Ideas and Causes. Brands Fail because market conditions change, where some companies fail to adapt (inertia). Business Challenges & Opportunities: * Savvy customers: More experienced customers demand more than respect. * Brand proliferation: few products are ‘mono’ branded nowadays. Often, complex brand families and portfolios are required. * Media fragmentation: New methods of communication arise (internet) and expenditures appear to shift from advertising to promotion. * Increased costs: Developing new products is costly so team up with other brands. * Increased competition: Differentiation becomes more difficult, markets start to be more mature and low-priced competitors arise. Consider brand extensions. * Greater accountability: Engage short-term performance orientation, make sure you have your figures right. Customer Based Brand Equity: (1) Differential effect that (2) brand knowledge has on (3) consumer response to the marketing of that brand. Marketing a product should make the consumers’ response more favorable compared to not branding the product. Types are: * Consumer brand equity: A positive, strong, active and unique meaning of the brand. * Financial brand equity: enables earning more in  the short and long run. The Strategic Brand Management Process (to build, measure and manage brand equity): 1. Identify and Establish brand positioning and values: It is your attempt to get in the mind of the consumer in a distinct and valued place. This includes mental maps, a competitive frame of reference, points of parity & difference, core brand values and brand mantra. It is also about who is in your market. 2. Plan and implement brand marketing programs: The mixing and matching of brand elements (visual or verbal?), integrating brand marketing activities and leverage of secondary associations that convey meaning to consumers. 3. Measure and interpret brand performance: Use brand value chains (how will our activities influence what customers think, feel and do), audits, tracking, and equity management systems. What is a Business Value Chain: a. Customer brand equity management goal: build, sustain, and leverage a strong, active and unique meaning of the brand. b. Financial brand equity goal: to enable more earnings in the short and long run. 4. Grow & Sustain brand equity (how to improve things): concepts that are used are brand-product matrixes (shows all brands and products sold by one firm), brand portfolios and hierarchies, brand expansion strategies and brand reinforcement and revitalization. The 6 deadly sins of branding: 1. Brand Memory loss: don’t forget what a brand stands for, don’t change identity. 2. Brand Egoism: overestimating your (supplying) capabilities and importance. 3. Brand Deception: Don’t include fictional ingredients that appear healthy or try to cover the reality of your product. 4. Brand fatigue: Companies are bored with their brands, causing a lack of creativity. 5. Brand paranoia: Too much focus on competition instead of product quality. 6. Brand irrelevance: Not staying ahead of the product category’s market. Lecture notes WC week 1 (29-08-012 / Red Bull Case): Sources of brand equity for Red bull: * First mover advantage, premium pricing, and special ingredients  (taurine). * New market creation (energy drink), and an all round occasion product. * Sampling often, source efficacy, cool image, limited availability, and specific associations such as sports and athletes. Their strategy is a global approach. Tactics are always similar, and sports are always important. How does the marketing program contribute to the brand equity: * They have a broad positioning, aiming for high quality and high price, being a premium product and being exclusive. Some terminology: * Disruptive products are those that break the rules, the normal way of doing business. * They do so ‘below the line’ by using exceptional promotion activities. * They do so ‘above the line’ by using out of the box marketing. * Share of voice: Share of expenditures on advertising, as a share of the product category. * Share of belly: Share in all types of drinks consumption. * The most important things for branded products are involvement and interest. * ‘Jump on the bandwagon’ means following the mainstream (Bullit vs. Red Bull). Why are Red bull’s advertisements so successful and how do they maintain their marketing monumentum? * High integration and a consistent program. * Limited availability, which causes buzz marketing. * Their ads use a specific humorous tone of voice, which builds awareness. Findings of the energy drink experiment: * All energy drinks increase blood pressure. Placebos only do so under high motivation. Red bull and brand extensions (the key to success is a ‘fit’ with your brand): * What did they do already? Shots, different tastes, Red Bull cola, Premix with alcoholics, refrigerators, and using different sizes. * Which ones were successful? Different sizes, sports events, magazines, shows, and the flagship store that sells a lot of merchandise. * Which ones were unsuccessful? Different tastes, Cola, and energy shots. Week 2: Branding Objectives: Values, Identity and Positioning Article 1: Brown, Tom J., Peter A. Dacin, Michael G. Pratt and David A. Whetten (2006) â€Å"Identity, Intended Image, Construed Image, and Reputation: An Interdisciplinary Framework and Suggested Terminology,† Journal of the Academy of Marketing Science, 34, 2, 99-106 Constructs according to CED (Central, enduring, and distinctive organizational level of analysis): * Identity: An individual’s self-difinition / who are we as an organization. * Organizational identity: the property of a social group rather than an individual. * Intended Image: mental associations about the organization that organization leaders want important audiences / stakeholders to hold. * Construed image: Mental associations that organization members believe individuals or multiple people outside the organization hold about the organization. * Reputation: mental associations about the organization actually held by others outside the organization. Findings: * Image concerns what an organizational member wants others to know about the organization, while reputation is a perception of the organization actually held by an external stakeholder. * Corporate associations belong with the stakeholder, not to the organization. They may be influenced by a variety of outside sources: competitors, industry analysts, consumer activists and the media in addition to communications from the company. Implications: * Not mentioned Article 2: Coleman, Darren, Leslie de Chernatory and George Christodoulides (2011) â€Å"B2B Service Brand Identity: Scale Development and Validation,† Industrial Marketing Management, 40, 1063-1071 Constructs: * B2B service brand identity: the strategist’s vision of how a B2B service