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Designing Marketing Programs to Build Brand Equity - Coggle Diagram
Designing Marketing Programs to Build Brand Equity
New Perspectives on Marketing
As firms are dealing with enormous shifts in their external marketing environments:
Marketing strategies and tactics have changed dramatically
New Approaches Embraced by Marketers
Greater customer empowerment
Fragmentation of traditional media
Rapid technological developments
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
The New Capabilities of the New Economy
Consumers
obtain a great amount of information about practically anything
more easily interact with marketers in placing and receiving orders
purchase a greater variety of available goods and services
interact with other consumers and compare notes on products and services
wield substantially more customer power
Companies
facilitate two-way communication with their customers and prospects, and facilitate transaction efficiency.
send ads, coupons, promotions, and information by e-mail to customers and prospects who give them permission.
collect fuller and richer information about their markets, customers, prospects, and competitors.
customize their offerings and services to individual customers.
operate a powerful new information and sales channel with augmented geographic reach to inform and promote their company and its products
improve their purchasing, recruiting, training, and internal and external communication.
Integrating Marketing
Personalizing Marketing
Modern economy celebrates the power of the individual
consumer
Marketers have embraced concepts such as experiential marketing and relationship marketing
Rapid expansion of the Internet and continued fragmentation of mass media
Have brought the need for personalized marketing
Reconciling the Different Marketing Approaches
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
Relationship Marketing
Relationship marketing
Transcend an actual product or service to create
stronger bonds with consumer
Maximize brand resonance
Mass customization
Making products to fit customers’ exact specifications
Digital-age technology enables customized products
Experiential marketing
Promotes a product by communicating features and benefits and connecting it with unique and interesting consumer experiences
Permission marketing
The practice of marketing to consumers only after gaining their express permission
Product Strategy
Perceived Quality
Customers’ perceptions of overall quality or superiority of a product or service
Compared with alternative
With respect to its intended purpose
Managing Customers Post-Purchase
Processes or programs that can help with managing
customers post-purchase
User manuals
Customer service programs
Loyalty programs
User Manuals
Particularly important in the context of e-commerce
Customer Service Programs
Product strategies should focus on both purchase and consumption
Loyalty Programs
Pricing Strategy
Price is the one revenue-generating element of the traditional marketing mix
Price premiums are among the most important benefits of building a strong brand
Consumer Price Perceptions
Choosing a pricing strategy to build brand equity means determining
A method for setting current prices
A policy for choosing the depth and duration of
promotions and discounts
Factor related to costs of making and selling a product and relative price of competing product are important determinant in pricing strategy
However, firms are putting greater importance on consumer perceptions and preferences
Setting Prices to Build Brand Equity
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
Communicating Value
Just delivering good value is not sufficient for achieving pricing success
Consumers need to understand and appreciate the value of the brand
Value is not always obvious, At times, must be communicated
Reasons for Price Stability
Forward buying
Diverting
Value pricing
Objective is to uncover the right blend of product
quality, product costs, and product prices
That fully satisfies the needs and wants of consumers
As well as the profit targets of the firm
Successful value-pricing strategy should strike a balance
among
Product design and delivery
Product costs
Product prices
Channel Strategy
Indirect Channels
Retailers tend to have the most visible and direct contact with customers
Has the greatest opportunity to affect brand equity
Push and pull strategies
Channel support
Retail segmentation
Cooperative advertising
Direct Channels
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 means may be by phone, mail, or electronic means
Channel Design
Direct channels
Selling through personal contacts from the company to prospective customers
Mail, phone, electronic means, or in-person visits
Indirect channels
Selling through third-party intermediaries
Agents, broker representatives, wholesalers or
distributors, or retailers or dealers
Online Strategies