brand management chapter 5-8

- 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

What changes in the economic, technological, political-legal, sociocultural, and competitive environments have forced marketers to embrace new approaches and philosophies?

Integration
Personalization

2 specifically crucial factors in building and maintaining strong brands

True

T/F: The manner in which brand associations are formed does not matter \-- only the resulting awareness and strength, favorability, and uniqueness of brand associations

Contact

Any information-bearing experience that a customer or prospect has with the brand, product category, or the market that relates to the marketer's product or service

- Experiential marketing
- Relationship marketing

2 ways marketers have adapted to the increased consumer desire for personalization?

Experiential marketing

Marketing that promotes a product by not only communicating a product's features and benefits but also connecting it with unique and interesting consumer experience

the "Experience Economy"

A new economic era in which all businesses must orchestrate memorable events for their customers

Commodity business

If you charge for stuff, you are in the...

Goods business

If you charge for tangible things, then you are in the...

Service business

If you charge for the activities you perform, then you are in the...

Experience business

If you charge for the time customers spend with you, then you are in the...

Sense Marketing

Marketing that appeals to consumers' sense (sight, sound, touch, taste, and smell)

Feel Marketing

Marketing that appeals to customers' inner feelings and emotions, ranging from mildly positive moods linked to a brand to strong emotions of joy and pride

Think marketing

Marketing that appeals to the intellect in order to deliver cognitive, problem-solving experiences that engage customers creatively

Act marketing

Marketing that targets physical behaviors, lifestyles, and interactions

Relate marketing

Marketing that creates experiences by taking into account individuals' desires to be part of a social context

Experience providers

Communications, visual/verbal identity and signage, product presence, co-branding, spatial environments, electronic media, and salespeople

Relationship marketing

Broader set of marketing strategies that transcend the actual product or service to create stronger bonds with consumers and maximize brand resonance, based on the premise that current customers are the key to long-term brand success

- Sensory
- Affective
- Behavioral
- Intellectual

4 components to the Brand Experience Scale

Acquiring new customers can cost five times as much as satisfying and retaining current customers. The average company loses 10% of its customers each year. A 5% reduction in the customer defection rate can increase profits by 25-85%, depending on the industry. The customer profit rate tends to increase over the life of the retained customer.

Describe the basic benefits relationship marketing provides

Mass customization
One-to-one marketing
Permission marketing

3 fundamental concepts helpful with relationship marketing

Mass customization

Making products to fit customers' exact specifications (i.e. NikeID)

One-to-one marketing

Consumers help add value by providing information to marketers; marketers add value by taking that information and generating rewarding experiences for consumers.

- Focus on individual consumers through consumer databases
- Respond to consumer dialogue via interactivity
- Customize products and services

3 fundamental strategies for one-to-one marketing

Devote more marketing effort to the most valuable customers

Core important takeaway from one-to-one marketing?

Permission marketing

The practice of marketing to consumers only after gaining their express permission

Permission marketing. The worse the clutter gets, the more profitable your permission marketing efforts become

What is the rising trend: permission marketing or interruption marketing?

Get his or her permission with some kind of inducement (free sample, sales promotion, discount, contest, etc.)

What does Seth Godin argue marketers should do first to attract a consumer's attention?

1. Offer the prospect an incentive to volunteer
2. Offer the interested prospect a curriculum over time, teaching the consumer about the product or service being marketed
3. Reinforce the incentive to guarantee that the prospect maintains his or her permission
4. Offer additional incentives to get more permission from the consumer
5. Over time, leverage the permission to change consumer behavior toward profits

5 steps to effective permission marketing

Presumes the consumers have some sense of what they want

Disadvantage to permission marketing

Participation marketing

Marketing concept where marketers and consumers need to work together to find out how the firm can best satisfy consumer goals

Mass customization
One-to-one marketing
Permission marketing

Which adaptations of marketing would be effective at creating greater relevance, stronger behavioral loyalty, and attitudinal attachment?

Experiential marketing

Which adaptations of marketing would be effective at establishing brand imagery and tapping into a variety of different feelings as well as helping build brand communities?

