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Brand equity and marketing information system

Table of contents:

Anonim

Summary

Management information systems (MIS) provide information to users with similar needs, about what has happened in the past, what is happening in the present and what is likely to happen in the future. Specifically, marketing information systems consist of the distribution of necessary, timely and accurate information for people in charge of making marketing decisions. The study of brand equity would be a type of information system to support marketing decisions, since it combines reporting and consultation systems with capabilities of easy-to-use analytical models, whose purpose is to allow marketing executives and analysts to consult in a simple way the performance indicators of your brands, based on periodic market research as a source of support.In this sense, the objective of this work is to analyze the most relevant aspects of the concept of brand equity as a marketing information system based on the bibliographic review.

1. Introduction

At present, due to technological advances and the globalization of markets, it is essential that all companies, both products and services, urgently develop an awareness of the importance of information and the efficient management of technology to acquire and maintain competitive advantages. Among the reasons that information is more necessary, specifically, with regard to the functional area of ​​marketing, Goldgrub (2001) exposes, are: the change from national to international marketing; the transition from the buyer's needs to the buyer's wishes and the transition from price competition to one that does not have to do with prices (brands, differentiation, advertising, etc.).

According to the foregoing, marketing information systems (MKIS) have evolved in such a way that their particular relevance cannot go unnoticed. But this combination of technology and information applied to marketing, and generally applied to any discipline, carries costs and risks. According to Pujol (1998), there is a high percentage of organizations that are in some phase of MKIS implementation, and even those that have implemented are investing in its improvements.

The innovations and continuous improvements of MKIS are subject to the dynamism of competitive markets, to the demands of changes in consumer behavior (attitudes and lifestyles), as well as organizational and technological changes. The availability and mastery of pertinent, timely and permanent information is essential to carry out effective analyzes that allow the formulation of timely and profitable marketing decisions at all levels of the organization involved.

Within this context, the present article aims to analyze the management of marketing information systems based on the bibliographic study, especially the study of brand value as a market research subsystem, the use and importance of which has acquired relevance significant in business. Specifically, the brand equity is defined; brand valuation methods are identified; Information systems are conceptualized as a tool to manage the complexity of the brand valuation study; the methodological elements of the brand value information systems are characterized; some models of reference brand value information systems are described and finally some final considerations are made on the topics covered.

2. Definition of brand equity

Brand equity has been distinguished through various fundamental analysis perspectives, Del Río and Others (1998) broadly distinguish two perspectives of brand equity analysis: financial and marketing or consumer. The conceptual framework of the study of brand value that is proposed as an information system for this research, starts from the consideration that said value is an intangible asset based on the market, specifically, from the end of the reactions of consumers to the presence of the brand, whose measurement and informational value serves as continuous support for management decisions inherent to its development and competitive maintenance.

From the marketing or consumer perspective, it is argued that the analysis of brand equity in the different market segments contributes to the identification of competitive advantages and, consequently, to the identification of opportunities for the owner company. This perspective proposes approaching brand equity through market research on the perceptions (attributes, benefits and attitudes), preferences or behaviors of consumers towards the brand.

In this sense, to understand how the value of a brand is generated, it is important to understand the meaning that it has before the consumer, as it is determined by the evocations that surround it, as well as by the experiences it arouses in it. In this way, the value of successful brands goes beyond their characteristics and the advantages they offer.

The differentiation of a brand is important, but according to (Homs, 2004: 11), “it does not define its competitive capacity, since today's consumers buy experiences and the brand capitalizes on their value”. Thus, brands are only as good as the experience they offer consumers: strong brands come from strong experiences.

The consumer's experience with the brand is a function of value, which can be tangible and intangible. Intangible values ​​add personality to the products and services that the brand represents, which appeals to the emotional side of consumers. In general, Temporal and Lee (2003: 2) add, “intangible value is what makes people prefer one brand and not another. In this lies one of the secrets of its success ”.

According to the above, the brand value according to Arnold (1993; 290), “is the perception that is configured in the minds of consumers through the years of use, advertising and distribution of a brand accredited in the marketing". Ambler and Barwise (cited by Randall, 2002: 35), agree on the previous definition by stating that brand equity "is the marketing asset existing in the minds of consumers, with a continuous value for the owner of the brand, for its influence on future purchases of the buyer and his social network for personal recommendations ”.