brand should be perceived by its stakeholders. It consists of the following scale dimensions: * Marketing Culture: unwritten policies and guidelines which provide employees with behavioral norms. It’s also about the importance an organization places on the marketing function. * Client relationship management: relationships with customers are the  cornerstone of industrial marketing. Therefore, the quality of CRM is very important. * Corporate Visual identity: logos can simplify the process of communicating brand benefit by being visual metaphors. They also help distinguishing a brand. * Integrated marketing communications: they help an organization’s brand identity manifest. For B2B, communications focus on organization rather than products. * Brand personality: The strength, favorability and uniqueness of the brand personality association. It should be easy to describe by clients, and f avourable. Findings: * After two factor analyses, the paper chose to rename some dimensions: * Employee & client focus: The organization treats employees & clients as an essential part of the organization, will help them in a responsive manner, will discover and respond to their needs, and top management is committed to providing quality service. * Corporate visual identity: Our font and logo is an important part of our visual identity, which makes us recognizable. * Brand personality: Associations are extremely positive and favorable, and clients have no difficulty describing them. * Consistent communications: There’s a good understanding of the strengths and weaknesses of all communication tools. Furthermore, Advertising, PR and Sales are providing consistent messages. * Human resource initiatives: There are employee-training programs designed to develop skills required for acquiring and deepening client relationships. Moreover, the organization regularly monitors employees’ performance. * The model is now empirical instead of conceptual. In addition, it is a synergistic network since all dimensions are highly correlated. Implications: * When managers want to asses the effectiveness of B2B service brand identity efforts, they should focus on either one or multiple of the above mentioned dimensions and measure them over time. Article 3: Chernev, Alexander, Ryan Hamilton and David Gal (2011) â€Å"Competing for Consumer Identity: Limits to Self-Expression and the Perils of Lifestyle  Branding,† Journal of Marketing, 75, May, 66-82 Constructs: * Self-expression of lifestyle and social identity: this is enabled by a huge degree of customization for certain products and also by social media. Findings (keep in mind that all findings discuss short-term effects): * Consumer brand preferences are a function of the activities they were involved in prior to evaluating a given brand. This finding holds because the need for self-expression is finite and ultimately can be satiated. This means that the need for self-expressive brands decreases as the number of alternative means of self-expression increases. * The extent to which consumers use brands to express their identities is not limited to self-expressive brands in the same category but it is also a function of the availability of alternative means of expressing identity. Satiation is caused by: * Personal brand relevance: how close is the brand related to your identity. Brands evaluated later in a set were more likely to be rated lower or equivalent in terms of personal relevance. * Perceived brand uniqueness: How brands are perceived to be different. * Consumers’ willingness to pay. * Increasing the prominence of self-expressive brands that are already a part of a consumer’s identity is likely to weaken future brand preferences. This holds between and across product categories. This effect is more pronounced for symbolic than functional brands: * Brand associations should be distinguished: Functional and symbolic associations. * Increasing the need for self-expression (e.g. by threatening identity) has the effect of strengthening brand preferences. * Self-expressive behavioral acts such as product customization can lead to identity saturation, weakening consumers’ brand preferences. Implications: * Brands might possibly compete across categories and become a part of a person’s identity. * Lifestyle branding has proven to be successful for many brands. However, managers may be trading fierce within-category  functional competition for fierce across-category symbolic competition when doing so. All self-expressive brands could end up competing with one another, and possibly even non-brand self-expressive items and social media. * More practical: It might be unattractive to have a shop with self-expressive products next to another shop selling such (Apple Store). Article 4: Naresh, Sheena G. (2012) â€Å"Do Brand Personalities Make a Difference to Consumers?,† , Procedia – Social and Behavioral Sciences, 37, 31-37 Constructs: * When associated to image, brand uniqueness or identity is the arrangement of words, ideas and associations that structure the total perception of the brand. * Brand personality: the set of human characteristics associated with the brand. It makes brands more interesting, memorable, and it makes people more aware. The Big 5: * Sincerity: Down to earth, honest, wholesome, cheerful (Douwe Egberts). * Excitement: Daring, spirited, imaginative, up to date (Porsche). * Competence: reliable, intelligent, successful (ABN AMRO). * Sophistication: Upper class, Charming (Mercedes). * Ruggedness: Outdoorsy, Tough (Levis, Nike, Marlboro). * Brand personality statement: what personality managers want their consumers to perceive. * Brand personality profile: what the consumers are thinking and feeling about the brand. Findings: * Sentimental brand personalities are common for all fast moving consumer goods. Secondly, most FMCGs are characterized as young, successful and inspiring. Finally, success, friendliness, trendiness, uniqueness, modernization and glamour are often found. Implications: * Marketers should focus on strengthening their strategies by emphasizing personality traits of their brands. This can cause strategic changes in brand positioning or communications. Lecture notes Week 2 (03-09-2012): If your customers don’t know who you are, they won’t buy. You have to show who you are in order to do business. The circle of brand management: * Strategists propose an identity by using a certain strategy marketers and PR build on this strategy by choosing a position and messaging this position (potential) customers generate a brand image based on these messages strategists can again build a strategy to reposition the image of the consumers.  §1: Brand Identity: How strategists want the brand to be perceived: * It explains whether an ad suits the brand, whether new products should be launched inside or outside the brand boundaries, how far can we change our communication style regionally and internationally, or whether sponsorship would ‘fit’ the brand. * Definition: the unique composition of physical, social and psychological components of a brand as far as they are crucial, lasting and remarkable. * What’s the vision & aim of a company, what makes it different, what are its values, what need is the brand fulfilling, what is its permanent nature, and what signs make it recognizable. * Aspects: CED: Central, Enduring (whether it’s consistent over time) & Distinctive. * Components: Physical (external characteristics, logo), Psychological (experiences, character, point of view), Social (spokesperson, category, relationship, users).  §1.1 Heritage, consisting of history, consistency, passion and leadership. Effects are: * (1) Authentic real (2) trustworthy safe (3) intimate warm (4) expert excellence in performance and experience. * Sources are people, the firm itself, and region & nation; human capital, social capital, cultural capital & natural capital. * Country of origin is very important, and countlessly many papers have covered it.  §1.2 Personality & Values: * For the Big Five personality indicators/dimensions, see page 9 article 4. * Prototypical cues help distinguishing things between product categories. It also helps in creating expectance. * Values are stable,  desirable modes of conduct or abstract end-states that direct behavior. Milton R. defined 18 instrumental & 18 terminal values that can be used to find identity. * Core brand values: abstract associations that characterize the 5 to 10 most important aspects or dimensions of a brand. These serve the foundation of a brand strategy, and in particular the POPs and PODs (see page 11). For BMW this would be stylish driving, for Marlboro the cowboy life. * Brand Mantras: the ‘heart and soul’ of a brand: a 3-to-5 word phrase that captures the essence or spirit of the brand positioning and values. Malibu: seriously easy going. Here, campaigns are more about context rather than content; the expression of the brand is more important than the brand itself. Brand mantra’s consist of: * (1) Brand function (Authenticity for NIKE), (2) Descriptive modifier (Athletic for NIKE), (3) Emotional modifier (Performance for NIKE). * Implementing a mantra requires: communication simplification inspiration.  §1.3 Vision: The brand’s dream about the future. It is about shaping the category and improving customers’ welfare. Visions are provocative and can guide short-term behavior by communicating direction. The Brand Identity Prism to the left discusses (1) physique (features, symbols, attributes), (2) Personality, (3) Culture (set of values), (4) Relationship (beliefs and associations), (5) Reflection (consumers’ perception) and (6) Self-image (What the consumer thinks of himself).  §1.4 Brand Image: How the brand is actually perceived: * Identification: Brand awareness & category structure. * Qualification: Brand associations & meaning structure.  §2 Brand Positioning: The part of the brand identity and value proposition to be actively communicated to a target audience. It is the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds. The following paragraphs represent the steps that should be taken when positioning a brand.  §2.1 (step A) Frame of Reference: Who is the target customer and who are the main competitors? Here, we define category membership: * Target markets can be defined by  segmentation. Segmentation can be done on the basis of consumers (descriptive, behavioral, psychographic or geographic) or B2B (nature of the goods, buying conditions, demographics). Combinations are also possible. Criteria: * Identifiability, size, accessibility, responsiveness. * Take into account that there are different types of competition, namely on product type, category or class. In addition, competition may occur at benefit level rather than attribute level (see paper 3 page 8). * When comparing at category level, 1 brand is the reference brand and several others are compared to that. If you’re the reference brand, consider improvements on prices and quality. Be aware that decreases in attributes hurt more than for non-reference brands. When you’re not a reference brand, any POD from the reference brand is a loss. Therefore, reference brand have competitive advantages. * Prospect theory: Extra value diminishes as available gains increase. * When you’re launching a new brand, all ‘usual’ category characteristics will first have to be transferred. ‘Creating’ a category is not advised and very expensive (Subway food). Copying prototypical cues can be used by the follower brand to be accepted in the category (e.g. fast food using Red & Yellow / McDo).  §2.2 (step B) POPs & PODs are chosen after defining the frame of reference: * Points of Parity: How is the brand similar to others in the category, how can they be associated and compared. Moreover, which associations are shared? Category POPs are necessary to be a legitimate and credible product offering within a category. Competitive POPs negate PODs of competitors. * Points of Difference: How is the brand different to others in the category? It’s about brand associations that are unique to the brand and favorably evaluated by consumers. They can be functional (performance related) or abstract (imagery-related). They’re also closely related to unique selling propositions, competitive advantages and distinctive competences. They’re more difficult to obtain than POPs. PODs and POPs can be defined using the following typology: Intrinsic product differentiation, Design/Style differentiation, Symbolic Differentiation, Channel Differentiation, Price Differentiation, Customer Service differentiation, Customer intimacy differentiation. Choosing PODS and POPs  is based on: * Desirability: Relevance, distinctiveness and believability. * Deliverability: Feasibility, communicability and sustainability.  §2.3 (Step C) Establishing POPs and PODs: This can be difficult since many POPs and PODs are negatively correlated (e.g. High quality and low price). Methods that can solve this problem are (1) separation of attributes (2) Leveraging equity of another entity (3) redefining the relationship.  §2.4 Use and usage situation: What is the brand promise and consumer benefit? And what is the occasion when the product will be consumed? The best moment to confront customers with product (advertisements) is when they really need it (e.g. In India, detergent ads are place on top of buses, since everyone does their laundry on the balcony where they see these tops).  §2.5 Statement and tags Are the current looks and ingredients compatible with its positioning? There are multiple elements that will evaluate and choose a brand positioning: 1. The Target audience 2. The compelling benefit 3. The reason why customers should believe the PODs 4. Product Name 5. Product Category Week 3: Special Branding Strategies Article 1: Keller, Kevin Lane and Philip Kotler (2012) â€Å"Branding in B2B firms† in: Handbook of Business-to-Business Marketing, edited by Gary l. Lilien and Rajdeep Grewal, Edward Elgar, Cheltenham, UK. Constructs: * B2B branding: might not be needed because buyers are experienced and fully informed, it’s more about the buying experience, it involves  unnecessary costs, effects are only short-term, calculating ROI is difficult, brand building is complex and because it doesn’t significantly influence the buyers’ final decision. Findings: * The Brand Management Scorecard: a. Managers understand what the brand means to customers. b. The brand is properly positioned.  c. Customers receive superior delivery of the benefits they value most. d. The brand takes advantage of the full repertoire of branding and marketing activities available to build brand equity. e. Marketing and communications efforts are seamlessly integrated. The brand communicates with one voice. f. The brand’s pricing strategy is based on customer perceptions of value. g. The brand uses appropriate imagery to support its personality. h. The brand is innovative and relevant. i. For a multiproduct, multi-brand firm, the brand hierarchy and brand portfolio are strategically sound. j. The firm has in place a system to monitor brand equity and performance. * Steps to build and manage a strong brand: a. Ensure the organization understands and supports branding and the role of brand management. Moreover, internal branding is important (next two steps): b. Horizontal and vertical alignment: branding efforts should be understood by all. c. Brand mantras: (see p10  §1.2) will consistently reinforce and support the brand. a. A General Electric application: for this firm, more then a brand mantra was integrated successfully through 11 different businesses. d. Adopt a corporate brand strategy if possibly and create a well-defined brand hierarchy: (Carefully) decide on brand architecture (distinctive brand elements applied to the different products sold by the firm). Corporate branding is preferred. e. Corporate credibility: competence in delivery and satisfaction for the client. It depends on expertise, trustworthiness and likability. f. Brand hierarchy: Significantly different sub-businesses require sub-brands. g. Frame Value Perceptions: Strive for differentiation and value rather than  commoditization. Framing is about how clients currently think and choose among products and services, and then determining how this ideally should be. h. Link non-product-related imagery associations: Apple is perceived as an innovative brand, where Microsoft is more of an aggressive firm. Consider how dimensions of corporate credibility affect decisions of the B2B customer. i. Uncover relevant emotional associations for the brand: Security, social approval and self-respect definitely play a role. In addition, how do risk and feelings influence a customers decision making? j. Emotions and decision-making: Ultimately, individuals rather than organizations make purchasing decisions. These people are influenced by emotions & ratio. k. Segment Customers carefully and develop tailored branding and marketing programs. Should there be a uniform image within and across firms? l. Segmentation within organizations: the ‘buying center’ brings together initiators, users, influencers, deciders, approvers, buyers and gatekeepers. People fulfill multiple of these tasks, but all should be approached with identical messages. m. Segmentation across organizations: careful customer analysis is required for successful segmentation. Implications: Not mentioned. Article 2: Desai, Kalpesh Kaushik and Kevin Lane Keller (2002) â€Å"The Effects of Ingredient branding Strategies on Host Brand Extendibility,† Journal of Marketing, vol. 66, (January), 73- 93. Constructs: * Line extensions: minor product changes in the host brand, possibly already introduced by others in the category. When these changes are branded, they’re further defined as: * Slot-filler brand expansions: the level of one existing product attribute changes. * New attribute expansion: an entirely new attribute or characteristic is added to the product. * Self-branded ingredient: the host brand includes and creates a new self-brand. * Co-branded ingredient branding: using associated brands as ingredients (Dell & Intel) that are supplied by another firm. Findings: * For Slot-filler expansions, a cobranded ingredient facilitates initial expansion acceptance, but a self-branded ingredient leads to more favorable subsequent category extension evaluations. Subjects appeared not to credit the host brand for the cobrand association in evaluating subsequent extensions, and if anything, they held it against the host brand. * For new attribute expansions, a co-branded ingredient leads to more favorable evaluations of both the initial expansion and the subsequent category extension. Because a self-branded ingredient did not help ‘broaden’ the equity of the host brand, and because the host brand may have lacked credibility, an extension involving a self-branded ingredient was less favorably evaluated. * Should ingredients be branded? Yes, it improves the competitiveness of the host brand and it’s a signal of quality when combining high quality brands. Implications: * Besides helping improve the competitiveness of the host brand, the new attribute can, in some cases, expand the usage of the host brand. * Co-branding might enhance short-term equity of a host and its value, even under low fit. However, in the long-term co-branding will require more fit to the category. After all, they’re borrowing and not generating equity themselves. * Evaluations of slot-filler extensions suffer after the cobrand that was originally used in the expansion is dropped from the extension. Article 3: Gussoni, Manuela and Andrea Mangani (2012) â€Å"Corporate branding strategies in mergers and acquisitions,† Journal of Brand Management, I 350-213IX, 1-16 Constructs: * Corporate name is a strategic marketing asset and carries the corporation’s reputation. * Mergers & Acquisitions: can be classified as: * Conservative: the new entity adopts the acquirer’s or the target’s corporate name. * Innovative: the new entity uses a mixed or new name. * Horizontal: if the combining entities are active in the same  industry and produce similar goods & services. * Vertical: if the combining entities are active in the same industry but at separate production stages (buying buyers or suppliers). * Divisional acquisition: acquiring /merging only some divisions of companies. * Diversification: if the combining entities are active in separate industries * Financial investments: if a financial investor, typically a private