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DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY - Coggle Diagram
DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY
APPROACHES EMBRACED BY MARKETERS:
Rapid technological developments.
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
CUSTOMERS
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 orders.
Can interact with other consumers and compare notes on products and services.
COMPANIES
Can operate a powerful new information and sales channel with augmented geographic reach to inform and promote their company and its products.
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, promotions, 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
Personalising marketing (PM).
Reconciling the different marketing approaches (DMA).
PM
also known as personalized marketing or
one-to-one marketing
, is the practice of using data to
deliver brand messages
targeted to
an individual prospect
.
Marketers have embraced concepts such as experiential
marketing and relationship marketing.
EXPERIENTIAL MARKETING
a marketing strategy that immerses customers within a product or deeply engages them. In short, experiential marketing enables consumers to not just buy products or services from a brand, but to actually experience the brand.
RELATIONSHIP MARKETING
a strategy of Customer Relationship Management (CRM) that emphasizes customer retention, satisfaction, and lifetime customer value. Its purpose is to market to current customers versus new customer acquisition through sales and advertising.
BRAND EXPERIENCE SCALE
Sensory
Affective
Behavioral
Intellectual
MASS CUSTOMISATION
Making products to fit customers’ exact specifications.
EXAMPLE
Nike-by-You Project
PERMISSION MARKETING
a marketing technique that allows consumers to receive marketing and other promotional offers upon their consent rather than being pushed to them.
DMA
Mass customization and one-to-one and permission
marketing are potentially effective means of getting consumers more
actively engaged with a brand.
According to the customer-based brand equity model, different approaches emphasize different aspects of brand equity.
1) Product strategy
2) Pricing strategy
3) Channel strategy
PRODUCT STRATEGY
can be look at two different aspects:
- Perceived quality
the impression of excellence that a customer experiences about a product, brand or business, derived through sight, sound, touch, and scent.
- Managing customers post-purchase
Post-Purchase Customer Experience is a priority
The simplest definition for post-purchase customer experience is how you treat a customer after purchasing a product or service from you.
There's
3 different methods
that can be done in managing customers post-purchase:
User manuals
Customer service manuals
Loyalty programs
PRICING STRATEGY
Price is the one revenue-generating element of the traditional marketing mix at which price premiums are among the most important benefits in building strong brand.
CONSUMER PRICE PERCEPTIONS
we use the term 'price perception' to describe how customers perceive your price level.
Choosing pricing strategy to build brand equity means determining a method for setting prices and a policy for choosing the depth and duration of promotions & discounts.
Factors that related to costs of making and selling a product and relative price of competing product are important determinant in pricing strategy but again
it is important for firms to put consumer perceptions and preferences as main focus
SETTING PRICES TO BUILD BRAND EQUITY
Value Pricing
Objective is to uncover the right blend of product
quality, product costs, and product prices meeting consumers needs and wants; and meeting the profit target of the firm.
Successful value pricing strategy should be a balance between:
Product design and delivery
Product costs
product prices
Communicating Value
communicating credibly, in monetary terms, the differentiating benefits of your product. The goal, particularly for a higher-priced product, is to establish for the customer the “value” identified during the value creation stage.
Price Segmentation
Sets and adjusts prices for appropriate market segments
Everyday Low Pricing
avoids the sawtooth pattern of alternating price increases and decreases.
Avoids discounts; in favor of a more consistent set of “everyday” base prices on products
Reasons for Price Stability
- Forward buying
a process related to retail inventories, financial instruments, assets etc. wherein they are purchased in quantity excess to demand to counter future price rise.
- Diverting
CHANNEL STRATEGY
Channel Design
DIRECT CHANNELS
selling through personal contacts from the company to prospective customers.
EXAMPLES:
Mail, phone, electronic means, or in-person visits
Manufacturers may choose to sell directly to consumers
Brand equity issues of selling through direct channels include:
Company-owned stores
Store-within-a-store
Other mediums such as phones, mail or electronic mediums
INDIRECT CHANNELS
selling through third-party intermediaries.
EXAMPLES:
Agents, broker representatives, wholesalers or
distributors, or retailers or dealers
Retailers tend to have the most visible and direct contact with customers.
The greatest opportunity to affect brand equity
such as:
Push and pull strategies
Channel support
Retail segmentation
Cooperative advertising
Online Strategies