1. Designing Marketing Programs to Build Brand Equity
Chapter 5

2. Overview
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?

3. BACKGROUND

4. New Perspectives on Marketing
The strategy and tactics behind marketing programs have changed dramatically in recent years as firms have dealt with enormous shifts in their external marketing environments

5. Changes are…. Digitalization and connectivity Customer Empowerment
Fragmentation of media
Customization (through tailored products and co- creation
Industry convergence (blurring of industry boundaries)
Globalization and growth of developing markets
Heightened environmental and social concerns

6. Consumers buy products; they choose brands!

7. Awareness refers to the strength of a brand’s presence in the consumer’s mind
Consumers instinctively prefer a brand that they have previously seen to one that is new to them
Familiar brand has an edge!

8. Brand awareness
A known devil is better than an unknown angel

9. Personalizing Marketing
Experiential Marketing
Promote the product in a way that connects it with the audience in a unique and interesting manner.
Experiences can come in 4 varieties:
Entertainment
Education
Aesthetic
Escapist

10. 75% Market Share
No benefit of the product
Focused on customer
it’s not if you get
this iPod you will
be cool, but rather
you are getting
this because you
are cool

11. SEMs or ‘strategic experience modules’
SENSE
FEEL
THINK
ACT
RELATE

12. SENSE

13. FEEL

14. THINK

15. ACT

16. RELATE

17. Relationship Marketing
One-to-One Marketing
Focus on individual customers
Respond to dialogues: “Consumers talk to us”
Customise products and services
Permission Marketing
Practice of marketing to consumers only after they give permission
The worse marketing clutter gets, more effective is permission marketing

22. Customisation Advantages
Reduces inventory
Has a lot of potential with e-commerce
Potential with service organisations

23. Perceived quality Perceived quality can be defined
as the customer’s perception of the overall quality
or superiority of a product or service
with respect to its intended purpose,
relative to alternatives

24. Perceived quality
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

25. AfterMarketing Focus on the augmented product After-sales service
User Manuals
Loyalty/Frequency programs

26. Value generated by perceived quality
In many contexts, perceived quality provides the pivotal reason to buy
Could differentiate and be a principal positioning characteristic of a brand
Provides the option of charging a premium price
Could be meaningful to channel members and thus aid in gaining distribution

28. Pricing Strategy Consumer Price Perceptions
Setting Prices to build brand equity

29. Pricing Implication
Price cuts will effect different brands differently
High quality brands can easily “steal” market share from low quality brands by cutting price
At the same time, it may not always hold true
But lower quality brands will not steal share from a high quality brands by cutting price

33. Channel Strategy Channel Design Web Strategies Direct Channels
Company Owned Stores
They can act as advertisements and tourist attractions
Create own shops in major department stores
Indirect Channels
Retailers
Tiered Marketing
Web Strategies
Bolsters other marketing efforts
Makes brand more engaging

34. Direct Channels

35. Store within a store

36. Indirect Channels
Retailers

37. Web Strategies