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Week 5: Designing Marketing Programs to Build Brand Equity (Channel…
Week 5:
Designing Marketing Programs to Build Brand Equity
New perspectives
on Marketing
New terminology
influencer marketing
New approaches embraced by marketers
(drivers of new approaches)
Rapid technological changes
Greater cust empowerment
Fragmentation of traditional media
New Capabilities of New Economy
Consumers
Substantially more cust power
More informative
Greater variety of gds & services
Companies
Operate powerful new information and sales channel to promote co.
Collect fuller and richer info
Facilitate 2-way communication
Customize offerings
Improve purchasing, recruiting, training, internal and external communication
Integrating Marketing
Personalising Marketing
Experiential Marekting
Connecting consumer to brand thru unique experience
How a brand can enrich a consumers life"
Commodity biz - charge for stuff
Gds biz - charge for tangible things
Service biz - charge for activities performed
Experience biz
- charge for the time custs spend w u
Multiple touch points & senses
Involves special events, contests, promotions // distinctive and relevant
Brand experience scale:
Sensory - appeal to senses, strong impression
Affective - induces feelings and sentiments, strong emotions
Behavioural - engage in physical actions, results in bodily experiences
Intellectual - engage in thinking, stimulates curiosity and problem solving
R/s Marketing:
holistic, personalized brand experience,
create stronger consumer ties
Mass Customization
Fit custs' exact specification
Digital technology --> customized pdts on a unheard-of-scale
One-to-One Marketing
Use Internet to target individual consumers w individualised marketing msges
Permission Marketing
Seek permission to send appropriate, relevant marketing materials
Reconciling the Different
Personalisation Approaches
Mass communication, one-to-one and permission marketing are effective means to get consumers engaged w a brand.
CBBE model emphasises diff aspects of brand equity
Build stronger consumer brand bonds i.e. a r./s
Firms must still devise pdt, pricing, and distribution strategies as part of their marketing programms
Product
Heart of the brand
Satisfy custs --> brand loyalty
At least meet expectations if not surpass it
Cust delight
Perceived quality and value bring a range of brand associations linked to brand
Pdt strategies must transcend to the actual pdt/ service --> stronger bonds w custs and maximize brand resonance
Pdt Strategy
Perceived quality:
compared w alternatives and intended purposes
After-marketing:
both purchase and consumption to achieve desired brand image
marketing must cont even after purchase
User manuals: comprehensive manuals
Cust service programs: doesn't stop at purchase, e.g. Apple
Loyalty programs
Pricing Strategy
Consumer price perceptions
Brands as signals, price as signals to
Affects consumer perceptions of brand's position in its pdt category and of its overall quality --> price has to be aligned w overall quality
Price premiums: creates an awareness, strong, favourable and unique brand association. Price increase, quality increase
Setting prices to build brand equity
Value pricing:
strike proper balance
pdt design & delivery
pdt costs
pdt prices
compare benefits w cost
Price segmentation:
sets and adjusts prices for appropriate mkt segments
e.g. pdts sold at chinatown cheaper than airport
Everyday low price:
avoids sawtooth, whiplash pattern of alternating price increases and discounts
Favour a more consistent set of "everyday" base prices
connotes low quality BUT gd sales, bring price down permanently
Channel Strategy
Channel design
Indirect channels: selling thru intermediaries
Direct channels: involves selling to custs by mail, phone, Internet, personal visit
Online strategies
A brand's distribution strategy also has impt influence on creation of cust-based equity
The image a retailer has in the minds of consumers and the actions it takes w respect to stocking and selling pdts can affect equity of brands it sells
Firm's interest to treat channel members as custs and assist in their selling efforts
e.g. Apple vs Samsung Stores
Apple --> better lighting and layout, quality and functional
Services provided by channel members:
MR
Communications
Contact
Matching
Negotiations
Physical distributions
Financing
Risk-taking
Service