Chapter 6 - Designing Marketing Programs to Build Brand Equity (6 hrs)

6.1. Product strategy

6.2. Pricing strategy
6.3. Channel strategy
6.4. Communication strategy
 Chapter 6
Designing Marketing Programs to Build Brand Equity
• Designing marketing programs to build brand equity involves strategic planning to enhance
brand awareness, image, and customer loyalty. These programs should integrate various
strategies like channel strategies, communication strategies, pricing strategies, and other
marketing activities to maximize their impact on customers.
• Creativity and originality are crucial to develop fresh marketing programs that resonate with
customers and differentiate the brand in a competitive marketplace.
• Additionally, leveraging secondary brand associations, experiential marketing, relationship
marketing, and personalizing marketing are effective approaches to strengthen brand equity
• Pricing strategies play a significant role in building brand equity by emphasizing consumer
perception of value and setting prices that reflect the brand's quality and uniqueness.
• Moreover, personalized marketing, experiential marketing, and relationship marketing
are essential components in modern marketing programs to create strong consumer-based
brand equity.
Some examples of successful marketing programs that have built brand equity include:
1. Shopify's Community Building: Shopify has successfully built brand equity by creating a community
of entrepreneurs through sharing helpful resources and fostering a sense of belonging among like-
minded individuals.
2. Coca-Cola's Brand Trust: Coca-Cola's strong brand equity is built on trust, with 69% of people
choosing to buy from a brand they know over others with better reviews. This trust allows Coca-Cola to
charge a premium for its products and maintain customer loyalty.
3. HubSpot's Content Marketing: HubSpot has effectively built brand equity through community-
building, blog posts, social media marketing, and its HubSpot Academy. This approach has helped
HubSpot grow its customer base significantly and achieve substantial revenue growth.
• These examples highlight how different companies have leveraged various marketing strategies to create
strong brand equity, emphasizing the importance of trust, community-building, and content marketing in
building lasting connections with customers.
The key components of a successful brand equity building marketing program include:
1. Partnerships: Establishing strong partnerships that contribute to revenue growth and brand equity.
2. Trust: Building trust between partners through open, honest, and fearless communication.
3. Win-Win-Win Approach: Creating programs that align strategic goals, marketing development funds,
and revenue outcomes for mutual benefit.
4. Teamwork: Fostering teamwork between marketing and sales teams to drive better results.
5. Planning: Emphasizing the importance of planning to ensure effective execution and measurable outcomes.
6. Brand Identity: Defining the brand's personality, values, and unique selling proposition to differentiate it from
competitors.
7. Target Audience Analysis: Understanding the demographics, psychographics, and behaviors of the target
audience to tailor strategies effectively.
8. Brand Messaging: Crafting compelling brand messaging to communicate the brand's value proposition clearly.
9. Integrated Marketing Communications: Leveraging multiple marketing channels for consistent brand
experience and maximum impact.
10. Experiential Marketing: Creating memorable experiences for consumers to forge emotional connections and
foster brand loyalty.
11. Brand Association: Establishing positive mental and emotional connections with consumers to increase
perceived brand value.
12. Brand Loyalty: Building customer loyalty over time to enhance the brand's perceived value.
13. Perceived Quality: Creating a perception of high quality through product quality, customer service, and pricing
strategies.
14. Brand Activation: Implementing strategies that activate the brand effectively across various touchpoints.
15. Measurement and Evaluation: Establishing key performance indicators and metrics to track the effectiveness
of brand activation initiatives.
• By incorporating these components into marketing programs, companies can strengthen brand equity, increase market share, and foster customer loyalty
effectively.
6.1. Product strategy
• Product strategy plays a crucial role in building brand equity, as it directly impacts the brand's
performance and imagery.
• The product strategy should focus on delivering high-quality products that meet customer needs
and align with the brand's values and identity.
• By doing so, the brand can build a strong reputation for delivering on its promises, which can
lead to increased brand loyalty and customer trust.