equity investment firm, acquires a manufacturing or service company. Findings: * Divisional acquisition, vertical integrations, diversifications and the sectors involved do not affect the probability of the strategy being innovative. * Inventing a new name for a target is unusual. * Innovative brand strategies are more probably in the case of mergers (as opposed to acquisitions), horizontal M&As and financial investments. More specifically, a mixed name is the preferred option since value and reputation of both names will be involved. * When doing a financial investment, the acquirer doesn’t transfer it’s name, but chooses between keeping the acquired name or changing it in case of bad reputation. * Horizontal M&As tend to extend the name of the acquirer to the target. Implications: * Management and chanting of brands and corporate names may have a profound impact within organizations. Therefore we recommend carefully interpreting our and other studies regarding naming strategies. * Marketing during a M&A process is often underestimated. Article 4: Ilicic, Jasmina and Cynthia M. Webster (2012) â€Å"Celebrity co-branding partners as irrelevant brand information in advertisements,† Journal of Business Research Constructs: * Celebrities are identified as co-branding partners, where two brands (one being the celebrity) are paired with one another in a marketing context such as an advertisement. * Their should be a match between the  celebrity and brand image to achieve positive effects on consumer attitudes. * A celebrity not only provides consumers with relevant brand information when they convey characteristics pertinent to the brand but also when they mention information relevant to the endorsed brand. * Irrelevant information provided by a celebrity endorser also aids in making a judgment about whether the brand is able to deliver the benefit according to the consumer. This holds regardless of whether relevant brand information is also present. * Dilution effect in marketing: Dilution of consumers’ beliefs might occur when a celebrity provides both irrelevant and relevant brand information. This effect is present regardless of whether consumers perceive the celebrity to match or mismatch th e brand. Findings: * When a celebrity co-branding partner does not provide information about the partner brand nor brand benefits but plays a peripheral role, consumer judgments in the ability of the partner brand to deliver benefits, their purchase intent and their match-up perceptions become less positive. * Consumer brand benefit beliefs and purchase intentions show evidence of a dilution effect only when consumers perceive a mismatch between the celebrity and brand and when presented with irrelevant information supplied by a celebrity in addition to relevant brand information. When purely relevant information is presented, dilution does not occur. * Dilution occurs on perceived brand benefits, purchase intentions and match-up perception between the celebrity and the brand. Implications: * Ensure that a celebrity co-partner does not provide irrelevant brand information within advertisements to avoid brand benefit belief, purchase intent and match-up dilution. * Advertisements should feature an irrelevant and incongruent celebrity in combination with relevant brand information.

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The Speed of Trust part 3 - Essay Example She tells the truth no matter what the situation is. Her ability to talk straight confers basic elements to her that influences the successe of the unit. This element has led to improved manager’s relationships with the staff (Covey, & Merrill, 2009). The current manager ensures that the unit operates within the allocated budget while delivering results. The manager ensures successful completion of projects within the scope and expected results. She ensures this through controlling risks and timely performance (Covey, & Merrill, 2009). The manager takes enormous responsibility of showing loyalty by giving credit to all the contributors who ensure success in the unit. She identifies individual contribution and does not hesitate to show loyalty to the staff. She supports the workforce in their endeavors, and she takes the side of the workforce in case of disputes with the management (Covey, & Merrill, 2009). I think the manager should improve on her listening ability. For instance, an individual or staff could approach her in the halls with an issue or problem. During the conversation, she walks as the staff expresses her problems; she gives short answers, an indication that she is not attentive. On other occasions, I have tried to explain a situation after which the manager seems to have formed her own conclusion (Covey, & Merrill, 2009). The manager has an attribute of having limited trust with the workers. 90% of the workforce speaks her language, however, at some instances, she speaks a different language when with her deputy, or she sits to eat with a group of nurses. She should learn to extend her trust to the staff members (Covey, & Merrill, 2009). Another attribute that I think the manager should change is her ability to demonstrate respect. For instance, workers may smile or say polite things, but she ignores them. Such an attribute demonstrates her lack of respect. A staff member

Case Study on Aldi Supermarket Stores in Australia

On Aldi Supermarket Stores in Australia - Case Study Example The mission of this supermarket chain is to provide superior quality products to customers at considerably low prices. In 1990s the company has expanded its operations in Australia through opening few retail stores. Woolworths and Coles have dominated Australian retail market over the years. Aldi has posed a threat for these retail firms by offering wide array of products at low market price. However there are challenges witnessed by Aldi since 60% of grocery market share is owned by Woolworths and Coles. Australians prefer to shop from Aldi but the company would require time to gain competitive advantage in retail sector. In this study, micro and macro environmental factors affecting business operations of Aldi Australia shall be identified, followed by an evaluation on their current marketing strategies. Marketing mix elements would also be redesigned in later part of the study, so as to add value to Aldi’s operations. The first most important micro environment trend is competitors. Strategic advantage could be gained by firms only through positioning their products or services well against that of competitors. Aldi Stores, Australia needs to be proactive by nature rather than reactive. Competitors are an important micro-environmental trend because it decides upon effectiveness of business strategies. For instance, Australian retail industry is dominated by two large players – Woolworths and Coles. Aldi Australia can be successful over longer period of time if the company is able to analyze strategies of its competitors and undertake proactive measures (ALDI, 2015). The competitive trend is a threat for the firm. This is because any innovative strategy designed by competitors can acquire market share of Aldi Stores in Australia. Competitors as a micro trend is important compared to other trends since it cannot be controlled efficiently by the firm. Customers can be considered as the second micro-environmental trend. In case of Aldi Australia,

