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Original Articles

Brand Gravity and Performance in Satellite Markets

Pages 292-308 | Received 01 Jun 2009, Accepted 01 Aug 2009, Published online: 17 Dec 2009
 

Abstract

One brand does not fit in all markets. Brands need to be nurtured by the companies according to market attributes that vary sociodemographically. Though most urban markets look alike, they can be segmented as central markets, satellite markets located in suburban habitats and industrial and rural markets within the proximity of urban market ambiance. Brand gravity is determined by the consumer pull in the suburban markets for competitive products. This article discusses various ways to position brands in different market segments within urban areas and develop strategies to enhance the performance of brands by determining suitability of brand-market nexus, building strategies to increase brand sales and planning toward brand reengineering. It is argued in the article that brands power would be higher if appropriately architected and positioned in the marketplace to drive consumer pull as a gravity factor. Higher brand gravity could help companies determine which products to develop, which strategies to be developed to sell them in, and how to advertise them.

This article emerged as an outgrowth of the research project conducted by Rajagopal, Professor of Marketing (EGADE), ITSEM, Mexico City Campus on Consumer Behaviour in Urban Shopping Locations under the aegis of Research Group on Consumer Behaviour and Competitiveness, Monterrey Institute of Technology and Higher Education-ITESM, Campus Santa Fe, Mexico, during Citation2008–2009.

The author expresses sincere thanks to Amritanshu Rajagopal, Zone Coordinator, Dentalia, Mexico, for inspiring thought process on the brand gravity concept and sharing his ideas in designing this article.

Notes

R2 = 0.629∗, Adjusted R2 = 0. 371, Intercept = 0.495∗∗.

p < 0.01, ∗∗p < 0.05, +p < 0.10 All significance levels are based on two-tailed tests.

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