Designing

01

Marketing
Programs to
BRAND MANAGEMENT

Build Brand
Equity
Nandini Widyanastri 195030207111008
Nadira Nisa Nabila 195030207111024
Hanna Dela Sadidayumlik 195030207111103
NEW PERSPECTIVES ON MARKETING 02
The strategy and tactics behind marketing programs have changed
dramatically in recent years as company have faced with massive
transformation in their external marketing environments.

DIGITALIZATION AND DISINTERMEDIATION AND

CONNECTIVITY REINTERMEDIATION
through internet and mobile devices via new middlemen of various sort

CUSTOMIZATION AND INDUSTRY

MANAGEMENT
CUSTOMERIZATION CONVERGENCE
through tailored products and Through blurring of industry

BRAND
ingredients provided to customers to boundaries
make their own products
INTEGRATING MARKETING 03

One aspect of the customer-based brand equity concept is that it doesn't matter
how brand associations are generated; what matters is the ensuing awareness,
strength, favorability, and originality of brand associations.
Marketers should evaluate all methods for generating knowledge, taking into
account not only efficiency and cost, but also efficacy.
Schultz, Tannenbaum, and Lauterborn define one part of integrated marketing in
terms of contacts. A contact is any experience a customer or prospect has with
a brand, a product category, or a market that is related to the marketer's
product or service.
Marketers must arrange programs to give flawlessly integrated solutions and
individualized experiences for customers that increase awareness, spur
demand, and develop loyalty.

BRAND MANAGEMENT
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PERSONALIZING MARKETING
EXPERIENTIAL MARKETING RELATIONSHIP MARKETING

Promotes a product by not only Includes marketing activities that

communicating a product’s features and deepen and broaden the way consumers
benefits but also connecting it with think and act toward the brand.
unique and interesting consumer
experiences.

MANAGEMENT
BRAND
 EXPERIENTIAL MARKETING 05

Schmitt details five different types of marketing experiences that are becoming
increasingly vital to consumers’ perceptions of brands:

Sense marketing appeals to consumers’ senses

Feel marketing 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 appeals to the intellect in order to deliver cognitive, problem-
solving experiences that engage customers creatively.
Act marketing targets physical behaviors, lifestyles, and interactions.
Relate marketing creates experiences by taking into account individuals’
desires to be part of a social context
BRAND MANAGEMENT
 RELATIONSHIP MARKETING 06

Relationship marketing aims to develop stronger consumer bonds by providing

a more comprehensive, individualized brand experience. It broadens and
deepens the scope of brand-building marketing campaigns.

MASS PERMISSION ONE-TO-ONE

CUSTOMIZATION MARKETING MARKETING

Offer customized Practice of marketing to Focus on individual

products on a previously
unheard-of scale.
Enables consumers to
distinguish themselves
with even basic
purchases.
consumers only after they
give permission
The worse marketing
clutter gets, more effective
is permission marketing
customers
Respond to dialogues:
“Consumers talk to us”
Customize products and
services
BRAND MANAGEMENT
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RECONCILING THE DIFFERENT
MARKETING APPROACHES
BRAND MANAGEMENT

These and other personalization approaches serve to emphasize a

variety of fundamental marketing principles and techniques. They're
particularly useful for generating favorable brand responses and
creating brand resonance to build customer-based brand equity
from a branding perspective.
The specifics of how they set those strategies, however, have
changed considerably. When it comes to product strategy, we
emphasize the importance of extrinsic factors; when it comes to
pricing strategy, we emphasize value pricing; and when it comes to
channel strategy, we emphasize channel integration.
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PRODUCT STRATEGY
Whether the product is a tangible product, service, or organization,
designing and providing a product or service that fully meets customer
requirements and desires is a precondition for effective marketing.
Consumers' experiences with the product must at least meet, if not
exceed, their expectations for brand loyalty to exist.
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PERCEIVED QUALITY
Perceived quality is customers’ perception of the overall quality or superiority of a
product or service compared to alternatives and with respect to its intended purpose.

Perceived quality is an intangible and overall feeling about a brand

Perceived quality cannot necessarily be objectively determined because it is a
perception
Perceived quality could be different for the corner store versus the department store
Both are judged by a different set of criteria
Perceived quality differs from satisfaction
A positive attitude could be generated because a product of inferior quality is very
inexpensive

AFTER-
MARKETING
The expanding role of aftermarketing, or
marketing efforts that occur after a client
purchase, is one prominent development
in marketing. The most significant
elements in improving product consuming
experiences that develop brand equity are
without a doubt innovative design,
comprehensive testing, excellent
production, and effective communication.
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USER-MANUAL
Marketers must develop user manuals that clearly
and comprehensively describe both what the
product or service can do for consumers.
CUSTOMER SERVICE PROGRAMS
Creating stronger ties with consumers can be as simple
as creating a well-designed customer service
department. Aftermarketing can include the sale of
complementary products that help make up a system or
in any other way enhance the value of the core product.
LOYALTY PROGRAMS
Identifying, maintaining, and increasing the yield from
a firm’s ‘best’ customers through long-term,
interactive, value-added relationships.
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PRICING STRATEGY
CONSUMER PRICE SETTING PRICES TO BUILD
PERCEPTIONS BRAND EQUITY

The pricing strategy can dictate how Choosing a pricing strategy to build
consumers categorize the price of the brand equity means determining a
brand (as low, medium, or high), and method for setting current prices and a
how firm or how flexible they think the policy for choosing the depth and

MANAGEMENT
price is, based on how deeply or how duration of promotions and discounts
frequently it is discounted There are many different approaches to

BRAND
setting prices, and the choice depends
on a number of considerations.
 PRICE SEGMENTATION 13

At the same time, different consumers may have different value

perceptions and therefore could—and most likely should—receive
BRAND MANAGEMENT

different prices. Price segmentation sets and adjusts prices for

appropriate market segments. Here are several examples:
Allstate Insurance embarked on a yield management pricing program,
To better compete with scalpers and online ticket brokers.
to look at different variables
m to effectively price discriminate
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EVERYDAY LOW PRICING

EDLP avoids the sawtooth, whiplash pattern of alternating price increases and
decreases or discounts in favor of a more consistent set of “everyday” base prices on
products.

