Unit 6: Brand Research and Trends
Brand managers rely on the results from strategic modeling theories such as SWOT and Gap Analysis and predictive industry experts like Mintel to identify emerging micro- and macro-trends. In this unit, we will analyze and compare the key theories of how brand managers use theoretical constructs to make decisions. The theories addressed in this unit are part of an "environmental" scan of the competitive landscape. Current events revolving around economic, cultural, political, demographic, geographic, and technological developments drive successful strategic brand management. In this unit, we will investigate macro and micro factors that affect brand success. Environmental scanning is the practice of "scanning" the environment to keep track of and identify changing marketplace conditions.
Completing this unit should take you approximately 7 hours.
Upon successful completion of this unit, you will be able to:
- evaluate brand attitudes as part of a consumer focus group;
- analyze how a qualitative market research project measures brand sentiment;
- evaluate the importance of a quantitative market research program;
- analyze how brand research impacts brand positioning, presentation, and communication to consumers; and
- evaluate the importance of competitive intelligence scanning as macro trend analysis.
6.1: Macro Environmental Factors Impacting Brand Success
Scanning the landscape for opportunities and threats is the driving force for strategic planning. From an external perspective, brand managers rely on theoretical models such as Porter's, SWOT and PESTLE to define the six macro-environment factors: 1) Demographic forces such as age, ethnicity; education level; and household lifestyle, 2) Economic factors such as inflation or recession, 3) Natural/physical forces such as limitations of natural resources and non-renewable resources, 4)Technological factors, such as the adoption of technology and materials needed for the production of products, 5) Political and legal forces such as new legislation impacting product promotion, and 6) Social and cultural forces, such as brand practices that might not be environmentally friendly and thus take social responsibility into account in the brand strategies.
The PESTLE model is the most often used analysis to assist in re-launching struggling brands; it can reveal opportunities that once were weaknesses, now converted into strengths. The PESTLE model is a corporate strategy designed to maintain a brand's competitive edge. Referring back to the critical factors of criteria of external assessment, create a "know-how" chart and access national business news reporting (CNBC and the Wall Street Journal are examples). Now, scan the headlines and align an important trend factor with each one of the PESTLE factors.
The Marketing Information System (MIS) is composed of data and records, collected market intelligence, results of big data from marketing analytics "scraping", and brand research regarding consumer perceptions. Overlay the MIS construct from this chapter onto your knowledge of the product life cycle (PLC), creating a chart where the elements of the MIS market intelligence system intersect with the PLC. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
Brand managers rely on qualitative research to gain insight into the dynamics of their most significant consumer segment. This research provides a real-world example of the study of "Sneakerheads", an important group of consumers within the athletic footwear sector. The research study was guided by a Consumer Behavior model called the Social Identity Theory lens. The Social Identity Theory model assesses the impact of group identity and norms on consumer behaviors' purchase intention. Read the results of this study to identify how consumer sentiment developed into this phenomenon.
Using the environmental scan diagram, analyze an emerging sector leader, such as Apple in Technology, Honda in Automotive, or McDonald's in Fast Food. Identify which external factors are the "pain points" or part of that brand's most vulnerable brand position. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included. This analysis is critical to reflecting inward on a company's strengths and, in some cases, weaknesses.
6.2: Micro Environmental Factors Impacting Brand Success
Micro-environmental factors surrounding a brand are those influences that are accessible and can have a significant impact on the success of marketing activities. These include 1) Suppliers that supply components of a product, like packaging and ingredients; 2) Resellers, who are the middlemen or liaisons for wholesaling or retailing; 3) the customers themselves, who are identified as the brand's source of revenue stream; 4) the competition who compete for brand loyalty and consumer revenue/loyalty; and 5) the general public, those important voices of community and advocates who can make or break a brand. Like the macro-environmental factors, the micro-environmental landscape must be considered in-depth while creating a strategic marketing plan.
Using Porter's analysis, do a competitive intelligence analysis. Compare the technology leaders Apple and Microsoft along the oversaturated but difficult-to-enter industry with higher profits (and be considered attractive) in the industry versus the coffee marketplace with Starbucks and Dunkin with lower profits and lessening brand loyalty. Now align each industry using the critical "pain points" of each organization's internal assets and weaknesses. Consider reviewing SWOT and PESTLE charts for this last part of the activity.
6.3: SWOT Analysis For Financial Opportunity
The SWOT (strength, weakness, opportunity, threat) analysis is a universal strategic planning tool that identifies four situational factors at the corporate, business, and brand levels. It gives brand managers the chance to assess their businesses alongside external factors. The SWOT analysis for financial opportunity takes this analysis to a more measurable oversight capitalizing on the opportunities while balancing the greatest benefits with minimum adverse effects.
SWOT is a standard assessment to identify where brands have advantages or disadvantages compared to the competition; this "reveal" is often called the gap analysis. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
Unit 6 Study Resources
This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.
Watch this as you work through the unit and prepare to take the final exam.
- Unit 6 Review Slides File PDF document
You can also download the presentation slides so you can make notes.
We also recommend that you review this Study Guide before taking the Unit 6 Assessment.
Unit 6 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.