Please enable JavaScript.
Coggle requires JavaScript to display documents.
CH5: Designing marketing programs to build brand equity - Coggle Diagram
CH5: Designing marketing programs to build brand equity
New approaches embraced by marketers
Growth of interactive and mobile marketing options
Channel transformation and disintermediation
Fragmentation of traditional media
Increased competition and industry convergence
Greater customer empowerment
Globalization and growth of developing markets
Rapid technological developments
Heightened environmental, community, and social concerns
Severe economic recession
New capabilities of the new economy
Customers
Can obtain a great amount of information about practically anything
Can more easily interact with marketers in placing and receiving orders
Can purchase a greater variety of available goods and services
Can interact with other consumers and compare notes on products and
services
Can wield substantially more customer power
Companies
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 facilitate two-way communication with their customers and
prospects, and facilitate transaction efficiency
Can improve their purchasing, recruiting, training, and internal and external communication
Can collect fuller and richer information about their markets,
customers, prospects, and competitors.
Can operate a powerful new information and sales channel with augmented geographic reach to inform and promote their company and its products
Integrating marketing
Personalizing marketing
The need for personalizing marketing is derived from rapid expansion of the Internet and continued
fragmentation of mass media
Modern economy celebrates the power of the individual consumer
Marketers have embraced concepts such as experiential marketing and relationship marketing
Relationship marketing
Relationship Marketing
Transcend an actual product or service to create stronger bonds with consumer and 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
Reconciling different marketing approaches
Mass customization and one-to-one and permission marketing are potentially effective in getting consumers more actively engaged with a brand
Based on CBBE model, different approaches emphasize different aspects of
brand equity
Product strategy
Perceived Quality
Customers’ perceptions of overall quality or superiority of a product or service compared with alternative and with respect to 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
Customer service programs
Loyalty programs
User manuals
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
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
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 must be communicated at times as it is not always obvious
Price Segmentation
Sets and adjusts prices for appropriate market segments
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 and profit targets of the firm
Successful value-pricing strategy should strike a balance among:
Product costs
Product prices
Product design and delivery
Everyday Low Pricing
Avoids the sawtooth pattern of alternating price increases and decreases
Avoid 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
Direct channels
Selling through personal contacts from the company to prospective customers
i.e 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:
Store-within-a-store
Other means may be by phone, mail, or electronic means
Company-owned stores
Indirect channels
Selling through third-party intermediaries
i.e Agents, broker representatives, wholesalers or distributors, or retailers or dealers
Retailers tend to have the most visible and direct contact with customers
Has the greatest opportunity to affect brand equity
Channel support
Retail segmentation
Push and pull strategies
Cooperative advertising
Online Strategies