From the aforementioned conceptions, it could be specified that brand equity is the set of favorable or unfavorable perceptions and experiences (characteristics, qualities and benefits), which generate a specific image in the consumer's mind based on the personality and positioning held by the brand, which adds or not value to the product or service by making a unique offer. This set of favorable perceptions that represent and identify a brand are what attract and expect consumers to comply. Hence the significant responsibility of meeting the expectations generated by the brand, since, fulfilling it or not, will determine whether the consumer adds or subtracts value to that brand in their mind.

In sum, the value of a brand can be quantified in monetary terms, but the real value in the competitive market is the ability of brands to capture the attention of customers and influence the option they choose. When the rational part of the mind is no longer able to choose, brands offer an emotional attraction capable of mitigating fears in consumers.

3. Trademark valuation methods

There are various methods or approaches to measure brand value from the marketing perspective, many of them coincide with each other due to their indicators and evaluation dimensions used, although they seek in different ways to capture the idea that a brand has value in the mind of the consumer and that influences their behavior.

However, according to Randall (2002), a valid, reliable, standardized and widely accepted method for measuring brand equity has not emerged. Neither method guarantees to produce a valid result for each case. All the methods are fraught with difficulties, since there is absolutely no evidence of a systematic relationship with the value or heritage of the brand, whatever the meaning of this concept. According to Delgado (2004), the variety of definitions has caused the brand equity literature to highlight its lack of cohesion when defining the concept and developing measurement instruments that allow an approximation to it, since there is no widely defined definition. accepted that it has been operationalized, tested and validated.

This does not imply, according to Randall (2002), that the proposed methods have no merits, nor that managers stop trying to measure and know the value of their brands, on the contrary, it seems very sensible to do so, since brands have: an economic value that no one can question; the potential for long-term profitability; the peak of sales and the influence on the market, factors that are gaining strength as bargaining elements. Preferably, having at least an idea of ​​what is the brand value accumulated at present, serves as the basis for measuring the actions of the marketing in the preservation or increase of said value. An explicit model will help to think and discuss marketing issues with accountants and perhaps even strengthen reputation in the financial sectors.

Certainly, beyond being a financial information system, brand equity should serve as an analytical tool for market research that contributes to managerial decisions. According to Arnold (1993), especially in the field of marketing, brand equity supports and provides agility of maneuver to the components of the marketing mix: the product is less vulnerable, more attractive and credible; the price is less subject to haggling restrictions and can yield higher profits; and distribution is more permeable to products.

For this reason, the challenge should be to develop credible and sensitive measurements, with good units of measurement, to strengthen the brand between products and markets, in order to effectively complement the financial measurements that monetarily quantify brand assets. Measurements should primarily reflect those market driving forces that are truly associated with future sales and profits. The existing methods to measure brand equity from a marketing perspective are based mainly, according to Del Río and Others (1998), on:

  • Measurement of levels of knowledge and global image of the brand. Global evaluation of the brand according to the preferences or consumer behavior based on different analyzes: preferences; of preferences, habits and loyalty; consumer sensitivity to the brand; evaluation of the halo effect; consumer behavior compared to price. Detailed evaluation using multiple dimensions: behavior, preferences and / or perceptions.

Among the methods mostly accepted and validated by the scientific community in accordance with the previous approach, are those formulated by Aaker (1996) and Keller (1993), the first one describes the concept of brand equity through the measurement of knowledge and global image of the brand (recognition, associations and perceived quality) and behavioral variables (brand loyalty), for its part, the second focuses exclusively on the cognitive variables described by Aaker (1996), also including the attitude towards the brand. It should be noted that these variables do not represent empirical evidence that collects the entire content of the brand value (Delgado, 2004).

Considering the contributions of Aaker (1996) and Keller (1993), since they are the two most relevant and referenced theories of brand equity, knowledge, associations, perceived quality and quality are described as a set of variables associated with brand equity. the loyalty. From the nature and conceptual classification of these variables, Delgado (2004) points out that brand equity has three general dimensions.

The first of the dimensions, which is called cognitive or knowledge, is constituted by the notoriety or brand awareness that, compared to the presence of more strongly developed cognitive structures, such as brand image or brand associations, represents the lowest level of brand awareness. Specifically, it represents the strength with which the brand is established in the memory of the individual as a member of a product category. This knowledge is enriched thanks to the set of various associations that the individual has of the brand, among them the perceived quality, and that will configure their image. In this sense, and under the umbrella of the cognitive dimension, the brand image refers to a holistic meaning or impression of the brand,revealed in the set of associations or mental representations that the individual has of it. Finally, the brand image, as a compendium of information about the brand, is what will guide the subsequent development of a bond with it, not only attitudinal or affective but also behavioral, and which has its maximum expression in loyalty to the brand.

