What Are Marketing Ladders?

When consumers buy certain types of products, they tend to arrange each brand in their own minds in order according to their consumer preferences, and each brand occupies one layer to form a brand ladder. Foreign marketing experts have found through research that the maximum number of brands that ordinary consumers may remember is 7, in fact, people s perception of non-daily consumer product brands is even just one, such as Nippon Paint in paint products. . Because consumers have search costs when buying products, and time is a scarce resource, based on the selective characteristics of cognition, the higher the brand ladder, the greater the probability that the product will be selected by consumers.

Brand ladder

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When consumers buy certain types of products, they tend to arrange each brand in their own minds in order according to their consumer preferences, and each brand occupies one layer to form a brand ladder. Foreign marketing experts have found through research that the maximum number of brands that ordinary consumers may remember is 7, in fact, people s perception of non-daily consumer product brands is even just one, such as Nippon Paint in paint products. . Because consumers have search costs when buying products, and time is a scarce resource, based on the selective characteristics of cognition, the higher the brand ladder, the greater the probability that the product will be selected by consumers.

The data shows that among similar products, the higher the brand's ladder, the higher its market share. The long-term market share of the first-ranked brand is twice that of the second-ranked brand, and the second-ranked market share is doubled. It can be seen that whoever occupies a higher step position is more competitive. For example, in the sedan market in China, the Santana brand has been at the top of the brand ladder for a long time. The total sales volume of the Volkswagen Group is 31,500, accounting for 54% of China's sedan market. In the world's mobile phone market, Nokia, Motorola, and Ericsson are the leading troikas. They interactively occupy the highest ladder of mobile phones. In 1999, the top three's share in the world's mobile phone market was 26.9% and 16. 9%, 10.5%, and in China, the three strong and Siemens, Samsung, Philips, Panasonic and other foreign brands occupy 96% of the market share, foreign brands in China each year to achieve profits of more than 10 billion yuan. The sales of nine domestic brands such as Konka, Kejian, and Bird accounted for only about 3%. It will take some time for domestic mobile phone brands to be recognized by consumers until they are finally accepted by consumers.

Brand Ladder Improves Brand Awareness

To implement a brand strategy, we must first increase brand awareness. In addition to relying on excellent product quality, excellent after-sales service, continuous technological innovation, and employee brand awareness, the improvement of popularity also requires attention to the following two issues:

1. Accurate market segmentation and distinctive products

In a world of homogeneous products, it is especially necessary to strengthen market segmentation. By segmenting the market, you can find and fill the gaps in the market, so that no one has it; through segmenting the market, you can find the defects and deficiencies of existing products, and improve and improve according to the consumer needs of customers; By segmenting the market, producing products with distinctive characteristics, establishing a brand image different from competitors, creating products with characteristics, personality and favor from customers, increasing product visibility, and being invincible in fierce market competition Ground. In foreign countries, this concept has been applied incisively and thoroughly. Market segmentation, selection of target markets, product and brand positioning are the trilogy of marketing strategies and a winning weapon. Without market segmentation, there is no clear target market, and products and brands cannot be accurately positioned. The domestic and foreign competition practice of our domestic brands also fully demonstrates that only companies that are well versed in market segmentation, build brands for the target market, and create a distinctive and personalized brand image can have a place in the competition with international brands. .

The internationally renowned information company Euromenitor released the latest market report on white goods. In the ranking of global refrigerator brand market share, Haier ranked second with a market share of 5.3%, only one percentage point behind the first. In the case of brand, capital and other aspects that are far from the world-renowned multinational companies, Haier surpassed the international giants with a history of more than 100 years with 17 years of development, giving China's home appliance industry its own global brand. This glorious achievement is thanks to the market segment of Haier. Zhang Ruimin, CEO of Haier Group, found that small refrigerators in the US market are very popular when giving lectures in the United States. After research, many college students found that there is a table on the small refrigerator that can hold things. Inspired by this information, Haier quickly developed a desk with a computer. As a result, the market share of small refrigerators has risen rapidly, with a market share of 50%, effectively expanding Haier's popularity.

2. Brand positioning should highlight the core value of the brand

Brand positioning is the process of targeting target consumers and establishing a distinctive competitive advantage and position in the minds of consumers. It can break through various barriers in the minds of consumers and achieve effective market segmentation. Stand out from the competition. The core value of a brand is the spiritual connotation of the brand, which represents the meaning and value of the brand to consumers, and motivates consumers to choose the driving force and driving force of a brand.

The positioning of the brand is not to promote the product, but to dig out the concept of a specific product, highlight its core value, and make consumers understand the benefits of buying this product. Only in this way can consumers clearly and clearly identify and remember the brand's personality and value, and can make products and brands occupy an irreplaceable specific position in the minds of consumers, thereby expanding brand awareness.

