Marketing Programs Chapter 5

Experiential Marketing Focus on consumer experience Sony Metreon Focus on consumption situation Guinness museum View consumer as rational/emotional Nike sponsorship Use eclectic methods and tools Experiential grid (think, feel, do)

Group Activity Design an experiential consumption situation for: Sealy Posturpedic Mattress Black & Decker products K2 ski equipment

Product Strategy Perceived quality Brand intangibles Relationship marketing & consumer value Mass customization Aftermarketing Loyalty programs

Pricing Strategy Consumer perception of price tiers fair price typical price last price competitive pricing usual discounted price premium/ luxury price (value added) every day low price

Channel Strategy: Distribution Direct - identify prospects and visit or contact them pull strategy company stores web strategies Indirect - agents, retailers, brokers, dealers; push strategy retail segmentation cooperative advertising

Private Labels Supermarket store brands 20% of all units sold, 15% dollar volume Value positioning Lower-price knockoffs Trader Joe’s strategy

Profiling Activity Pick a product category Identify all the brands in that category Develop a price tier for the category (Fig. 5-7) Identify their pricing strategies Critique those you think should be priced differently

Better Pricing: Consumers First 1. Consumer’s value of product/service Value variations Price sensitivity Emotional response 2. Company’s optimal pricing structure 3. Competitor’s reaction

Levels of Brand Communications Strategic Brand Management

Enterprise (company) Communication seeks to make firm more transparent to the outsider by revealing its physique,human, technological and financial means. Content is both factual and economic. Coke’s worldwide presence; Atlanta Olympics

Institutional Communication Points to firms’ wider values; voice of the company’s heart. Should make clear the company’s social justification.

Mobil’s People Do Campaign Brand Communication Expresses the meaning of the brand’s products. Brand injects its own value into the product and transforms its status

. Benetton’s Activist Advertising; Ford’s ‘Quality is Job 1’ Product or Service Communication Targeted straight at the consumer or client trying to make a decision.

Messages & Incentives MESSAGES Short term Long term INCENTIVES Short term Long term

Nissan ‘Everything you need; nothing you don’t’ campaign for the Xterra SUV Messages Incentives

Database-driven relationships Repository of information about customers and prospects History of relationship transactions Structural vs. relational databases Match message with customer aggregate Tangible asset

Emotional Branding Feeling good about a brand

Changing Vocabulary of Emotional Branding Think of consumers as people Create products as experiences Convert honesty to trust Change quality to preference Shift notoriety to aspiration Switch identity to personality Revert function to feel Make communication a dialog Transform service into a relationship

Where does the brand hit? HEAD - Aveda Shampoo smart, intriguing, stimulating, end benefit HEART - Godiva Chocolate emotional/experiential, sensual, beloved, trust GUT - Prada design wear sexy, cool, have to have it, ‘that’s me’