designing marketing programmes to build brand equity by leroy j. ebert
DESCRIPTION
Designing Marketing Programs to Build Brand Equity Leroy J. Ebert DipM, MCIM, MSLIM, Chartered Marketer Content Extracted from “Strategic Brand Management” 3rd Edition Authors: Kevin Lane Keller M.G. Parameswaran Issac Jacob Presentation developed from SLIM Diploma In Brand Management Students Presentation developed by Leroy J. Ebert (19th April, 2014)TRANSCRIPT
Designing Marketing Programs to Build Brand Equity
Leroy J. Ebert DipM, MCIM, MSLIM,
Chartered Marketer
Diploma in Brand Management – “Strategic Brand Management – Sri Lanka Institute of Marketing
Drivers of the new economy are
Digitization and connectivity
Disintermediation and reintermediation
Customization & customerization
Industry convergence
These drivers have given consumers and companies new capabilities pg. 185 fig 5.1
New Perspectives on Marketing
Integrating marketing programs and activities
Product
Pricing
Advertising
Sales promotion
Personal selling
Promotes loyalty and attitudinal attachment
Personalizing marketing
Promoting a product by not only communicating a product’s features and benefits but also connecting it with unique and interesting experiences
Establishes brand imagery and helps to build brand communities
West Jet
Experiential Marketing
Focus on individual consumers through customer databases
Respond to consumer dialogue via interactivity
Customize products and services
One to one marketing
Permission marketing
Relationship marketing – attempts to provide a more holistic personalized brand experience to build stronger consumer ties
Benefits of RM
Loyalty programs i.e. tesco’s
CLV
Relationship Marketing
The heart of a great brand is invariably a great product
You can sustain a brand if the product doesn’t fully satisfy the customer
Product Strategy
Perception of the over all quality or superiority of a product or service compared to alternatives
Sustaining perceived quality with customers is getting tougher, customers expectations rises and competitors are more fierce than ever
Perceived quality
Performance : level of primary characteristics of the product
Features : Secondary elements that complement the primary characteristics
Conformance quality
Reliability: stands the test of time
Serviceability
Style and design
Dimensions of perceived quality
Speed, accuracy, care of product delivery and installation, promptness, courtesy, customer service training and quality of repair service.
Mc Kinsey’s 3D marketing • Functional benefits: quality, value, price
• Process benefits: product replenishment, access to info
• Relationship benefits: differentiated loyalty rewards, communication
Brand intangibles
Value Chain
Mass Customization
2nd moment of truth
Innovative design, thorough testing, quality production, effective communication
i.e. simple product catalogs,
Managing customer feedback and making changes very quickly i.e. software industry
After Marketing
Price is the one revenue generating element in the traditional marketing mix and pricing strategies are amongst the most important brand equity benefits of building a brand
The pricing strategy can dictate how consumers categorize the price of the brand (as low, medium, high) and how firm or flexible they think the price is based on how frequent it is discounted
Pricing Strategies
There is a relationship between price and quality fig 5.5 pg 200
Some companies sell multiple brands in multiple pricing categories in order to better compete in multiple categories fig 5.6 pg 201
Value based pricing strategies – adaptation, if tangible and intangible benefits are high then sell it at a high price
Pricing strategy
Hameedia brand portfolio
Price
High
High Low Fashion and design
Its very crucial, get it wrong you are screwed for many reasons.
Repositioning a mass market brand to be a premier is next to impossible
Mess up the pricing, you lose revenue and customer might not accept the revised price
Pricing strategy
Cost + pricing
Premium
Skimming
Introductory
Value based
Penetration – lean and mean
Predatory
Psychological
Promotional pricing – at events or even bundled offers
Sachet pricing
Pricing strategy
What is the easiest way to arrive at the most suitable price
Brand awareness of the customer and by his network helps customers arrive at a price
If you can’t increase the price reduce the qty, quality
Product prices
Marketing Channels –sets of interdependent organizations involved in the process of making a product or service available for the use or consumption
Channel strategy – Includes the design and management of intermediaries such as wholesalers, distributors, retailers etc.
Channel Strategy
Direct channels – direct to customers
Indirect channels – using 3rd party intermediaries such as distributors, retailers, agents etc.
Winning channel strategies will be those that can develop an integrated shopping experience combining, physical stores, catalogs, internet and telephone. See nike i.e. on page 211 and 212.
Channel Design
This is applicable when
Product info needs are high
Product customization is high
Product quality assurance is important
Purchase lot size is important
Logistics are important
Direct channel for B2b
A broad assortment of channels are essential
Product availability is critical (intense distribution)
After sales service is important i.e. titan watches
Indirect channel is needed
Retailers
Comes in contact with the customer more than the brand owner
Affects the brands service standard i.e. adidas full technology shoes are sold only at adidas retail outlets
Retailers image reflects on the brands equity i.e. this retailer sells only high quality products
Indirect channels
VM, availability enhance or reduce brand equity
Brand owners have to take an active role in helping retailers to add value to their brand
Increasing power of retailers due to multiple undifferentiated brand and ltd shelf space
Retailer request incentives to stock new brands, extended credit, special promo’s
Push and Pull Strategies
Pull strategy – focusing all marketing efforts towards the end customer
Push strategy -
PUSH & PULL
Retailers are customers too
Because of their different marketing capabilities and needs, retailers may need to be divided into segments or even treated individually so the will provide the necessary brand support
This can be achieved through branded variants
Retail Segmentation
The manufacturer pumps in money to the retailer in order to support the local marketing initiatives
The funds allocated is percentage of sales
Retailers can localize the marketing to be more appealing to the target audience
Controllability is an issue when marketing is managed by retailers. They tend to be biased towards themselves and not the brand.
Co-operative Advertising
Company owned stores
Shop in Shop
Direct selling, through phone, catalogs,
Web strategies
Direct Channels
Private labels/own label/store brands
Private labels should not be confused with generics
Private Labels
5 GBP 1.5 GBP
Better margins for retailer
Improved retailer brand penetration
Improved quality and design
Brand manufacturers manufacture private labels
Private label sales have increased
Price conscious customers prefer own labels
Private labels
Content Extracted from “Strategic Brand Management” 3rd Edition
Authors:
Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management Students
Presentation developed by Leroy J. Ebert (19th April, 2014)