Capital Asset Pricing Model Essay Example for Free

Capital Asset Pricing Model Essay The capital asset pricing model (CAPM) is an important model in finance theory. CAPM is a theory or model use to calculate the risk and expected return rate of an investment portfolio (normally refer to stocks or shares). All stocks have 2 risks: Systematic Risk (also called Market Risk which affect every stocks) and Unsystematic Risk (also called Specific or Unique Risk that only affects individual stocks). To diversify unsystematic risk, we selected and combined different stocks, which are negatively correlated with one another into one portfolio. In this way risk are eliminated greatly. See diagram below. CAPM Equation The general formula used for Capital Asset Pricing Model is: re = rf + [ ß (rm rf) ] where the components are as follows: re = Expected return rate of the investment portfolio rf = Risk free rate of return ß = Beta (correlation between the shares and the market) rm = Expected market return which also means: rm rf = Market risk (systematic risk) ß (rm rf) = Risk premium *Beta is overall risk value for investing in the stock market. The higher the beta, the more the risk. CAPM Example Assume there is two Investment portfolio (stocks) or project A B. With the information given below, we can use CAPM to help us decide which to invest on. risk free rate beta expected market return A 3% 2.5 10% B 3% 1.2 10% From the beta value above, we know A is a more risky portfolio. A is 2.5 times more risky than the overall market and B is 1.5 times less risky. †¢ Expected return produce by A re = rf + [ ß (rm rf) ] re = 3 + [ 2.5 (10 3) ] = 20.5 % †¢ Expected return produce by B re = rf + [ ß (rm rf) ] = 3 + [ 1.2 (10 3) ] = 11.4 % Using CAPM formula, we calculated A produce a 20.5% expected return rate. It is higher than the overall market expected return, which is 10%. Whereas for B, the expected return rate are only 11.2% compare to market return of 10%. Base on result, A is definitely a better but if you don’t feel conformable with A’s risk or think it might not able to produce the expected return rate, then you would probably can choose investing in B. Criticisms of CAPM Although CAPM seems to be one of the most widely used methods to determine the expected return of a investment portfolio, It still have its limitation. Many had criticized on its unrealistic assumptions. †¢ Required a well-diversified portfolio Firstly CAPM works really well with a well-diversified portfolio as it accounted for systematic risk (market risk) but as seen on the graph on page 1, systematic risk is still undiversified. Therefore unsystematic risk is ignore in CAPM calculation. †¢ Beta as it main calculation components As Beta value are computed base on past one year figures so in this case CAPM assume that the future wont change. Also beta may not really reflect the actual performance of different stocks. This was question by professors Eugene Fama and Kenneth French where they looked at share returns on the New York Stock Exchange, the American Stock Exchange and Nasdaq between 1963 and 1990, they found that differences in betas over that lengthy period did not explain the performance of different stocks. The linear relationship between beta and individual stock returns also breaks down over shorter periods of time. These findings seem to suggest that CAPM may be wrong. †¢ Risk free rate of return CAPM assumes there is a risk free rate where investors can borrow or lend at this rate but it is not true in the real world. †¢ Perfect capital market exists There is no transaction cost for trading in the market and profit is non-taxable. †¢ All investor are the same CAPM assume all investors have the same expectations on the risk and expected return.

Dealing With Video Games’ Problems Essay Example for Free

Dealing With Video Games’ Problems Essay In present-day society, with the Internet technologies developing rapidly, video games have assumed an increasingly crucial role in people’s lives. Admittedly, video games may attract lots of people, and gaming industry has achieved a good success. However, there are many problems with video games such as game addiction of China’s youth and the utilitarian behaviors of the game companies so that it is important to reinforce the regulation of video games. The most severe problem caused by video games is gaming addiction, especially for China’s youth. â€Å"The youth of China are the most plugged-in, an alarming statistics shows that 42% report feeling addicted to the video games, according to Dr. Tao, who set up China’s first Internet addiction clinic at the Military General Hospital in Beijing† (Dubois). Addiction is an appropriate word to describe those game players who immerse themselves in the virtual world of video games and cannot control themselves. â€Å"Long-term Internet addiction would result in brain structural alterations, which probably contributed to chronic dysfunction† (Dubois). â€Å"People’s Daily reported a 14-year-old boy who died after a four storey fall due to hallucinations brought on by his obsession with the popular video game Legend.† (Dubois). Also, other similar tragedies happened because of the addiction. According to China Daily and The Guardian, two Chinese teenagers from different places committed suicide by  jumping from buildings after playing World of War C raft (WOW) for dozens of hours (Dubois). Therefore, it is apparent from these facts that China is facing a problem of gaming addiction. Moreover, the problems are also caused by the utilitarian gaming industry. Game companies are utilitarian that they do not consider the effect that their games will bring to the players but just care about their profit. To attract more kids, â€Å"Game console sell gift cards at convenience stores that allow kids to make purchases on video games, even if they don’t have a credit card† (Henn 4). This will make some kids play video games without their parents’ permission and may even cause addiction and family conflicts. Henn states â€Å"Researchers in game companies tweak games to get players to stay on longer, or to encourage them to spent money on digital goods† (2) and â€Å"the idea is to make gamers uncomfortable, frustrate them, take away their powers, crush their forts—and