RELATIONSHIP BETWEEN BRAND AND MARKETING MIX

Literature Review: Relationship between Brand & Marketing Mix

Literature Review: Relationship between Brand & Marketing Mix

According to Gareth (2005) Neil Border was the first (in the late 1940s) to advance the marketing mix concept in his teaching and business consulting. Not until the mid-1960s did Borden publish his model in which he identified the marketing mix elements and the market forces. First, the elements included product planning, pricing, branding, channels of distribution, personal selling, advertising, promotions, packaging, displays, servicing, physical handling, and fact-finding and analysis. Second, the market forces were consumers' buying behavior, the trade behavior, competitors' position and behavior, and govemment behavior - controls over marketing (Gareth, 2005). However,

According to Moss (2007) brand equity is a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm's customers. Five dimensions of brand equity are brand loyalty, brand awareness, perceived quality, brand association and other propriety brand assets (Bawa, 2003). The importance of brand equity is (1) for financial value for merger, acquisition or divestment and (2) to improve marketing strategy and productivity (Keller, 1993). Brand equity theory was further developed to include a consumer's perspective (Keller, 1993). Keller defines customer-based brand equity "as the differential effect of brand knowledge on consumer response to the marketing of the brand" (1993, p. 2). This brand knowledge includes brand awareness (brand recall and recognition) and brand image (types, favorability, strength and uniqueness of brand associations). Keller concludes, "consumer-based brand equity occurs when the customer is aware of the brand and holds some favorable, strong, and unique brand associations in memory" (1993, p. 17). Furthermore, branding and brand management are applicable to retail brands, e.g., retail and store image, perceived retail brand association, as well as to retail brand equity measurement (Ailawadi and Keller, 2004).

Lassar, Mittal and Sharma (1995) in an early study of customer-based brand equity (CBBE) measurement identified five constructs. These include performance, social image, value, trustworthiness and attachment. Yoo, Donthu and Lee (2000) consolidated these five, and used three measures to test CBBE. The researchers measured perceived quality, brand loyalty and brand awareness/association (as one construct) in a three product (athletic shoes, camera film and television sets) study. Yoo et al. (2000) did recognize the marketing mix elements (marketing efforts) as antecedents of brand equity, and operationalized the marketing mix as (1) price, (2) advertising spending, (3) price deals, (4) store image and (5) distribution intensity.

Retailers, as well as consumer product manufacturers, have continued to be confronted with increasing competitive markets. As a result, these manufacturers are adding product categories, e.g., Procter & Gamble acquiring Gillette, and retailers expanding, e.g., Wal-Mart acquiring ASDA (in the United Kingdom). At the same time, other manufacturers are refocusing and narrowing product categories, e.g., Unilever reducing more than 1,600 brands to about 500, and retailers consolidating, ...