Marketing and branding

Marketing and branding

• The action of promoting and selling

products / services, + market research

and advertising. (ALL the activities that enable the product to get

from the producer to the consumer.)

• Responsible for identifying, anticipating

and satisfying customer needs

Role/aim of marketing

 Assessing market developments could impact position

market ; (consumer’s perception of brand/product: image)

develop tools optimise market position.

 Right product, time, place, price – satisfy needs

 Understand behaviour of consumers– interpreting

needs/desires – matching sound delivery

 Addresses competitive advantage in market place

Product

 Consumer able & willing to buy

 Correct product created – add value (what cons want)

 Consistently evaluate what consumer thinking & monitor

behaviour of consumer.

 Buss environments changing – keep up to date changes –

modify/new products

 Packaging: Consumer recognise

& distinguish product by packaging

Price

 Product is worth what customer willing to pay =

Opportunity cost: (what customer is prepared to give up)

 Price could be competitive adv – not cheapest, best value

for money

 Price set provide owner with profit.

 Helps position (image) buss in marketplace: more you

charge, higher quality and value consumers expect.

Price sensitivity

(the degree to which consumers' behaviors are affected

by the price of the product or service.)

Existing customers less sensitive – gained loyalty

New customers – see value products before paying price

Type product – essential goods (food!) less sensitive than

shopping goods

Business use

Psychological pricing (odd-even R99,99)

Prestige (upmarket/luxury)

Superficial discounting (was R100 now R50)

Price discrimination based on:

Customer: discount buying bulk

Time: in/out season

Area: urban/rural

place

 Where consumers buy product & includes convenient +

distribution to this place.

 Choosing correct supplier – able to deliver -

maintain competitive adv.

 Available right place, time, quality keeping

storage, transport costs low

 Consider if product distributed:

 Intensively (Essential goods e.g. bread at garage shops)

 Selectively (using limited number of outlets to sell products)

 Exclusively (upmarket jewellery available exclusive distributors)

 Place includes:

 Products displayed (how stores look, website)

 Franchising popular means of distribution –

give sense quality – brand known + trusted.

promotion

 Buss communicates what it does and has on

offer to consumer

 Includes: Branding, advertising,

PR, personal sales, special offerings,

loyalty initiatives.

 Gaining attention, message consistent +

appealing-give consumer

reason to choose your product

 Communicating to all

stakeholders , transparency

people

 Brand and reputation rests in hands of people. Correct

training and motivation given to employees

 Employee face of buss – have correct attitude.

 Evaluation takes place – ensure no performance gap

 Cust not separate product/service from employee

 After sales service + advice way to add value to

product. (Contact the customer after the purchase and see

whether he/she is happy with the

product. Offer to repair, install,

maintain, refund or exchange a

product – without delay.)

process

 Giving service – customer satisfaction received.

 Waiting times, information given + helpfulness of staff

vital for success

 Correct systems in place and working!

 Customer reach buss by phone, vital source of income:

often left holding, wrong information given by employees

not trained

 Design systems make buss more effective – how

consumers experience system. This is first experience of

consumer with buss.

promotion

 Buss communicates what it does and has on

offer to consumer

 Includes: Branding, advertising,

PR, personal sales, special offerings,

loyalty initiatives.

 Gaining attention, message consistent +

appealing-give consumer

reason to choose your product

 Communicating to all

stakeholders , transparency

people

 Brand and reputation rests in hands of people. Correct

training and motivation given to employees

 Employee face of buss – have correct attitude.

 Evaluation takes place – ensure no performance gap

 Cust not separate product/service from employee

 After sales service + advice way to add value to

product.

process

 Giving service – customer satisfaction received.

 Waiting times, information given + helpfulness of staff

vital for success

 Correct systems in place and working!