• The product strategy should also consider the brand's imagery, which refers to the social and
psychological aspects of the brand.
• This can include the brand's visual identity, tone of voice, and overall aesthetic. By creating a
consistent and authentic brand image, the brand can differentiate itself from competitors and build a
strong emotional connection with customers.
• Moreover, the product strategy should be aligned with the brand's purpose, which goes beyond just
making a profit. By emphasizing the brand's willingness to achieve more than just profitability, the
brand can appeal to potential customers who identify with and support those values.
• In summary, the product strategy is a critical component of building brand equity, as it directly
impacts the brand's performance and imagery. By delivering high-quality products that align
with the brand's values and identity, the brand can build a strong reputation, increase brand
loyalty, and create a deep emotional connection with customers.
• Product strategy plays a crucial role in building brand equity as it directly impacts how
consumers perceive and interact with your brand. Here's how product strategy contributes to
brand equity:
1.Product Quality and Performance: Consistently delivering high-quality products that meet
or exceed customer expectations is essential for building brand equity.
• Positive experiences with your products reinforce brand trust and loyalty, while poor quality or
performance can damage brand reputation.
2.Product Innovation and Differentiation: Developing innovative products that offer unique
features, benefits, or solutions helps differentiate your brand from competitors and creates a
competitive advantage.
• Innovation can enhance brand perception and attract new customers while also retaining existing ones.
3.Brand Extensions: Introducing new products or product variants under the same brand
umbrella can leverage existing brand equity to enter new markets or appeal to different
customer segments.
• Brand extensions capitalize on established brand trust and recognition to drive sales and expand brand reach.
4. Product Positioning and Messaging: Aligning product positioning and messaging with your
brand identity and values reinforces brand consistency and clarity.
• Clearly communicating the value proposition of your products helps shape consumer perceptions and
build brand equity over time.
5. Packaging and Design: The packaging and design of your products play a significant role in
shaping brand perception and influencing purchasing decisions.
• Consistent and visually appealing packaging reinforces brand recognition and contributes to overall brand
equity.
6. Brand Experience Integration: Ensuring that the product experience aligns with the brand
promise and values enhances brand equity.
• Every interaction with the product, from purchase to usage and support, should reflect the brand's personality
and values, fostering positive associations and customer loyalty.
7. Customer Feedback and Iteration: Soliciting and incorporating customer feedback into
product development processes demonstrates responsiveness and commitment to customer
satisfaction.
• Restating based on customer input helps refine products to better meet customer needs and preferences,
strengthening brand loyalty and advocacy.
8. Brand Partnerships and Collaborations: Collaborating with complementary brands or
industry partners can enhance brand perception and reach new audiences.
• Strategic partnerships can create opportunities for co-branded products, limited editions, or exclusive
offerings that elevate brand visibility and desirability.
• By integrating product strategy with broader brand-building efforts, companies can create
products that not only meet market demands but also contribute to the long-term growth and
success of the brand.
6.2. Pricing Strategy ()
• Pricing strategy plays a crucial role in building brand equity, as it influences how consumers
perceive a brand's value, quality, and overall desirability.
• By understanding the various techniques and strategies of pricing psychology, businesses can
effectively position their brand and create a strong competitive advantage in the market.
• One pricing strategy that has proven to be highly effective in enhancing brand image is prestige
pricing.
• Prestige pricing involves setting high prices for products or services to reflect their exclusivity
and quality.
• This strategy not only enhances the perceived value but also strengthens brand loyalty.
• Apple is a prime example of a brand that has successfully utilized pricing psychology to build
brand equity.
• One of their key strategies is the premium pricing approach, positioning their products as
high-end and exclusive. By pricing their devices significantly higher than their competitors,
Apple creates a perception of superior quality and status.
• This pricing strategy has contributed to the immense brand loyalty and strong brand equity
that Apple enjoys today.
• The anchoring effect is another powerful pricing psychology technique.
