Designing Marketing Programs to

Build Brand Equity

Chapter : 5
New perspectives on Marketing
Personalised Marketing – Competitive
forces drive firms towards competition
1. Experiential marketing
2. One to one marketing
3. Permission marketing
 Experiential Marketing
It promotes a product by not only communicating a
product’s features and benefits but also connecting it
with unique and interesting experiences
Advent of the “Experience Economy”
• If your charge for stuff, its commodity business
• If you charge for tangible things, its goods business
• If you charge for activities you perform, then it is services
• If you charge for the time customers spend with you,
then and only then are you in the experience business.
 Experiential Marketing
Focuses on
- customer experience
- on the consumption situation
- views customers as rational and emotional animals
- uses on eclectic methods and tools
“The degree to which a company is able to deliver
customer experience – and to use information
technology, brands and integrated marketing
communication and entertainment to do so- will largely
determine its success in the global market place of the
new millennium”
 One to One marketing
Marketeer uses customer information to
generate rewarding experiences for the
customer
Important points:
• Focus on individual consumers through
consumer databases
• Respond to consumer dialogue via
interactivity
• Customise products and services
 Permission marketing
by Seth Godin
• It is the practice of marketing to consumers only
after their permission
• If a marketeer wants to attract a consumer’s
attention, they first need to get his or her
permission with some kind of inducement – a
free sample/discount. By generating consumer
cooperation in this manner, marketeers can
potentially develop stronger relationships with
consumers
 Seth Godin’s 5 steps of
Permission Marketing

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
prospect maintains permission
4. Offer additional incentives to get more
permission from the consumer
5. Over time, leverage the permission to change
behaviour toward profits
 Product Strategy
• Perceived quality – customer’s perception of
quality/superiority of product/service – how does the
brand rate on it.
• Continual product improvement over years makes
customer expectations rise
• Product quality is also affected by factors like speed,
accuracy and care of product delivery and product
installation
• Promptness, courtesy and helpfulness of customer
service and training and quality of repair
• Adhering to TQM principles (believed by many to lead to
myopia)
 Relationship Marketing
Product strategies must go beyond the
product and build strong relationships
with the customer
There are three important issue in it:
1. Mass customisation
2. After marketing: Marketing programs that
occur after purchase of product
3. Loyalty programs
 Pricing Strategy
Pricing dictates how consumers categorise
the price of the brand- as low, medium and
high and how firm or flexible do the
consumers view the price as- frequently or
infrequently discounted
Setting prices to build brand equity

1. A method or approach for how current

prices will be set
2. A policy of set of guidelines for depth and
duration of promotions and discounts
over time
Many firms use value pricing approach to
set prices and everyday low pricing to
determine their discount
 Value pricing
Its objective is to uncover the right blend of
product quality, product costs and
product prices to satisfy the needs and
wants of consumers and the profit
targets of the firm
Value pricing needs to balance three areas
1. Product design
2. Product costs
3. Product prices
 Value pricing
1. Product design and delivery: Consumers will
pay premium prices for new introduced value-
added products
2. Product costs: Cost should be driven down as
much as possible
3. Product prices: How much value does the
customer attach to the product and how much
price premium he will pay upon it
EDLP is a good way of pricing.
 Channel Strategy
Channel design:
a. Direct channel: Selling through mail,
phone, electronic means and company
owned outlets
b. Indirect channels: Selling through third
party intermediaries such as agents,
brokers, wholesalers and retailers