 Customer reach buss by phone, vital source of income:

often left holding, wrong information given by employees

not trained

 Design systems make buss more effective – how

consumers experience system. This is first experience of

consumer with buss.

physical evidence

 Environment that clean, tidy + friendly

 Helps to confirm the assumptions (opinion) of customer.

 E.g. financial service provided in formal setting /

Restaurant more relaxed approach

 Location + appearance of stores give customer sense

quality.

how to formulate marketing strategy

 Def: Marketing strategy is all aspects needed reach

consumer, use all resources within budgets.

 Investigate environment: (market & macro) Consider social,

economic, cultural + technological trends

 Do market audit: Know position in market and look

resources to influence market space.

 Define objectives: Goals/ targets identified, ways to

achieve them be chosen.

 Formulate marketing strategy with specific plan of

action – flexible to allow updates

 In line business’ overall corporate strategy to ensure

buy-in from top.

 Must be a team effort – require range of different skills

and outlooks.

market position

 Define objectives: Goals/ targets identified, ways to

achieve them be chosen.

 Formulate marketing strategy with specific plan of

action – flexible to allow updates

 In line business’ overall corporate strategy to ensure

buy-in from top.

 Must be a team effort – require range of different skills

and outlooks.

interdependence of maketing with other functions

• All functions operate as uniform unit – common goals

of buss in mind: to succeed

• All cooperate on decision making + operational level

A business can separate the key functions into departments/

divisions that perform their distinct role, the functions are

interdependent - each relies on the other to perform effectively.

The various business functions work best when they work together.

INTERDEPENDENCE OF MARKETING

WITH OTHER FUNCTIONS

• Marketing function cannot plan campaign

without funding (financial dept) or without

knowledge of products produced (production

dept).

• Production dept cannot produce goods without

purchasing dept acquiring raw material and HR

supply labour.

branding

 Unique character: name/logo/design

 Combined form set (elements)

 Identify goods/services seller +

differentiate competitors

 Consistent + easily recognised

advantages of strong brand

 Customer loyalty – repeat sales + word-of-mouth

 Command higher prices – market leader

 Retailers want stock top selling brands: attract customers

 Helps buss appearance + image

 Adds credibility (trustworthy) + increases confidence in

buss

 Some retailers “own brands”, (their name) e.g. Pick n

Pay’s No Name brand.

 Tend be cheaper –

retailer more profits

 Upmarket retailers - Woolworths, use their name, gives

sense of superior quality, DO NOT manufacture

themselves.

Logo important part – symbol/picture represents buss.

 Easy recognise,

 establishes brand loyalty,

 create favourable image for

product + buss

brand elements

Elements used to represent and identify/differentiate the

brand. The brand name, logo, slogan, and packaging

style are all examples of Brand Elements.

Desirable Brand Elements should be as many of the following characteristics as possible:

Memorable (striking /unforgettable)

Meaningful (customers understand meaning brand)

Likable

Transferable

Adaptable (updated to

enhance meaning etc)

Protectable (register)

brand extention and stretching

 Strong brands deliver higher sales + profits

 have potential to be used on other products = extention +

stretching.

BRAND EXTENTION:

 Use successful brand to launch new product

in same broad market.

 Buss enters new product

categories more easily

 E.g. Coca Cola range of

water products

BRAND EXTENTION & BRAND STRETCHING

BRAND STRETCHING:

 Use established brand for product in unrelated market

 E.g. Jeep selling branded clothing

advantages of extension and stretching

Less risk with new product if carry family name

Gain customer loyalty more easily + quickly

Products attract customer awareness + willingness

to sample (test/try) product

Launch costs lower.

factors that influence buyer’s decision

Psychological Factors

 How consumer motivated by adverts?

 Perception influenced by beliefs (parents always bought)

 Past experience – suffer food poisoning last time you ate food

Socio-Cultural Factors

 Cultural preferences

 Size family – special promotions e.g.R100 deals

 Social class: LSM impact purchasing decision – high income

earner more high cost products (living standard measure – groups people according to living standards – level of comfort

& wealth you have)(lower to middle income consumers)

 Personal: you like e.g. colour red, favour this colour in

clothing etc.