• This phenomenon suggests that consumers rely heavily on the first piece of information they
receive when making purchasing decisions.
• By strategically setting a higher-priced option as an anchor, businesses can make other options
seem more affordable and increase perceived value.
• For example, a clothing retailer may introduce a luxury line with high price tags, making their
mid-range collection appear more reasonably priced.
• Charm pricing is a common technique used in retail, where prices are set just below a whole
number, typically ending in 9.
• Research has shown that consumers perceive prices ending in 9 as being significantly lower
than those rounded up to the next whole number.
• This slight difference can have a substantial impact on consumer behavior and increase
sales.
• Bundling is another pricing strategy that leverages psychology to enhance brand equity.
• By bundling multiple products or services together, businesses can create a perception of
added value and increase the overall price customers are willing to pay.
• For example, a streaming service may offer a package that includes access to exclusive content,
live events, and ad-free viewing at a higher price point compared to individual subscriptions.
• In summary, pricing strategy plays a critical role in building brand equity. By understanding
and implementing techniques such as the anchoring effect, charm pricing, bundling, and
learning from successful case studies like Apple, businesses can create a strong competitive
advantage and establish a favorable perception in the minds of consumers.
• Pricing strategy plays a significant role in building brand equity as it directly influences how
consumers perceive the value of your brand and products. Here's how pricing strategy
contributes to brand equity:
1. Perceived Value: The price you set for your products communicates a message about their
perceived value.
• Premium pricing implies higher quality, exclusivity, and prestige, which can enhance brand
image and equity.
• Conversely, lower prices may suggest affordability but could also signal lower quality or
value.
2. Brand Positioning: Pricing can help position your brand in the market relative to
competitors. A premium pricing strategy positions your brand as a luxury or high-end option,
• while value-based pricing emphasizes the quality and benefits of your products compared to competitors.
Consistency in pricing reinforces brand positioning and identity.
3. Brand Image and Perception: Pricing influences consumers' perceptions of your brand's image, prestige,
and status.
• Luxury brands often command higher prices to maintain exclusivity and perceived value, while value-oriented brands
focus on affordability and accessibility.
• The right pricing strategy aligns with your brand's desired image and target audience preferences.
4. Brand Loyalty and Trust: Consistent and fair pricing builds trust and loyalty among customers.
• Transparent pricing practices, such as avoiding hidden fees or sudden price hikes, demonstrate integrity and
reinforce positive brand associations.
• Loyalty programs or discounts for repeat customers can also strengthen brand loyalty over time.
5. Price-Quality Relationship: Consumers often associate higher prices with higher quality, known as the
price-quality relationship.
• Setting prices that align with your product's perceived quality helps manage customer expectations and prevents pricing
that undermines brand equity by signaling lower quality.
6. Price Elasticity and Demand: Understanding price elasticity—the sensitivity of demand to changes in
price—allows you to optimize pricing to maximize revenue and profitability without sacrificing brand
equity.
• Testing different price points and monitoring consumer response helps determine the optimal pricing strategy for your brand.
7. Promotional Pricing and Discounts: While discounts and promotions can drive short-term sales, they
should be used carefully to avoid eroding brand equity.
• Over-reliance on discounts can train customers to expect lower prices, undermining the perceived value
of your brand and products.
8. Value-Based Pricing: Pricing based on the perceived value of your products to customers
allows you to capture a fair share of the value you provide.
• This approach focuses on understanding customer needs and willingness to pay, rather than solely on
production costs, to set prices that maximize both value and brand equity.
• By carefully considering pricing strategy in conjunction with other brand-building efforts,
companies can enhance brand equity,.0 strengthen customer relationships, and drive long-term
profitability and growth.
6.3. Channel strategy
• Channel strategy is a crucial aspect of building brand equity, as it involves selecting the
most effective channels to reach target audiences and deliver impactful messages that
foster a positive perception of the brand.
