Consumer Brand Preference - role of advertising

p CONSUMER BRAND PREFERENCE - ROLE OF ADVERTISING

2007

1 . INTRODUCTION

1 .1 Background

A crucial step in the branding strategy is deciding on a specific brand name for the product that is being introduced . In the earlier times the concept and practice of branding was much less developed , the common method of branding was by way of addressing the product range of the company . Pepsi brand in Europe performs either to indicate the source or the origin of the product or indicate the product range . However Pepsi brand name has

emerged as one of the most important elements of the merchandising function in the recent times and will become more and more crucial as the competition becomes more severe . Brand is a word mark , symbol , device or a combination thereof , used to identify some product or service . The definition clearly focuses on the function of a brand , that is , to identify , irrespective of the specific means employed for the identification

Brand name is a part of a brand consisting of a word , letter , group of words or letters comprising a name which is intended to identify the goods or services of a seller or a group of sellers and to differentiate them from those of competitors

Comparing this definition with that of a brand , it is found that the function remaining the same , and is only one of the means that the brand can use for identification . Brand name is a word or a combination of words /letters that is pronounceable , e .g , Pepsi Co . Europe Plc . Since a brand name is used in identification of a product amongst a competing set , it is necessary that each brand must have only a unique identity and it must also be protected by law

1 .2 Problem Discussion

Advertising prevails in all walks of human life and it has acquired the distinction of being the most visible and glamorous method of marketing communication in Europe . Advertising is any paid form of non-personal presentation and promotion of ideas , goods or services by an identified sponsor . Some of the major marketing and communication functions performed by advertising today include to inform , entertain persuade influence , remind , reassure and add value to the product or service advertised . Before going to observe the role of advertising and managerial aspects of advertising , it is to be seen how advertising works and the various types of advertising and how Pepsi fairs over its rivals in the soft drink segment and contrast its long term strategies

In the pursuit of its purpose , the economic and social effects of advertising have become the subjects of continuing debate . A quick flavor of the arguments put forward on both the sides are the two view points , one considering advertising as an information disseminating utility function and the other viewing advertising as a source of market power

On balance , advertising has carved an indispensable place for itself in the marketing mix of a firm . In the following situations advertising is likely to make greater contribution...