then, at the last second, offer them a way out for a price† (3). Young players may not have ability to make money, but they spend more and more â€Å"virtual curren cy (paid for with real cash)† (Clendenin) to get the latest and best virtual gaming equipment, which may even cause crimes. People’s Daily reported that a 19-year-old college student stole 20,000 RMB at school in order to pay for the expensive virtual commodities in his favorite video game. Thus, unethical behaviors of gaming industry are also serious problems to solve. Regulations on video games may help to alleviate the severe situation. But to eradicate these problems, the Chinese government must have regulations that are powerful enough. Although the Chinese government has already built up some regulations on video games, these regulations may be not sufficient. In April 2007, the Chinese government introduced  some regulations to deal with such situation. It introduced an anti-addiction system that required the players register with their real name and ID number and will limit the time players spend in their virtual world (Clendenin). â€Å"There is also a total ban on minors handling virtual currency, used by many online games† (Clendenin). The system indeed prevents players from overindulging in online games to some extent. However, the system is not as effective as expected since players just turn to other games after limited hours or they use fake registration information and change it frequently. Meanwhile, the game companies, which depend so much on video games for profit, will also invent more â€Å"countermeasures to cope with these regulations†(Clendenin). So if these regulations have no supporting measures, they may well become an ineffective attempt to solve these complicated issues. Hence, in order to eradicate the problems caused by video games, the Chinese government should have more powerful regulations on video games. To sum up, video games now indeed have caused serious problems for China’s youth. After knowing the reasons for the problems, to deal with such situation, reinforcing the regulation of video games is essential to help solve the rigorous problems in China. Works Cited â€Å"Multitasking After 60: Video Game Boosts Focus, Mental Agility.† Shots. Writ. Jon Hamilton. NPR, 4 Sept. 2013. Radio. â€Å"Video Game Creators Are Using Apps To Teach Empathy.† All Tech Consider. Writ. Steven Henn. NPR, 20 Nov. 2013. Radio â€Å"How Video Games Are Getting Inside Your Head—And Wallet.† All Tech Consider. Writ. Steven Henn. NPR, 29 Oct. 2013. Radio Zhang, Zeoy. â€Å"Has China’s Online Gaming Addiction Become an Epidemic?† The Diplomat. The Diplomat, 4 Oct. 2013. Web. 13 Feb. 2014. Clendenin, Mike. â€Å"China Tightens Online Gaming Regulations.† InformationWeek. N. p., 25 June 2010. Web. 20 Mar 2014 Dubois, Matthew. â€Å"Log in, sign out.† The World of Chinese. N. p., 9 Mar 2013. Web. 20 Mar 2014

Automatic Flight Control Systems Engineering Essay

Automatic Flight Control Systems Engineering Essay We live in a world where technology is, if not being improved, developed by the second. Everyday new improvements, inventions and discoveries are made. One industry that is always on the lead when it comes to new inventions and innovations is the Aviation Industry. Over the years, aircrafts have been facing major improvements on the structure, fuel efficiency, life-span, range of flight. But one of the best improvements that have been done on every aircraft (commercial) that had the biggest impact in the Aviation Industry and most probably the main reason why the industry has been booming up is the improvements done in the Avionics section, specifically the Automatic Flight Controls. In the beginning, Pilots were trained to fly the aircrafts alone. But after several years, it is now the pilots programming the computer, telling it where to fly, at what altitude, etc. This computer is the AFCS (Automatic Flight Control System). In todays modern world of flying, it is the AFCS who is technically flying the aircraft, from cruising to landing, and for some until parking. The AFCS has a lot of advantages when compared to human pilots when it comes to flying. Here are some of them: The AFCS has the ability to overcome deficiencies when it comes to stability and control. The AFCS improved the handling qualities. Such as, when the airspeed or the altitude of the aircraft needs to be constant. The AFCS is more accurate and hence is able to carry out several tasks that the pilot is not able to do. * Source: Emirates Aviation Colleges Automatic Flight Control Systems Book (Chapter 3.1.3) To get a better understanding of the AFCS, the different parts of it will be discussed, such as the Autopilot System, Flight Director System, Auto Throttle System and etc. The information about the AFCS will be based on one of Boeings classic aircrafts, the 737-500. FLIGHT MANAGEMENT SYSTEM (FMS) The Flight Management System is navigation, combined flight control, a Built-In Test Equipment (BITE) and a guidance system. The FMS provides control and operation of five independent subsystems to provide lateral navigation (LNAV) and vertical navigation (VNAV) for performance management and optimum flight profiles. The Flight Management System is not labeled to any control panel or any single component as it is an integration of five independent subsystems. These subsystems are: Digital Flight Control System (DFCS) Inertial Reference System (IRS) Autothrottle Electronic Flight Instrument System (EFIS) Flight Management Computer System (FMCS) * Source: United Airlines Boeing 737-322/522 (page 6, Chapter 22-2, Oct 99) from Emirates Aviation College Library This system was designed to increase fuel efficiency, safety and decrease workload. For both pilots, this means that they can select full FMS operation or Autopilot Flight Director System (AFDS) for a complete automatic flight. They can even use the Control Display Units (CDU) to provide, for manual flight, reference information. Management and operation is totally under the control of the flight crew. There are only certain operations that can only be implemented by the flight crew. They are: landing rollout steering, thrust reversal, speed brake operation, altitude selection, landing gear and flap operation, instrument landing system (ILS) tuning, thrust initiation, brake release, airplane rotation and steering during takeoff roll. * Source: United Airlines Boeing 737-322/522 (page 6, Chapter 22-2, Oct 99) from Emirates Aviation College Library FMS BUILT-IN TEST EQUIPMENT (BITE) Ground test capabilities and self-contained in-flight monitoring are provided for the FMS subsystems. The flight management computer (FMC) coordinates the BITE testing of the five subsystems and must be functional for access to any subsystems built-in test equipment. BITE for the FMS subsystems