• By identifying the right channels, businesses can engage customers through various
touchpoints, including social media platforms, websites, content marketing, SEO, direct
mail, TV ads, print ads, pay-per-click (PPC) ads, affiliate marketing, influencers, brand
ambassadors, and word-of-mouth.
• A well-crafted channel strategy should consider the nature of the products or services, the
target audience, customer preferences, communication style, values, and where they
spend their time.
• By aligning these factors, businesses can determine the channels worth investing in and prioritize the
customer experience.
• An effective channel strategy should also focus on creating a cohesive and consistent customer
experience across all channels, both online and offline.
• This approach, known as omnichannel marketing, ensures that branding, messaging, and conversion
goals are unified across platforms, building trust among target audiences and enhancing customer
engagement.
• By providing a consistent customer experience, messages resonate more deeply, enabling brands to
establish a stronger connection with their audience and improve return on investment.
• In the B2B world, a channel strategy aims to provide the best way to expose a company's products or
services to potential customers.
• A company with a simple product that is easy for a customer to install and requires little support may focus
on web sales or direct mail, while a company with a complex product that requires expertise to properly
implement and calls for a high level of support to maintain may rely on a more intricate channel strategy
involving trained specialists for installation and customer support.
• In summary, channel strategy plays a critical role in building brand equity by selecting the most effective
channels to reach target audiences and deliver impactful messages that foster a positive perception of
the brand.
• By focusing on creating a cohesive and consistent customer experience across all channels, businesses can
build trust among target audiences, enhance customer engagement, and improve return on investment
• Channel strategy refers to the selection, management, and optimization of distribution channels through
which products or services are made available to customers. A well-executed channel strategy can
significantly contribute to building brand equity in several ways:
1. Brand Presence and Visibility: allows your brand to reach a broader audience and increase visibility.
Whether through online retail platforms, brick-and-mortar stores, or direct sales channels, being present
where your target customers shop enhances brand awareness and exposure.
2. Brand Consistency and Experience: Ensuring that the brand message, imagery, and customer
experience are consistent across all touchpoints—whether online, in-store, or through third-party retailers
—reinforces brand recognition and trust.
3. Customer Convenience and Accessibility: Offering multiple channels for customers to purchase products
or access services enhances convenience and accessibility, contributing to a positive brand experience.
• Whether through e-commerce websites, mobile apps, physical stores, or third-party retailers, providing diverse options
accommodates different customer preferences and lifestyles.
4. Channel Partner Relationships: Building strong relationships with channel partners, such as retailers,
distributors, or online marketplaces, is crucial for brand equity.
• Collaborating closely with channel partners to align goals, share insights, and provide support fosters mutual trust and
cooperation, ultimately benefiting the brand and driving sales.
5. Exclusive Distribution and Brand Image: exclusive retail partners or flagship stores, can enhance
brand image and perceived value.
• Exclusive distribution creates a sense of prestige and exclusivity around the brand, appealing to
discerning customers and reinforcing brand equity.
6. Customer Experience and Support: Channel strategy influences the quality of the customer
experience and support provided throughout the purchase journey.
• Investing in training, resources, and technology for channel partners ensures consistent and superior
customer service, strengthening brand loyalty and advocacy.
7. Market Expansion and Growth: Leveraging diverse distribution channels enables brands to
expand into new markets and reach untapped customer segments.
• Whether through international expansion, partnerships with complementary brands, or online marketplaces,
strategic channel expansion drives brand growth and market penetration.
9. Data and Insights: Channels provide valuable data and insights into customer behavior,
preferences, and market trends.
• Analyzing data from different channels allows brands to optimize marketing efforts, personalize customer
experiences, and make informed business decisions, ultimately enhancing brand equity and
competitiveness.
• By developing and executing an effective channel strategy aligned with brand objectives and
customer needs, companies can strengthen brand equity, increase market share, and drive
sustainable growth and profitability.
6.4. Communication strategy
• Communication strategy plays a crucial role by presenting what the brand stands for and
encouraging users to focus on those aspects when they experience the brand.
