.

.
 .

• How do marketing activities in general—and product,

pricing, and distribution strategies in particular—
build brand equity?
• How can marketers integrate these activities to
enhance brand awareness, improve the brand image,
elicit positive brand responses, and increase brand
resonance?

5.
 .
The four major drivers of this new economy are:
.
1. Digitalization and connectivity
(Use of internet, intranet, mobile devices to provide revenue and value
producing opportunities; process of moving to a digital business therefore
companies should invest in technology)

2. Disintermediation and reintermediation

(Disintermediation is the removal of intermediaries from a supply chain or
“cutting out the middlemen” in connection with a transaction or a series of
transactions. Buyers may choose to bypass the middlemen (wholesalers and
retailers) to buy directly from the manufacturer, and pay less)
E.g: GM bypassing dealerships to sell cars directly to consumers
(Reintermediation involves the creation of new intermediaries between
customers and suppliers providing services such as suppliers search and
product evaluation)
 .
The four major drivers of this new economy are:

3. Customization and customerization

(tailored products and ingredients provided to customers to make their
own products)

4. Industry convergence
(blurring of industry boundaries)
Customer - Have more power and
s: control
 Have a large variety of
available goods and services
 Can obtain more information
.  Can easily interact with
marketers in placing and
receiving orders
 compare
Can interact
notes
with other
consumers and
Companies: - Can collect fuller and
richer
information about markets, customers,
competition
 Better communication
technologies and transaction
efficiency
 Can use the internet and e-mail
 .
. There is a move away from mass-market strategies

•The 21st century has forced marketers to change how

they develop their marketing programs.

•Integration and Personalization are crucial facto

in building and maintaining strong brands rs
 .

. Companies need to move away from mass
marketing strategies and move towards one to one
marketing
 By one to one marketing strategy, your company can
enhance its brand position, improve return on
investment, and increase customer retention

 To do so, focus on the following points:

1. Get to know your customers
2. Use data to create customer profile
3. Embrace technology
 .
.
brand building
efforts

marketing marketing
activities Produc activities
t

brand building
efforts
 .
.

• Experiential
marketing
• One-to-One
marketing
• Permission marketing
 .
• Expression of individuality
.• Consumer desire for personalization

Experiential Marketing; One-to-One Marketing; Permission

Marketing

Experiential marketing connects a product to unique and interesting experiences

“The idea is not to sell something, but to demonstrate how a brand

can enrich a customer’s life”
 . GENERAT
INFORMATIO EXPERIENC
E
Consumers N Marketers Consumers
ES
.
The Fundamental Strategies of One-to-One Marketing:
- Focus on individual consumers through consumer databases
- Respond to consumer dialogue via interactivity
- Customize products and services

Marketing to consumers only after gaining their express permission

Eg: internet users sign up in advance for information about certain
product categories

“anticipated, personal and relevant” - Godin

 .
.
 .
“At the heart of a great brand is invariably a
.
great product
”
•How do consumers form their opinions of the quality and
value of a product?

• How can marketers use the relationship marketing

perspective
in formulating product strategy and offerings?
 .
Dimensions of Quality:
.
• Performance
• Features
• Reliability
• Durability
• Serviceability
• Style and Design

Brand Intangibles
speed, accuracy, delivery and installation, courtesy, helpfulness of
customer service and training
 .
1. Functional benefits: Product and performance attributes

2..Process benefits: ease of access to product information; broad

product selection; convenient transactions

3. Relationship benefits: personalized service; strong emotional

relevance; loyalty rewards
(McKinsey)

“By improving the fuller customer experience,

companies can keep consumers happier and hold on
to them longer”
 .
quality perceptions + cost perceptions =
assessment of value
.
opportunity costs of time, energy and psychological
involvement in the decision

The firm is a collection of activities that are

performed to design, produce, market,
deliver and support products

Firms can achieve competitive

advantages by improving
performance and reducing costs in
any or all of the value creating
 .
current customers are the key to long term brand
success
- Mass
.
Customization
Customization addresses the need for
individuality

- Aftermarketing
Activities that occur after customer purchase (User Manuals, Complimentary
Products)

To achieve the desired brand image, product strategies

should focus on both purchase and consumption

- Loyalty Programs
Loyalty programs offer different mixtures of services, newsletters, premiums
and incentives for a firm’s “best” customer
 .
.
 .

.  Revenue generating element from of the mix

 Consumers willing to pay price premiums ,

when there is a perceived added value =
Stronger brands

 Aspects of pricing Strategy :

1. Price perceptions
2. Setting prices
 .
•. Consumers rank brand according to
prices

• Price Bands = range of acceptable prices

• price – product meaning

- value and quality they received

• perception of value received < cost to

the company
 .

. Value
pricing Innovations , improvements , and
convenience
Product
design
and Outsourcing , material substitution ,
delivery
Product technology, product reformulation ,
factory improvement .
costs Cost reductions can’t sacrifice quality

Understand what consumers are willing

Produc
to pay, if there are premiums and then
t adjust it for cost and competition
prices
 .
Everyday low
.
pricing EDLP)
Discount and Everyday base
promotions over prices
time
Consistent low prices on major
Builds brand loyalty items will bring consumers back to
and awareness buy

Incentives to
consumers to
buy

- Forward buying
 .
.
 .
 Marketing channels =“ a set of interdependent
. organizations involved in the process of making
a product / service available
for use
“
 This designin a channel and
involves g managing
intermediarie
 s.
Channel design :
1. Indirect - sell through third party
intermediaries
2. Direct – sell through personal contacts

 Try develop : “integrated shopping

experiences “
 .
. INDIRE DIRE
CT CT
 Broad assortment is  Product info is high
essential  Customisation
 Availability is critical  Quality assurance is
 After sales service is important
important  Lot size is important
 Logistics are important

-Hybrid approach = combing the both , must

be careful not to have too many not too little

- The goal is to maximize channel coverage

and effectiveness while minimizing cost
and conflict
 .
- It concentrates on retailers even though there are
many other intermediaries

- Retailers have the most contact to customers –

affect brand equity

- The image of the product and the image of the

retailer is important to consider as customers
tend to form associations.
-
Consider : and pull
1. Push
strategies
2. Channel support
- Retail segmentation
 1. Push and pull strategies.
Retailers have power over manufactures and directly affect
brand

Devoting marketing efforts to the end consumer = PULL

STRATEGY( broad distribution)
Devoting marketing efforts to the channel members ,
offering them incentives to buy the brand = PUSH
STRATEGY( selective distribution)
2. Channel
support .
Services provided by channel members may help enhance the value
to consumers and the brand. Establish “ Marketing partnership with
retailers is critical to ensure channel support

Two channel support strategies are :

1. Retail segmentation – segmenting the retailers according to similar

characteristics , as different retailers might need different product
mixes , special delivery systems customised promotions or even there
own branded version of the product( Branded variants)
2. Cooperative advertising- manufacturer pays for a portion of the
advertising to promote the product and the availability at the retailer. Ideal
situation would be to achieve synergy between the manufacturers own ad
campaigns and the corresponding co-op ad campaign with the retailer .
Must be balance between pushing the brand and advertising the retailer
 .

.Manufacturers who sell directly to the

public

1. Company owned stores – by means to

showcase the brand and all its products. Helps build
stronger relationships with it’s customers. This may
cause competition with the retailers.

2. Other means - create there own shops within a

department store ; sell through phone , mail or electronic
means ( Catalogue)