is accessed from both CDUs located in the cockpit. Each FMS subsystems run its own systems test. Included in the tests are for its computers, sensor inputs and several interfaces. Any fault findings during flight are automatically stored for analysis on the ground which is accessed through the bite system. * Source: United Airlines Boeing 737-322/522 (page 8, Chapter 22-4, Oct 99) from Emirates Aviation College Library THE BOEING 737-500 CATEGORY *3 General AFCS Category Capability Chart *4 Boeing 737-500 AFCS Category Capability Chart The Boeing 737-500, according to the diagram is in Category 3B. In order for this aircraft to operate at Cat3B weather minimums, the equipment that must be available in Cat2 should be functional. These equipment are: Both Flight Directors One Autopilot in CMD Both Air Data Systems (ADS) Both windshield wipers Two generators Both EFIS systems displaying: Radio Altitude Glideslope and Localizer Deviation Attitude Autopilot Status Engaged Pitch and Roll Modes Decision Height Both Radio Altimeter Systems Both ILS Marker Beacon Both IRS Now for the aircraft to operate in Cat3B all the equipment listed for Cat2 must be fully operational, provided that the equipment as follows is included: The Autothrottle Both Autopilots Both Hydraulic Systems * Source: United Airlines Boeing 737-322/522 (page 12, Chapter 22-8, Oct 99) from Emirates Aviation College Library AUTOMATIC FLIGHT CONTROL SYSTEM (AFCS) The AFCS or also known as Auto Flight System (AFS) comprises of three independent systems. They are: A Yaw Damper System A dual Digital Flight Control System (DFCS) An Autothrottle (AT) System These 3 systems provide automatic aircraft stabilization about the roll, pitch and yaw axis. The AT and the DFCS systems control the aircraft with the selected Mode Control Panel (MCP) guidance from N1, heading, radio, IRS, FMC and ADC inputs. * Source: United Airlines Boeing 737-322/522 (page 10, Chapter 22-6, Oct 99) from Emirates Aviation College Library YAW-DAMPER SYSTEM The Yaw Damper System is composed of various components, such as: Yaw Damper Engage switch Warning Annunciator Yaw Damper Coupler Integrated Flight System Accessory Unit (IFSAU) Yaw Damper Engage solenoid Position Transducer and Transfer Valve on the rudder Power Control Unit (PCU) Yaw Damper position Indicator * Source: United Airlines Boeing 737-322/522 (page 12, Chapter 22-8, Oct 99) from Emirates Aviation College Library The Yaw Damper System smoothens the flow of air that causes the aircraft to yaw and thus causes it to Dutch Roll. The Dutch Roll is a phenomenon that occurs when a sidewind hits the aircraft which causes it to yaw. This yawing motion exposes one side of the wing to the wind more than the other side. The exposed side of the wing, gains more speed and more speed generates more lift on that particular side. The lift that was generated on the exposed side of the wing causes the aircraft to roll. Hence, the term Dutch Roll. The Yaw Damper System is a stability augmentation system that works full time, providing yaw axis damping for the complete flight, including both takeoff and landing. It is connected in series so that none of the rudder feedback is applied to the pedals. This now allows the Yaw Damper System to operate in an independent manner without interfering the initiated rudder commands by the flight crew. Both the yaw rate and the yaw direction are detected using a rate sensor located in a Yaw Damper Coupler. The rate sensor of the Yaw Damper is sensitive that the rudder is displaced at a proper time to dampen out any sidewinds hitting the aircraft before it can obviously affect the flight path of the aircraft. * Source: United Airlines Boeing 737-322/522 (page 12, Chapter 22-8, Oct 99) from Emirates Aviation College Library The Yaw Damper authority is only  ±3 ° deflection of the rudder. Its actuator gets no turning commands from the longitudinal axis AP. The Boeing 737-500 does not have a 3-axis AP. It only has 2 which is the pitch and roll axes only. In this aircraft, turn coordination is not available. A roll command which sends a cross feed signal in proportion to the bank angle due to aircraft banking, is sent to the Yaw Damper to prevent undesirable opposition to roll attitude. * Source: United Airlines Boeing 737-322/522 (page 12, Chapter 22-8, Oct 99) from Emirates Aviation College Library *5 Yaw Damper System Diagram Yaw Damper Operation The Yaw Damper is confined to 3 modes of operation. These modes are: synchronization mode, engaged mode interlocks and logic and engaged mode operation. Before the yaw axis engagement, the Yaw Damper coupler is in the synchronization mode for 2 seconds. The synchronization mode provides a null output to the electro-hydraulic transfer valve to prevent a sudden change in the Yaw Damper coupler. The mode is accomplished by returning the controlled signal back to the output amplifier. The output of the valve amplifier is reduced to null as the output of the integrator increases, causing the signal to be cancelled. Prior to the engagement of the Yaw Damper its actuator remains at the center which nulls the position feedback to the Yaw Dampers coupler. * Source: United Airlines Boeing 737-322/522 (page 14, Chapter 22-10, Oct 99) from Emirates Aviation College Library The system is activated by placing the Yaw Damper switch on the flight control module to ON. Both Bs of the flight control switch and system hydraulic power must be ON and available, respectively, in order to power the Yaw Damper actuator portion of the PCU. 2 seconds after the Yaw Damper is on, the YAW DAMPER light extinguishes. The Integrated Flight Systems Accessory Unit (IFSAU) contains the logic to engage the system, monitor the engagement and illuminate the amber-colored Yaw Damper disengaged annunciator light. If, for over 2 seconds, the AC power is lost, the YAW DAMPER light illuminates and the Yaw Damper switch returns to OFF position. The Yaw rate gyroscope which is located inside the Yaw Damper coupler senses the movements by the yaw axis. The coupler only responds to yaw movements that produce the Dutch Roll. Before the command signals are applied to the transfer valve which is located inside the Yaw Damper actuator, it is first filtered and amplified. The transfer valve then sends hydraulic pressure in order to deflect the rudder and reduce the aircrafts oscillation by the yaw axis. The output of the Yaw Damper actuator is summed with the rudder pedal manual input in order to move the main rudder Power Control Unit (PCU) that controls the rudder. Now as the actuator moves the linear variable displacement tranducer (LVDT) supplies the signal of the position feedback to nullify the signal coming from the yaw rate gyroscope. When the movement (by the yaw axis) stops, the feedback signal returns the rudder to the original position.