See the main ideas of Jens Nordfalt's book "Retail Marketing: Practices and Research"
But here I want to talk about how branding changes the physiology of perception. In his book "Predictably Irrational," D. Ariely describes an experiment that settled the debate over which tastes better—Cola or Pepsi. In a blind taste test, Pepsi won. When people knew what they were drinking, they preferred Cola. This intrigued a group of neuroscientists, and they repeated the test.
Using functional magnetic resonance imaging, researchers monitored the brains of taste test participants. It was found that brain activity differed depending on whether the person knew what they were tasting. When participants were told they were currently drinking Coke, the part of the brain responsible for associations and memory was significantly more active than when they were drinking Pepsi. Coke's superiority in open tastings can be attributed to the brand, which evoked a set of associations. It was these associations, not the drink's chemical composition, that determined the choice.
Similar experiments were conducted in restaurants (dish ratings depended on the preceding description), in car dealerships (test-drive impressions depended on the car model's familiarity), and so on. If companies don't tell customers anything about the brand, they reduce the effectiveness of their marketing efforts.
Balancing Brand Marketing and haiti cell phone database Performance Marketing
We see that short-term ("conversion") promotions are more effective when backed by a brand campaign. The question remains: what is the appropriate balance between brand marketing and performance marketing (or conversion-focused marketing) budgets?
Peter Field and Les Binet answered this question. Their research concluded that a company achieves the best results when it devotes an average of 62% of its marketing budget to brand development .
slide presentation by Peter Field and Les Binet
Slide from Peter Field and Les Binet's presentation
Not building a brand at all is the worst choice for a company.