The distinction of these three dimensions in the concept of brand value is, according to Delgado (2004), a useful guide to classify with certain criteria and rigor the different operational descriptions that exist in the academic field, and thus verify which of them collect all the reality and richness of the phenomenon that is being analyzed.

In addition to this, among the indicators commonly used in brand equity measurements, those outlined in the article published by Lockwood (1995; cited by Garnica, 1997) are mentioned, which were based on a study conducted with research directors of markets to find out what was their conception of what brand equity covers, what indicators they had in this regard, and how satisfied they were with those indicators. Of the fourteen indicators identified, only seven were frequently related to the concept of brand equity (in hierarchical order): associations (Image, brand symbolism); brand loyalty (change); knowledge (familiarity); extension potential (to new products); market share; response to price variations; and market dominance (profitability).

According to the results of the study, there seems to be a consensus regarding the related indicators or dimensions and their importance in measuring brand equity: the associations, loyalty and brand awareness identified by Aaker (1996) and Keller (1993), as well as some variables of market behavior. Especially, the primary significance given to the associations that the client produces with the brand should be highlighted.

4. Information systems as a tool to manage the complexity of the brand valuation study.

Management information systems (MIS) provide information to users who have similar needs, generally constituted in a formal organizational entity, about what has happened in the past, what is happening in the present and what is likely to happen. happen in the future. Generally this information is presented in the form of periodic reports, special reports and outputs of mathematical solutions; which can be used by managers, or non-managers, to make decisions that solve the problems of the company (McLeod, 2000).

The marketing concept is based on various integrated activities aimed at achieving the benefit and satisfaction of customers, activities that largely depend on information technology for their development and achievement.

The functional area of ​​marketing, according to various authors, was the first to demonstrate interest in Management Information Systems (MIS). Marketers quickly adapted the MIS concept to their functional area, which they named: Marketing Information Systems (MKIS); theoretically supported the construction of the information systems of the different functional areas of the organizations.

MKIS, according to Kotler (2001), consist of people, teams and procedures to gather, order, analyze, evaluate and distribute necessary, timely and accurate information for the people in charge of making marketing decisions. For her part, McLeod (2000) defines it as a computer-based system that operates in conjunction with other functional information systems to support the organization's management in solving problems related to the marketing of its products.

Marketers require a wide range of comprehensive information from the organization from different functional areas and the environment, to solve a wide range of problems particularly and collectively. To fulfill their analysis, planning, implementation and control obligations, marketers especially need information about events in the marketing environment. The role of the MKIS is to assess the information needs of the marketing manager, develop the required information, and distribute that information in a timely manner. The information is developed through internal and external company records, marketing intelligence activities, market research and analysis to support marketing decisions.

To carry out the functions of the MKIS, the following subsystems identified by Kotler (2001) must be considered: internal communication subsystem (internal data: sales, costs, inventories, etc.); marketing intelligence subsystem (environment information for executives); marketing research subsystem (collects, assesses and communicates specific information to executives for decision-making and problem solving) and scientific subsystem for marketing management or decision support (analysis of complex problems based on analytical models).

The market research subsystem is a main factor within the marketing chain and plays a fundamental role in the formulation of marketing plans and in minimizing the risks of its actions, because it is responsible for systematically collecting, recording and analyzing all the Determining data to know the needs and desires of consumers, which serve to provide their satisfaction and loyalty or prejudice that ensures repetitive purchase and long-term profitability. Modern information technology, according to Arnold (1992) helps to better understand what customers want and at the same time allows greater flexibility to satisfy their wishes.

Market studies are generally expensive and complex to carry out, because they require the time and dedication of many specialized people. More than ninety percent (90%) of market studies are supported by automated information systems and are basically related to: the consumer, the product, the market and advertising (Pujol, 1998). Until a very few years ago, according to McLeod (2000), only the largest companies could conduct their own market research. Smaller organizations had to rely on or do without market research organizations. Now there is a large number of software packages for various market research to be used by specialists in the area, running different applications for collection, tabulation,processing and presentation of results.

It is important to highlight that market research is not the panacea for all marketing problems, according to Arnold (1992) there are two conflicting positions that state that through it the whole truth of the clients is not obtained and that depending on it leads to assume a reactive position limited to the imagination of the investigated consumers. In this sense, the key is to employ specialists who use effective research methods whose results obtained lead to an accurate forecast of possible market reactions and represent supported evidence. The role of market research is to reduce risks (not eliminate them) and to provide an understanding of the market (not change it).

