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Chapter 5: Designing Marketing Programs to Build Brand Equity - Coggle…
Chapter 5: Designing Marketing Programs to Build Brand Equity
New approaches embraced by marketers
Globalization and growth of developing markets
Fragmentation of traditional media
Greater customer empowerment
Increased competition and industry convergence
Growth of interactive and mobile marketing options
Rapid technological developments
Channel transformation and disintermediation
Severe economic recession
Heightened environmental, community, and social concerns
Integrating marketing
Personalizing Marketing
Mass Customization
Making products to fit customers’ exact specifications
Permission Marketing
The practice of marketing to consumers only after gaining theor express permission
Relationship Marketing
Transcend an actual product or service to create stronger bonds with consumer, maximizing brand resonance.
Experiential Marketing
Promotes a product by communicating features and benefits and connecting it with unique and interesting consumer experiences
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, the different approaches emphasize different aspects of brand equity
Channel strategy
Channel design
Direct channels
Selling through personal contacts from the company to prospective customers such as mail, phone, electronic means, or in-person visits
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 such as agents, broker representatives, wholesalers or distributors, or retailers or dealers
Has the greatedt opportunity to affect brand equity through:
Channel support
Retail segmentation
Push and pull strategies
Cooperative advertising
Online strategies
Product strategy
Perceived quality
Customers’ perceptions of overall quality or superiority of a product or service
Managing Customers Post-purchase
Product strategies should focus on both purchase and consumption
Processes or programs that can help with managing customers post-purchase
Customer service programs
Used manuals
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 and a policy for choosing the depth and duration of promotions and discounts
Setting prices to build brand equity
Communicating value
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, as well as the 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
Reasons for Price stability
Forward buying
Diverting