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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 & Developments in Marketing
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
How do marketers enhance product experience?
Integrating Marketing
Personalizing Marketing
The rapid expansion of the Internet and the continued fragmentation of mass media has brought the need for personalized marketing. The modern economy celebrates the power of the individual consumer.
Experiential marketing
Promotes a product by communicating features and benefits and connecting it with unique and interesting consumer experiences
Relationship marketing
Focuses on creating stronger bonds with customer & maximizes brand resonance
Mass customization
Making products to fit customers' exact specifications using digital-age technology
Permission marketing
The practice of marketing to consumers only after gaining their express permission
Reconciling the Different Marketing Approaches
Mass customization and one-to-one and permission marketing might be potentially effective 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
Product Strategy
Perceived Quality
Customers' perception of overall quality of superiority of a product or service compared with alternative and with respect to its intended purpose.
Managing Customers Post-Purchase
Product strategies should focus on both purchase AND consumption
Particularly important in the context of e-commerce
Processes or programs that can help with managing customers post-purchase:
User manuals
Customer service programs
Loyalty programs
Pricing Strategy
Price: 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 price strategy to build brand equity means determining a method for setting current prices AND 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 an important determinants in pricing strategy, BUT firms are putting greater importance on consumer perceptions and preferences
Setting Prices to Build Brand Equity
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 as well as the profit targets of the firm
Successful value-pricing strategy should strike a balance among
Product design & delivery
Product costs
Product prices
Communication Value
Just delivering good value is insufficient for achieving pricing success
Consumers need to understand and appreciate the value of the brand
Value is not always obvious but sometimes must be communicated
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
Diverting
Channel Strategy
Channel Design
b. Indirect Channels
Selling through third-party intermediaries
Agents, broker representatives, wholesalers, distributors, retailers, or dealers
Retailers tend to have the most visible and direct contact with customers
Push and pull strategies
Channel support
Retail segmentation
Cooperative advertising
a. Direct Channels
Selling through personal contacts from the company to prospective customers such as mail, phone, electronic means, or in-person visits
Mail, phone, electronic means, or in-person visits
Manufacturers may choose to sell directly to consumers
Brand equity issues of selling via direct channels
Company-owned stores
Store-within-a-store
Other means by phone, mail or electronic means
Online Strategies