Within the functional areas of marketing that require more support from market research for their continuous cycle of activity and decision-making, are the Brand or Product Management, whose management process consists of five important stages identified by Arnold (1992): market analysis; analysis of the brand's situation; prediction of future scenarios; studies of new offers; and planning and performance evaluation. One of the studies or market research that contributes significantly to the aforementioned analyzes are those related to the value that consumers confer on the brand from different dimensions.

The study of brand equity would be a type of special decision support system, which combines reporting and query systems with user-friendly analytical modeling capabilities, whose purpose is to allow executives and marketing analysts to easily consult the performance indicators of its brands, based on periodic market research as a source of support. The success of the brand equity study as a decision support information system depends as much on its ease of use as on the usefulness of the data and decision support tools it offers.

The study of brand value represents a tool for marketers that serves to try to consolidate and maintain a high value in their brands from the timely management of information that allows correct planning and execution of strategies, which serve to achieve greater loyalty in its clients, differentiate itself from the competition, strengthen and maintain its presence in the market.

5. Methodological elements of brand value information systems

Each research study of brand equity in a unidimensional or multidimensional way uses the empirical strategies that it considers most appropriate, according to the conceptual model on which it is based, either implicitly or openly. In general, the type of approach taken for brand value studies is quantitative or positivist, which according to Pérez (2002: 29) “adopts as a research model that taken from natural sciences, seeks knowledge of the causes by means of methods that allow statistical analysis ”. What positivist knowledge seeks is the cause of phenomena and events in the social world, formulating generalizations of the observed processes. That is, the observation, measurement and statistical treatment of the phenomena will discover some basic regularities in them,expressed in the form of laws or empirical relations.

Brand value research is characterized by mostly descriptive type, since its purpose is: to globally characterize the study event and list its characteristics, describe its development to change processes and classify events within a context, but also construct the foundation and starting point for more in-depth studies. In addition to the above, Doti (1999: 106) ensures that in descriptive research "the general objective refers to the description of the event in its entirety and the specific objectives to the description of the synergies that make up the event under study".

The data collection techniques that are mostly used to measure the brand value variable and its indicators is the survey or interview technique, applying questionnaire techniques (structured or semi-structured) as instruments. Specifically, a questionnaire is prepared to be applied respectively to the population under study with items relevant to the brand equity indicators with multiple or semi-open selection alternatives to offer the informants the opportunity to express or complement, as the case may be, their response regarding to what was investigated.

The data collected is processed using descriptive statistics through various specialized software in statistical analysis for the social sciences. Once the data has been processed, the results will be presented in summary, commonly in double-entry tables and graphs of different types, which are analyzed by specialists in the area in order to identify the brand's situation with respect to the strategies proposed compared to the behavior of its competitors, contributing to the decision-making process.

The objective of the brand value study is to obtain information that is pertinent to evaluate the integral and temporal situation of the brands and their performance within the category in which they compete, advantages, location, evolution or involution in the market. Commonly, periodic reports of continuous measurements are made over time. The time series of the measured indicators allows the implementation of appropriate and timely strategies to develop the behavior of the brand, thus optimizing the marketing investment.

6. Models of information systems of value of reference marks

Within the brand value information systems used in Venezuela, three important examples, developed and marketed by specialized consulting firms, are described below: Cimaresearch (2004), Datos Information Resources (2004) and The Gallup Organization (2002). The first two are based on case studies of pharmacy chain brands, while the last is on brands in general.

The research carried out by Cimaresearch (2004) on the Perception of Image and Advertising: Pharmacy Chains, aimed to evaluate the general and television advertising campaigns broadcast by the pharmacy chains nationwide, as well as to evaluate the perception of the interviewed in relation to some variables referred to the marketing implemented by these organizations at the national level. Based on the following analyzes: a) brand extension (brand awareness); b) brand vitality (attitude towards brands and brand image evaluation) and c) communicational (advertising evaluation). Analysis, which had a quantitative nature and was based on a semi-structured questionnaire, with personal interviews (face to face) in homes,which were carried out daily during the information gathering period, using a stratified sampling by homogeneous clusters, bi-stage type.