FACTORS THAT INFLUENCE A BUYER’S

DECISION

Economic Factors

 Interest rates increase, less disposable income

 Import & export of goods affected by exchange rate will

affect price goods sold. (crude oil)

franchise marketing

 Franchise: When company (Pick n Pay) allows

someone to sell goods / services using its

trademarks, brand name, image + operation

systems.

 Franchisee: person pays for use of above and sell

products.

 Franchisor: Business supplies products and provides

support to franchisee. (owner of concept)

 Royalty: Percentage payment franchisee pay

franchisor.

Brand recognition becomes widely established.

• Franchisees encouraged perform own local marketing –

certain restrictions – approval

• Know type customers – specific needs

• Understand demographics & culture of community

• Plan focus promoting product through advertising

• Loyalty & reward programs help achieve this

• CSR: active member community –

sponsor local sports team.

advatages for franchisee

 Good chance success – benefit from success of franchisor

 Access to advice from franchisor

 Franchise agreement offers legal protection

 Easier raise borrowed capital if bank knows franchise

 Franchisees work together solve problems/buy stock bulk –

buss are similar.

disadv for franchisee

 Cost to establish high – monthly royalties

 Frustrating stick strict prescriptions

 Become bored – no challenge

 Some franchisors not continue give support promised.

adv for franchisor

 Expand buss quickly without large capital outlay

 Franchisees more committed make success than manager

– work profit not salary.

 No staff problems – each franchise own recruitment etc.

disadv for franchisor

 Difficult to give assistance/training all franchisees

 Not have direct control over franchises (success of

franchisor)

 Dependent on success of franchisees

 Administrative duties – collecting royalties + controlling

brand.

principles of ethical marketing

 Consumers treated fairly based on nature of product.

 All communication share standard of honesty/truth

 Marketers comply with regulations by government &

ASASA

 Advertising distinguished from news/entertainment

SM and its influence on marketing

 Social media – increase customer base.

 People discover content and expressing interests

 Companies looking discover their core audience,

SM natural place to start.

People spend much time on SM

Facebook, Instagram becoming

graphs of consumer preferences

and interests.

Easier + quicker to monitor

consumer behaviour and trends.

right to fair and honest dealing

 Protected against false, misleading representation &

fraudulent schemes.

 Fair substitution/changing of goods.

right to fair just and reasonable terms and conditions

 Protected against unreasonable contract terms e.g. life-

long contracts

 Free copy of agreements & contracts

right to fair value good quality and savings

 Consumer demands quality service & goods are safe

 Get warranty, relates to quality goods that need repairs.

 Know if products recalled for safety

right to accountability

 Protected in case lay-by agreements

 Prepaid credits, prepaid services, vouchers - be valid

for three years after issue.

Factors that help in building a successful brand

1. Quality – vital part of brand

 Represents core(main/basic) benefit - consumer expects

brand

2. Positioning

 Position that brand occupies in minds of consumer

 Strong brands have clear + unique position

 Achieved through: brand name, image, service standards, product guarantees, packaging, delivery

3. Repositioning

• Brand tries change market position to reflect change customer tastes

• Brand old + tired, no longer appeals

• New approach taken to create new position.

4. Communication

• Ensures all elements marketing mix clearly thought through & developed

• With customer perceptions in mind.

• Build awareness + to reinforce perceptions

5. Long-term perspective

 Developing & investing in brand over time +

 How customer loyalty created + maintained.

6. Internal-marketing

 How develop brand internally + externally

 Focusing on whole buss understanding the brand values + positioning, in

 relation to mission + vision.

 Employees to live brand (brand ambassadors)

7. Credibility

 Buss promise to deliver what is said it would.

 Right quality, time, price, place,-

builds positive reputation