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CHAPTER 5 : DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY - Coggle…
CHAPTER 5 : DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY
NEW PERSPECTIVES ON MARKETING
CHANGES:
RAPID TECHNOLOGICAL DEVELOPMENT
GREATER CUSTOMER EMPOWERMENT
FRAGMENTATION OF TRADITIONAL MEDIA
GROWTH OF INTERACTIVE AND MOBILE MARKETING OPTIONS
CHANNEL TRANSFORMATION AND DISINTERMEDIATION
INCREASED COMPETITION AND INDUSTRY CONVERGENCE
GLOBALIZATION AND GROWTH OF DEVELOPING MARKETS
HEIGHTENED ENVIRONMENTAL, COMMUNITY AND SOCIAL CONCERNS
SEVERE ECONOMIC RECESSION
NEW CAPABILITIES OF THE NEW ECONOMY
1. CONSUMERS
CAN WIELD SUBSTANTIALLY MORE CUSTOMER POWER
CAN PURCHASE A GREATER VARIETY OF AVAILABLE GOODS AND SERVICES
CAN OBTAIN A GREAT AMOUNT OF INFORMATION ABOUT PRACTICALLY ANYTHING
CAN MORE EASILY INTERACT WITH MARKETERS IN PLACING AND RECEIVING GOODS
CAN INTERACT WITH OTHER CONSUMERS AND COMPARE NOTES ON PRODUCTS AND SERVICES
2. COMPANIES
CAN COLLECT FULLER AND RICHER INFORMATION ABOUT THEIR MARKETS, CUSTOMERS, PROSPECTS, AND COMPETITORS
CAN FACILITATE TWO-WAY COMMUNICATION WITH THEIR CUSTOMERS AND PROSPECTS, AND FACILITATE TRANSACTION EFFICIENCY
CAN SEND ADS, COUPONS, PROMOTION, AND INFORMATION BY E-MAIL TO CUSTOMERS AND PROSPECTS WHO GIVE THEM PERMISSION
CAN CUSTOMIZE THEIR OFFERINGS AND SERVICES TO INDIVIDUAL CUSTOMERS
CAN IMPROVE THEIR PURCHASING, RECRUITING, TRAINING AND INTERNAL AND EXTERNAL COMMUNICATION
INTEGRATING MARKETING
PERSONALIZING MARKETING
EXPERIENTIAL MARKETING
PROMOTES A PRODUCT BY NOT ONLY COMMUNICATING A PRODUCT'S FEATURES AND BENEFITS BUT ALSO CONNECTING IT WITH UNIQUE AND INTERESTING CONSUMER EXPERIENCES
IT IS DESCRIBE AS
"THE IDEA IS NOT TO SELL SOMETHING, BUT TO DEMONSTRATE HOW A BRAND CAN ENRICH A CUSTOMER'S LIFE"
FIVE DIFFERENT TYPES OF MARKETING EXPERIENCES
:check: SENSE MARKETING
(APPEALS TO CONSUMERS' SENSE)
:check: FEEL MARKETING
(APPEALS TO CUSTOMERS' INNER FEELINGS AND EMOTIONS)
:check: THINK MARKETING
(APPEALS TO THE INTELLECT)
:check: ACT MARKETING
(TARGET PHYSICAL BEHAVIORS, LIFESTYLES AND INTERACTIONS)
:check: RELATE MARKETING
(CREATES EXPERIENCES BY TAKING INTO ACCOUNT INDIVIDUALS' DESIRES TO BE PART OF SOCIAL CONTEXT)
RELATIONSHIP MARKETING
MARKETING STRATEGIES MUST TRANSCEND THE ACTUAL PRODUCT OR SERVICE TO CREATE STRONGER BONDS WITH CONSUMERS AND MAXIMIZE BRAND RESONANCE
THE BROADER SET OF ACTIVITIES IS SOMETIMES CALLED
"RELATIONSHIP MARKETING"
MASS CUSTOMIZATION
MAKING PRODUCTS TO FIT THE CUSTOMER'S EXACT SPECIFICATIONS
MASS CUSTOMIZATION IS NOT RESTRICTED TO PRODUCTS
CAN OFFER SUPPLY-SIDE BENEFITS
ONE-TO-ONE MARKETING
BASED ON SEVERAL FUNDAMENTAL STRATEGIES
:star: FOCUS ON INDIVIDUAL CONSUMERS THROUGH CONSUMER DATABASE -
"WE SINGLE OUT CONSUMERS"
:star: RESPOND TO CONSUMER DIALOGUE VIA INTERACTIVITY -
"THE CONSUMER TALKS TO US"
:star: CUSTOMIZE PRODUCTS AND SERVICES -
"WE MAKE SOMETHING UNIQUE FOR HIM/HER"
TREATING DIFFERENT CONSUMERS DIFFERENTLY BECAUSE OF THEIR DIFFERENT NEEDS AND THEIR DIFFERENT CURRENT AND FUTURE VALUE TO THE FIRM
PERMISSION MARKETING
THE PRACTICE OF MARKETING TO CONSUMERS ONLY AFTER GAINING THEIR EXPRESS PERMISSION, WAS ANOTHER INFLUENTIAL PERSPECTIVE ON HOW COMPANIES CAN BREAK THROUGH THE CLUTTER AND BUILD CUSTOMER LOYALTY