The selected population was made up of people of both sexes, belonging to the socioeconomic strata B, C +, C and D, aged between 18 and 67 years, residing in the cities of Caracas, Maracaibo, Valencia, Maracay, Puerto La Cruz, Barcelona and Ciudad Bolívar. The results of the analyzes presented by Cimaresearch (2004), served the investigation in that they reveal the brand value of the pharmacy chains and according to the perception of the interviewees, and in relation to the variables of extension and vitality of the brand. Within this context, the value of the brands in the category and their advantages of location, evolution or involution in the market over time were measured, considering highly relevant indicators, such as: Attractiveness, Satisfaction, Adoption, Loyalty, Differentiation,Performance, Cognitive Penetration and Use of pharmacy chain chains.

The study carried out by Data Information Resources (2004) entitled Brand Diagnostic: Perfumeries and Pharmacy Chains, aimed to obtain information that would allow to evaluate the comprehensive situation of perfumery brands and pharmacy chains based on their knowledge and consumption indicators.

In this way, the performance of the brands was evaluated comprehensively and temporarily within the category in which they compete. The Brand Diagnostic is made up of monthly telephone interviews that were carried out on a daily basis for 12 continuous months nationwide. Quarterly reports were made using the quarterly moving average methodology. The monthly measurement gives continuity to the evaluation allowing to build time series. The time series of the measured indicators allows the implementation of appropriate and timely strategies to develop the behavior of the brand, thus optimizing the marketing investment.

Additionally, the results generated by the actions taken and risk movements in competing brands were monitored. The sample of this study consisted of people of both sexes in charge of making purchases at home, belonging to socioeconomic levels A, B, C +, C, D and E, aged between 18 and 65 years, residing in the main cities of the country (Caracas, Maracaibo, Valencia, Maracay, Guarenas, San Cristóbal, Barquisimeto, Ciudad Guayana, Puerto La Cruz and Maturín). The research carried out by Data Information Resources (2004) is closely related to the objectives set, because the analyzes indicate what is the brand value of perfumeries and pharmacy chains from the perception of the interviewees, when considering indicators, such how:spontaneous and induced brand awareness, recall of advertising activities; frequency of visit, purchase intention; level and reasons of preference; loyalty and proof ratings.

Finally, the study carried out by The Gallup Organization (2002) is described, entitled Study of Brand Presence in Venezuela, its objective was to determine the brands that were engraved in the minds of Venezuelan consumers according to their performance, considering the differentiation indicators and brand loyalty; of commitment, of brand remembrance and advertising. For this, information was collected through telephone interviews with a sample of 709 people of both sexes belonging to socioeconomic levels B, C and D, aged between 18 and 60 years old and residing in the main cities of the country (Caracas, Maracaibo, Valencia, Maracay, San Cristóbal, Barquisimeto, Puerto Ordaz and Puerto La Cruz).

7. Final considerations

Marketing managers require various data and information from different sources and sectors (internal and external) of the organization to carry out their functions. The effective and successful fulfillment of these functions depends on high-quality information, appropriate and integrated tools to process and present it, as well as specialized personnel to analyze it and make correct and timely decisions.

The various marketing information systems that support organizations can meet various needs. One of the functional areas of marketing that require more support from market research for its continuous cycle of activity and decision making, is the one in charge of managing brands and / or products. Specifically, within these management areas there are frequent studies referring to the analysis of brands from the perspective of consumers.

The study of brand value consists of the analysis of the favorable perceptions or not, which represent and identify a brand, which would make up the value proposition that attracts and consumers expect the brand to comply, influencing or not the option that they choose. Although there are several methods to study brand equity, there is no fully accepted standardized method, the only ones mostly validated by the scientific community are those proposed by Aaker (1991) and Keller (1993).

The study of brand equity as an information system is of great importance because it supports management decisions inherent to the development and maintenance of brands. The periodic reports of market research and their respective analyzes are a pertinent system for consulting the main performance indicators of the brands. The brand value information system allows the implementation of appropriate and timely strategies, thus optimizing marketing investment and strengthening its competitiveness.

According to the capacities and needs of the companies, the brand value study can be developed on its own or through the hiring of an external source. In general, this type of study is expensive and complex to carry out, since it requires specialized personnel and significant periods of time.

According to Marshall (2000), the future scenario holds greater competition between brands in mass marketing, so that the focal point shifts from the customer to the competition. Within this context, the acquisition or development of new brand information resources, the improvement or appropriate and timely use of existing ones, will represent key and indispensable elements for efficient brand management.

Bibliographic references

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Brand equity and marketing information system