Product
Price
Place
Promotion

What are the 4 P's of marketing?

Perceived quality
Aftermarketing

Key elements to Product Strategy in building a great brand?

Perceived quality

Customers' perception of the overall quality or superiority of a product or service compared to alternatives and with respect to its intended purpose

- Primary ingredients and supplementary features
- Product reliability, durability and serviceability
- Style and design

3 general dimensions to perceived quality

"Augmented" aspects of a product

Abstract product imagery, the symbolism or personality reflected in the brand

False! Focus on both purchase and consumption

T/F: To achieve the desired brand image, product strategies should focus on solely the purchase.

Aftermarketing

Those marketing activities that occur after customer purchase

Innovative design
Thorough testing
Quality production
Effective communication

The most important considerations in enhancing product consumption experiences that build brand equity

User Manuals
Customer service programs
Loyalty programs

3 examples of aftermarketing techniques

- Know your audience
- Change is good
- Listen to your best customers
- Engage people

4 tips for building effective loyalty programs

Design, manufacture, market, sell, deliver, and service them in a way that creates a positive brand image with strong, favorable and unique brand association; elicits favorable judgments and feelings about the brand; and fosters greater degrees of brand resonance

What must marketers do to their products?

- How consumers categorize the price of the brand
- How firm or flexible they think the price is

What does the price strategy dictate?

Price bands

A range of acceptable prices

Value based pricing strategies

Attempting to sell the right product at the right price

Price Premium

The percentage by which a product's selling price exceeds (or falls short of) a benchmark price.

early indicators of competitive pricing strategies

Why do marketers need to monitor price premiums?.

- A method for setting current prices
- A policy for choosing the depth and duration of promotions and discounts

Choosing a pricing strategy to build brand equity means determining what 2 things?

Value pricing

Pricing strategy to uncover the right blend of product quality, product costs, and product prices that fully satisfy the needs and wants of consumers and the profit targets of the firm

True

T/F: Strong brands can command price premiums.

False! Cannot command excessive price premiums

T/F: Strong brands can command excessive price premiums.

- Product design and delivery
- Product costs
- Product prices

An effective value-pricing strategy should strike the proper balance among what 3 key components?

Yield management ("dynamic") pricing

A variable pricing strategy of understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats or hotel room reservations or advertising inventory)

Everyday Low Pricing (EDLP)

A pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shopping

Forward buying

Retailers order more product than they plan to sell during the promotional period so they can later obtain a bigger margin by selling the remaining goods at the regular price after the promotional period has expired

Diverting

Retailers pass along or sell the discounted products to retailers outside the designated selling area.

Marketing channels

Sets of interdependent organizations involved in the process of making a product or service available for use or consumption

Channel Strategy

The design and management of intermediaries such as wholesalers, distributors, brokers, and retailers

Direct channels

Selling through personal contacts from the company to prospective customers by mail, phone, electronic means, in-person visits, etc.

Indirect channels

Selling through third-party intermediaries such as agents or broker representatives, wholesalers or distributors, and retailers or dealers

Integrated shopping experiences

Channel strategy combining physical stores, Internet, phone, and catalogs

- Information: Learning about what a brand does and why it is different or special
- Entertainment: Entertained by the means by which the channel permits shopping and purchases
- Experiences: Participating in ad experiencing channel activities

Channels blend what three key factors?

Shopper marketing

Marketing that emphasizes collaboration between manufacturers and retailers on in-store marketing like brand-building displays, sampling promotions, and other in-store activities designed to capitalize on a retailer's capabilities and its customers

Pull strategy

When interest for a specific product or service is created within a target audience that then demands the product from channel partners

Push strategy

Taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase

- Retail segmentation
- Cooperative advertising

2 important components of partnership strategies

Retail segmentation

Treating retailers individually so they will provide the necessary brand support

Branded variants

Branded items in a diverse set of durable and semi-durable goods categories that are not directly comparable to other items carrying the same brand name

Cooperative advertising

A manufacturer pays for a portion of the advertising that a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business

- Company owned stores
- Store within a store
- Other means (phone, mail, etc.)