FIVE STEPS TO EFFECTIVE PERMISSION MARKETING
OFFER THE PROSPECT AN INCENTIVE TO VOLUNTEER
OFFER THE INTERESTED PROSPECT A CURRICULUM OVER TIME, TEACHING THE CONSUMER ABOUT THE PRODUCT OR SERVICE BEING MARKETED
REINFORCE THE INCENTIVE TO GUARANTEE THAT THE PROSPECT MAINTAINS HIS/HER PERMISSION
OFFER ADDITIONAL INCENTIVES TO GET MORE PERMISSION FROM THE CONSUMER
OVER TIME, LEVERAGE THE PERMISSION TO CHANGE CONSUMER BEHAVIOR TOWARD PROFITS
RECONCILING THE DIFFERENT MARKETING APPROACHES
MASS CUSTOMIZATION AND ONE-TO-ONE AND PERMISSION MARKETING ARE ALL POTENTIALLY EFFECTIVE MEANS OF GETTING CONSUMERS MORE ACTIVELY ENGAGED WITH A BRAND
ACCORDING TO CBBE MODEL, THESE DIFFERENT APPROACHES EMPHASIZE DIFFERENT ASPECTS OF BRAND EQUITY
FOR EXAMPLE, MASS CUSTOMIZATION AND ONE-TO-ONE AND PERMISSION MARKETING MIGHT BE PARTICULARLY EFFECTIVE AT CREATING GREATER RELEVANCE, STRONGER BEHAVIORAL LOYALTY, AND ATTITUDINAL ATTACHMENT
EXPERIENTIAL MARKETING WOULD SEEM TO BE PARTICULARLY EFFECTIVE AT ESTABLISHING BRAND IMAGERY AND TAPPING INTO A VARIETY OF DIFFERENT FEELINGS AS WELL AS HELPING BUILD BRAND COMMUNTIES
ALL FOUR APPROACHES CAN BUILD STRONGER CONSUMER-BRAND BONDS
PRODUCT STRATEGY
PERCEIVED QUALITY
CUSTOMERS' PERCEPTION OF THE OVERALL QUALITY OR SUPERIORITY OF A PRODUCT OR SERVICE COMPARED TO ALTERNATIVES AND WITH RESPECT TO ITS INTENDED PURPOSE
AFTERMARKETING
MARKETING ACTIVITIES THAT OCCUR
AFTER
CUSTOMER PURCHASE
CONSIDER THE ROLE OF USER MANUALS, CUSTOMER SERVICE PROGRAMS AND LOYALTY PROGRAMS
PRICING STRATEGY
CONSUMER PRICE PERCEPTIONS
THE PRICING STRATEGY CAN DICTATE HOW CONSUMERS CATEGORIZED THE PRICE OF THE BRAND AND HOW FIRM/FLEXIBLE THEY THINK THE PRICE IS BASED ON HOW DEEPLY/FREQUENTLY IT IS DISCOUNTED
SETTING PRICES TO BUILD BRAND EQUITY
CHOOSING A PRICING STRATEGY TO BUILD BRAND EQUITY MEANS DETERMINING THE FOLLOWING
:star: A METHOD FOR SETTING CURRENT PRICES
:star: A POLICY FOR CHOOSING THE DEPTH AND DURATION OF PROMOTIONS AND DISCOUNTS
VALUE PRICING
OBJECTIVE : TO UNCOVER THE RIGHT BLEND OF PRODUCT QUALITY, PRODUCT COSTS AND PRODUCT PRICES THAT FULLY SATISFIES THE NEEDS AND WANTS OF CONSUMERS AND THE PROFIT TARGETS OF THE FIRM
EFFECTIVE VALUE-PRICING STRATEGY SHOULD STRIKE THE PROPER BALANCE AMONG THREE KEY COMPONENTS
:check: PRODUCT DESIGN AND DELIVERY
:check: PRODUCT COSTS
:check: PRODUCT PRICES
PRICE SEGMENTATION
SETS AND ADJUSTS PRICES FOR APPROPRIATE MARKET SEGMENTS
EVERYDAY LOW PRICING
RECEIVED INCREASED ATTENTION AS A MEANS OF DETERMINING PRICE DISCOUNTS AND PROMOTIONS OVER TIME
AVOIDS THE SAWTOOTH, WHIPLASH PATTERN OF ALTERNATING PRICE INCREASES AND DECREASES/DISCOUNTS IN FAVOR OF A MORE CONSISTENT SET OF "EVERYDAY" BASE PRICES ON PRODUCTS
CHANNEL STRATEGY
DIRECT CHANNELS
:
SELLING THROUGH PERSONAL CONTACTS FROM THE COMPANY TO PROSPECTIVE CUSTOMERS BY MAIL, PHONE, ELECTRONIC MEANS AND IN-PERSON VISITS
:star: COMPANY-OWNED STORES
:star: STORE-WITHIN-A-STORE
:star: OTHER MEANS
INDIRECT CHANNELS
:
SELL THROUGH THIRD PARTY INTERMEDIARIES SUCH AS AGENTS OR BROKER REPRESENTATIVES, WHOLESALERS/DISTRIBUTORS AND RETAILERS/DEALERS
:star: PUSH AND PULL STRATEGIES
:star: CHANNEL SUPPORT