• Effective communication can create awareness of the brand, link points-of-parity and points-
of-difference associations to the brand in consumers’ memory, cause positive brand judgments
or feelings, and facilitate a stronger consumer-brand connection and brand resonance.
• To develop a marketing communication program to build brand equity, marketers should
consider the following steps:
1. Exposure: Ensure the right consumer is exposed to the right message at the right place and
time.
2. Attention: Use creative strategies to capture the consumer's attention without distracting
from the intended message.
3. Comprehension: Ensure the ad reflects the consumer's level of understanding about the
product and the brand.
4. Yielding: Position the brand correctly in terms of desirable and deliverable points-of-
difference and points-of-parity.
5. Intentions: Encourage consumers to plan to act in the desired manner of the communication.
6. Behavior: Encourage consumers to act in the desired manner of the communication
• Marketers can also use various channels to communicate their brand message, such as advertising,
promotions, trade promotions, and online marketing communication.
• These channels can help create brand awareness, build brand equity, and foster a strong consumer-
brand connection.
• a communication strategy is essential for building brand equity by presenting what the brand stands for
and encouraging users to focus on those aspects when they experience the brand.
• Effective communication can create awareness of the brand, link points-of-parity and points-of-
difference associations to the brand in consumers’ memory, elicit positive brand judgments or feelings,
and facilitate a stronger consumer-brand connection and brand resonance.
• Communication strategy in building brand equity involves crafting and delivering consistent,
targeted messages to convey the brand's values, personality, and offerings to the target audience.
• Here's how communication strategy contributes to building brand equity:
1. Brand Positioning: Communication strategy helps define and communicate the brand's unique
value proposition and positioning in the market.
• Clear and differentiated messaging establishes what sets the brand apart from competitors and why customers
should choose it, strengthening brand equity.
2. Brand Awareness: Effective communication increases brand awareness by ensuring that the brand
is top-of-mind among the target audience.
• Consistent exposure through various channels such as advertising, public relations, social media, and content
3. Brand Image and Perception: Communication shapes consumers' perceptions of the
brand by conveying its personality, values, and qualities.
• Strategic messaging and storytelling evoke desired emotions and associations,
influencing how consumers perceive the brand and its products or services, thus building
brand equity.
4. Brand Trust and Credibility: Transparent, authentic, and credible communication builds
trust with consumers, essential for building brand equity.
• Providing accurate information, addressing concerns openly, and delivering on
promises strengthen brand credibility and foster long-term relationships with
customers.
5. Consistency Across Touchpoints: Consistency in messaging and branding across all
communication touchpoints reinforces brand identity and equity.
• From advertising and packaging to customer service interactions and social media posts,
consistent messaging builds familiarity and trust with consumers, contributing to brand
equity.
6. Engagement and Interaction: Communication strategy fosters engagement and interaction
with the target audience, creating opportunities to build relationships and loyalty.
• Two-way communication through social media, community forums, and interactive content encourages
participation and feedback, deepening connections and enhancing brand equity.
7. Brand Advocacy: Engaging and inspiring communication can turn satisfied customers into
brand advocates who promote the brand to others.
• Encouraging user-generated content, testimonials, and reviews amplifies positive word-
of-mouth and strengthens brand equity through peer recommendations and social proof.
8. Crisis Management: Effective communication is crucial during times of crisis or negative
publicity.
• Transparent, timely, and empathetic communication can mitigate damage to brand
reputation, maintain trust with stakeholders, and protect brand equity in the long term.
9. Measurement and Optimization: Monitoring and measuring the effectiveness of
communication efforts using relevant metrics such as brand awareness, sentiment,
engagement, and loyalty provide insights for optimization.
• Analyzing data helps identify what resonates with the audience and informs adjustments
to communication strategies to enhance brand equity over time.
• By developing a comprehensive communication strategy that aligns with brand objectives,
values, and target audience preferences, companies can effectively build and strengthen brand
equity, driving long-term success and competitive advantage.