The P&G Experiences

In the early 1990s, Procter & Gamble made a well-publicized conversion to EDLP.64 By reducing
list prices on half its brands and eliminating many temporary discounts, P&G reported that it
saved $175 million in 1991, or 10 percent of its previous year’s profits.

Reasons for Price Stability

Why then do firms seek greater price stability? Manufacturers can be hurt by an overreliance on
trade and consumer promotions and the resulting fluctuations in prices for several reasons.
CHANNEL STRATEGY 15

The manner by which a product is sold or distributed can have a profound impact on the
equity and ultimate sales success of a brand. Marketing channels are defined as “sets of
interdependent organizations involved in the process of making a product or service
available for use or consumption.” Channel strategy includes the design and management
of intermediaries such as wholesalers, distributors, brokers, and retailers.

DIRECT CHANNEL INDIRECT CHANNEL

MANAGEMENT
ONLINE STRATEGY

BRAND

CHANNEL DESIGN
Direct channels mean selling through
personal contacts from the company to
prospective customers by mail, phone,
electronic means, in-person visits, and
so forth. Indirect channels sell through
third-party intermediaries such as
agents or broker representatives,
wholesalers or distributors, and retailers
or dealers.
16
The risk in designing a hybrid channel
system is having too many channels
(leading to conflict among channel
members or a lack of support), or too
few channels (resulting in market
opportunities being overlooked). The
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goal is to maximize channel coverage
and effectiveness while minimizing
channel cost and conflict
BRAND
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DIRECT CHANNEL

Company-Owned Store. Store-Within-a-Store. Other Means.

To gain control over the These approaches can offer Another channel option is to
selling process and the dual benefits of sell directly to consumers via
build stronger appeasing retailers and phone, mail, or electronic
relationships with perhaps even allowing them means. Retailers have sold
customers, some to benefit from the retailer’s their goods through catalogs
manufacturers are brand image while at the for years. Many mass

MANAGEMENT
introducing their own same time allowing the firm marketers, especially those
retail outlets, as well as to retain control over the that also sell through their own

BRAND
selling their product design and implementation retail stores, are increasingly
directly to customers of the product presentation using direct selling, a long-
through various means. at the point of purchase. successful strategy for brands

INDIRECT CHANNEL
Push and Pull Strategy.
Consumers use their buying power and
influence on retailers to “pull” the
product through the channel. Marketers
can devote their selling efforts to the
channel members themselves, providing
direct incentives for them to stock and
sell products to the end consumer
called push strategy.
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Channel Support.
Retail Segmentation. The different
marketing capabilities and needs,
retailers may need to be divided into
segments or even treated individually so
they will provide the necessary brand
support. Cooperative Advertising. A
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manufacturer pays for a portion of the
advertising that a retailer runs to
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promote the manufacturer’s product and
its availability in the retailer’s place of
business.
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ONLINE STRATEGIES

The advantages of having both a physical “brick and mortar” channel and a virtual,
online retail channel are becoming clearer to many firms. Integrated channels allow
consumers to shop when and how they want. Many consumers value the
convenience of ordering from companies online or over the phone and picking up
the physical product at their local store rather than having it shipped. They also want
to be able to return merchandise at a store even if they originally bought it and had it
shipped outside the store.

MANAGEMENT
BRAND
 CASE STUDY
IKEA

Brand Design
The slogan of IKEA is 'the wonderful everyday' which expresses a concept of living a happy and pleasant
life every day. Customers are able to achieve this through cheap and good-quality household
products provided by IKEA. The slogan of IKEA is "Better Every Day", which is the concept of the best
and best every day in life. Customers can do this with sturdy and affordable furniture provided by
IKEA.
Products and Services
IKEA’s products include furniture, home textiles, bedding sets, lamps and lighting, living and office,
small household appliances, home furnishings, home furnishings, kitchen department stores, fashion
gifts, art decorations, luxury furniture, etc, include product installation and assembly or recycling of old
furniture in a sustainable manner.
 CASE STUDY
IKEA
Pricing
IKEA has always chosen the low-price strategy for all the products, hoping to provide customers with
the highest value both in price and quality. In order to keep the price low, they determined a price that
they hoped to target their products and proceed gradually to close to the fixed price.
Customer knowledge
IKEA makes full use of its excellent operations and briefness in all aspects of its operation to
remain the leader role in the furniture retail industry. Therefore, IKEA enjoys a high brand recall
capability
Sources of brand equity
Its trademark blue and yellow logo is another important source of brand equity. It maintains
consistent quality, effective distribution networks and standardization in all countries where it
operates.
 CASE STUDY
IKEA
Product development
In China, IKEA not only sells a variety of furniture and provides services including distribution,
installation and recycling for old appliances, but also provides interior decorations such as artificial
flowers and plants.
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BRAND
MANAGEMENT
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