Maintaining and promoting the core value of the brand with all its strength has become the secret for many international companies to create golden signs. Coca-Cola and Sprite's brand personality carries the spiritual connotation and values of optimism, enthusiasm, enthusiasm, and courage to face difficulties in American culture. Although its advertisements often change and are quite different, any one of them will reflect its brand personality. For example, Sprite ads: "I can finally do it myself!" "I am me!" "Express me!" All of them tell Sprite's brand value of "expanding personality and independently controlling their own destiny".

For many domestic brands, advertisements place too much emphasis on creativity, but ignore the positioning and rendering of the brand's core values, resulting in a blurred brand image. Of course, there are also successful cases, such as Hisense TV s first advertisement Hainanbaichuan, Xincheng Unlimited, the core value of this pan-philosophical brand, with blurred features and no prominent positioning personality, and the second advertisement Innovative Technology, Lixin "Hundred years" highlights the brand positioning based on technology and integrity. The core value of the brand, "environmental protection technology", is an embodiment of technological innovation. "Chinese pearl" and "clear and flicker-free" reflect the value of environmental protection and are further interpretations of environmental protection technology. It is precisely because of the accurate brand positioning that the visibility of Hisense brand has been greatly improved. Since 2002, the sales volume has soared. After joining the WTO, Hisense TV s sales momentum in the international market is also stronger, and exports have increased by more than 50% year-on-year.

Brand Ladder Enhances Brand Reputation

Some domestic companies have very good product quality and large advertising investment. The market share has risen rapidly in the short term, but they have quickly lost in the competition with strong brands. The reason is that after the company has a certain reputation, it ignores the improvement of the brand reputation, the image is not perfect in the eyes of consumers, and it lacks attractiveness. In order to ensure the long-term and stable development of the enterprise, while expanding brand awareness, efforts should be made to enhance the brand's reputation.

1. Building a good corporate reputation

The market economy is a credit economy, and good reputation is the intangible asset of an enterprise. And good brands rely on good reputation. Many of the top 500 multinational companies in the world today are "hundred-year-old companies." The key to their longevity is to form a good reputation in the long-term business process. Under the conditions of a market economy, China's corporate reputation should and must become part of corporate social responsibility, and the establishment and enhancement of corporate reputation should be the lifeline of its own survival and development.

For customers, whether product and service commitments are strong is the most basic condition for establishing a good corporate reputation. As Zhang Ruimin said: Enterprises should sell reputation first, and then sell products. Only by consistently providing high-quality products and services can we win customers' trust in the brand, build a good corporate reputation, and enhance the brand's reputation.

2. Establish a good corporate image

The corporate image involves various aspects such as product quality and service. Here, it should be particularly emphasized that a green corporate image should be established. In 1996, the International Organization for Standardization ISO promulgated the five standards of the IS014000 series. As a result, a new concept of environmental management spread rapidly around the world, and the concept of a green corporate image came into being.

The green corporate image is a high-quality corporate image with the goal of sustainable social development, focusing on the optimization and protection of the human living environment, and an inevitable requirement for the long-term development of enterprises and society. On the one hand, it not only helps companies to get rid of the extensive investment mode of high investment and high consumption, but also improves the utilization rate of resources, which greatly enhances the international competitiveness of enterprise products; on the other hand, the products of green enterprises are pollution-free, Pollution-free, healthy, and in line with consumer interests, it is bound to be loved and welcomed by consumers. Haier Group is the first to pass the international ISO14000 environmental standard certification with strong environmental awareness and excellent environmental quality of products. It has established a beautiful green corporate image and improved the reputation of the brand. It has not only become a leader in the domestic appliance industry, but also in the international market Also enjoys a good reputation.

3 Emphasis on branding

Promote the unique spirit represented by the brand itself, evoke a certain emotional resonance of the public, use it to the advantage, and use it to establish a deep and continuous emotional connection between the product and the consumer, and enhance the brand's reputation Degree is very necessary. Aucma's "no best, only better", Nokia's "we have been working hard", not only reflects the brand's aggressive and courageous exploration spirit, but also shows the brand awareness of pursuing product quality and protecting the interests of consumers. "Haier, Made in China!" Aims to promote the spirit of national independence, self-esteem, and self-improvement, and evokes the strong emotional resonance of Chinese children, which has played a icing on the cake to enhance brand reputation.

4 Conduct public opinion crisis management

Enterprises face tens of millions of consumer groups. Although enterprises always try their best to cater to the "God", anxious customers and think what customers think, but because of "difficult to adjust", the contradiction between enterprises and consumers is still inevitable. And media pressure from all aspects of society. In this regard, it is necessary for enterprises to carry out crisis management of public opinion, that is, to resolve contradictions through their own efforts, and try to eliminate the negative effects caused by them.

Some investigations and analysis show that enterprises, especially well-known enterprises, attach great importance to product quality and corporate reputation. As a result, consumers often complain about incidents such as dealers and maintenance departments. In response to this situation, enterprises should actively take effective precautionary measures: (1) choose middlemen and repairers with high quality, good reputation, and a strong sense of responsibility; (2) establish various channels to facilitate consumers to directly contact the manufacturers, Open a toll-free telephone to understand and research the opinions and voices of consumers at any time, and take improvement measures to enhance brand reputation.