3 categories of direct channels

Marketing communications

The means by which firms attempt to inform, persuade, and remind consumers \-- directly or indirectly \-- about the brands they sell.

- Media advertising
- Direct response advertising
- Place advertising
- Point of purchase advertising
- Trade promotions
- Consumer promotions
- Interactive
- Event marketing and sponsorship
- Mobile
- Publicity and PR
- Word of mouth
- Personal selling

12 marketing communications options

- Creating awareness of the brand
- Linking points of parity and points of difference associations to the brand in consumers' memory
- Eliciting positive brand judgments or feelings
- Facilitating a stronger consumer-brand connection and brand resonance

4 ways marketing communications can contribute to brand equity

Its ability to contribute to brand equity

Simplest tool to judge a communication option

1. Current brand knowledge
2. Communication
3. Desired brand knowledge

3 step model for judging the effectiveness of advertising or any communication option to build brand equity

1. Exposure (see or hear the communication)
2. Attention (notice the communication)
3. Comprehension (understand the intended message)
4. Yielding (respond favorably to intended message)
5. Intentions (plan to act in the desired manner)
6. Behavior (actually act in the desired manner)

6 steps for a person to be persuaded by any form of communication

1. Advertising and promotions
2. Interactive marketing
3. Events and experience
4. Mobile marketing

4 major marketing communication options

Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

- Television
- Radio
- Print
- Direct response (mail, telephone, Internet)
- Place (billboards, movies, airlines, product placement)

Advertising mediums

It allows for sight, sound, and motion and reached a broad spectrum of consumers

Why is television powerful as an advertising medium?

Message strategy

Positioning of an ad, what if attempts to convey about the brand

Creative strategy

The way the ad expresses the brand claims

the message strategy from its creative strategy.
Defining the proper positioning to maximize brand equity and identifying the best creative strategy to communicate or convey the desired positioning

What should marketers distinguish in designing and evaluating an ad campaign?

1. Competitive frame of reference (nature of competition, target market)
2. Point-of-parity attributes or benefits (category, competitive, correlational)
3. Point-of-difference attributes or benefits (desirable, deliverable, differentiating)

3 ways to define positioning to establish brand equity

1. Informational (problem-solution, demonstration, product comparison, testimonial)
2. Transformational (typical or aspirational usage situation, typical or aspirational user of product, brand personality and values)
3. Motivational (humor, warmth, sex appeal, music, fear, special effects)

3 ways to identify creative strategy to communicate a positioning concept

Copy testing

A sample of consumers is exposed to candidate ads and their reactions are gauged in some manner, to evaluate the effectiveness of message and creative strategies

Flexibility

Main advantage to radio

1. Identify your brand early in the commercial
2. Identify it often
3. Promise the listener a benefit early in the commercial
4. Repeat it often

4 factors that make an effective radio ad?

Direct response

A type of marketing that elicits a specific, measured response resulting from a consumer's direct response to a marketer. Facilitates the delivery of a call to action and outcome via direct or online interaction for immediate feedback and response.

Precision marketing

Combining data analytics with strategic messages and compelling colors and designs in communications

Place advertising

Advertising outside traditional media, reaching people where they work, play, and shop. Includes billboards and posters; movies, airlines, lounges, and other places; product placement; and point of purchase advertising

They can reach a very precise and captive audience in a cost-effective and increasingly engaging manner

Main advantage of nontraditional media?

Sales promotions

Short term incentives to encourage trial or usage of a product or service.

incentive

Whereas advertising typically provides consumers a reason to buy, sales promotions offer consumers a(n) \___________ to buy.

Trade promotions

Financial incentives or discounts given to retailers, distributors, and other channel members to stock, display, and in other ways facilitate the sale of a product through slotting allowances, point-of-purchase displays, contests and dealer incentives, training programs, trade shows, and cooperative advertising

- Websites
- Online ads and videos
- Social media

3 crucial online brand building tools

- It's accountable / trackable
- It's nondisruptive
- It's highly targetable

3 advantages to Internet advertising

Low click through rate for standard banner ads

Major disadvantage to Internet advertising