At the same time, in order to quickly and effectively resolve the contradictions and conflicts between consumers and enterprises, it is necessary for enterprises to establish a security public opinion system, formulate a crisis management plan for public opinion, and unblock various media channels. Once there is a conflict, calmly cope, take the initiative, and use the media to give real reports. With the purpose of "the consumer is God" and "all for the consumer", the problem can be resolved satisfactorily, and the complaining customer becomes a satisfied customer. Practices at home and abroad have proven that customers from complaining to satisfying, from complaining to praising, everything is smoother than the beginning, it can create a good corporate reputation, and enhance the reputation of the company.

Brand ladder improves brand loyalty

While finding and attracting new potential customers is important, retaining them is even more important. Because retained customers can bring higher profits to the business. Relevant data shows that the difficulty and cost of retaining customers is 5-6 times lower than that of acquiring new customers. It can also increase the purchase rate of related products and bring in new customers, which can bring higher profits to the company. . Therefore, retaining customers and increasing customer loyalty to the brand have become the focus and goal of brand competition. To improve brand loyalty, there must be loyal employees, high-quality products and services, and loyal customers. All three are indispensable.

1. Finding loyal customers

Due to various reasons, some customers will not always be loyal to a company's products, so companies must strive to find those loyal customers. This requires the company to determine which customers can provide the most superior value and benefits according to its own advantages To find customers who are loyal to the brand.

At the same time, companies should use price strategies to screen out disloyal customers. A research report published by the United States "Harvard Business Review" pointed out that the factors that attract customers to come again are firstly the quality of service, secondly the product itself, and finally the price. However, some companies always use "reduction in prices" or even "sale" to involuntarily engage customers, and they do not know that this method only attracts some of the most difficult customers to retain. Only those customers who focus on product quality and service are loyal and able customers.

2. Provide quality products and services

Once the company has identified the customers it wants to retain, it should study the deep reasons of the customer s consumer psychology, consumer demand, etc., and continuously adjust and improve the work to further increase customer satisfaction and thereby maintain brand loyalty. Recent research results and the practice of leading companies show that customer emotions and preferences are the key to improving loyalty. Emotional communication with customers through various activities is of great value. Emotional communication can help companies understand customer preferences, purchasing habits, and psychological needs, and continuously develop products and services that customers need, thereby improving brand loyalty.

With the development of society, people s consumption concept has transitioned from rational consumption in the past to emotional consumption. The outstanding feature is that consumers are more pursuing a kind of spiritual satisfaction. For example, compared with Xiali, consumers want the feeling when driving. , Luxury, style, upscale; another example is McDonald's approach to cater to emotional consumption is also worth learning, the reason why children and adults love McDonald's is because it not only provides delicious food, but also creates an environment and atmosphere during dining, satisfying In addition to the consumer's psychological needs, consumers can enjoy the happiness of their hearts and emotions, thereby deepening the feelings of consumers and enterprises, and further improving brand loyalty.

3 Have loyal employees

It is difficult for a company with a high employee turnover rate to have loyal customers, and this internal connection between loyal customers and loyal employees has been proven by practice. Therefore, retaining loyal employees is critical to improving corporate brand loyalty.

Research shows that employees have a great impact on customers: On the one hand, customers will buy repeatedly because of their satisfaction with the value of the purchase, and customer satisfaction enhances employee morale and pride. Inspired employees are in the process of serving the company. The accumulation of knowledge and experience will provide customers with more satisfactory products and services, thereby forming a virtuous circle; on the other hand, customers are sometimes happy to accept products and services provided by a particular employee, even a customer is This is especially true in the service industry for a particular employee. Even in the manufacturing industry, although employees do not face customers directly, long-term employees are skilled in technology and business, so they can produce higher-quality products and provide higher value to customers than short-term employees. Therefore, being kind to your employees and maintaining their morale is actually being kind to your customers and keeping them loyal.

The trinity of customers, products and services, and employees constitutes a complete system for maintaining brand loyalty. Any aspect that is ignored or misunderstood will affect the overall operation of the system. Only when the three aspects are coordinated and coordinated can they promote each other and jointly increase the brand's loyalty.

Corporate awareness, reputation, and loyalty are interrelated and restrictive. The increase in popularity and reputation will help expand loyalty, and in turn the increase in loyalty will in turn promote awareness and reputation. Successful companies all pay attention to the overall effect of the virtuous circle of the three. However, many domestic brands lack system operation and only focus on popularity, but ignore reputation and loyalty. With the entry into the WTO, foreign brands will surely drive in, and market competition will become more intense. Therefore, strengthening the overall operation of the brand and increasing its popularity and reputation and loyalty have become the fundamentals for the success of domestic brands. This is the need for corporate survival and an inevitable requirement for integration into international competition.